Are Car Insurance Rates Rising or Falling in Michigan?

Personal experience has taught many drivers that car insurance rates commonly increase year-over-year. But auto insurance pricing is complex: the reasons for rate hikes or price breaks are myriad, and vary based on the driver's location.

A client's location is one of the rating factors insurance companies use to set rates. The state, city, and ZIP code in which a car is stored and operated help determine auto insurance rates — this comes down to state laws and the variable risk associated with insuring a vehicle in a particular area.

Due to the dynamic nature of car insurance pricing, annual changes in rates diverge by state. Auto insurance prices might be rising each year in one state but dropping for drivers a single state over.

See below trending auto insurance prices in Michigan. If you're paying too much, consider shopping around to find a better rate. The Zebra's car insurance comparison tool finds rates based on your individual profile — enter your ZIP below to get started.

Car insurance price trends in Michigan

In Michigan, average yearly auto insurance premiums went down by $176 in the past year. A normal driver in Michigan now pays an average premium of $2,693 annually.

The year-over-year trend in Michigan is leaning toward pricier car insurance rates. From 2015 to 2018, rates increased by $655 per year. Meanwhile, auto insurance costs across the US have risen in recent years, climbing from $1,280 in 2015 to $1,470 in 2018.

Year Avg. Annual Premium — Michigan Yearly Change — Michigan Avg. Annual Premium — US Yearly Change — US
2018 $2,693 -$176 $1,470 $32
2017 $2,869 $234 $1,437 $69
2016 $2,635 $597 $1,368 $88
2015 $2,038 -$71 $1,280 $51
2014 $2,109 -$113 $1,229 $34
2013 $2,222 -$520 $1,195 -$80
2012 $2,742 $522 $1,276 $82

If your policy pricing trend doesn't align with the above, the best step to take is to shop around.

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How are auto insurance rates changing in major cities in Michigan?

Car insurance policies are priced at the ZIP code level with many location-specific variables influencing premiums. That means drivers can see major differences in their auto insurance rates, based on their ZIP code or city. For instance, Sterling Heights drivers endured a larger yearly rate increase (5.1%) than did drivers in Detroit (4.3%) between 2018 and 2017.

See below yearly rates of change in the largest cities in Michigan If your location is experiencing ongoing rate hikes, consider shopping for a cheaper policy.

City Avg. Premium Increase — 2018 vs. 2017
Sterling Heights 5.1%
Detroit 4.3%
Warren 4.0%
Grand Rapids 3.8%
Lansing 3.6%

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The ZebraThe nation's leading independent insurance comparison site

The Zebra is an independent insurance advisor and quote comparison site with headquarters in Austin, Texas. Utilizing its real-time quote comparison tool, The Zebra partners with companies such as Allstate, Liberty Mutual, and Progressive to help consumers browse pricing, coverage, and service level for both home and auto insurance policies.