Cheap Michigan Car Insurance

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Here's what you need to know when driving in Michigan

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.

Learn more about Michigan's July 2020 car insurance law modifications


 

Affordable Insurance Premiums in Michigan

What's the cheapest car insurance in Michigan?
RankCompany NameAvg. Annual Premium
1Safeco$368
2MetLife$1,337
3USAA$1,477
4Chubb$1,704
5MEEMIC$2,004
6Pioneer State Mutual$2,149
7Progressive$2,281
8State Farm$3,475
9Farmers$4,111
10Hanover$5,421

Want to see more rates? Enter your ZIP code below to compare quotes from over 30 insurance companies that provide coverage in Michigan.

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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
Rating Factor$ Savings% Savings
No Traffic Tickets$1,91961.98%
No Accidents$1,77257.24%
Good Credit$4,17594%

 

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
AgeAnnual Average Premium
16$11,442
17$9,226
18$8,234
19$6,379
20s$3,820
30s$3,125
40s$3,092
50s$2,900
60s$2,936
70s$3,386

 

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
GenderAverage Yearly Premium
Male$3,096
Female$3,164

 

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
Marital StatusAverage Annual Premium
Single$3,096
Married$3,059
Divorced$3,096
Widowed$3,096

 

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
Credit TierAverage Annual Premium
Very Poor (300-579)$8,640
Fair (580-669)$5,926
Good (670-739)$4,465
Very Good (740-799)$3,338
Exceptional (800-850)$2,326

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.

Insurance CompanyClaims Satisfaction (J.D. Power)Financial Strength (A.M. Best)
AllmericaNot RatedExcellent
Allstate3Superior
Auto Club Group3Excellent
ChubbNot RatedSuperior
Esurance2Superior
Farmers3Excellent
GEICO3Superior
Hanover3Excellent
Hastings MutualNot RatedExcellent
MetLife3Superior
Nationwide3Superior
Progressive3Superior
Safeco3Excellent
State Farm3Superior
USAA5Superior

 

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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.

LocationLiability-OnlyComprehensive — $1,000 DeductibleComprehensive — $500 Deductible
Michigan$1,745$2,832$3,096
National Average$621$1,373$1,868

Michigan Auto Insurance Laws

State minimum insurance requirements in Michigan

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

Liability
  • Bodily Injury $50,000 per person
  • Bodily Injury $100,000 per accident
  • Property Damage $10,000 per accident (in another state)
Personal Injury Protection

As of July 2020, the state of Michigan has changed the required amounts of PIP coverage. The following options are now available: 

  • Unlimited
  • $500,000
  • $250,000
  • $50,000 (lowest option available for Medicaid recipients)
  • Opt-out (available only for those with qualifying health care plans)
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

Learn more about Michigan's auto insurance laws

Driving Laws in Michigan

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

Ticket Impact on Auto 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.

ViolationAvg. Annual Auto Insurance Rate% Insurance Rate Increase$ Insurance Rate Increase
Hit and Run$9,369203%$6,273
Refused Breathalyzer/Chemical Test$9,158196%$6,062
DUI$9,158196%$6,062
Racing$9,172196%$6,076
Reckless Driving$9,369203%$6,273
Driving with a Suspended License$7,878154%$4,782
At-Fault Accident$4,86857%$1,772
Driving with an Open Container$5,07064%$1,974
Operating a Vehicle Without Permission$4,04931%$953
Passing a School Bus$4,59949%$1,503
Improper Passing$4,39142%$1,295
Following Too Closely$4,35641%$1,260
Speeding$5,01562%$1,919
Failure to Stop at a Red Light$4,07131%$975
Illegal Turn$4,03630%$940
Driving Wrong Way/Wrong Lane$4,03630%$940
Failure to Yield$4,07031%$974
Speeding in a School Zone$4,20836%$1,112
Driving Too Slowly$4,14234%$1,046
Distracted Driving$3,93627%$840
Driving with Expired Registration$3,42311%$327
Failure to Show Documents$3,42311%$327
Not-at-Fault Accident$3,1963%$100
Failure to Use Child Safety Restraint$3,1983%$102
Failure to Wear a Seat Belt$3,1983%$102
Driving Without Lights$3,1271%$31

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Michigan Car Insurance FAQs

Who actually has the cheapest car insurance in Michigan?

It is very difficult to find cheap insurance in Michigan. Our data shows Safeco with the cheapest rate at $368 per year. Your best bet for finding insurance in Michigan is using our comparison tool to see local and national companies to compare rates.

Why is Michigan car insurance so expensive?

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.

Is Michigan car insurance going down?

Restructuring insurance laws has been a big legislation pain point for Michigan's government. At this time, there has been no changes to the state's insurance requirements or costs.

Do you need to have car insurance in Michigan?

Yes — car insurance is required in Michigan.

How much does car insurance cost in Michigan cities?

Car insurance companies calculate your rate based on many factors, location of the vehicle being an important one. The cheapest car insurance is found in Kalamazoo, Michigan, and the most expensive in Detroit, Michigan.

RankCityAvg. Annual Premium
1Detroit$6,280
2Dearborn$5,147
3Southfield$4,805
4Dearborn Heights$4,435
5Warren$4,425
6Pontiac$4,205
7Sterling Heights$4,109
8Taylor$3,914
9Flint$3,901
10St. Clair Shores$3,707
11Westland$3,628
12Troy$3,386
13Farmington Hills$3,363
14Royal Oak$3,273
15Livonia$3,248
16Novi$3,102
17Saginaw$3,001
18Lansing$2,901
19Kentwood$2,732
20Battle Creek$2,711
21Grand Rapids$2,686
22Wyoming$2,654
23Ann Arbor$2,634
24Kalamazoo$2,546

Recent Michigan Car Insurance Questions and Answers

What companies insure mobile homes with extra build-ons?

You should have no trouble getting mobile home insurance to cover your home including the add-ons, and there are several companies that will insure that type of home. You will need an HO-7 homeowners policy that specifically covers mobile homes.

In Michigan is there a grace period to get insurance on a vehicle when you buy it?

He would need to get insurance to before he drives the vehicle. There is no grace period in Michigan.

Can I get storage insurance if my auto insurance is being canceled?

Most financing companies will require you to have comprehensive and collision coverage which means you would not be able to get storage insurance. Check with your finance company to see what options you have.

Will my boyfriend be covered while driving my vehicle if he isn't listed on my policy?

In Michigan, each driver is responsible for damage to their vehicle so the person who was hit would need to file a claim with their own insurance company. Unless your vehicle is also damaged and you want it repaired, you wouldn't need to contact your insurance company as the other driver would have to file a claim with their company anyway.


Kristine Lee LinkedIn

Kristine is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has contributed to numerous publications focused on the nuances of insurance, including Automoblog, USInsuranceAgents.com, and BestCompany.com.