Why Is Car Insurance So Expensive in Michigan? (2025)
On average, drivers in Michigan pay $2,090 per year for car insurance, which exceeds the national average.
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Written byKat Tretina
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Kat Tretina
Kat Tretina is a personal finance writer specializing in debt repayment and insurance.
Previously, she worked in public relations within the pharmaceutical industry before switching to non-profit work. After struggling to repay her own student loan debt and seeing firsthand how complex the financial aid and repayment system is, she began writing to share what she learned so other people could better manage their loans.
For the past seven years, she’s been freelancing for major financial publications, focusing her work on helping people understand their financial options. Kat double-majored in English and Communications at Elizabethtown College, and she went on to earn her master’s at West Chester University. She has also earned certifications in student loan counseling and financial education.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Table of contents
Although Michigan has a lower cost of living than most states, drivers in the Great Lakes State tend to pay significantly more for car insurance than drivers in other parts of the country. Drivers in Michigan pay an average of $212 per month for full coverage — more expensive than the national average of $176.
Michigan car insurance rates increased significantly between 2023 and 2024, and the state remains one of the most expensive for auto coverage.
Learn why Michigan is so expensive for car insurance and what you can do to reduce your premiums.
Quick Facts
Michigan drivers pay $1,639 per year for liability-only coverage and $2,540 per year for full-coverage insurance, on average.
Drivers in Detroit pay the highest rates in the state, with average rates of $268 per month for liability coverage and $408 for full coverage.
Approximately 20% of Michigan drivers are uninsured.
How Michigan car insurance rates have increased
Michigan is one of the least affordable states for auto insurance, according to the Insurance Research Council.[1] But recent auto insurance reform measures have improved the affordability of car insurance.
In 2014, Michigan ranked as the second-most expensive state for car insurance. Michigan lawmakers passed reform laws that went into effect in 2020. Since then, Michigan’s insurance industry has improved, and now five U.S. states have more expensive average coverage than Michigan.
Factors in Michigan causing higher car insurance rates
Michigan has higher average car insurance rates for a few different reasons. Learn more about each factor below.
High minimum coverage requirements
In nearly every U.S. state, drivers legally have to have policies that meet minimum bodily injury and property liability coverage requirements. To meet the state coverage requirements, Michigan drivers must carry $50,000 per person and $100,000 per accident in bodily injury liability coverage and $10,000 in property damage for out-of-state accidents.
Michigan is a no-fault state, so your insurance will kick in regardless of who caused the incident. As a result, the state has additional requirements that increase the cost of coverage:
Property protection insurance (PPI)
PPI pays up to $1 million for damages your vehicle causes to another person’s property in Michigan. For example, if you run off the road and crash into a building, this coverage would pay for the building’s repairs.
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High percentage of uninsured drivers
Michigan has a significantly higher-than-average percentage of uninsured drivers. Approximately 20% of drivers in the state don’t have coverage. Because of the state’s high number of uninsured drivers, Michigan insurance companies are more likely to have to pay for accident-related costs. To compensate for the increased risk, insurance companies may increase the rates for insured drivers.
Lawsuits are more common in Michigan
Lawsuits in the state also influence insurance costs for Michigan drivers. The state has a higher lawsuit rate for private passenger auto claims than other states; with more lawsuits, insurance companies have to increase their rates to offset increased litigation costs.
High risk of theft
Vehicle thefts within the state increased 56% between 2019 and 2023, according to the Michigan State Police.[3] With more vehicle thefts occurring, insurance companies are likely increasing the average cost of comprehensive insurance — the coverage you need to protect your vehicle against theft or vandalism — due to the increased risk.
Factors that affect your car insurance premium
Unlike many other states, Michigan insurance companies legally can’t consider your credit score as part of the underwriting process.[4] Learn about the factors that can affect your rates below.
Age
Teens and drivers in their early 20s are statistically more likely to have car accidents due to their inexperience behind the wheel. As a result, younger drivers typically pay higher rates than other age groups.
Below, you can compare average car insurance rates in Michigan for each age group:
Age  | Average Quote: Liability Only | Average Quote: Full Coverage |
|---|---|---|
| Teens | $241 | $350 |
| 20-29 | $187 | $272 |
| 30-39 | $165 | $240 |
| 40-49 | $163 | $237 |
| 50-59 | $157 | $229 |
| 60-69 | $149 | $216 |
| 70+ | $158 | $230 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Location
Where you live plays an important role in determining your rates. People who live in more densely populated areas or ZIP codes with higher levels of crime pay higher rates because of the increased risk of accidents or theft.[5]
Detroit is among the most expensive cities for car insurance in Michigan due to its high crime rate and population density.
Below are the rates for the most expensive cities in Michigan:
City | Average Quote: Liability Only | Average Quote: Full Coverage |
|---|---|---|
| Ann Arbor | $115 | $203 |
| Dearborn | $270 | $391 |
| Detroit | $268 | $408 |
| Flint | $141 | $233 |
| Grand Rapids | $107 | $195 |
| Kalamazoo | $122 | $196 |
| Lansing | $115 | $193 |
| Rochester | $145 | $220 |
| Warren | $188 | $299 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Driving record
If you have a history of speeding tickets, accidents, or other driving infractions, insurance companies see those issues as an indication of future claims. People with driving infractions pay higher rates for coverage than people with clean driving records.
Make and model of your car
The cost of your car and average repair costs also affect your car insurance premium. Higher-value cars and vehicles with a higher risk of theft tend to cost more to insure.
Vehicles with top safety ratings, such as the Subaru Forester, Subaru Outback, and the Honda Odyssey, tend to be cheaper to insure.
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How to lower your car insurance rate in Michigan
Although car insurance in Michigan can be quite expensive, you can use several strategies to reduce your insurance premiums:
Sign up for usage-based insurance (UBI)
On average, drivers in Michigan cover about 12,000 miles per year. If you have a short commute or work from home and drive less than that, signing up for a UBI policy could help you decrease your rates.
Increase your deductible
Your deductible is how much you have to pay for collision or comprehensive claims before your insurance kicks in. Increasing your deductible — for example, upping it from $500 to $1,000 — will decrease your premiums.
Ask about discounts
You may qualify for discounts from your insurer. Insurance companies commonly offer good student, safe driver, accident-free, and paid-in-full discounts.
Compare rates from several insurance companies
Michigan car insurance rates vary by company, so shop around and request quotes from several insurers to find the best rates and coverage.
Why car insurance is so expensive in Michigan FAQs
As you shop for coverage in Michigan, the following information can help you secure the right insurance at the best price.
Why are Michigan auto insurance rates so high?
Michigan drivers face high auto insurance rates due to the state’s high insurance requirements, high percentage of uninsured drivers, and increased risk of auto theft.
How much is car insurance per month in Michigan?
The overall average cost of car insurance in Michigan is $174 per month. Michigan drivers pay an average of $212 per month for full-coverage insurance and $137 for state-minimum coverage.
What is the cheapest car insurance in Michigan?
In Michigan, Auto-Owners offers the lowest car insurance rates. Liability insurance policies from Auto-Owners average $69 per month.
What is the minimum car insurance required in Michigan?
In Michigan, drivers must have policies that include $20,000 per person and $40,000 per accident in bodily injury liability coverage and $10,000 per accident in property damage liability.
The property damage liability only covers damages you cause in another state.
For damages that occur in Michigan, drivers need to carry up to $1 million in property protection insurance (PPI). Lastly, Michigan drivers need to purchase personal injury protection (PIP) for medical expenses and up to three years of lost wages.
When did no-fault insurance start in Michigan?
Michigan instituted no-fault auto insurance in 1973. Under its no-fault insurance laws, drivers must have personal injury protection, property protection, and residual liability coverage.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- Insurance Research Council. "Personal Auto Insurance Affordability in Michigan."
- Michigan Department of Insurance and Financial Services. "Purchasing Auto Insurance FAQ."
- Michigan State Police. "Crime Dashboard: Motor Vehicle Theft Trends."
- Michigan Department of Insurance and Financial Services. "Michigan's New Auto Insurance Law."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
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Kat Tretina
Kat Tretina is a personal finance writer specializing in debt repayment and insurance.
Previously, she worked in public relations within the pharmaceutical industry before switching to non-profit work. After struggling to repay her own student loan debt and seeing firsthand how complex the financial aid and repayment system is, she began writing to share what she learned so other people could better manage their loans.
For the past seven years, she’s been freelancing for major financial publications, focusing her work on helping people understand their financial options. Kat double-majored in English and Communications at Elizabethtown College, and she went on to earn her master’s at West Chester University. She has also earned certifications in student loan counseling and financial education.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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