How Much Is Car Insurance in Michigan? (November 2024)

Drivers in Michigan pay an average of $1,985 per year for full coverage car insurance. For minimum coverage, you can expect to pay around $902 annually.

Your age, coverage level, location, and credit history affect your insurance costs. A clean driving record can help you secure lower rates, as insurers consider these when setting premiums.

Michigan drivers pay an average of $1,985 annually for full coverage car insurance. Understand the average cost in your state to assess if you're getting a fair or inflated quote, and compare car insurance quotes to save money potentially.

Here's a breakdown of what you could pay for auto insurance on minimum or full coverage policies:

Car insurance in Michigan is more expensive than in other states. The average annual premium for minimum coverage is $902 ($75 per month), compared to the national average of $795 per year ($66 per month). For full coverage, Michigan drivers pay an average of $1,985 per year ($165 per month), while the national average is $1,337 per year ($111 per month).

Several factors contribute to Michigan's high rates. The state's no-fault insurance laws require drivers to have personal injury protection coverage with higher minimum limits, which offers unlimited medical benefits and raises costs. Also, Michigan has many uninsured drivers and often experiences high rates of costly insurance claims.

Car insurance premiums fluctuate from one company to another, even within the same state. For example, in Michigan, GEICO offers the cheapest full coverage at $1,027 per year, while Hanover provides the most expensive average annual premium at $4,776.

Compare quotes from different providers to find the cheapest car insurance in Michigan that aligns with your needs.

The cost of car insurance in Michigan is also shaped by the level of coverage selected. For instance, monthly minimum coverage averages around $75, while the monthly cost for full coverage with a $1,000 deductible sits at about $165. It's typically recommended to opt for a full coverage policy to provide more comprehensive financial protection despite the higher expense. For more information, explore full coverage insurance.

Adding comprehensive and collision coverage to your policy will inevitably raise your premium; however, selecting higher deductibles could make these costs more manageable. Understand that each deductible amount applies separately to both comprehensive and collision coverage.

In Michigan, the minimum car insurance requirements include bodily injury liability of $50,000 per person, $100,000 per accident, property damage liability of $10,000 per accident and unlimited personal injury protection (PIP) per person. Uninsured/underinsured motorist coverage isn't required.

Your location can heavily influence car insurance premiums. In Michigan, Ann Arbor has the most affordable full coverage at $1,361 per year, whereas Detroit has the highest at $3,987.

Various factors — including driving history, vehicle make and model, and coverage options — determine car insurance rates in Michigan. Credit score, age and even local weather also affect premiums in the state.

Age significantly influences car insurance costs in Michigan. Drivers aged 22 to 29 pay the most, at an average annual premium of $2,276. As drivers age, rates typically decrease, with those aged 30 to 59 paying less, at an average of $1,985. Seniors aged 60 and above benefit from the lowest average premiums, at $1,828 annually.

In Michigan, age and gender affect car insurance rates. For example, adding a 16-year-old male driver to a family policy averages $5,205 annually, while an individual policy costs about $9,053. Minors under 18 need a co-signer to buy insurance.

The average annual cost for full coverage on a 2012 car is $1,429, while a 2022 model costs about $1,800. Newer models have a higher actual cash value, can be more expensive to repair and are more likely to be stolen, all of which raise insurance premiums due to increased financial risk for insurers.

Michigan drivers with newer vehicles should consider comprehensive and collision coverages to protect against theft, vandalism and accidents.

Your driving record significantly affects car insurance costs. In Michigan, here are the average premiums based on different records:

• With a ticket: $2,731 per year; $228 per month
• With an at-fault accident: $2,952 per year; $246 per month
• With a DUI: $4,788 per year; $399 per month

More severe violations lead to higher premiums, and these impacts last as long as the violations are on your record, with durations varying by state.

Credit scores play a crucial role in determining car insurance rates in Michigan. Insurers view credit scores as indicators of a driver's reliability and likelihood of filing claims.

For example, drivers with excellent credit (800 and above) face an average annual premium of $1,309, while those with poor credit (below 670) can see their premiums soar to $4,061.

Generally, a higher credit score results in lower insurance costs. A good credit score ranges from 670 to 739, while very good scores fall between 740 and 799. Lower scores can lead to higher premiums.

Understanding the factors influencing car insurance rates can help drivers find affordable coverage that suits their needs. Key elements affecting premiums in Michigan include:

• Location: Urban areas with higher traffic congestion and theft rates typically lead to pricier car insurance due to increased risk of accidents and claims.
• Age and gender: Younger drivers often face higher rates due to inexperience, while gender can influence premiums based on historical accident data.
• Driving record: A clean driving record can lead to lower car insurance rates, while accidents, tickets and violations suggest higher risk and result in increased costs.
• Credit score: Michigan allows credit scores to be used in determining car insurance rates, with higher scores generally leading to more favorable premiums.
• Vehicle type: Cars that are more expensive to repair or are frequent targets for theft may have higher insurance costs.
• Coverage level: Opting for higher coverage limits or additional policies such as collision insurance and comprehensive insurance will impact your rate.
• Insurance history: Gaps in insurance coverage or claims history can increase your premiums.
• Annual mileage: The more you drive, the higher the chance of an incident, which can increase your insurance rates.
• Marital status: Married individuals may receive lower rates, as they're statistically less likely to file claims than single drivers.

Carefully compare car insurance quotes to find coverage that fits your needs and budget, ensuring you’re protected on Michigan's roads at a reasonable cost.

To find affordable car insurance in Michigan, compare prices from different companies. Raising your deductible can lower your monthly bill. Also, check for discounts you're eligible for, like for safe driving or having a car alarm. These strategies can lead to cheaper minimum coverage insurance.

Due to varying rates, understanding the average cost of car insurance in Michigan can be challenging. Get answers on what you might pay for coverage in the Great Lake State.