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

If you plan to move from California to Michigan or vice versa, the varying minimum coverage car insurance requirements within the states may influence your auto insurance premium significantly.

California’s state minimum policy requires 15/30/5 limits. However, Michigan mandates $20,000 in bodily injury liability per person, $40,000 in bodily injury liability per accident, unlimited personal injury protection per person and accident and $1 million in property protection.

MoneyGeek analyzed car insurance costs, as well as laws and requirements in California and Michigan to help you determine the cheapest company in the states.

There is a significant difference between car insurance requirements in California vs. Michigan and a considerable difference in the coverage limits. As per the car insurance laws in California, your policy limits must be at least 15/30/5. Meanwhile, Michigan car insurance law mandates a minimum car insurance requirement of 20/40 with $1 million in property damage coverage plus unlimited personal injury protection per person and accident. That’s why the average rates for car insurance in California vs. Michigan differ significantly.

The average yearly cost of minimum coverage car insurance in California is $665, and $2,921 in Michigan. Drivers in Michigan pay a higher premium, and one primary cause may be the high coverage limits.

California is a tort or at-fault state, meaning you pay for the cost of medical care and damages to the other party when involved in an at-fault accident. Meanwhile, Michigan is a no-fault state, so your policy pays for your economic losses, regardless of who is at fault, and your collision coverage may pay for vehicle damage.

From MoneyGeek’s findings, on average, the most affordable minimum coverage car insurance companies in California and Michigan are:

• Cheapest in California: Progressive ($481 per year)
• Cheapest in Michigan: Nationwide ($774 per year)

USAA has the cheapest minimum coverage policy in Michigan at around $704 per year. However, its policies are only available to individuals with a military background.

Car insurance rates may vary across states for the same insurer. For example, on average yearly, Progressive policyholders pay $481 in California, but in Michigan, the cost is $1,704 for the state minimum policy, considerably more than Nationwide. Comparing prices across providers can help you find the cheapest option.

Your car insurance premium varies based on the coverage limit of your policy. Michigan has significantly higher costs for state minimum coverage and full coverage car insurance than California.

Annually, California drivers pay an average of $665 for a state minimum coverage policy and $1,429 for a full coverage policy. However, drivers in Michigan pay about $2,921 per year for a minimum coverage policy and around $4,333 for full coverage.

Rates may vary greatly based on factors such as your location, age, credit score and driving history.

On average, drivers pay higher car insurance premiums in Michigan vs. California but finding one reason why is impossible. But, the high state minimum coverage requirement Michigan imposes is definitely part of it. Other contributing factors could be the high rate of uninsured motorists in Michigan and the fact that it’s a no-fault state.

Where you live partly influences your car insurance costs in California or Michigan.

Based on MoneyGeek’s findings, the cheapest California city for state minimum coverage auto insurance is Santa Maria, costing around $509 per year, and the most expensive city in California for car insurance is Glendale, roughly $1,066 per year.

In Michigan, residents of Ann Arbor pay the least for minimum coverage car insurance, averaging $1,083 a year, and the most in Detroit, costing around $3,688 per year.

For each state, car insurance requirements remain the same in cities. Rates vary in each location due to factors such as the population density and rate of car accidents or thefts.

Changing your state of residence from California to Michigan or vice versa means changing your license, car insurance policy and registration. If your current insurer offers coverage within your new state, you may decide to retain your policy, although your rates are likely to change. For example, you must add coverage to your policy if you move from California to Michigan, which can increase the cost.

If you need to change your insurer, using MoneyGeek’s resources can help you find the best company at the best price for your driving profile.

California and Michigan feature different laws and average car insurance rates. MoneyGeek answered some of the commonly asked questions about car insurance in both states to ensure you find the right policy for your needs.

To calculate average car insurance rates by company and across California and Michigan, 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.