Average cost of car insurance in Michigan in 2025

How much is car insurance in Michigan?

The average car insurance cost in Michigan is $891 for state-mandated minimum coverage, while full coverage car insurance rates average $3,126 a year. Bankrate sourced premium data from Quadrant Information Services to arrive at these figures. 

Individual rates are based on a range of factors like your age and driving record, as well as your car's year, make and model, so your premium will likely differ from the average. Note that when determining how much car insurance costs in Michigan, insurers do not consider your credit or gender, unlike most other states.

Key takeaways

• Michigan drivers pay an average monthly rate of $74 for minimum coverage and $260 for full coverage insurance.
• On average, full coverage car insurance in Michigan costs 16 percent more than the national average, while minimum coverage costs 11 percent more.
• Vehicle type can play a significant role in Michigan rates, with drivers of a BMW 330i paying an average of 31 percent more for insurance per year than someone driving a Ford F-150.
• Drivers with an at-fault accident on their driving record pay about 47 percent more than the state average for full coverage car insurance.
• Michigan law prohibits auto insurance companies from utilizing ZIP codes, credit history, marital status and gender as part of rate determinations.

Michigan car insurance rates by city

It's not enough to know how much car insurance is in Michigan; you should also know that your rate may vary depending on where in the state you live. For example, you may pay more for your insurance if you live in a large city with heavy traffic patterns, which can result in a higher number of accidents, on average. Areas where there is less traffic and fewer accidents may see decreased rates. Here are sample averages from various cities in Michigan:

Average car insurance costs by age in Michigan

Auto insurance rates may vary considerably based on a driver's age and years of driving experience. For this reason, younger and newer drivers typically pay significantly more for car insurance compared to older, more experienced drivers. Drivers who maintain a clean driving record should see a decrease in their rate as they gain more experience behind the wheel. Rates are similar from age 30 to 60 but can increase at age 70 and older. Gender is also a factor in most states, though Michigan prohibits the usage of gender as an insurance rating component.

Cost considerations for young drivers in Michigan

Young drivers who have less experience behind the wheel and may be more inclined to engage in risky behaviors such as texting while driving are likely to see higher average rates. Insurers compensate for the increased risk of accidents by charging more, with 16-year-olds paying the highest average rates. Drivers under 18 must remain on their parents' policy. College-aged students can obtain their own insurance but also have the option to stay on their parents’ policy as long as their permanent address is the family home. Doing so can help young drivers save on their car insurance premiums.

Some insurers offer discounts focused on young drivers, which may help lower their rates. These may include discounts for earning good grades in high school or college or discounts for attending school away from home when they leave their car at home. Below are sample rates for young drivers, showing how the rates start to decline as they age out of their teens.

How does driving record impact the cost of car insurance in Michigan?

Your driving record is another key factor carriers will consider when determining your rates. Drivers with clean driving records typically see the lowest average rates, while those with a minor infraction, like a standard speeding ticket, see a slight jump. Those with a serious incident, like a DUI or OWI (operating while intoxicated) conviction, may see rates nearly double the state average in Michigan. Driving without insurance is illegal in Michigan, and may result in fines and other penalties. Drivers in Michigan who have had their license suspended may be required by the state to carry SR-22 insurance.

Michigan car insurance rates by vehicle type

The make, model and year of the vehicle you choose will also factor into your Michigan car insurance rates. Consider this table with several vehicle types to illustrate how the make and model of your car could impact your insurance cost. In general, drivers with luxury vehicles or models that cost more to repair will see higher average insurance rates.

Estimate your car insurance cost in Michigan

Shopping for the best Michigan car insurance rates can be complicated since there are a number of factors to consider. You may find Bankrate's cost estimator valuable. By inputting a few key numbers, you will receive an estimate of what you may pay for your policy. It likely won't be an exact number but can help give you a good idea of your potential costs.

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 to consider:

• Improve your driving skills: Taking a driver training course may help you reduce your rates since you’ll theoretically reduce your risk of getting into an accident. Even if you do not take a course, avoiding accidents and moving violations 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 their 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.
• Review your coverage annually: Premiums can jump at renewal time. Because of this, you may want to compare coverage from several providers every time your policy is up for renewal. You might find you can get the same coverage and policy limits for less by switching insurers.
• Research available discounts: Car insurance companies often offer discounts to eligible drivers. Finding discounts for which you qualify can help you save money on your premium. Some discounts, like claims-free discounts, may take time to qualify for. However, other common ones, like paperless billing, typically have much easier qualification requirements.

Many other potential auto insurance discounts exist too, such as bundling home and auto coverage, insuring multiple vehicles, being a senior, paying upfront instead of monthly or enrolling in autopay. Agents can offer further details on savings opportunities and eligibility requirements.

Frequently asked questions