The Great Lake State has a lower cost of living than most states, so the typical car insurance premiums can be a shock. In fact, Michigan's average car insurance premium is more than double the national average.
Why is car insurance so pricey? Michigan has a high percentage of uninsured drivers. According to the Insurance Research Council, one in four drivers in Michigan is uninsured. The state also has much higher insurance requirements than other states, so premiums are usually more expensive.
Despite the high cost, there are ways to find affordable car insurance. Continue reading to learn about car insurance and how to save money on a policy in Michigan.
- How much does car insurance cost in Michigan?
- Average cost of car insurance in Michigan by provider
- How does credit score affect car insurance rates in Michigan?
- Average car insurance rates for high-risk drivers in Michigan
- How does age affect car insurance rates in Michigan?
- Michigan car insurance rates by city
- MI’s minimum car insurance requirements
- How to save money on car insurance in Michigan
- FAQs about car insurance costs in MI
- The average cost of car insurance in Michigan is $3,817 per year for full coverage and $2,610 for state-minimum coverage.
- Young drivers pay an average of $6,553 per year for car insurance.
- 25.5% of Michigan drivers are uninsured.
How much does car insurance cost in Michigan?
If you need to purchase a car insurance policy in Michigan, be prepared for some sticker shock. The average cost of full coverage protection — which includes collision, comprehensive, and liability insurance — is a staggering $3,817, over $2,200 higher than the national average. State-minimum coverage is also expensive at $2,610 per year, and high-risk and young drivers will have to pay thousands more for coverage.
|Avg. cost for full coverage||Avg. cost for minimum coverage||Cheapest insurance provider|
|Avg. for young drivers||Avg. cost for seniors||Avg. for high-risk drivers|
Average cost of car insurance in Michigan by provider
Insurance rates can vary by provider, so shopping around is wise. In Michigan, several well-known companies issue policies within the state.
For both full coverage and minimum liability insurance, USAA offered the lowest rates. On average, its full coverage policies cost $1,303 — much lower than the state average. So for eligible military service members, veterans, and their families, USAA could be an excellent choice.
|Provider||Full coverage||Minimum liability coverage|
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How does credit score affect car insurance rates in Michigan?
Throughout most of the country, insurance companies can use driver credit scores to decide their rates. But in Michigan, insurance companies cannot use credit scores to determine premiums.
Despite that rule, we found that the average premiums were still more expensive for those with poor credit. That discrepancy may be due to other factors corresponding to low credit scores.
For example, young adults tend to have lower credit scores because they haven’t had as much time to build their credit. But even if you remove credit scores from the equation, young drivers are more likely to be involved in accidents than other drivers and tend to have much higher premiums.
|Credit health||Avg. annual premium|
Average car insurance rates for high-risk drivers in Michigan
Think twice before getting behind the wheel after drinking, and follow traffic laws. The costs of getting into an accident, speeding, or being convicted of driving under the influence (DUI) are high; a DUI conviction may raise your premiums by $4,741 annually. And a single speeding ticket could cause your premiums to increase by $931.
|Violation||Avg. annual premium before violation*||Avg. annual premium after violation||Avg. cost increase|
*Assumes clean driving record with good credit
How does age affect car insurance rates in Michigan?
In most states, insurance for older adults is less expensive than it is for younger drivers. However, that’s not the case in Michigan. Teens can expect to pay much higher premiums, but young adults in their 20s or 30s generally have lower premiums than drivers in their 40s or 60s.
|Age||Avg. annual premium|
Michigan car insurance rates by city
Where you live in Michigan can also affect your premiums. Areas with high crime levels tend to be more expensive than others. That is especially true in Detroit, one of the most dangerous cities in the country with high violent and property crime rates.
In fact, according to a report from the Detroit Police Department, the number of reported stolen vehicles increased by 45% in 2022. With that information in mind, it’s unsurprising that Detroit’s premiums average $8,124 — thousands more than the state average.
|City||Avg. annual full-coverage premium|
MI's minimum car insurance requirements
Michigan requires all drivers to carry no-fault car insurance. The state recently passed new laws that changed the type of coverage drivers must have; Policies issued after July 2, 2020, must meet the following requirements:
- Personal Injury Protection (PIP): $250,000 per person, per accident (a lower level can be selected, but only for those that are enrolled in Medicaid)
- Property Protection: $1 million in coverage
- Residual Bodily Injury and Property Damage Liability: $50,000-$250,000 for a person hurt or killed in an accident, $100,000-$500,000 for multiple people injured or killed in an accident, and up to $10,000 in property damage in another state
How to save money on car insurance in Michigan
To save money on your car insurance premiums, follow these tips:
- Increase your deductible: Increasing your deductible — such as changing it to $1,000 from $500 — can lower your monthly or annual premiums.
- Consider pay-per-mile insurance: Pay-per-mile insurance, also known as usage-based coverage, is often much cheaper than traditional policies.
- Ask about discounts: You may be eligible for discounts, so talk to your agent to see what programs are available. Your insurer may offer multi-policy discounts, safe driving discounts or anti-theft device discounts.
- Shop around: Shopping around and comparing rates can help you save hundreds every year. You can get started by requesting quotes from the best car insurance companies.
Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.
FAQs about car insurance costs in MI
Is car insurance expensive in MI?
Yes. Car insurance in Michigan is more than double the national average. This is due to several factors, including higher-than-typical crime rates, a substantial percentage of uninsured drivers, and high minimum coverage requirements.
How much is car insurance per month in MI?
The average cost of full coverage insurance in Michigan is $318.08 per month. For state-minimum coverage, the average price is $217.50 per month.
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