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?
| Rank | Company Name | Avg. Annual Premium |
|---|---|---|
| 1 | Safeco | $368 |
| 2 | MetLife | $1,337 |
| 3 | USAA | $1,477 |
| 4 | Chubb | $1,704 |
| 5 | MEEMIC | $2,004 |
| 6 | Pioneer State Mutual | $2,149 |
| 7 | Progressive | $2,281 |
| 8 | State Farm | $3,475 |
| 9 | Farmers | $4,111 |
| 10 | Hanover | $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.
Compare cheap rates from top companies now!
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 | $1,919 | 61.98% |
| No Accidents | $1,772 | 57.24% |
| Good Credit | $4,175 | 94% |
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
| Age | Annual 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
| Gender | Average 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 Status | Average 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 Tier | Average 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 Company | Claims Satisfaction (J.D. Power) | Financial Strength (A.M. Best) |
| Allmerica | Not Rated | Excellent |
| Allstate | 3 | Superior |
| Auto Club Group | 3 | Excellent |
| Chubb | Not Rated | Superior |
| Esurance | 2 | Superior |
| Farmers | 3 | Excellent |
| GEICO | 3 | Superior |
| Hanover | 3 | Excellent |
| Hastings Mutual | Not Rated | Excellent |
| MetLife | 3 | Superior |
| Nationwide | 3 | Superior |
| Progressive | 3 | Superior |
| Safeco | 3 | Excellent |
| State Farm | 3 | Superior |
| USAA | 5 | Superior |
See insurance rates for Michigan's best companies!
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.
| Location | Liability-Only | Comprehensive — $1,000 Deductible | Comprehensive — $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
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.
| Violation | Avg. Annual Auto Insurance Rate | % Insurance Rate Increase | $ Insurance Rate Increase |
|---|---|---|---|
| Hit and Run | $9,369 | 203% | $6,273 |
| Refused Breathalyzer/Chemical Test | $9,158 | 196% | $6,062 |
| DUI | $9,158 | 196% | $6,062 |
| Racing | $9,172 | 196% | $6,076 |
| Reckless Driving | $9,369 | 203% | $6,273 |
| Driving with a Suspended License | $7,878 | 154% | $4,782 |
| At-Fault Accident | $4,868 | 57% | $1,772 |
| Driving with an Open Container | $5,070 | 64% | $1,974 |
| Operating a Vehicle Without Permission | $4,049 | 31% | $953 |
| Passing a School Bus | $4,599 | 49% | $1,503 |
| Improper Passing | $4,391 | 42% | $1,295 |
| Following Too Closely | $4,356 | 41% | $1,260 |
| Speeding | $5,015 | 62% | $1,919 |
| Failure to Stop at a Red Light | $4,071 | 31% | $975 |
| Illegal Turn | $4,036 | 30% | $940 |
| Driving Wrong Way/Wrong Lane | $4,036 | 30% | $940 |
| Failure to Yield | $4,070 | 31% | $974 |
| Speeding in a School Zone | $4,208 | 36% | $1,112 |
| Driving Too Slowly | $4,142 | 34% | $1,046 |
| Distracted Driving | $3,936 | 27% | $840 |
| Driving with Expired Registration | $3,423 | 11% | $327 |
| Failure to Show Documents | $3,423 | 11% | $327 |
| Not-at-Fault Accident | $3,196 | 3% | $100 |
| Failure to Use Child Safety Restraint | $3,198 | 3% | $102 |
| Failure to Wear a Seat Belt | $3,198 | 3% | $102 |
| Driving Without Lights | $3,127 | 1% | $31 |
Get Michigan car insurance now!
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:
- The state requires very high insurance limits. This includes unlimited and lifetime PIP coverage.
- The way benefits are set creates a system that is easily corrupted by fraudulent claims and extraneous litigation.
- Because car insurance is so expensive, drivers tend to drop coverage and drive uninsured.
- 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.
| Rank | City | Avg. Annual Premium |
|---|---|---|
| 1 | Detroit | $6,280 |
| 2 | Dearborn | $5,147 |
| 3 | Southfield | $4,805 |
| 4 | Dearborn Heights | $4,435 |
| 5 | Warren | $4,425 |
| 6 | Pontiac | $4,205 |
| 7 | Sterling Heights | $4,109 |
| 8 | Taylor | $3,914 |
| 9 | Flint | $3,901 |
| 10 | St. Clair Shores | $3,707 |
| 11 | Westland | $3,628 |
| 12 | Troy | $3,386 |
| 13 | Farmington Hills | $3,363 |
| 14 | Royal Oak | $3,273 |
| 15 | Livonia | $3,248 |
| 16 | Novi | $3,102 |
| 17 | Saginaw | $3,001 |
| 18 | Lansing | $2,901 |
| 19 | Kentwood | $2,732 |
| 20 | Battle Creek | $2,711 |
| 21 | Grand Rapids | $2,686 |
| 22 | Wyoming | $2,654 |
| 23 | Ann Arbor | $2,634 |
| 24 | Kalamazoo | $2,546 |
Recent Michigan Car Insurance Questions and Answers
I was rear-ended, will my insurance increase?
Can I reduce my car insurance coverage after I retire?
In a state of emergency, does my insurance company have to help me if I have flood damage but no flood insurance?
What companies insure mobile homes with extra build-ons?
