Average Car Insurance Cost in Michigan (2024)

As you shop around for car insurance in Michigan, you’re probably looking for the best deal available. Michigan drivers unfortunately pay the highest average car insurance rates in the country.^[1]

Michigan drivers pay around $4,141 per year on average for full-coverage car insurance, Insurify data shows. By comparison, drivers in Hawaii — the state with the cheapest average coverage — pay just $1,354 per year for full coverage.

Michigan's high state insurance requirements, severe weather, and significant number of uninsured drivers contribute to its high insurance costs. But drivers in the Great Lakes State can still find affordable coverage by comparing car insurance quotes from multiple companies.

What’s the average cost of car insurance in Michigan?

Michigan drivers pay an average monthly rate of $184 for liability-only policies and $345 for full-coverage policies — which include collision and comprehensive coverage in addition to liability.

Living in the most expensive state for car insurance, Michigan drivers pay more than double what drivers pay in the 10 cheapest states for auto insurance.

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Average Michigan car insurance rates by city

Car insurance rates differ from city to city, even within the same state, due to several location-based factors. Local crime rates and accident rates, as well as population density, weather, and more, may influence average rates by city.

“Insurance carriers have started to break the likelihood of a claim down to counties, ZIP codes, and even parts of bigger cities,” says Zack Fortman, an independent insurance agent at Fortman Insurance Services. “If you live in an area that has a higher percentage of claims, then your auto insurance will be higher.”

A high amount of claims filed in your area will generally result in higher car insurance rates. Drivers in urban areas often pay above-average rates because of an increased risk of vandalism, car theft, accidents, and other hazards.^[2]

The table below shows the average monthly rate for both liability-only and full-coverage car insurance in some Michigan cities.

Average Michigan car insurance rates by insurance company

The auto insurance provider you choose will also determine your insurance rates. Some insurance companies offer Michigan drivers lower rates than other companies.

The cheapest provider won’t be the same for everyone, even in the same state. Each insurance company uses its own calculation methods to set rates. As a result, the cheapest policy for one person could be more expensive for someone else.

As you can see from the table below, Auto-Owners and USAA offer the lowest average insurance premiums in Michigan.

Average Michigan car insurance rates by age

“Age is another big factor when it comes to determining an auto insurance rate for someone,” Fortman says. “Younger drivers typically have claims more frequently, and they tend to be bigger claims.”

Young drivers tend to pay much higher car insurance rates than older drivers due to their lack of driving experience putting them at a higher risk of filing a claim. For example, drivers between 16 and 19 represent just 3.5% of licensed drivers but account for nearly 9% of car accidents.^[3]

Find average monthly quotes by your age category below.

Average Michigan car insurance rates by gender

Gender may also affect car insurance rates. Women are often considered to be safer drivers than men, and they tend to have fewer serious accidents and DUIs. Because of that, insurance companies often charge women lower premiums than men.

Like in a few other states, Michigan law prohibits providers from using someone’s gender as a factor when setting insurance premiums.^[4] 

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Average Michigan car insurance rates by marital status

In many states, married drivers pay about 5% less for auto insurance than single drivers. However, the same Michigan legislation that bans insurance companies from charging someone based on their gender also prohibits discrimination based on marital status. As a result, auto providers in Michigan can’t charge someone higher premiums simply because they aren’t married.

The table below provides some examples of the liability rates Michigan insurers offer married people versus single drivers.

Average Michigan car insurance rates by driving record

One of the most important factors determining your auto insurance premiums, your driving record includes any recent traffic violations. Drivers with clean records tend to earn the lowest insurance rates, and even a single violation can increase your rates.

How much your rate increases after a violation generally depends on the seriousness of the offense. For example, failing to stop at a red light or stop sign might increase your rates only slightly, but negligent driving or driving under the influence can double your rates.

In Michigan, most violations stay on your driving record for at least seven years, while some more serious offenses will remain for 10 years. Two violations — causing a fatality and driving while impaired (DWI) — stay on your driving record permanently.

Average Michigan car insurance rates by credit score

In many states, auto insurers can consider your credit score as an important factor in determining your car insurance rates. Auto insurers generally offer drivers with good credit lower rates because they consider them to be at a lower risk of filing a claim.

But in Michigan, it’s illegal for insurance companies to use your credit score to set your insurance rates. Your credit score — along with your gender and marital status — qualify as non-driving factors that can’t be part of insurance rates.

Michigan minimum car insurance requirements

Like nearly every state in the country, Michigan requires all drivers to carry a minimum amount of insurance coverage to protect themselves and others if they cause an accident.

Michigan has no-fault auto insurance, which includes three main components:

• Personal injury protection (PIP): This coverage pays for your medical bills if you experience injury due to an accident, regardless of fault and with no maximum limit. It may also cover wages lost from injury up to a certain amount for up to three years.

• Property protection insurance (PPI): Similar to the property damage liability insurance required in other states, PPI insurance pays for up to $1 million for damage to other people’s property or parked vehicles you cause in Michigan.

• Residual liability insurance: Drivers must carry at least $20,000 per person and $40,000 per accident for bodily injury coverage and $10,000 of property damage liability coverage for an accident in another state.^[5]

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Michigan car insurance FAQs