Key Takeaways
The average car insurance cost in Michigan might vary based on the age of the driver, insurance company, coverage levels, driving history, and the number of drivers on the policy. Annual premiums for complete coverage in Michigan can range from $582 (USAA) to $2844 (Allstate). Teenage auto insurance may be substantially more expensive, with a 16-year-old male/female on a family plan spending roughly $10,310.
Minimum coverage vehicle insurance in Michigan costs an average of $1,114 per year, while full coverage car insurance costs an average of $2,681 per year. The cost of auto insurance is determined by a several factors such as driving history, miles rode, location, age, and others. Car insurance providers in Michigan, on the other hand, are not permitted to use your credit score or gender when calculating your rate.
| Average annual minimum coverage | Average annual full coverage |
|---|---|
| $1,104 | $2,691 |
In Michigan, car insurance costs vary widely. On average, rates can range from $1,000 to $3,000 per year. However, for specific age groups:
| Age | Average Yearly Premium | Monthly Premium |
|---|---|---|
| 16 | $10,310 | $859 |
| 17 | $8,196 | $683 |
| 18 | $7,397 | $616 |
| 19 | $5,304 | $442 |
| 20s | $3,204 | $267 |
| 30s | $2,506 | $209 |
| 40s | $2,464 | $205 |
| 50s | $2,305 | $192 |
| 60s | $2,349 | $196 |
| 70s | $2,737 | $228 |
Average car insurance costs in Michigan vary by company. USAA often provides some of the lowest premiums, while Allstate or State Farm may offer higher rates. Rates can range from $500 to $5,000 or more per year, depending on your specific circumstances and coverage choices.
| Provider | Full coverage | Minimum liability coverage |
|---|---|---|
| Allstate | $3,382 | $2,844 |
| Auto-Owners | $2,376 | $1,138 |
| General | $1,745 | $1,498 |
| State Farm | $4,071 | $2,988 |
| Progressive | $2,048 | $1,407 |
| Travelers | $3,036 | $2,347 |
| USAA | $1,313 | $582 |
In Michigan, your driving record significantly affects the cost of car insurance. If you have a clean record with no accidents or traffic violations, you're likely to pay lower premiums. However, if you have a history of accidents, tickets, or DUI convictions, your insurance rates will be higher. Insurers use your driving history to assess your risk as a driver, and a poor record suggests a higher likelihood of future claims, resulting in increased costs for coverage. So, maintaining a clean driving record is crucial to keeping your car insurance expenses in Michigan affordable.
| Driving incident | Average annual full coverage premium in Michigan | Monthly Coverage |
|---|---|---|
| Clean driving record | $2,711 | $226 |
| Speeding ticket | $3,241 | $270 |
| Accident | $4,061 | $338 |
| DUI | $7,300 | $608 |
Michigan car insurance rates vary by vehicle type. Factors such as make, model, and year affect rates. Generally, luxury car owners tend to pay higher premiums due to the expensive maintenance costs associated with their vehicles. Insurance companies consider the repair and replacement costs when setting rates, impacting luxury car owners more than those with standard vehicles.
| Age | Average annual full coverage premium in Michigan | Monthly Premium |
|---|---|---|
| Toyota Camry | $2,681 | $223 |
| Ford F-150 | $2,165 | $180 |
| Honda Odyssey | $2,240 | $187 |
| BMW 330i | $3,419 | $285 |
In Michigan, car insurance costs vary between new and older cars. New cars typically have higher insurance premiums due to their higher actual cash value (ACV). Insurers need to account for the cost of replacement or repair if a new vehicle is damaged or stolen.
Older cars, on the other hand lack modern safety features generally have lower ACV, resulting in lower insurance premiums. However, it's essential to consider factors like the car's make and model, safety features, and your driving history, as these can impact costs significantly
| Model Year | Annual Premium | Monthly Premium |
|---|---|---|
| 2012 Vehicle | $1,419 | $118 |
| 2022 vehicle | $1,810 | $151 |
Average car insurance costs in Michigan can vary significantly by city. Factors like crime rates, traffic density, and local regulations affect premiums. In Michigan, Detroit often has the highest rates, with an average annual premium exceeding $5,000. On the other hand, cities like Marquette and Houghton, located in the Upper Peninsula, tend to have lower average premiums, around $1,000 to $1,200 per year. These variations are due to differences in risk factors and the likelihood of accidents and theft, making it important for residents to shop around for the best rates based on their location.
| City | Full Coverage Annual Premium | Monthly Premium |
|---|---|---|
| Ann Arbor | $1,361 | $113 |
| Detroit | $3,987 | $332 |
| Grand Rapids | $1,377 | $115 |
| Lansing | $1,486 | $124 |
| Sterling Heights | $2,053 | $171 |
In Michigan, average auto insurance rates for high-risk drivers can vary significantly based on several factors. High-risk drivers typically fall into two categories: those with minor faults and those with major faults on their driving record.
Minor Fault Rate: High-risk drivers with minor faults, such as minor traffic violations (e.g., speeding tickets), may face higher insurance premiums compared to low-risk drivers. On average, high-risk drivers with minor faults in Michigan can expect to pay anywhere from $2,000 to $3,500 annually for car insurance.
Major Fault Rate: High-risk drivers with major faults, which may include at-fault accidents or DUI convictions, face even higher premiums. On average, these drivers could pay between $3,500 and $8,000 or more per year.
| Violation | Average Annual Premium | Monthly Premium |
|---|---|---|
| DWI/DUI | $7,085 | $590 |
| Reckless Driving | $6,865 | $572 |
| At-Fault Accident (<$1,000) | $3,683 | $307 |
| At-Fault Accident ($1,000-$2,000) | $3,867 | $322 |
| At-Fault Accident (>$2,000) | $3,683 | $307 |
| Open Container | $4,589 | $382 |
| Speeding (21-25 MPH > limit) | $4,268 | $356 |
In Michigan, your credit score can significantly impact your car insurance rates. Insurers use credit-based insurance scores to assess risk. A lower credit score may lead to higher premiums, while a higher score can result in lower rates. This practice is legal in Michigan, but it's important to shop around for the best deal and maintain good credit to secure lower car insurance costs.
| Credit health | Avg. annual premium | Monthly Premium |
|---|---|---|
| Poor (550-649) | $8,518 | $710 |
| Average (650-699) | $5,454 | $455 |
| Good (700-749) | $4,663 | $389 |
There are several options for Michigan drivers to receive affordable vehicle insurance. Here are some alternatives to consider:
Improve Your Driving Skills: Taking defensive driving courses can help reduce your insurance premiums. These courses teach safe driving techniques and can earn you discounts with your insurer.
Reduce or Eliminate Your Personal Injury Protection (PIP): In Michigan, PIP coverage can be a significant part of your insurance costs. If you have good health insurance, you might consider reducing or eliminating PIP coverage, as this can lead to lower premiums. Be cautious when making this decision, as it involves potential trade-offs.
Research Available Discounts: Many insurance companies offer various discounts that you may qualify for. Common discounts include safe driver discounts, multi-policy discounts (if you bundle your auto and home insurance), and good student discounts for young drivers with good grades. Additionally, some insurers offer discounts for driving less through usage-based insurance programs. It's crucial to shop around and compare quotes from different companies to find the best deals and discounts that fit your needs.
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
Way.com’s Insurance Broker Quote Data
The average cost of full coverage vehicle insurance in Michigan is $148 per month, which is much more than the national average of $87 per month. This places Michigan 50th among all states in terms of cost.
In Michigan, car insurance for a new driver ranges from $1,625 to $4,704 a year. The cost of auto insurance for new drivers in Michigan varies greatly based on their age and whether they are added to an existing policy or purchase their own.
Michigan's car insurance is costly due to unique laws requiring unlimited personal injury protection (PIP) coverage, leading to high medical expenses and fraud, which drive up premiums.
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