How Much Is Car Insurance in Michigan?

Michigan ranks among the most expensive states for car insurance. It holds the top spot for minimum coverage costs and ranks third for full coverage expenses. Research from sources like Bankrate, ValuePenguin, The Zebra, and MarketWatch confirms that Michigan's car insurance rates remain among the highest in the nation. 

One key reason for this is the state’s no-fault insurance laws, which require drivers to carry Personal Injury Protection (PIP). This coverage helps pay medical expenses after an accident, regardless of who is at fault. However. It also drives up insurance costs in Michigan. 

Keep reading to learn about the average costs of car insurance in Michigan, the factors that significantly affect the state's average auto insurance rates, and how you can lower your car insurance premiums

Key Takeaways:

• Michigan ranks first for minimum coverage costs and third for full coverage expenses in the U.S.
• Michigan minimum coverage cost between $82 to $133 per month ($984–$1,596 per year).
• Full coverage rates can cost between $220 to $338 per month ($2,640–$4,067 per year) for Michigan drivers.
• Detroit drivers pay the highest rates, averaging $5,667 per year for full coverage.
• Cities with high crime rates and traffic congestion, like Detroit and Hamtramck, have significantly higher premiums.
• Young drivers (16–20) face the highest car insurance premiums.
• A DUI conviction can increase insurance rates by 152%, while an at-fault accident raises premiums by 46%.
• Luxury and high-performance cars cost more to insure than family-friendly models like SUVs and minivans.
• Unlike most states, Michigan prohibits insurers from using credit scores, gender, or marital status to determine car insurance rates. 

Average Car Insurance Cost in Michigan in 2025

So, how much does car insurance cost in Michigan? We have analyzed various trusted sources to find the average car insurance rates for Michigan. You need to keep in mind that this rate can vary depending on many factors. 

Michigan is not only unique in its car insurance requirements but also the priciest. Residents of the Great Lakes State pay an average of $133 per month, or $1,596 per year, for state-mandated minimum coverage. For full coverage, they pay $263 per month or $3,156 per year (as per ValuePenguin data). According to Bankrate data, you can expect to pay roughly $879 per year for minimum coverage and $3,161 per year for full coverage car insurance in Michigan.  

However, these rates can vary depending on the coverage level, deductible, claim history, and insurance company you choose. Our research has determined a range of costs you are likely to spend for car insurance in Michigan, from the lower to higher end:

• In Michigan, drivers pay an average of $984 to $1,596 per year for minimum liability car insurance, which breaks down to about $82 to $133 per month.
• For full coverage car insurance, the average cost ranges from $2,640 to $4,067 per year, or $220 to $338 per month.

Our research suggests that the Great Lake State is the most expensive state for mandatory car insurance coverage. Plus, when it comes to full coverage auto insurance, it always ranks among the top 5 most expensive states in America. 

However, you can’t find the exact car insurance rate for you in Michigan unless you request an auto insurance quote either from a car insurance company or a rate comparison site. Because every person is unique as a driver. Plus, insurance companies assess your risk profile before offering car insurance estimates. 

They typically set rates based on your location, or city. For example, drivers who live in Detroit face the highest rates. They pay around $5,667 per year or $472 per month for full coverage car insurance which is comprised of liability, collision, and comprehensive coverage. 

They also set the rates based on your age, driving record, and vehicle type. So, let’s help you with how much car insurance costs in Michigan based on where you live and different driver’s profiles. 

Car Insurance Rates by City in Michigan

Auto insurance rates vary significantly in Michigan based on where you live. If you live in a large city, you’re more likely to spend a higher amount on car insurance premiums. For instance, drivers in Detroit, Michigan pay 79% higher rates compared to the state average.  

Here's why cities affect your car insurance costs:

• Population density
• Traffic congestion
• Crime rates
• Number of claims
• Uninsured drivers
• Auto repair costs
• Weather risks
• Costs of living

If you live in a densely populated city with heavier traffic, higher crime rates, and high claim frequencies, you’ll encounter higher car insurance rates. 

Here’s a table that shows how car insurance rates vary in Michigan based on city:

Source: Bankrate  

If you need affordable full coverage auto insurance near these cities, contact the L.A. Insurance Agency in Michigan. We offer affordable and personalized car insurance quotes. You can insure your car within the same day with us. 

Here you can learn more about how car insurance rates vary by location.  

How Much Is Car Insurance Based on Age in Michigan?

Your age has a huge impact on your car insurance premiums. Young drivers pay the highest car insurance rates in Michigan. In fact, the premiums for drivers aged between 16 and 19 can go as high as $12,921 which is 397% higher than the state average. Surprised, right? 

The Michigan Department of Insurance and Financial Services says, statistically young drivers are involved in more car accidents and that’s why insurance companies see them as greater risks. They also tend to file more claims than adult and senior drivers. 

According to the Michigan Traffic Crash Facts (MTCF), the 15-20 age group accounted for 7.1 percent (78) of all traffic deaths in 2023. Some of the prime reasons for high crash rates in teen drivers are lack of experience, distracted driving, driving under the influence, speeding, and so on. 

These age-based driving habits statistics are used by insurance companies in Michigan to set rates for drivers. Young drivers pay the highest amount and as they age and gain experience, their insurance costs decrease, reaching the lowest rates in their 50s and 60s. However, rates start rising again for senior drivers due to slower reaction time and increased health risks. 

The table below shows the average car insurance rates in Michigan by age: 

A 16-year-old driver in Michigan pays around $566 per month or $6,795 per year for full coverage. An 18-year-old pays even more, with an average of $8,732 per year. By age 20, the rate drops slightly to $7,006 per year. At the age of 25, car insurance goes down the most. Based on the table, the rate drops by $5,018, or about 57%, from age 18 to age 25. 

The sharp decline continues as driver enter their 30s and 40s, with rates stabilizing around $3,131 per year. Michigan drivers enjoy the lowest car insurance costs in their 50s and 60s, averaging $2,727 per year. 

Car Insurance Rates Based on Driving Record in Michigan

A driver's driving history has a major impact on car insurance rates in Michigan. A clean record leads to lower auto insurance premiums, while violations significantly increase insurance costs. Insurance companies view drivers with accidents, speeding tickets, or DUI convictions as high-risk, leading to higher insurance premiums. 

Minor infractions such as speeding may not increase the insurance rate that much. But if you fall under a DUI conviction, it may double car insurance premiums. Minor violations, like speeding tickets, can cause an increase of 20% or more. A single at-fault accident can push auto insurance rates up by 46%. 

Michigan also requires SR-22 insurance for high-risk drivers, especially those with license suspensions. This adds another expense to an already high insurance premium.  

The table below shows insurance rates based on driving record: 

If you keep a clean driving history, you can maintain affordable car insurance premiums. You can also take defensive driving courses, compare car insurance companies, and seek car insurance discounts to reduce auto insurance costs. 

Car Insurance Rates in Michigan Based on Credit Score

In most states, insurance companies use credit scores to set car insurance rates. Drivers with higher credit scores usually pay lower auto insurance premiums, while those with poor credit face higher insurance costs.  

However, Michigan new car insurance laws prohibit using credit history to set auto insurance rates. This means insurance companies in Michigan cannot charge higher car insurance premiums based on a driver's credit score. Despite this law, Michigan drivers still pay some of the highest auto insurance rates in the country. 

Michigan Car Insurance Rates Based on Gender and Marital Status

Michigan Governor Gretchen Whitmer prohibits using non-driving factors in setting car insurance rates including sex, marital status, home ownership, credit score, educational level, occupation, and zip codes (July 1, 2020). So, insurance companies can use neither gender nor marital status when determining auto insurance rates for you. 

However, group auto policies, such as those offered through employers or associations, may still factor in gender when calculating auto insurance rates. 

Before the law changed, studies showed that women in Michigan often paid more than men for car insurance coverage. Despite being statistically safer drivers, women faced higher auto insurance premiums due to factors like claim frequency and medical costs. In fact, women paid $79 more than male drivers in 2018, according to the Detroit Free Press. 

However, men are more likely to engage in risky driving behavior, such as speeding, DUI offenses, and reckless driving, which traditionally resulted in higher insurance costs for male drivers. 

Marital status, on the other hand, is banned as well when it comes to deciding rates. Yet, in some cases, despite the ban, married drivers are seen to pay a few dollars less than single, separated, or widowed drivers. This happens because they are comparatively low-risk drivers and earn discounts from insurers for safe driving records, bundling policies, and married couple or joint policy discounts. 

Source: autoinsurance.com 

*Note that the data can differ a lot from the Michigan state average we mentioned due to different research methodology used. These methods usually consider the driver's age, coverage level, deductible, and the car's make and model. 

How Much Is Car Insurance in Michigan by Vehicle Type?

The make and model of your car also impact car insurance rates in Michigan. Some cars are expensive to insure due to higher repair costs, theft rates, or increased risk of accidents. If you drive luxury vehicles or sports cars, you’ll typically face the highest auto insurance premiums. In contrast, family-friendly vehicles like minivans and SUVs tend to have lower insurance costs.

Insurance companies consider several factors when deciding car insurance premiums based on vehicle type including vehicle’s value, the age and size of your vehicle, and make and model. Cars with advanced safety features may qualify for car insurance discounts. However, vehicles with high horsepower often have higher auto insurance rates due to their increased accident risk. Also, cars like the Hyundai Elantra, or Hyundai Sonata that more likely to be stolen can increase your comprehensive insurance coverage costs.  

See the following table, showing the annual full coverage rates in Michigan by vehicle make and model: 

Source: Caredge.com | Car Insurance Calculator 

*Note that the rates are based on a good driver's profile, aged between 35 and 44. These rates can vary based on many other factors. To get a personalized car insurance rate, talk to our car insurance agents directly. 

Other Factors Affecting Auto Insurance Costs in Michigan

Other factors that also have an impact on car Insurance costs in Michigan:

• Claim history
• Coverage options
• Deductible amount
• Coverage level

A driver’s claim history has a major impact on car insurance rates in Michigan. If you have filed multiple claims, your insurance premiums can rise by 40% to 50% after an at-fault accident. Even a no-fault accident can increase costs by up to 4%. Some insurance companies offer accident forgiveness, but not all drivers qualify. 

The type of car insurance coverage option you choose also matters. Basic minimum coverage is the cheapest, but it provides limited protection. Meanwhile, full coverage includes collision coverage and comprehensive coverage, which increases insurance premiums 

The deductible amount also influences how much you pay for car insurance. A higher deductible lowers monthly premiums, but you’ll pay more out-of-pocket after an accident. A lower deductible means higher insurance costs, but you’ll have less financial burden when filing a claim.

Lastly, the coverage level directly affects insurance premiums. Higher coverage limits provide better protection but result in more expensive auto insurance rates. 

Why Is Car Insurance So Expensive in Michigan?

Car insurance rates in Michigan are among the highest in the nation due to several factors. Michigan auto insurance requirement and no-fault insurance laws mandate drivers to carry personal injury protection (PIP), which covers unlimited medical expenses by default. High auto accident rates, fraud, and costly medical claims significantly increase insurance costs. A high number of uninsured drivers drive the costs up as well. According to the Insurance Research Council (IRC) Michigan saw the largest decline of 6.2% of uninsured drivers. There is a significant number of uninsured/underinsured drivers remain on the road which is still affecting overall Michigan car insurance premiums. Learn more about why Michigan auto insurance is so expensive.  

How to Lower Car Insurance Costs in Michigan

To lower your car insurance costs in Michigan, try these simple but effective ways to find cheaper rates while keeping adequate coverage. Here are some helpful tips to save money on your car insurance premium: 

1. Shop Around for Better Rates: Different insurance companies offer different prices for the same coverage. By comparing quotes, you can find the most affordable option for your Michigan car insurance. 

2. Choose a Higher Deductible: Going for a higher deductible lowers your car insurance premium. However, remember that you'll pay more out-of-pocket if you need to file a claim. 

3. Consider Reducing Personal Injury Protection (PIP): If you have comprehensive health insurance, you might not need full PIP medical coverage. Reducing PIP can lower your overall insurance costs. Check out whether your health insurance covers auto accidents. 

4. Maintain a Clean Driving History: Try to Avoid accidents and traffic violations to keep your auto insurance rates low. A clean driving record is crucial for securing cheap car insurance. 

5. Take a Defensive Driving Course: Some insurance companies offer discounts for completing an approved defensive driving course. This can lead to significant savings on your auto insurance premiums. 

6. Bundle Policies: Combining your auto insurance with home insurance or other types of coverage can save you money. Many insurers offer discounts for bundling multiple policies 

7. Look for Discounts: Many car insurance companies provide discounts for safe driving, good students, multi-car policies, and more. Always inquire about available discounts to lower your insurance costs. 

8. Look for Usage-Based Insurance: If you drive less, a pay-per-mile plan might be cheaper. Telematics devices can track your driving habits and help you qualify for lower rates based on actual usage. 

9. Drive a Car with Lower Insurance Costs: The make and model of your vehicle can affect your car insurance rates. Luxury and sports cars typically cost more to insure compared to standard models. So, always use a family-friendly car for regular commutes. 

10. Review Your Policy Annually: Insurance rates change, and a better deal may be available each year. Regularly reviewing your policy ensures you're getting the best rate.  

11. Improve Your Credit Score: Although Michigan bans credit-based pricing, some insurers might still consider your financial stability. A better credit score can positively influence your insurance rate. 

12. Drop Unnecessary Coverage: If your car is older and has depreciated in value, you might not need comprehensive or collision insurance. You can drop these coverages to lower your costs. 

Get the Cheapest Car Insurance in Michigan from L.A. Insurance

Do you need cheap insurance in Michigan for your car? L.A. Insurance can cover you and your car from all unexpected situations at a rate you never thought possible! Based in Detroit, MI, with over 200 locations, we’re one of the largest independent insurance agency franchises in North America. 

Whether you’re a high-risk driver struggling to get car insurance or a teenage driver facing expensive insurance costs, we can help you get reliable insurance coverage at a price you can easily afford. Need full coverage insurance or simply want to carry state-mandated coverage? Get a cheap insurance quote now from the most affordable insurance agency in Michigan. Talk to an agent or call us at (888) 500-6065.

Michigan Auto Insurance Rates: The Bottom Line

Hopefully, you now have a clear understanding of how much car insurance costs in Michigan. To recap, Michigan has some of the highest car insurance rates in the U.S. 

The average cost of car insurance in Michigan ranges from $984 to $4,067 per year or $82 to $338 per month, regardless of the coverage options and limits you choose. For minimum coverage, you can expect to pay between $82 and $133 per month, while full coverage costs $220 to $338 per month. 

However, these rates aren’t fixed! They can vary significantly based on the city you live in, the type of vehicle you drive, the age and size of your vehicle, your driving record, age, insurance history, coverage options, and deductibles. 

It's also important to note that Michigan has banned the use of gender, marital status, credit score, homeownership, occupation, education level, driver's profession, and zip code in determining insurance rates. 

Typically, young drivers, luxury cars, and a history of violations and claims will increase insurance premiums in Michigan. However, despite high rates, you can lower costs with discounts, higher deductibles, and safe driving records. 

Learn more about car insurance rates by reading our articles:

• How much is car insurance?
• how much is car insurance by age?
• Average car insurance rate by gender
• How does driving history affect car insurance rates  
• How make and model affect car insurance rates  
• What is the cost of car insurance based on credit score?  
• How does marital status affect car insurance costs?
• How does annual mileage impact car insurance rates?

Frequently Asked Questions (FAQs)

How Much Is Car Insurance Per Month in Michigan?  

Michigan drivers pay between $82 and $133 per month for minimum coverage. Full coverage costs range from $220 to $338 monthly. Detroit has the highest rates where drivers pay $472 per month for full coverage insurance. 

How Much Is Auto Insurance in Michigan Per Year? 

Michigan car insurance costs between $984 and $1,596 per year for minimum coverage. Full coverage ranges from $2,640 to $4,067. Rates depend on factors like driving history, vehicle type, coverage level, claim history, and deductible. 

How Much Car Insurance Do I Need in Michigan?  

Michigan requires a minimum liability policy that includes personal injury protection (PIP) and property protection insurance (PPI).  State laws mandate that drivers carry at least $50,000 in bodily injury liability per person, $100,000 per accident, and $10,000 in property damage liability. On top of that, Michigan requires unlimited PIP coverage by default unless drivers choose lower options. 

How Much Is PLPD Insurance in Michigan? 

PLPD (Personal Liability and Property Damage) insurance is Michigan’s minimum required coverage. It includes liability and property protection insurance but does not cover your own vehicle damage. Based on our research, PLPD insurance costs on average range from $82 to $133 per month, depending on your location, driving history, and insurance company. 

How Much Does Car Insurance Cost in Michigan for an 18-Year-Old?  

An 18-year-old in Michigan pays around $728 per month or $8,732 per year for car insurance. This rate is utterly high. But it’s because of high accident rates among teen drivers. Parents adding teens to their policy may help lower insurance costs. 

How Much a 20-Year-Old Pay for Car Insurance in Michigan? 

At 20, Michigan drivers pay roughly over $7,000 per year for full coverage auto insurance. Since younger drivers statistically have more accidents, insurers charge them higher premiums. Discounts for safe driving and bundling policies can help reduce car insurance costs for young drivers. 

References: 

• Bishop, L. (2025, January 7). Car insurance rates by State: 2025 comparison. ValuePenguin. https://www.valuepenguin.com/car-insurance-by-state
• Van Keuren, M. (2025, February 6). Average cost of car insurance in Michigan in 2025. Bankrate. https://www.bankrate.com/insurance/car/average-cost-of-car-insurance-in-michigan/
• Michigan Department of Insurance and Financial Services. (2020). Quick facts. https://www.michigan.gov/-/media/Project/Websites/autoinsurance/PDFs/FIS-PUB_5100a.pdf?
• Michigan Department of State Police & Office of Highway Safety Planning - Traffic Safety Programs. (2023). MTCF. In Michigan Traffic Crash Facts [Report]. https://publications.michigantrafficcrashfacts.org/2023/2023TeensYoungAdultsAges15-20.pdf
• Consumer protections. (n.d.). https://www.michigan.gov/autoinsurance/law-changes/consumer-protections
• Shamus, K. J. (2019, March 26). Michigan women pay more for car insurance than men. Detroit Free Press. https://www.freep.com/story/news/local/michigan/2019/03/26/auto-insurance-rates-michigan-women/3269400002/
• AutoInsurance.com. (2024, September 19). Average cost of car insurance in Michigan. Autoinsurance.com. https://www.autoinsurance.com/states/michigan/cost/
• Car Insurance Calculator. (n.d.). https://caredge.com/insurance
• Uninsured Motorists, 2017-2022 | Insurance Research Council. (n.d.). https://insurance-research.org/research-publications/uninsured-motorists-2