Car Insurance in Michigan vs. Texas: Costs, Laws and Resources

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ByMark Fitzpatrick
ByMark Fitzpatrick

Updated: May 20, 2024

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Each state has its minimum requirements for auto insurance coverage. When moving from Michigan to Texas or vice versa, you need to know how their coverage requirements differ.

Michigan and Texas both include similar minimum requirements, like bodily injury liability per accident, but have different liability limits: Michigan has a $40,000 limit, whereas Texas has a $60,000 limit. Unlike Texas, Michigan also requires unlimited personal injury protection per accident and $1 million in property protection. Additionally, Texas requires property damage liability, which is not required by Michigan.

In this MoneyGeek review, we discuss the policies, requirements, and rates for auto insurance in Michigan vs. Texas so you can choose the right policy that is best suited to your budget and needs.

Car Insurance Laws in Michigan vs. Texas

According to the car insurance laws in Michigan, you must have 20/40 in liability limits, PIP coverage of unlimited limits and property protection coverage of $1 million. In contrast, the car insurance laws in Texas require 30/60/25 in liability limits.

Since Michigan mandates more requirements than Texas, its minimum-coverage car insurance policy is more expensive. Drivers in Michigan pay an annual rate of $2,921, whereas drivers in Texas spend $665. In addition to a state's amount of minimum requirements, factors like population density and accident frequency may also affect insurance rates.


Michigan Requirements

  • $20,000 bodily injury liability per person
  • $40,000 bodily injury liability per accident
  • Unlimited personal injury protection per person
  • Unlimited personal injury protection per accident
  • $1 million property protection

Texas Requirements

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Car Insurance Resources for Michigan and Texas


To determine which companies offer the cheapest policies and top services, MoneyGeek examined the rates of auto insurance in Michigan vs. Texas. Moreover, we provided you with resources to help you compare prices and get quotes between the two states.

There are several factors to consider to determine the right policy for you including your finances and insurance requirements. While rates vary in each state and by insurance company, comparing quotes from different providers can help you find the most affordable and the best-rated car insurance policies.

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How Are Car Insurance Laws Enforced in Michigan and Texas?

Because Michigan is a no-fault state, drivers use their own insurance providers to cover injuries and damages, regardless of who caused the accident. Medical bills are covered by no-fault insurance through PIP coverage.

Meanwhile, Texas is an at-fault state that uses a tort liability system. This system requires the at-fault driver to pay for all damages through their insurance provider.

Cheapest Car Insurance Companies in Michigan vs. Texas

We compared and analyzed the costs of several insurance companies in Michigan and Texas to help you find the most affordable car insurance policies. The results are listed below.

  • Cheapest in Michigan: Nationwide ($774 per year)
  • Cheapest in Texas: Farmers ($420 per year)

If you’re from Michigan and an eligible military member or a family, USAA is an even cheaper option averaging $704 per year for a minimum coverage policy.

Since every state has different coverage requirements, rates can vary even if a policy is from the same company. For example, Farmers offers its minimum coverage policy at $420 per year in Texas while it's $9,390 per year in Michigan.

Cheapest Car Insurance Companies in Michigan
Annual Rate








Auto-Owners Insurance Co
























State Farm








Cheapest Car Insurance Companies in Texas
Annual Rate








State Farm





















The General


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For Michigan drivers, Nationwide provides the lowest yearly rate for a minimum coverage policy at $774. Texas drivers looking for the cheapest option for the same policy can choose Farmers with an annual rate of $420. These rates are for a minimum coverage policy, meaning, if you need more coverage, your premium will likely be higher.

Some factors providers consider when determining your actual rate include your state, age, driving history and insurance coverage. To help you find the right policy that suits your budget and requirements in both states, MoneyGeek provided this comprehensive guide.


Average Cost of Car Insurance in Michigan vs. Texas

Coverage is a significant factor that increases the cost of your premium. In Michigan, a full-coverage policy costs an average of $4,333 per year, while a minimum coverage policy costs roughly $2,921. A full-coverage policy in Texas costs $1,316 annually, whereas a minimum coverage policy costs around $665. Considering rates for both coverage amounts, Texas offers lower premiums.

Average Cost of Car Insurance in Michigan vs. Texas
Michigan Annual Premium
Texas Annual Premium

Minimum Coverage



Full Coverage



Adding a Young Driver



Drivers With a Violation



Drivers With Poor Credit



Why Are Car Insurance Rates More Expensive in Michigan vs. Texas?

Car insurance rates can vary by state for several reasons. Michigan’s status as a no-fault state and higher rate of uninsured drivers increases the cost of premiums in comparison to Texas.

Car Insurance Costs by City in Michigan vs. Texas

Your location is another driving factor influencing your insurance premium. People are more densely packed in cities that have a high population, which could result in more accidents. As a result, premiums are higher in locations with high density. MoneyGeek found the cheapest and most expensive cities in Michigan for car insurance are Ann Arbor and Detroit, with policies costing an average of $1,083 and $3,688 per year, respectively. In Texas, the cheapest car insurance policies can be found in Abilene at $480 per year, while Houston offers the most expensive policies at $806 per year.

Car Insurance Costs by City in Michigan
Average Annual Rate

Ann Arbor




Grand Rapids




Sterling Heights




Car Insurance Costs by City in Texas

Moving Between Michigan and Texas? What to Know

If you're considering relocating to Michigan from Texas or vice versa, state laws require that you transfer your driver's license and registration. You don't need to change your provider if you're happy with your current provider and your policy covers the requirements in your new state. However, your rate may change to meet the risk and coverage requirements in your area.

MoneyGeek provided resources to help you find the best company for your needs in your search for a new car insurance company.

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    Use MoneyGeek’s car insurance calculators for Michigan and Texas

    Calculating your car insurance premiums allows you to create a budget more easily. Use the Michigan car insurance calculator or Texas car insurance calculator to find out how much your policy will cost in each state.

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    Learn about car insurance for high-risk drivers in Michigan and Texas

    High-risk drivers often get rejected by insurance providers unless they pay higher premiums. In Michigan and Texas, drivers convicted of serious driving offenses, such as a DUI, must file an SR-22 in Michigan or SR-22 in Texas.

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    Figure out your options for temporary car insurance in Michigan and Texas

    You may want to look into temporary car insurance if you plan to go to Michigan or Texas for a short period. A typical auto insurance policy has a minimum of six months, but MoneyGeek found alternatives such as temporary car insurance in Michigan or temporary car insurance in Texas.

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    If you’re a low-income driver, see if Michigan or Texas offer car insurance programs

    Neither Michigan or Texas have any government auto insurance programs. Low-income drivers in Michigan and low-income drivers in Texas can access MoneyGeek resources to help them save on their insurance premiums.

FAQs About Michigan and Texas Car Insurance

State laws and car insurance prices vary from one state to another. MoneyGeek answered the following most frequently asked questions about car insurance in Michigan vs. Texas.

How do car insurance laws and requirements differ in Michigan and Texas?
Are the cheapest car insurance companies different in Michigan and Texas?


To calculate average car insurance rates by company and across Michigan and Texas, MoneyGeek collaborated with Quadrant Information Services to collect auto insurance quotes from both locations. We used a sample profile for a 40-year-old driver with a clean driving record and minimum coverage unless modified by criteria like coverage level, age, driving offenses and credit score. Learn more about how costs are calculated in our MoneyGeek car insurance methodology.

Minimum car insurance requirements by state were sourced from the Department of Motor Vehicles (DMV) of the respective state.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.