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Average cost of car insurance in Michigan for 2023
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What To Know First
Drivers in Michigan pay, on average, $2,691 for full coverage and $1,104 for minimum coverage car insurance, based on Bankrate’s 2023 analysis of annual quoted premiums. Price is just one factor to consider when comparing car insurance quotes, however. Our Bankrate editorial team, which includes three licensed insurance agents, has created the Bankrate Score model. This model weighs company factors such as financial strength, customer satisfaction, third-party rankings, average premiums and more to help you identify carriers that may meet your unique insurance needs and budget.
- On average, full coverage car insurance in Michigan costs 25 percent more than the national average, while minimum coverage costs 44 percent more.
- Drivers in Dearborn pay some of the highest average rates in the state, while drivers living in Livonia pay some of the lowest.
- Drivers with an at-fault accident on their driving record pay about 40 percent more than the state average for full coverage car insurance
On This Page
- How much is car insurance in Michigan?
- Average car insurance costs by age in Michigan
- How does driving record impact the cost of car insurance in Michigan?
- Michigan car insurance rates by vehicle type
- How to save on car insurance in Michigan
- Estimate your car insurance cost
- Frequently asked questions
How much is car insurance in Michigan?
The average cost of car insurance in Michigan is $1,104 per year for minimum coverage, while full coverage car insurance costs an average of $2,691 annually. This is according to Bankrate’s study of 2023 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.
|Average annual minimum coverage premium||Average annual full coverage premium|
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 some states, though Michigan prohibits the usage of gender as an insurance rating component.
|Age||Average monthly full coverage premium in Michigan||Average annual full coverage premium in Michigan|
*16-year-old calculated on parents' policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied.
Cost considerations for young drivers in Michigan
Most young drivers are added to their parents' 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.
Young drivers who have left home and own their own vehicle will generally be expected to have their own car insurance policy. Below you can see average rates for young drivers on their parents' policy and on their own.
|Age||Average full coverage annual premium for drivers on their parent’s policy in Michigan||Average annual full coverage premium for drivers on their own policy in Michigan|
*16- and 17-year-old drivers must be on their parents’ policy.
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 incident||Average annual full coverage premium in Michigan||% increase in average annual premium|
|Clean driving record||$2,691||N/A|
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 the table below 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.
|Age||Average annual full coverage premium in Michigan|
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:
- Improve your driving skills: Taking a driver training course may 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.
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Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, 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 coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.