Average cost of car insurance in Michigan for 2023

How much does car insurance cost in Michigan?

The average cost of car insurance in Michigan is $946 per year in 2022 for minimum coverage, while full coverage car insurance costs an average of $2,345 annually. This is according to Bankrate’s study of 2022 average annual premiums from Quadrant Information Services. The cost of car insurance is dependent upon many factors, including driving records, annual mileage, location, age and more. However, car insurance companies in Michigan are not allowed to consider your credit score or gender when calculating your premium

Michigan car insurance rates by city

The average annual premium for full car insurance coverage in Michigan is $2,345. Residents of large metropolitan areas typically pay higher rates for car insurance, especially when compared to the state average for both minimum and full coverage. In fact, Michigan residents in Detroit and Dearborn pay high rates.

Michigan car insurance rates by insurance company

Michigan has a large number of licensed drivers and, as a result, many options for residents to choose a good car insurance policy. Every car insurance company also calculates their own rate and risk profiles differently, which could result in premium differences for drivers. Because Michigan is one of the costliest states to purchase car insurance, it could pay to shop carefully and take advantage of all available discounts. The following table lists average 2022 rates as provided by Quadrant Information Services:

Michigan car insurance rates by age

Rates vary considerably depending on a driver’s age and years of driving experience. For this reason, younger and newer drivers pay significantly more for car insurance compared to older, more experienced drivers. Below is an analysis of Michigan car insurance rates by age, with all drivers having a clean driving record. Rates may vary for young drivers depending on whether they’re on their parent’s policy or on a separate policy.

Average cost of car insurance for drivers on their parent’s policy

Most young drivers are added to their parent’s policy once they start driving, but the cost can still be quite high. On average, 16-year-olds pay some of the most expensive car insurance rates when compared to all age groups. However, researching car insurance discounts for teen drivers could help reveal some helpful savings opportunities.

Average cost of car insurance for drivers on their own policy

Young drivers who have left home and own a car registered to their own name will usually be expected to have their own car insurance policy. It can be very expensive, as is apparent when comparing the rates for an 18-year-old in Michigan on their own policy compared to an 18-year-old on their parent’s policy. Over time, as drivers gain more experience, car insurance companies consider them to be less risky, as shown by the average rates for adult drivers aged 30 to 60-years-old.

Michigan car insurance rates by driving record

Depending on the severity of an incident, you could be in for a major jump in car insurance premiums due to having a driving infraction on your record. A minor infraction, like a speeding ticket, results in a 19% increase in premiums on average, while a major infraction like a DUI could raise rates by as much as 166% or more on average.

Michigan car insurance rates by vehicle type

The make and model of a car is important when determining car insurance rates. Insuring a luxury vehicle, for example, may result in higher insurance rates because of expensive repair costs and pricey parts. And while economy cars may be relatively affordable, it’s also possible that the car insurance premiums for these vehicles are higher than expected due to their popularity and, in turn, the increased likelihood of being involved in more accidents. The table below offers average full coverage rate information for vehicles that could be suited to a variety of lifestyles.

How to save on car insurance in Michigan

There are a number of ways Michigan drivers may be able to get cheap car insurance. Here are some options you may want to consider:

• Increase your deductible: Doing this will reduce your premium but result in a lower claim payout. Evaluate your personal needs and risk tolerance by talking to an insurance agent before adjusting your deductible to have better peace of mind.
• Improve your driving skills: Taking a driver training course can sometimes help you reduce your rates. Even if you do not take a course, avoiding accidents and tickets and maintaining a clean driving record could mean you avoid insurance surcharges.
• Reduce or eliminate your personal injury protection: Until July 1, 2020, Michigan drivers were required to carry PIP as part of their car insurance policies. On that date Michigan’s No-Fault Insurance Law was amended to permit drivers to eliminate or reduce the amount of PIP coverage provided other health insurance policies applied to cover personal injuries. However, it is important to note that PIP coverage pays for your injuries and the injuries of your passengers in an accident, regardless of who is at fault. Reducing or removing the coverage could mean you will be responsible for out-of-pocket expenses if you or your passengers are injured.
• Research available discounts: If you’re part of a professional organization or work in certain occupations, you may qualify for special discounts. Or, if you have a young driver in your household, it may be helpful to inquire about specific discounts tailored to them.

There are many other potential auto insurance discounts such as bundling home and auto coverage, senior discounts and discounts for paying premiums in an annual lump sum or by automatic deduction from a bank or credit card account. Ask what discounts carriers you are interested in might offer.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a male and female driver with a good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Driving record rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Toyota Camry (base), Ford F-150 and Honda Odyssey.