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Last updated: October 25, 2023

Average Cost of Car Insurance in Michigan

What you can expect to pay for car insurance in the Wolverine State

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If you’re one of Michigan’s 7.2 million licensed drivers, you’ll need property damage and bodily injury liability insurance and personal injury protection (PIP) to drive legally. For most drivers in Michigan, the annual cost of car insurance will be considerably higher than the national average. However, your state is only one factor insurance providers use to determine premiums. You might be able to find cheaper rates based on your ZIP code, age, driving history, and other factors, which we’ll break down below.

Average Car Insurance Premiums in Michigan

Car insurance in Michigan costs $1,418 per year on average, which is the third-highest rate in the country.1 Don’t panic if this number seems high.

As we stated above, insurance rates will differ from provider to provider, ZIP code to ZIP code, and person to person. You still might be able to find rates closer to the national average ($1,047) or even cheaper if insurance providers view you as a low-risk driver. You can also follow some basic tips to save on car insurance, which we’ll look at more closely below.

By Age

Age is a primary determining factor for car insurance costs in Michigan. Younger drivers tend to pay the highest auto insurance rates because they’re more likely to file claims and get into car accidents. Older and middle-aged drivers pay the lowest rates in the state on average, with drivers in their sixties enjoying the cheapest premiums, at $2,346.

Age Average annual car insurance rate in Michigan
16 $8,271
17 $7,929
18 $7,781
19 $6,261
20s $4,114
30s $2,811
40s $3,159
50s $2,621
60s $2,346
70s $2,674


If you’re one of the 1.5 million drivers in Michigan over the age of 65 (20 percent of all Michigan drivers), you might be eligible for a senior discount. Some providers, like Direct Auto, offer a 5 percent discount to seniors in Michigan for completing an accident prevention course.

By Gender

In most of the U.S., men pay more for car insurance than women because men are seen as higher-risk drivers. But in Michigan, where insurance providers are barred from using gender as a determinant for car insurance, women actually pay slightly more than men do on average.

Gender Average annual car insurance rate in Michigan
Male $2,492
Female $2,549

By Marital Status

Michigan Governor Gretchen Whitmer signed legislation that prohibits insurance providers from using marital status to determine car insurance rates as of July 2020.2 Even under the new legislation, married couples tend to pay slightly less for car insurance than single, divorced, or widowed drivers.

Marital status Average annual car insurance rate in Michigan
Single $2,492
Married $2,454
Divorced $2,492
Widowed $2,492

By Coverage Level

You probably won’t find it surprising that the more coverage you get, the higher your insurance costs will be. Minimum liability (property damage, bodily injury, and PIP) is just under $1,800 annually, while full coverage (comprehensive, collision, and uninsured motorist coverage) is about $3,000 annually on average.

Level of coverage Average annual car insurance rate in Michigan
Minimum coverage car insurance $1,798
Full coverage car insurance $3,044

By Violation

The more traffic violations and accidents you have on your record, the more insurance providers tend to increase your premiums. Drivers with a DUI see the highest premium increases on average, with annual rates exceeding $8,600.

Violation record Average annual car insurance rate in Michigan
Clean driving record $3,512
Speeding ticket $4,756
Accident $4,997
DUI $8,637

By Company

Different providers cater to different drivers and offer varying specializations (commercial auto, high-risk car insurance, etc.) that might increase or decrease their average annual rates. Here’s what those numbers look like for some of the biggest and best providers in Michigan.

Company Average annual car insurance rate in Michigan
Allstate $3,797
GEICO $1,771
Progressive $1,735
State Farm $4,068
Travelers $2,873
USAA $1,128

Cheap Car Insurance Companies in Michigan

Looking for the cheapest car insurance in Michigan? Here are the most affordable providers based on a variety of demographics.

Demographic Cheapest company Annual rate in Michigan
Military USAA $1,464
Veteran USAA $1,464
Full coverage GEICO $1,061
Minimum coverage USAA $333
16 years old GEICO $2,511
17 years old GEICO $2,511
18 years old GEICO $1,918
19 years old GEICO $1,734
20s GEICO $1,556
30s Secura $1,038
40s Travelers $931
50s Secura $938
60s Secura $939
70s Secura $1,056

How to Save on Car Insurance in Michigan

Here are a few simple ways to save on car insurance in Michigan.

  1. Get guaranteed coverage. The Michigan Automobile Insurance Placement Facility (MAIPF) was established to guarantee that auto insurance is available to all Michigan citizens who are unable to find plans in the voluntary market. You can search for and purchase an MAIPF policy only through a Michigan-licensed insurance agent. Learn more about its services here:
  2. Opt out of PIP. Michigan’s 2020 auto insurance laws make it possible for some drivers to opt out of the “mandatory” PIP coverage. For example, if you’re a senior with a Medicare Part A or B plan, you can forego your PIP insurance and save yourself around $500 on your premium annually. Instead of using PIP, you’ll use your healthcare coverage for any medical bills stemming from a car accident.
  3. Drive safely. Even if you’ve accrued points on your system or have a history of claims, you can lower your premium over time by maintaining an accident and violation-free driving record.
  4. Compare quotes. Be sure to shop around and compare quotes before deciding on a provider.
  5. Get usage-based insurance. If you don’t drive often and/or you drive safely, consider signing up for a pay-per-mile or usage-based plan. Both policy types will track your driving and determine your premium based on how much and how safely you drive.
  6. Ask about discounts. You may not know what discounts providers offer until you ask. Talk to your agent to see if you can apply for any new discounts.

Minimum Car Insurance in Michigan

According to Michigan’s Department of Insurance and Financial Services, here are the state’s minimum car insurance requirements and coverage limits:

  • $50,000 for bodily injury per person
  • $100,000 for bodily injury per accident
  • Up to $10,000 for property damage in another state
  • Up to $50,000 in PIP if you’re enrolled in a Medicaid plan, or up to $250,000 if you have non-Medicare health coverage
  • $1 million in property protection for damages to buildings, fences, and properly parked cars in Michigan

Michigan Fault Law

Michigan follows a no-fault law for medical expenses and a modified comparative negligence fault law for property damage. Here’s how it works.

Michigan’s no-fault law states that if you get into a car accident and endure bodily injuries, the state will cover all of your medical expenses and lost wages under your PIP. This applies to both you and the other party, regardless of who is at fault in the accident.

For property damage, however, the at-fault party is still responsible for the other party’s damages. The victim must be less than 50 percent at-fault in order to receive compensation from the other party, and the victim can still sue the other driver if they’ve endured a serious bodily function impairment or permanent disfigurement.


Michigan’s no-fault law is part of Governor Whitmer’s 2020 historic legislation. On top of paying for individuals’ medical expenses following an accident, the legislation also reduces drivers’ PIP costs by up to 45 percent.


Michigan does not mandate an SR-22 or FR-44 if you’ve been in an at-fault accident. Instead, you will have to apply for a financial-responsibility-restricted driver’s license. This is a specialized license that limits you to driving only vehicles stated on your license. In order to apply for the license, you’ll need to:

  1. Fill out a partial payment agreement that states that you’ll agree to make payments toward the judgment of your at-fault accident.
  2. Mail your proof of insurance to the Department of State Driver Record Activity Unit.


Although Michigan has some of the highest average car insurance rates in the country, there are some ways to bring those costs down. If you’re eligible to opt out of PIP, you can save around $500 on car insurance.

Otherwise, compare quotes before deciding on a provider, ask about ways to save, and maintain a safe driving record. Remember, insurance rates differ drastically from person to person and from company to company, so the only way to know if a provider has the best rate for you is to apply for a quote.

Frequently Asked Questions

Why is car insurance so expensive in Michigan?

Here are a few reasons why car insurance is more expensive in Michigan than in the rest of the country.

  • Fault law: Michigan is a no-fault state, which means that every driver is required to have PIP (unless you have Medicare Part A and B). The mandatory PIP cost adds around $500 to most insurance plans.
  • Insurance fraud: Michigan has a higher rate of insurance fraud. According to the Michigan Department of Insurance and Financial Services, auto insurance fraud made up 81 percent of all insurance fraud in Michigan.
  • Uninsured drivers: According to the Insurance Research Council, Michigan has the second-highest rate of uninsured drivers (26 percent).
  • Transportation costs: Michigan’s transportation costs are 2 percent higher than the rest of the country on average.

What is the cheapest vehicle to insure in Michigan?

At around $1,500 annually, Subaru Outbacks and Crosstreks are the cheapest cars to insure in Michigan.

How much is car insurance for a 21-year-old in Michigan?

On average, it will cost a 21-year-old about $3,200 a year for car insurance in Michigan.

How much is car insurance in Detroit?

Car insurance in Detroit is about $4,700 annually on average.


  1. 2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).

  2. Consumer Protections. Michigan’s New Auto Insurance Law. (2020, Jul 1).