The average annual cost of car insurance in Michigan in 2021 is $948 for minimum coverage and $2,309 for expanded full coverage, which is $565 and full coverage costs $1,674 per year.
The minimum coverage cost in Michigan is relatively high because the state has one of the highest minimum coverage requirements in the country. Another reason for Michigan’s expensive auto insurance is historic pressure on the state’s no-fault insurance program from extremely high no-fault claims. For example, from 2002 to 2011, average claims for lost wages, medical expenses and other losses increased 192 percent, or 13 percent per year.
How much does car insurance cost in Michigan?
The cost of car insurance is dependent upon many factors, including:
- Driving records: Maintaining a good driving record will generally lower your rates.
- Annual mileage: Insurers often assume the less time on the road, the fewer accidents you may be at risk for.
- Location: High crime areas could mean a greater chance for vandalism or car theft, which may be reflected in your premiums.
- Age: Older drivers are generally more experienced and less likely to have accidents than teen and young adult drivers.
- Gender: Insurance providers evaluate risk factors, which can include statistics on accident rates and claims by gender.
- Credit rating: Carriers use a credit-based insurance score designed to predict how likely someone is to file a claim. In general, the lower your credit rating, the more likely you may be to file a claim.
Michigan car insurance rates by company
Michigan has a large number of licensed drivers and, as a result, many options for residents to choose a good car insurance policy. 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 2021 rates as provided by Quadrant Information Services:
| Car insurance company | Average annual premium for minimum coverage | Average annual premium for full coverage |
|---|---|---|
| AAA | $893 | $2,221 |
| Allstate | $1,301 | $2,726 |
| Auto-Owners | $827 | $1,982 |
| Chubb | $363 | $1,639 |
| Donegal | $606 | $1,690 |
| Farmers | $2,237 | $4,471 |
| Frankenmuth | $632 | $1,921 |
| Geico | $724 | $1,467 |
| Grange | $1,749 | $2,465 |
| Hastings Mutual | $843 | $1,623 |
| MetLife | $532 | $1,668 |
| Pioneer State | $927 | $1,975 |
| Progressive | $683 | $1,394 |
| Secura | $115 | $826 |
| State Farm | $2,103 | $3,856 |
| The Hanover | $1,511 | $4,493 |
| Travelers | $101 | $1,470 |
| USAA | $482 | $1,255 |
| Westfield | $115 | $2,337 |
| Wolverine Mutual | $203 | $1,082 |
Michigan car insurance rates by city
The average annual premium for full car insurance coverage in Michigan is $2,309. Residents of large metropolitan areas typically pay higher rates for car insurance. In fact, Michigan residents in Detroit and Dearborn pay high rates.
| City | Average annual premium for full coverage | % difference from state average annual premium |
|---|---|---|
| Detroit | $5,046 | 121% |
| Grand Rapids | $2,021 | -14% |
| Warren | $3,346 | 56% |
| Sterling Heights | $2,935 | 39% |
| Lansing | $2,092 | -7% |
| Ann Arbor | $2,003 | -12% |
| Flint | $2,995 | 32% |
| Dearborn | $4,083 | 84% |
| Livonia | $2,534 | 12% |
| Westland | $2,898 | 33% |
| Troy | $2,628 | 17% |
| Farmington Hills | $2,504 | 12% |
| Kalamazoo | $1,973 | -14% |
| Saginaw | $2,253 | 4% |
| Wyoming | $1,948 | -16% |
| Southfield | $3,550 | 57% |
| Rochester Hills | $2,389 | 8% |
| Taylor | $3,101 | 47% |
| St. Clair Shores | $2,737 | 27% |
| Pontiac | $3,202 | 42% |
Cost of living in Michigan and car insurance
When shopping for the best car insurance rates in Michigan, it’s important to factor in your other expenses so that you’re looking at your total living costs. The graph below shows the average annual cost of living in Michigan, including the average cost of car insurance. Use this graph as a guide to help determine your overall expenses so that you can decide what insurance rates fit in your budget.
Michigan car insurance rates by age
Rates vary considerably depending on a driver’s age. Twenty-year-olds pay among the highest rates but may still able to purchase affordable policies with careful research and by taking advantage of numerous discounts.
| Age | Average annual premium in Michigan |
|---|---|
| Age 16 | $3,403 |
| Age 17 | $3,122 |
| Age 20 | $5,746 |
| Age 22 | $4,106 |
| Age 25 | $3,031 |
| Age 30 | $2,771 |
| Age 35 | $2,725 |
| Age 40 | $2,309 |
| Age 60 | $2,342 |
*16-year-old and 17-year-old calculated on parent’s policy disclosure
Michigan car insurance rates by driving record
The table below reveals how substantially a serious driving violation might impact rates.
| Driving incident | Average annual premium in Michigan | % increase in average annual premium |
|---|---|---|
| Speeding ticket | $2,881 | 24.7% |
| Accident | $3,532 | 53% |
| DUI | $6,554 | 183.8% |
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.
- Improve your credit score: Though there may not be an obvious connection, insurance companies often consider drivers with a low credit score to be at a higher risk for filing claims and set rates accordingly.
- 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.
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.
Michigan car insurance requirements
Michigan law establishes several minimum requirements for no-fault coverage that must be included in car insurance policies:
- Personal Injury Protection (PIP): As noted above, starting on July 1, 2020, drivers are now able to reduce or eliminate this coverage under certain conditions.
- Property Protection (PPI): Policies need to cover $1,000,000 to pay for damage your vehicle does to other people’s property.
- Residual bodily injury and property damage liability (BI/PD): BI/PD covers damages you are responsible for from a car accident in which someone was killed or seriously injured. Michigan requires 50/100/50 liability limits.
While the purpose of the minimum car insurance requirements above are to assure certain protections for Michigan drivers, it does not always follow that these coverages are sufficient to meet your needs. An insurance agent can discuss the proper limits for you and your family.
Frequently asked questions
How can I lower my car insurance in Michigan?
There are many discounts available for auto insurance in Michigan and each insurer offers a different package of discounts. Be sure to obtain several quotes and ask about all available discounts. It may be a good idea to set regular times to review your current policy with your agent to see if new discounts have become available or a change in your circumstances qualifies you for others.
Why is car insurance so expensive in Detroit?
As one of the most expensive cities in the country to buy car insurance, Detroit drivers maysee some relief from the changes to Michigan’s law permitting drivers to reduce or eliminate PIP coverage under certain circumstances. The fact remains however that Detroit’s high crime rate and still remaining fallout from the city’s previous bankruptcy make the city a high-risk area for insurers.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 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 2019 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 and lapse in coverage.
Age rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.
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