Average Cost of Car Insurance in Michigan for 2024

Updated Sept. 22, 2023
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USAA is generally the cheapest car insurance in Michigan for both full coverage and minimum liability policies.

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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 $3,817, compared to the national average of $1,582.

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.

In this article

Key takeaways

  • 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. 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
$3,817/year $2,610/year USAA
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$6,553/year $2,977/year $5,456/year

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 — compared to the state average of $1,582. So for eligible military service members, veterans, and their families, USAA could be an excellent choice.

Provider Full coverage Minimum liability coverage
$3,392/year $2,834/year
Auto-Owners $2,386/year $1,128/year
GEICO $1,735/year
State Farm
$4,081/year $2,978/year
Progressive $2,058/year $1,397/year
Travelers $3,046/year $2,337/year
USAA $1,303/year $592/year

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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
Poor (550-649) $8,508/year
Average (650-699) $5,444/year
Good (700-749) $4,653/year
Excellent (750+) $3,930/year

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 $5,577 annually. And a single speeding ticket could cause your premiums to increase by $1,767.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $3,817/year $5,713/year $1,896
DUI $3,817/year $9,394/year $5,577
Speeding ticket $3,817/year $5,584/year $1,767

*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
18 $6,339/year
25 $2,878/year
30 $3,412/year
40 $3,886/year
60 $3,311/year

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.

City Avg. annual full-coverage premium
Ann Arbor $2,681/year
Detroit $8,124/year
Grand Rapids $2,633/year
Lansing $2,749/year
Livonia $3,713/year
Sterling Heights $4,489/year
Warren $4,959/year

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 $3,817, compared to a national average of $1,582. 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 year in MI?

The average cost of full coverage insurance in Michigan is $3,817 per year. For state-minimum coverage, the average price is $2,610 per year. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.