Cheap Michigan car insurance

Auto insurance is expensive in Michigan. The average car insurance rate in Michigan is $3,096 per year — twice as expensive as the national average, making it the most expensive state in America for car insurance.

Your car insurance costs are impacted by more than just the state in which you live. Car insurance premiums incorporate an array of considerations, including your driving record, credit history, gender, age, and marital status.

We reviewed average Michigan car insurance rates by each of the most common rating factors. See below how much car insurance costs in your state — or enter your ZIP code to receive compare rates from top car insurance companies.

Cheap car insurance in Michigan

Cheap insurance for good drivers in Michigan

Drivers with good driving records typically enjoy lower car insurance costs than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. Michigan drivers without a recent at-fault accident typically save 57% on their car insurance premiums — 7% more than the national average. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.

MICHIGAN CAR INSURANCE AVERAGE SAVINGS FOR GOOD DRIVERS

Car insurance rates by age bracket in Michigan

Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16-19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. Michigan is an extraordinarily expensive state in which to insure a teen driver: the average teen will pay $8,820 per year in Michigan, compared to the annual national average of $5,023.

MICHIGAN CAR INSURANCE RATES BY AGE GROUP

Average car insurance costs by gender in Michigan

While gender doesn’t have as sizable an impact on auto insurance rates as location or age, it is used as a rating factor by car insurance companies.

MICHIGAN AUTO INSURANCE PREMIUMS BY GENDER

Average car insurance rates by marital status in Michigan

One benefit of getting hitched — aside from the wedding gifts — is the slight price cut you typically receive on insurance. In Michigan, married motorists save $37 each year on car insurance policies — much less than the national post-nuptial discount of $98.

MICHIGAN CAR INSURANCE PREMIUMS BY MARITAL STATUS

Average auto insurance costs in Michigan by credit history

Car insurance companies reference credit history as a way of determining a potential customer's insurability. Historical data show drivers with superior credit are usually more reliable auto insurance customers: they less commonly file claims insurance companies have to reimburse.

In the state of Michigan, a driver who carries excellent credit saves over $6,300 each year on car insurance rates, contrasted with a driver with a poor credit score.

MICHIGAN CAR INSURANCE RATES BY CREDIT LEVEL

What are the Best Car Insurance Companies in Michigan?

Every auto insurer emphasizes its low costs. But as with any product or service, the cheapest car insurance is not always the best idea. Considering the stakes, it's worth doing your due diligence to retrieve an insurance policy that protects your car adequately after an accident. Work to find the best value, rather than settling for the most affordable car insurance in your state.

Compare top auto insurers' financial strength and claims satisfaction ratings to better understand the level of service they'll provide. Claims satisfaction — assigned by J.D. Power — is ranked on a scale of 2 to 5, with 5 being "among the best" and 2 being "the rest." Financial strength — calculated by A.M. Best and ranging from "Superior" to "Poor" — measures an insurance company's financial strength and ability to satisfy its policy and contractual obligations.

What is the Best Car Insurance Coverage in Michigan?

The mandated minimum amount of insurance in Michigan is $20,000 Bodily Injury per person, $40,000 Bodily Injury per accident, and $10,000 Property Damage per accident.

For the legal minimum coverage level in Michigan, you could owe about $1,745 yearly. This expenditure is more costly than the nationwide average by 181%. If you opt for a higher level of car insurance coverage, you can select a policy with comprehensive and collision coverage, insuring against the costs of car-vs.-car collisions, theft, or weather conditions. Better insurance comes at a price: in Michigan, a comprehensive policy with a $1,000 deductible costs $2,832, 62% more than the minimum insurance coverage. For a comprehensive policy with a $500 deductible, expect to pay 77% more than for a basic policy.

Examine average expenditures for basic, better, and best policy levels in the table below.

Car Insurance Laws

State minimum insurance requirements in Michigan

In Michigan, the state minimum coverage requirements are as follows:

Liability

• Bodily Injury $20,000 per person
• Bodily Injury $40,000 per accident
• Property Damage $10,000 per accident

Personal Injury Protection

• No Limit

Property Protection Insurance

• $1,000,000 per accident

Optional coverage in Michigan (varies by carrier):

• Comprehensive
• Collision
• Limited Property Damage
• Loan/Lease Payoff
• Rental Car Reimbursement
• Roadside Assistance
• Uninsured/Underinsured Motorist Bodily Injury

With Michigan being a “no-fault” state, the liability coverage required on your policy mainly serves to provide coverage if you are involved in an accident out of state when you are considered to be “at-fault”, and inside the state line in extreme cases like causing death or permanent disability or disfigurement. It is important to note that property damage liability does not cover damage caused within the state of Michigan. The coverage limits are determined by each individual state and normally split into three categories. In Michigan, the minimum is listed as 20/40/10 and explained below:

• $20,000 bodily injury coverage per person. This is the maximum dollar amount that pays for a single person that you injure in an auto accident.
• $40,000 bodily injury coverage per accident. This is the maximum dollar amount that pays for all injuries that you cause in an accident if more than one person is hurt.
• $10,000 property damage coverage for accidents caused outside of Michigan. This is the maximum dollar amount that pays for damage that you cause in an accident that occurs outside of the state of Michigan.

Personal Injury Protection (PIP) coverage can be coordinated with your health insurance to decrease the cost of your auto insurance premium or can provide primary medical coverage for injuries resulting from an auto accident if you happen to not have health insurance. The PIP selection will depend on the details of your health coverage so read the fine print on your medical policy carefully to determine the proper selection on your auto policy. Because Michigan is a “no-fault” state and PIP coverage does not have a dollar-specific cap, a driver’s right to sue is restricted to extreme situations involving death or permanent disfigurement or disability resulting from an auto accident.

Property Protection Insurance provides coverage up to $1,000,000 for damage that you may cause to fixed objects during an accident, such as:

• Buildings
• Road Signs
• Road Construction Equipment
• Fences and Barriers
• Parked Vehicles

This does not provide coverage for damage to other vehicles unless they are parked.

Michigan is a no-fault state!

What does this mean for you?

Put simply, a no-fault insurance laws system requires that drivers carry their own protection. When an accident happens, no matter who is at fault, your own insurance foots the bill. Each driver takes care of his or herself, and theoretically, the chances of someone suing or raising a hissy fit over culpability are lessened. Bonus: it guarantees every driver immediate medical treatment in the event of an accident.

Car Insurance FAQs

Why is car insurance so expensive in Michigan?

Car insurance is costly in Michigan for a few reasons:

1. The state requires very high insurance limits. This includes unlimited and lifetime PIP coverage.
2. The way benefits are set creates a system that is easily corrupted by fraudulent claims and extraneous litigation.
3. Because car insurance is so expensive, drivers tend to drop coverage and drive uninsured.
4. Every driver is required to pay the Michigan Catastrophic Claims Association (MCCA) fee to fund medical treatment for victims of car crashes in the state. This fee can be as much as $170 per car, per year. These fees help fund medical services such as attendant care, which may be required as a result of an injury.

Learn more about the reasons for the exorbitant cost of car insurance in Michigan.

Do you need to have car insurance in Michigan?

Yes — car insurance is required in Michigan.

Driving Laws

Michigan Texting and Driving Laws

• Ban on all cell phones for school bus drivers
• Ban on all cell phones for Level 1 or 2 License
• Ban on text messaging for all drivers

Michigan DUI Laws

First-time OWI offenses in Michigan result in:

• Up to 93 days in jail $100 to $500 in fines $1,000
• Driver Responsibility Fee
• License suspension for 30 days
• Possible requirement to perform 360 hours of community service
• Possible vehicle immobilization
• Possible requirement to install and use an ignition interlock device
• Six points added to driving record

How Do Tickets Impact Car Insurance Rates in Michigan?

When you receive a ticket your car insurance costs will probably go up. How much your rates rise depends on the type of violation, your car insurance company's pricing standards, and differences in local insurance risks and regulations. That's why tickets may have a different impact on insurance in your state compared to the national average.

Below is a look at typical auto insurance rates in Michigan after a few common citations.