Michigan's average annual car insurance costs are $1,985 for full coverage and $902 for minimum coverage. These rates are $689 and $307 more expensive, respectively, than national averages.
Average Cost of Car Insurance in Michigan
Updated: December 19, 2024
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Key Takeaways
Drivers in Michigan pay 53% more for full coverage car insurance compared to the national average.
Michigan residents shell out 52% more for minimum coverage than the national average.
Michigan is one of the priciest states for car insurance, with average annual costs of $1,985 for full coverage and $902 for minimum coverage.
How Much Is Car Insurance in Michigan?
| Full Coverage | $1,985 | $1,296 | 53% |
| State Minimum Liability Only | $902 | $595 | 52% |
Michigan Car Insurance Rates by Coverage Level
Your coverage level affects your car insurance rate. Raising your liability limits and adding full coverage increase costs, while choosing a higher deductible lowers your premium. Below are average minimum coverage and full coverage rates in Michigan based on different deductibles and liability limits.
| 300/500/300 | Full Coverage | $2,321 | $500 |
| 100/300/100 | Full Coverage | $2,220 | $0 |
| State Minimum | Full Coverage | $2,155 | $500 |
| 300/500/300 | Full Coverage | $2,086 | $1,000 |
| 300/500/300 | Full Coverage | $2,009 | $1,500 |
| 100/300/100 | Full Coverage | $1,985 | $1,000 |
| State Minimum | Full Coverage | $1,919 | $1,000 |
| 100/300/100 | Full Coverage | $1,908 | $1,500 |
| State Minimum | Full Coverage | $1,842 | $1,500 |
| 300/500/300 | Liability Only | $1,082 | $0 |
| 100/300/100 | Liability Only | $969 | $0 |
| State Minimum | Liability Only | $902 | $0 |
Read More: Liability vs. Full Coverage Car Insurance
Average Michigan Car Insurance Cost by City
Car insurance rates in Michigan cities vary based on crime rates, traffic conditions and weather. For example, Detroit's annual full coverage is $3,987, much higher than Ann Arbor's $1,361 and Grand Rapids' $1,377. Check the table below to see how these rates compare to the Michigan average.
| Ann Arbor | $1,361 | -29% | $694 | -37% |
| Detroit | $3,987 | 109% | $2,295 | 109% |
| Grand Rapids | $1,377 | -28% | $677 | -38% |
| Lansing | $1,486 | -22% | $813 | -26% |
| Sterling Heights | $2,053 | 8% | $1,211 | 10% |
| Warren | $2,571 | 35% | $1,579 | 44% |
Average Michigan Car Insurance Cost by Age
In Michigan, age affects car insurance costs. Young drivers often pay more because they’re considered riskier. On average, 25-year-olds pay 15% more for full coverage and 10% more for minimum coverage than 40-year-olds. Compared to 65-year-olds, they pay 25% and 10% more, respectively.
| 25 | $2,276 | $995 |
| 40 | $1,985 | $902 |
| 65 | $1,828 | $904 |
While age affects car insurance costs in most U.S. states, California, Massachusetts and Hawaii don't allow age as a rating factor.
Car Insurance Costs in Michigan for Young Drivers by Gender
Young drivers in Michigan face higher car insurance costs due to more accidents. On average, drivers aged 18 to 25 pay $2,443 per year when added to a family policy, 17% less than an individual policy, which costs $2,847.
Gender also influences car insurance rates for young Michigan drivers. Females aged 18 to 25 pay an average of $2,439 annually, slightly less than male drivers who pay $2,447. Below are the average premiums for individual and family policies for young drivers in the state, broken down by gender.
Car Insurance Costs in Michigan for Young Females
In Michigan, an 18-year-old female added to a family car insurance policy costs a yearly average of $2,999. Choosing an individual policy can raise the rate to $5,386.
| 18 | $5,386 | $2,999 | -44% |
| 19 | $3,565 | $3,092 | -13% |
| 20 | $3,273 | $2,837 | -13% |
| 21 | $2,426 | $2,121 | -13% |
| 22 | $2,285 | $2,380 | 4% |
| 23 | $2,143 | $2,230 | 4% |
| 24 | $2,038 | $2,118 | 4% |
| 25 | $1,664 | $1,739 | 5% |
Car Insurance Costs in Michigan for Young Males
In Michigan, an 18-year-old male pays about $5,386 for individual full coverage car insurance. Adding him to a family policy costs $2,999, saving nearly 44% annually.
| 18 | $5,386 | $2,999 | -44% |
| 19 | $3,565 | $3,092 | -13% |
| 20 | $3,273 | $2,837 | -13% |
| 21 | $2,426 | $2,121 | -13% |
| 22 | $2,285 | $2,397 | 5% |
| 23 | $2,143 | $2,245 | 5% |
| 24 | $2,038 | $2,133 | 5% |
| 25 | $1,664 | $1,752 | 5% |
Average Michigan Car Insurance Cost by Driving Record
In Michigan, traffic offenses can sharply increase car insurance premiums. An at-fault accident may raise rates by 55%, a DUI by 151% and a single ticket by 43%. The table below compares costs for drivers with accidents, DUIs or tickets to those with clean records.
| At-Fault Accident | $2,952 | 55% | $1,365 | 25% |
| DUI | $4,788 | 151% | $2,351 | 115% |
| Ticket | $2,731 | 43% | $1,293 | 18% |
Read More: High-Risk Car Insurance in Michigan
Average Michigan Car Insurance Cost by Company
Car insurance premiums vary widely by company. GEICO offers the most affordable auto insurance in Michigan at $1,027 annually for full coverage. Hanover's average is the highest at $4,776, which is 69% above the state average.
| GEICO | $1,027 | $630 |
| Travelers | $1,253 | $421 |
| Progressive | $1,373 | $614 |
| Encompass | $1,386 | $577 |
| Auto-Owners Insurance Co | $1,415 | $658 |
| Chubb | $1,494 | $612 |
| Westfield | $1,662 | $416 |
| Farm Bureau Ins of MI | $1,841 | $871 |
| Pioneer State Mutual Ins Co | $1,905 | $953 |
| Grange Insurance | $1,980 | $951 |
| State Farm | $2,578 | $1,473 |
| Farmers | $3,112 | $1,295 |
| Hanover | $4,776 | $2,257 |
Average Michigan Car Insurance Cost by Vehicle Age
In Michigan, newer cars have higher insurance costs, averaging $1,800 annually for full coverage. A 10-year-old model is more affordable, with an average of $1,429.
| 10-Year-Old Vehicle | $1,429 | $740 |
| New Model Vehicle | $1,800 | $710 |
ACTUAL CASH VALUE
Your car's actual cash value (ACV) is what your insurer believes it was worth before any damage. In comprehensive or collision claims, the insurer uses the ACV to determine the maximum amount for repair or replacement, minus any deductible, ensuring the claim matches the car's fair market value.
Read More: Used Car Insurance
Michigan Car Insurance Rates Explained
Michigan's car insurance rates often differ from those of most Americans. Whether these rates are higher or lower, several key factors play a role, including your vehicle type and coverage level, be it full or minimum.
Is Car Insurance Expensive in Michigan?
Car insurance in Michigan is more expensive, with an average full coverage cost of $165 per month, 53% higher than the national average.
Read More: Why Car Insurance Is So Expensive
Car Insurance Costs in Michigan vs. National Average
National Average Cost
Full Coverage Car Insurance
$108
Michigan Average Cost
Full Coverage Car Insurance
$165MI Car Insurance Is Expensive:$57 more
This is 53% more expensive.
Why Are Car Insurance Rates Expensive in Michigan?
Michigan's car insurance rates are pricey due to dense cities and tough winters, which cause more accidents. High living costs and strict laws also push up prices.
Read More: Car Insurance Rates by State
Estimating Your Car Insurance Costs in Michigan
While average rates reflect how laws and the economy affect car insurance in Michigan, your premium depends on factors specific to you. To estimate your costs, consider the following:
Driving Record
A clean driving record can significantly lower your car insurance premiums. Avoid traffic violations and at-fault accidents to qualify for good driver discounts.
Age and Gender
Younger drivers typically face higher rates. Gender also affects premiums, with males often paying more than females.
Vehicle Type
To reduce your premiums, opt for a vehicle with a strong safety record and lower theft rates.
Coverage Level
More coverage means higher premiums. Determine the right balance for your needs and consider higher deductibles to lower your monthly costs.
Location
Living in areas with higher crime or accident rates can increase insurance costs. Consider this when moving or comparing rates within Michigan.
Marital Status
Married couples often receive lower car insurance rates due to perceived stability. Combining policies can also lead to discounts.
State Law
Michigan's no-fault insurance law requires specific coverages. Stay informed to ensure you're meeting legal requirements while finding competitive rates.
Read More: Michigan Car Insurance Calculator
Minimum Car Insurance in Michigan
Michigan's average annual rate for minimum car insurance is $902, which is 52% higher than the national average of $595. Here's a breakdown of the state's minimum coverage requirements.
Michigan Car Insurance Requirements
Michigan requires minimum auto insurance coverage, including $50,000 for bodily injury per person, $100,000 per accident, $10,000 for property damage and unlimited personal injury protection (PIP) per person.
Liability Limits | What It Covers |
|---|---|
$50,000 bodily injury liability per person | Medical expenses if you cause an accident |
$100,000 bodily injury liability per accident | Multiple injured parties |
$10,000 property damage liability per accident | Repairs to another person's property |
Unlimited PIP per person | Extensive medical benefits regardless of fault |
How to Lower Car Insurance Costs in Michigan
To save on car insurance, compare rates, choose higher deductibles and use eligible discounts.
- 1
Compare Multiple Quotes
Research multiple insurance providers to find the cheapest car insurance, potentially saving you hundreds of dollars annually.
- 2
Lower Your Risk Profile
Maintaining a clean driving record without at-fault accidents or moving violations can significantly lower premiums, as insurers view you as a lower risk.
- 3
Adjust Your Coverage
Evaluate your coverage needs to ensure you're paying only for what's necessary. Consider higher deductibles for a reduced premium or usage-based policies if you drive infrequently.
- 4
Ask About Discounts
Request discounts for safe driving, good grades, anti-theft devices, completing a defensive driving course or bundling policies, which can reduce car insurance premiums.
- 5
Consider the Car You Drive
Choosing a vehicle that's cheaper to insure, like one with excellent safety ratings.
Auto Insurance Rates in Michigan: Bottom Line
Michigan's average yearly cost of full coverage car insurance is $1,985, above the national average, making Michigan one of the pricier states for car insurance. Rates vary based on factors like driving history, car type and location.
Michigan Car Insurance Rates: FAQ
Get answers about what impacts the average cost of car insurance in Michigan and how to find affordable rates.
What are the minimum car insurance requirements in Michigan?
Michigan's minimum car insurance requirements include a bodily injury liability of $50,000 per person and $100,000 per accident, coupled with property damage liability coverage of $10,000. Michigan also mandates unlimited personal injury protection, which can substantially raise the cost of basic coverage.
What is the average cost of full coverage and minimum coverage auto insurance in Michigan?
The average annual cost of full coverage auto insurance in Michigan is $1,985, significantly higher than the national average. For minimum coverage, Michigan drivers pay an average of $902 annually, also above the national average.
What is the average cost of car insurance for a 25-year-old in Michigan?
The average annual cost of full coverage auto insurance for 25-year-olds in Michigan is $2,276, while minimum coverage averages $995.
What are the cheapest car insurance companies in Michigan?
GEICO offers the most affordable car insurance in Michigan, with full coverage at $1,027 annually and minimum coverage at $630.
Michigan Auto Insurance Cost: How We Determine Average Rates
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates in Michigan:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We modified this driver profile by age, vehicle and driving record to determine averages for different driver profiles and needs.
Coverage Levels and Deductibles
Unless otherwise noted, average rates on this page are for a full coverage policy with comprehensive and collision coverage, a $1,000 deductible for each and the following liability limits (100/300/100):
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
When minimum coverage is specified, we used the following minimum coverage limits as mandated by Michigan:
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
- $10,000 in property damage liability per accident
- Unlimited personal injury protection (PIP) per person
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He 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.