Car insurance in Michigan costs $108 per month or $1,300 per year for minimum coverage, on average. The cheapest car insurance companies in Michigan are Travelers, Secura, and Wolverine Mutual, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in Michigan is 96% higher than the national average auto insurance premium. There are several factors that affect how much you’ll pay for car insurance in Michigan, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.
Average Cost of Car Insurance in Michigan by Category
After an at-fault accident:$313 per month
Teen driver:$392 per month
After a DUI: $318 per month
Average Cost of Car Insurance in Michigan by Company
Note: Rates are an approximation based on a driver in Michigan with minimum coverage and a clean driving record. Actual rates will vary.
How to Lower the Cost of Car Insurance in Michigan
Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Michigan law. Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle was worth if it gets stolen or totaled.
Car insurance in Michigan is expensive because it's a no fault state with high insurance coverage requirements. But the biggest reason Michigan drivers pay more for car insurance than anyone else in the country is that it is the only state with unlimited. In Michigan, you can expect to pay approximately $6,310 per year for full coverage car insurance or $2,197 per year for minimum coverage. Car insurance in Michigan is more expensive than the national average, which is around $2,000 annually for … read full answerfull coverage and about $700 per year for minimum coverage.
The cost of car insurance is steadily increasing, too, both in Michigan and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.
There are several unique reasons why car insurance goes up every year in Michigan, too, even if your details remain the same.
Top Reasons Car Insurance Is Expensive in Michigan
People in Michigan are driving more. As a result, the number of accidents, claims, and payouts is rising, too. For example, there were approximately 1,011 fatal crashes in 2020 in Michigan, versus 896 fatal crashes in 2015.
Auto repairs are getting more expensive. Vehicles today cost more to repair due to the added technology and features. For example, a National Association of Insurance Commissioners study found that the average cost of vehicle repairs was around 8% higher in 2018 than it was in 2014.
People in Michigan drive uninsured. As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2019, 26% of drivers lacked even minimum liability insurance in Michigan. The cost of uninsured drivers is passed on to consumers through higher premiums.
Healthcare in Michigan is getting more expensive. Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 5.2% every year in Michigan.
Michigan is experiencing more severe weather. In Michigan, weather events like severe storms, serious winter weather, and droughts are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.
However, there could be other issues elevating your rates.
If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:
Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In Michigan, 16-year-old drivers pay an average of $4,704 per year, 25-year-old drivers pay an average of $1,392 per year, and people over 65 pay an average of $1,305 per year.
Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In Michigan, the most expensive locations for insurance are Brockton, Dorchester Center, and Dorchester. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.
Financial responsibility. You can demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.
Claims history. Numerous recent claims can drive up your premiums. That's one reason why it sometimes makes sense to pay out of pocket rather than file a claim, especially if a claim won’t get you much more than your deductible.
How to Get Cheaper Car Insurance in Michigan
Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.
Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.
In Michigan, the most expensive policies cost roughly $5,491 per year, and the least expensive coverage costs around $635 per year, when all driver profile information is the same. That means you could save as much as $4,856 simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.
The penalties for driving without insurance in Michigan include fines, suspension of your driver's license, and imprisonment. To avoid these penalties, drivers in Michigan must have at least $50,000 in bodily injury liability coverage (up to $100,000 per accident) along with $10,000 in property damage liability coverage. Michigan drivers also need to purchase personal injury protection and property protection insurance.… read full answer
Drivers in Michigan pay an average of $1,908 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.
Penalties for Driving Without Insurance in Michigan
Type of Offense
License and/or Registration Suspended?
Maximum Fines & Fees
No Proof of Insurance
(Can Prove Coverage)
$25 - mandatory fee
1st Offense With No Coverage
up to 1 year
Repeat Offense(No Coverage)
up to 1 year
Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation” similar to a seat-belt ticket. In Michigan, your citation might be dismissed if you can provide the court with proof of valid insurance for the date of the citation within 14 days.
Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up. A single conviction for driving without insurance raises annual premiums by an average of 14%, or $322, in Michigan.
What happens if you get into a car accident without insurance in Michigan?
You will be cited and all the penalties for driving without insurance will apply, no matter who is at fault.
If you are at fault, you’ll have to pay for all the damages out of your own pocket.
The other driver and their insurance company can sue you if you are responsible, and your savings and future wages can be garnished to pay for damages if they win a settlement.
Even if the accident is not your fault, driving without insurance leaves you vulnerable to expensive hospital bills.
Michigan is a no-fault state, so all drivers process injury claims through their own insurance company, no matter who caused the crash. Michigan also is a “no pay, no play” state, which means you cannot recover damages of any kind if you are driving uninsured.
Now that you know the penalties for driving without insurance in Michigan, the next step is to make sure you’re covered. For more information, check out WalletHub’s guide to cheap car insurance in Michigan.
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