Michigan's car insurance rates are high due to extensive state requirements, including unlimited personal injury protection. Minimum coverage costs $902 yearly.
Find out if you're overpaying for car insurance below.
Updated: March 20, 2025
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Michigan drivers pay an average of $902 per year for minimum coverage, 52% higher than the national median. Full coverage averages $1,985 annually, a 53% increase over the national average.
Factors contributing to expensive insurance costs in Michigan include the state’s higher-than-average rate of uninsured drivers, personal injury lawsuits and insurance fraud cases.
Westfield, GEICO, Travelers and Chubb are Michigan's best affordable car insurance providers.
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
Car insurance in Michigan is expensive due to its no-fault system, additional insurance requirements, a high number of uninsured drivers, insurance fraud, claims processing practices and personal injury lawsuits.
The following factors contribute to Michigan's high car insurance rates:
Because Michigan is a no-fault state, drivers must have personal injury protection (PIP), which covers financial losses regardless of who's at fault in an accident. This additional required coverage is one of the main reasons insurance premiums in the state are so high.
Michigan’s auto insurance requirements significantly impact costs. Drivers must carry unlimited personal injury protection (PIP), offering lifetime medical benefits for accident-related injuries. While some may opt out with qualifying medical coverage, most must maintain it.
On average, insurers in Michigan pay roughly $555,000 per person for lifetime medical care, contributing to higher premiums. Also, drivers must have property protection insurance (PPI), covering up to $1 million for damage to others' property.
Michigan's Minimum Car Insurance Requirements:
Michigan's uninsured driver rate is among the highest nationwide at 19.6%, exceeding the national average of 14%. Despite reforms to reduce costs and expand coverage, many drivers remain uninsured.
When accidents involve uninsured drivers, costs often fall on the other party's uninsured motorist coverage. This high rate of uninsured drivers compels insurers to increase premiums across the board to offset potential losses.
Insurance fraud significantly impacts Michigan's high car insurance premiums. While exact figures on fraudulent no-fault claims are unavailable, the state has made efforts to address the issue, including creating an Auto Insurance Fraud Unit in 2019 to investigate and prosecute fraud cases.
Fraud costs are often passed on to policyholders, increasing premiums for everyone. Drivers can reduce the impact of fraud by staying informed about common scams and reporting suspicious activities.
Michigan’s insurance laws require auto insurance companies to reimburse claims within 30 days — otherwise, they’ll be penalized. This short grace period often doesn’t give insurers enough time to scrutinize claims properly, which increases the overall rate of fraud. Insurers in the state have to make up for these losses by charging policyholders higher premiums.
In Michigan, personal injury lawsuits have surged by 130% over the past decade. Two-thirds of these cases involve drivers suing their insurers over no-fault claims. Under Michigan's no-fault system, individuals can file personal injury lawsuits for serious injuries, contributing to higher insurance costs statewide.
The average monthly car insurance cost in Michigan is $75 for a minimum coverage and $165 for a full coverage policy.
Auto insurance rates increase each year due to many factors, such as the consumer price index, vehicle repair costs and medical care prices.
| Full Coverage | $1,985 | $1,296 | 53% |
| State Minimum Liability Only | $902 | $595 | 52% |
There are ways to find affordable car insurance in Michigan, despite the state’s high premiums. Here are actionable steps to lower your rates:
Don’t settle for the first auto insurance quote you receive. Insurers weigh factors differently when calculating rates, which can result in significant differences. Comparing quotes from multiple providers helps you find the best rates and coverage for your needs.
Many auto insurance providers offer discounts for bundling policies. Combining your home and auto insurance can significantly reduce your premiums.
Insurance providers offer various discounts to stay competitive, and your situation may qualify you for savings. Ask an agent about your eligibility and factor these discounts into your quote comparisons.
While many insurers offer online quote tools, using them across multiple sites can be time-consuming. Comparison tools, like MoneyGeek's car insurance cost calculator, simplify the process by showing quotes from several providers in one place.
Your deductible — the amount you pay out of pocket for a claim — significantly impacts your rates. Generally, a higher deductible means a lower premium. Raising your deductible can help reduce your overall costs.
If you drive infrequently, pay-as-you-drive or pay-per-mile coverage can lower your insurance costs. These plans calculate premiums based on your mileage and can be cost effective for those driving less or near the national average of 13,476 miles annually.
Westfield offers the cheapest minimum coverage car insurance in Michigan, while GEICO has the lowest full coverage rates. Below are the most affordable providers to help you compare options and save on your policy.
| Minimum Coverage | Westfield | $35 |
| Full Coverage | GEICO | $86 |
| Drivers With Bad Credit | Travelers | $67 |
| Drivers With a DUI | Chubb | $51 |
| Drivers With an Accident | Chubb | $51 |
| Drivers With a Speeding Ticket | Westfield | $44 |
Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.
Minimum coverage in Michigan averages $902 annually — 52% higher than the national median. Full coverage costs $1,985 on average, making Michigan one of the most expensive states for car insurance.
Factors like strict insurance requirements, a high rate of uninsured drivers, personal injury lawsuits and insurance fraud drive these costs. This article outlines these challenges and offers tips for finding affordable car insurance in Michigan.
We answer frequently asked questions about Michigan car insurance to help you understand what makes the rates so high and how you can find affordable options.
Car insurance rates in Michigan are among the highest in the country, with full coverage averaging $1,985 per year.
Various factors cause high car insurance rates in Michigan, including the state's extensive minimum coverage requirements, high rate of uninsured drivers and personal injury lawsuits, among others.
You can find affordable car insurance in Michigan by shopping around, taking advantage of discounts and increasing your deductible.
Sample Driver Profile
We used a sample driver profile to determine average car insurance rates in Michigan:
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):
When minimum coverage is specified, we used the following minimum coverage limits as mandated by Michigan:
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
