Average Cost of Car Insurance in Michigan for 2025

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 $245 per month, compared to the national average of $194.

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.

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Key takeaways

The average cost of car insurance in Michigan is $245 per month for full coverage and $169 for state-minimum coverage.
Young drivers pay an average of $349 per month 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 $245 per month. State-minimum coverage is also relatively expensive at $169 per month, and high-risk and young drivers will have to pay thousands more for coverage.

Avg. cost for full coverage	Avg. cost for minimum coverage
$245/month	$169/month

Avg. for young drivers	Avg. cost for seniors	Avg. for driver with a DUI
$349/month	$229/month	$330/month

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.

Provider	Full coverage	Minimum liability coverage
Auto-Owners	$104/month	$57/month
GEICO	$239/month	$180/month
State Farm	$215/month	$118/month
Progressive	$209/month	$118/month
Travelers	$249/month	$137/month
USAA	$105/month	$57/month

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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. monthly premium
Poor (550-649)	$242
Average (650-699)	$242
Good (700-749)	$233
Excellent (750+)	$226

Average car insurance rates for high-risk drivers in Michigan

Think twice before getting behind the wheel after drinking, and follow traffic laws. Drivers with DUIs, speeding tickets, and at-fault accidents pay more for car insurance.

Violation	Avg. monthly premium
At-fault accident	$281
DUI	$330
Speeding ticket	$280

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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. 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. monthly premium
Teen	$349
20s	$271
30s	$239
40s	$236
60s	$216

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 $423.

City	Avg. monthly full-coverage premium
Ann Arbor	$217
Detroit	$423
Grand Rapids	$215
Lansing	$216
Kalamazoo	$228
Flint	$259
Rochester	$251

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.

Methodology

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 $245, compared to a national average of $194. This is due to several factors, including higher-than-typical crime rates, a substantial percentage of uninsured drivers, and high minimum coverage requirements.