Why Is Car Insurance So Expensive in Michigan? (2026)
Michigan drivers pay an average of $2,124 per year for car insurance, which is nearly 25% higher than the national average of $1,704 per year.
Secure. Free. Easy-to-use.
4.7 / 516K reviews
)
Written byMelanie Lockert
)
Melanie LockertInsurance, Personal Finance Writer
10+ years writing on personal finance topics
Host of the Mental Health and Wealth podcast
Featured in
){kind=logo}
){kind=small}
){kind=logo}
){kind=small}
)
Edited byKatie Powers
)
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
){kind=small}
){kind=small}
)
Reviewed byMacKenzie Korris
)
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Quick Facts
Michigan car insurance rates increased 12% year over year in 2025, according to Insurify data, and the reasons go beyond everyday inflation.
Drivers in Michigan must carry bodily injury and property damage liability, as well as property protection insurance (PPI) and personal injury protection (PIP).
Detroit has the most expensive car insurance in Michigan, with an average cost of $342 per month.
4 reasons why car insurance is so expensive in Michigan
Car insurance is so expensive in Michigan because of the state’s minimum-coverage requirements, harsh winter weather, and high percentage of uninsured drivers. Below, we cover more about these factors and what to know.
Significant minimum-coverage limits
The state of Michigan has significant minimum-coverage limits. Drivers must carry a minimum of $50,000 in bodily injury liability per person, $100,000 per accident, and $10,000 in property damage liability for damage outside of Michigan.
Additionally, Michigan drivers must have property protection insurance (PPI) and personal injury protection (PIP). PPI covers up to $1 million in damage to another person’s property caused by your vehicle in Michigan. Drivers must also select a PIP medical coverage level, with several options available, including unlimited personal injury protection. This can help pay for medical expenses.[1] [2]
Find Cheap Car Insurance in Michigan
Liability quotes start at $69/mo.
Excellent
4.7 out of 5 based on 16,248 reviews
Secure. Free. Easy-to-use.
No-fault system
Michigan is a no-fault state, which means drivers must carry different types of coverage beyond bodily injury and property damage liability. Insurify found that drivers in states with no-fault systems typically pay around 13% more for auto insurance relative to other states.
The state’s default bodily injury liability limits are also much higher as a result. Unless you choose the lower coverage limits, your policy will default to:
$250,000 in bodily injury liability per person
$500,000 in bodily injury liability per accident
$10,000 in property damage liability for damage outside of Michigan
Harsh winter weather
The Department of Insurance and Financial Services recommended that Michiganders review their insurance coverage at the start of 2026 and prepare for the effects of winter storms. Slippery roads can lead to more car crashes, which may contribute to higher insurance rates because of more frequent claims.[3]
Drivers in Michigan wanting more protection can also consider full coverage.
Higher percentage of uninsured drivers
Another reason why car insurance in Michigan is so expensive is that the state has a higher percentage of uninsured drivers.
Michigan has the fourth-highest percentage of uninsured drivers, at 22%, according to data from the Insurance Information Institute. A higher number of uninsured drivers can raise costs through more uninsured motorist coverage claims, which adds financial risk for insurance companies.
How Michigan car insurance rates have changed
Michigan drivers faced higher insurance rates in 2025, with a 12% year-over-year increase, according to a recent Insurify report. Drivers in the Great Lakes State pay an annual average of $3,073 for full coverage. Fortunately, the projected increase for 2026 is only 0.2%.
Michigan cities with the most expensive car insurance
While car insurance in Michigan might be expensive, rates vary across the state based on factors like population density, traffic patterns, and crime. Based on the table below, Detroit has the highest overall average rate, at $342 per month. Dearborn comes in second, with an average monthly rate of $331.
The least expensive auto insurance rates in Michigan are in Grand Rapids, with an average monthly cost of $156. Lansing is slightly higher, with an average cost of $159 per month.
These rate differences may result from population density differences, crime rates, and traffic congestion. While crime is down in Detroit, the city still has relatively high rates of auto theft.[4]
Below, you can see how rates vary in different Michigan cities and the five cities with the most expensive insurance.
The below rates in Michigan are estimated rates current as of: Tuesday, August 4 at 5:00 PM PDT.
City | Average Monthly Quote |
|---|---|
| Grand Rapids | $156 |
| Ann Arbor | $158 |
| Lansing | $159 |
| Kalamazoo | $163 |
| Rochester | $180 |
| Flint | $196 |
| Warren | $240 |
| Dearborn | $331 |
| Detroit | $342 |
Disclaimer: Table data sourced from real-time Michigan car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Michigan may vary based on the policy buyer's unique driver profile.
Here are some reasons why these cities have more expensive rates:
Ann Arbor: High student population, population density
Dearborn: Proximity to Detroit, population density, large commuter population
Detroit: Auto theft rates, population density
Flint: Extreme winter weather
Grand Rapids: Second-largest city in Michigan and large metro area, severe weather
Kalamazoo: Auto theft rates, high student population
Lansing: Large student population, auto theft rates
Rochester: Traffic congestion, proximity to Detroit
Warren: Proximity to Detroit, population density, large commuter population
Shop for Car Insurance in Michigan
Full-coverage quotes start at $118/mo.
Excellent
4.7 out of 5 based on 16,248 reviews
Secure. Free. Easy-to-use.
How to lower your car insurance rate in Michigan
Car insurance can be expensive in Michigan, but you have several ways to lower your insurance premiums:
Compare car insurance rates. Many insurance companies offer policies in Michigan. To find competitive rates and discounts, compare various options. If you have a lease or loan, you can look for companies that offer gap insurance.
Bundle insurance policies. Homeownership rates in Michigan are relatively high, with 73% of residents owning their home, according to U.S. Census data. Bundling discounts can lower premiums when you get auto and home insurance with the same company.
Research discounts. About 20% of Michigan residents are 65 years old and older, based on census data. Seniors may qualify for a driver training discount, while student drivers at Michigan State University or the University of Michigan may be eligible for a good student discount or a student-away-at-school discount.
Increase your deductible. If you get a full-coverage auto insurance policy in Michigan, raising your deductible can help reduce your car insurance premiums.
Maintain a clean driving record. Having an at-fault accident or getting a driving under the influence (DUI) conviction can hike up rates and put you in the high-risk drivers group, plus Michigan puts points on your record for moving violations.[5] Keeping a clean driving record free of points can help keep your rates low.
Why car insurance is so expensive in Michigan FAQs
Learn more about why car insurance in Michigan is so expensive, average costs, and ways to reduce your premiums.
What is the average cost of car insurance in Michigan?
The average cost of car insurance in Michigan is $177 per month, according to Insurify data. Liability-only coverage costs an average of $129 per month, while full coverage has an average monthly cost of $225.
What company has the cheapest car insurance in the state of Michigan?
The insurance company with the cheapest car insurance in Michigan is USAA, with an average monthly cost of $69 for state-minimum coverage. Auto-Owners also has low rates, with an average cost of $69 per month for liability-only coverage.
How can you lower your car insurance rates in Michigan?
To lower car insurance rates, Michigan drivers can increase their deductible, bundle policies, and take defensive driving courses. Researching discounts is also essential, as some companies offer a good student discount, savings for specific safety features, and a clean driving record.
What is the new auto insurance law in Michigan?
In July 2020, Michigan eliminated rating factors such as marital status, credit score/credit history, ZIP codes, and more to increase consumer protections. Also, state law allows Michigan drivers to choose their level of coverage for personal injury protection (PIP), which helps cover medical bills and lost wages.[6]
Sources
- Michigan.gov. "Information on Purchasing Auto Insurance."
- Michigan.gov. "Choosing PIP Medical Coverage."
- Michigan.gov. "DIFS Urges Michiganders to Review Insurance and Prepare for Winter Storms."
- City of Detriot. "Historic Crime Drop."
- Michigan.gov. "Your Driving Record."
- Michigan.gov. "Michigan's Auto Insurance Law."
Methodology
Insurify data scientists analyzed more than 250 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.
Related articles
)
Cheap Car Insurance for Senior Drivers in Michigan
USAA is the cheapest insurer for senior drivers in Michigan, with an average liability insurance quote of $56 per month.
)
Gap Insurance in Michigan
You can buy gap insurance from an insurance company, car dealer, or credit union in Michigan.
)
Best Car Insurance in Michigan
Liability car insurance rates start at $69 per month in Michigan.
)
Cheap Car Insurance for Teen Drivers in Michigan
USAA is the cheapest insurer for Michigan teens, at $118 per month for liability-only coverage.
)
Car Insurance for High-Risk Drivers in Michigan
High-risk drivers in Michigan usually pay higher car insurance rates than people with a clean record. See which companies have the cheapest rates for different violations.
)
Best Car Insurance for College Students in Michigan
State Farm, Nationwide, and GEICO are three of the best car insurance companies for college students in Michigan.
)
Michigan Car Insurance Requirements in 2026
You’ll need to purchase a no-fault auto insurance policy to legally drive in the state of Michigan.
)
Temporary Car Insurance in Michigan: What Your Short-Term Options Really Are
Temporary car insurance in Michigan isn’t available, but Insurify Car lets you pay for coverage in seven-day increments.
)
Average Car Insurance Cost in Michigan
Drivers in Michigan pay an average of $177 per month for car insurance.
)
Cheap SR-22 Insurance in Michigan From $156
Michigan drivers with an SR-22 pay $156 per month for liability and $272 for full-coverage insurance, on average.
)
DUI Car Insurance in Michigan
Drivers in Michigan with a DUI pay an average of $285 per month for car insurance.
)
Cheap Car Insurance for Low-Income Drivers in Michigan
USAA has the cheapest liability car insurance in Michigan, with an average rate of $69 per month.
)
Non-Owner Car Insurance in Michigan
Michigan drivers who don’t own a car but drive someone else’s car or need to maintain an SR-22 can buy non-owner car insurance.
)
Cheapest Full-Coverage Car Insurance in Michigan
Michigan drivers can find the cheapest full-coverage car insurance from USAA, with rates starting at $69 per month.
)
Car Insurance Discounts for Michigan Drivers
Whether you’re a Detroit autoworker, a Traverse City teacher, or a Yooper RV nut, chances are Michigan insurers have a car insurance discount for you.
How Much Is Car Insurance for a 16-Year-Old in Michigan?
Michigan 16-year-olds pay an average monthly insurance rate of $278. But age isn’t the only factor insurers consider when determining rates.
)
How Much Is Car Insurance for an 18-Year-Old in Michigan?
The average monthly cost of car insurance for an 18-year-old Michigan driver is $278, but costs depend on driving record, coverage level, and more.
)
Cheapest Liability Car Insurance in Michigan
Michigan drivers can find the cheapest liability-only car insurance from USAA, with rates starting at $69 per month.
)
Is Michigan a No-Fault State for Auto Insurance?
Michigan is a no-fault state and requires all drivers to carry basic liability coverage plus personal injury protection and property protection insurance.
)
What to Know About Personal Injury Protection Coverage in Michigan
Michigan insurers must include personal injury protection in all auto policies, but drivers can choose to opt out of the coverage in certain cases.
)
Uninsured Motorist Coverage in Michigan: What to Know
Uninsured motorist coverage is an optional insurance in Michigan that kicks in if you’re in an accident with someone who doesn’t have insurance.
)
Accident With a Borrowed Car in Michigan: What Happens?
The answer isn’t straightforward — it depends on whether you gave permission, who was at fault, and whether the vehicle was being used for work-related activities.
Cheapest Car Insurance Quotes in Michigan
USAA offers the cheapest car insurance in Michigan, at $69 per month for state-minimum coverage. Compare real car insurance quotes from top companies in Michigan with Insurify.
)
Cheapest Auto Insurance in Ann Arbor, Michigan
Auto-Owners offers the cheapest car insurance in Ann Arbor, with minimum-coverage policies as low as $62 per month.
)
Cheapest Car Insurance Quotes in Clinton Township, Michigan (August 2026)
USAA offers Clinton Township drivers the lowest rates, with an average of $88 per month for liability-only coverage. Heavy winter storms likely put upward pressure on rates in the area.
)
Cheapest Auto Insurance in Dearborn, Michigan
USAA offers the cheapest car insurance in Dearborn, with minimum-coverage policies as low as $129 per month.
Cheap Car Insurance Quotes in Detroit (August 2026)
Auto-Owners offers Detroit drivers the cheapest car insurance, averaging $133 per month for liability-only coverage. Above-average car theft rates and heavy trucking traffic contribute to high car insurance rates in the Motor City.
Cheap Car Insurance Quotes in Flint, Michigan (August 2026)
USAA offers the cheapest insurance coverage in Flint, Michigan, with insurance premiums of $76 per month. More than 90% of Flint’s local streets are in poor condition, and a harsh 2026 winter has added a large number of new potholes, all of which can affect the cost of an insurance policy.
Cheap Car Insurance Quotes in Grand Rapids (August 2026)
USAA offers some of the cheapest car insurance in Grand Rapids, Michigan, with an average monthly liability premium of $61. Despite its large population, Grand Rapids remains one of the most affordable cities in Michigan for car insurance.
)
Cheapest Auto Insurance in Kalamazoo, Michigan
Auto-Owners has the cheapest car insurance in Kalamazoo, with monthly liability rates as low as $64.
)
Cheapest Auto Insurance in Lansing, Michigan
USAA offers the cheapest car insurance in Lansing, with minimum-coverage policies as low as $62 per month.
)
Cheapest Auto Insurance in Rochester, Michigan
USAA has the cheapest car insurance in Rochester, with an average liability rate of $70 per month.
)
Cheapest Car Insurance Quotes in Southfield, Michigan (August 2026)
USAA is the cheapest insurer in Southfield, Michigan, with an average rate of $62 per month for liability-only coverage. The city’s high crash rates push insurance costs upward.
)
Cheapest Auto Insurance in Warren, Michigan
Auto-Owners offers the cheapest liability coverage in the city, at $94 per month.
)
Melanie LockertInsurance, Personal Finance Writer
10+ years writing on personal finance topics
Host of the Mental Health and Wealth podcast
Featured in
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969