Average Cost of Car Insurance in Michigan for 2025
Quick Answer
Car insurance in Michigan costs $2,707 annually or $226 per month on average. However, your driving record, age and the car you drive can all affect the cost of car insurance.
The average cost of car insurance in Michigan is $2,707 annually or $226 per month, according to Experian data from January 2025 and based on policies sold through our automotive insurance marketplace.
Here are the average premium costs for full and minimum coverage car insurance in Michigan:
| Type of Coverage | Annual Cost | Monthly Cost |
|---|---|---|
| Full coverage | $3,340 | $278 |
| Minimum coverage | $1,954 | $163 |
Source: Experian data as of January 2025
High minimum insurance requirements may be one reason Michigan auto insurance costs so much: Michigan requires drivers to carry minimum bodily injury coverage of $50,000 per person and $100,000 per accident and property damage coverage of $10,000 per accident. Michigan also requires a minimum of $1 million in property protection insurance, which pays for damages your vehicle does to someone else's personal property, such as mailboxes, fences or parked cars.
Because Michigan is a no-fault insurance state, drivers must carry personal injury protection (PIP) coverage. PIP pays your medical bills if you're hurt in a car accident, no matter who's at fault. Michigan drivers can choose from PIP coverage in amounts from $50,000 to unlimited coverage. (Depending on your health insurance coverage, you may be able to opt out of PIP.)
You typically need full coverage car insurance if your car is financed or leased. Full coverage adds collision and comprehensive coverage, which protects the vehicle from damage. If your car isn't financed or leased, you could opt for minimum coverage insurance. However, insurance professionals typically recommend buying more than the minimum coverage to protect yourself.
The cost of auto insurance depends on factors such as:
- Age (younger drivers usually pay more)
- Where you live (premiums may be higher in areas with a high rate of accidents or vehicle theft)
- The vehicle you're insuring (new cars cost more to insure than used cars)
- Your driving record (incidents and violations typically drive your costs up)
While our average costs for Michigan car insurance are good general guidelines, the actual price you pay could vary. Before buying a car insurance policy, take some time to compare insurance quotes from several insurers.
Your gender and credit won't affect your car insurance costs in Michigan. State law prohibits insurers from considering gender when you apply for auto insurance or using your credit-based insurance score when setting your premiums.
How Are Car Insurance Costs Trending?
Changes to state insurance regulations effective in July 2020 have somewhat eased Michigan's auto insurance costs. Before the law took effect, Michigan required carrying unlimited PIP coverage, which many drivers couldn't afford. As a result, some 26% of Michigan drivers were uninsured in 2019, according to data from the Insurance Research Council. By 2022, that figure had dropped to 19.6%, according to the Insurance Information Institute (III). However, that still puts Michigan fifth on the list of the states with the most uninsured motorists.
Drivers in Michigan aren't alone in paying high insurance premiums. Across the U.S., car insurance premiums have soared in the past several years due to a higher rate of serious accidents, as well as more expensive vehicles, parts and repairs. The increasing frequency of extreme weather events, which can lead to comprehensive car insurance claims, is another factor in rising insurance rates.
As the chart below shows, since March 2023, the average cost of full coverage car insurance has risen by 30.46%. While the jump isn't as pronounced, the cost of minimum coverage auto insurance has also increased, rising by 15.45%.
Average Annual Auto Insurance Premiums, 2023-2025
Feel as if you're paying too much for car insurance in Michigan? Comparing auto insurance prices from other insurance companies could reveal you can get the same coverage for less. For an easy way to compare quotes, try Experian's free car insurance comparison tool. It collects quotes from Michigan's top insurance carriers in one place so you can quickly weigh your options.
Average Michigan Car Insurance Rates by City
Where you live within Michigan can also impact your insurance premiums. Michigan law forbids insurance companies from considering your ZIP code when setting your auto insurance rates; however, providers can take your "territory" into account.
If you live in an area of Michigan with high rates of car theft, heavy traffic congestion or commutes that are longer than average, you might pay more for auto insurance. In addition, car repairs and medical care can cost more in some parts of Michigan than others, potentially increasing your auto insurance costs.
The chart below shows how the average cost of car insurance in some of Michigan's most populous cities varies depending on the location.
| City | Annual Cost |
|---|---|
| Grand Rapids | $2,169 |
| Muskegon | $2,181 |
| Lansing | $2,187 |
| Kalamazoo | $2,260 |
| Detroit | $4,390 |
Source: Experian data as of January 2025
Note: Top cities are ranked by those with highest policy count
Average Michigan Car Insurance Rates by Age and Gender
Michigan law prohibits car insurance companies from considering gender when setting your premiums. In states where gender can be factored into car insurance costs, women tend to pay less for auto insurance. That's because women are statistically less likely to have serious car accidents or DUIs, according to the III.
However, men in Michigan have a slight advantage over women when it comes to auto insurance prices. On average, men in Michigan pay $2,612 annually or $218 per month for car insurance, while women pay $2,751 annually or $229 per month.
| Gender | Annual Cost | Monthly Cost |
|---|---|---|
| Male | $2,612 | $218 |
| Female | $2,751 | $229 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
Your age is likely to be more of a factor than your gender in your Michigan auto insurance rates. Typically, younger drivers pay more for car insurance than older drivers. Younger drivers are less experienced and statistically more prone to serious accidents.
Rates for auto insurance generally drop once you hit your 20s and continue to decrease as you get older. As the chart below shows, the average cost of car insurance usually drops as you age until trending higher again in your mid-70s.
| Age | Female | Male |
|---|---|---|
| Under 20 | $3,307 | $3,717 |
| 20-29 | $2,642 | $2,683 |
| 30-39 | $2,436 | $2,252 |
| 40-49 | $2,327 | $2,141 |
| 50-59 | $1,983 | $1,942 |
| 60-69 | $1,660 | $1,669 |
| 70-79 | $1,628 | $1,758 |
| 80 or above | $1,701 | $1,894 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
How Your Driving Record Impacts Your Insurance Costs in Michigan
Insurance companies check your motor vehicle record to review your driving history. A record of safe driving, with no moving violations or accidents, typically means you'll pay less for car insurance. Michigan drivers with a "clean" driving record that shows no incidents or violations pay $2,505 on average annually for car insurance. But just one moving violation can push your premiums to an average of $2,855 per year.
If your driving record reveals a history of moving violations, accidents or serious incidents such as DUIs, insurance companies are likely to consider you a high-risk driver and increase your car insurance premiums to make up for their risk. The chart below shows how the number and severity of infractions may impact your car insurance costs in Michigan. Incidents include things like traffic accidents or insurance claims; violations include moving violations, such as speeding tickets.
| Driving Record | Annual Cost |
|---|---|
| Clean Record | $2,505 |
| 1 Incident | $2,730 |
| 1 Violation | $2,855 |
| 2 Incidents | $2,754 |
| 2 Violations | $3,117 |
| 3+ Incidents | $3,069 |
| 3+ Violations | $3,358 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
Cheapest Car Insurance in Michigan
The cost of your car insurance is affected by factors such as your driving record, vehicle and location, but these aren't the only elements impacting your premiums. Each car insurance company has a unique method for determining your premiums. As a result, the price you pay for car insurance can differ widely from one insurance company to another.
Because of these variations, comparing quotes from a variety of different insurance companies is a good way to find the most affordable car insurance for your needs. The chart below shows the cheapest full coverage auto insurance among the insurance carriers that sell the most policies in Michigan.
| Carrier | Annual Cost | Monthly Cost |
|---|---|---|
| Progressive | $2,640 | $220 |
| Safeco | $3,082 | $257 |
| Liberty Mutual | $4,383 | $365 |
| Bristol West | $4,507 | $376 |
Source: Experian data as of January 2025
Note: Costs above represent insurance quotes, not policy premiums
There's no way to know exactly how each insurance carrier calculates its rates. Typically, though, factors such as the company's estimated claims payouts, projected operating costs, risk tolerance and profitability goals are considered when determining premiums. An insurance carrier that has lower overhead expenses may charge less than a provider with higher overhead, for instance.
How to Save on Car Insurance in Michigan
Although car insurance premiums in Michigan are some of the highest in the country, there are still things you can do to save on car insurance.
Raise Your Deductible
You're typically responsible for paying a deductible when you file a car insurance claim before the insurance company's coverage kicks in. Most insurance companies let you select a deductible between $250 and $2,000. In general, a higher deductible means lower your premiums, since you're shouldering more of the cost of a claim.
Before you increase your deductible, however, check your emergency fund and other financial resources to make sure you could pay the higher amount if you had to. Your insurance carrier can show you how changing your deductible will affect your premiums, so you can pick the right balance of savings and security.
Look for Discounts
Car insurance carriers offer discounts for everything from getting quotes or signing documents online to setting up autopay. Are you taking advantage of all the discounts you're entitled to? Contact your current car insurance provider to see if they offer any discounts that you aren't aware of. Visit other insurance company websites to see what other discounts are out there.
You can often save money by bundling home and auto insurance, paying your premium upfront or going paperless. If there's a high school or college student on your car insurance policy, they could see a discount for getting good grades or being away at school without a car. Check whether your workplace or membership organizations you belong to offer discounts on car insurance too.
Get Rid of Unnecessary Extras
When you're looking to cut costs, dropping auto insurance coverage that's nice to have, but not essential, can be a smart move. Assess the value of add-on insurance such as rental car reimbursement, windshield replacement or roadside assistance coverage against its cost. If your family has several cars, for example, you may not need coverage that pays for a rental car while your car is being repaired.
Lenders and leasing companies generally require collision and comprehensive coverage if your car is financed or leased, but once the vehicle is paid off, you could drop this coverage. Collision and comprehensive insurance payouts are limited to your vehicle's value, so if your car isn't worth much, it might make more sense to put the premiums into savings for a new car. Just make sure you could afford to replace or repair your vehicle out of pocket if it's totaled.
Drive Less
The more time you spend on the road, the more likely you are to get into an accident, statistically speaking. As a result, car insurance companies typically consider your annual mileage when setting your rates. Lower mileage—generally defined as fewer than 12,000 miles per year—could mean lower insurance premiums.
Low-mileage car insurance discounts monitor your mileage using devices installed in your car or self-reported or third-party odometer readings. Another option is pay-per-mile car insurance, which charges a monthly base rate plus a per-mile charge for each additional mile. While it's not an option for everyone, carpooling, biking, taking public transportation or working from home could help you save on car insurance.
Keep Your Driving Record Clean
A track record of driving safely reduces your risk in the eyes of insurance providers, which could help to reduce your insurance premiums. Some insurance companies also offer discounts for completing an approved course in driver safety or defensive driving.
Compare Prices
Comparing quotes from several different insurance carriers could help you find lower rates on auto insurance. Schedule some time to shop around at least once per year. You can visit insurance company websites to get car insurance quotes or contact insurance companies directly.
For a faster way to explore your options, try Experian's free car insurance comparison tool. It gathers car insurance quotes from leading insurance companies in Michigan, making it easy to see which provider offers the lowest rates.
Average Car Insurance Costs by State
Methodology
This analysis is based on a review of auto insurance policies and quotes provided through Experian's insurance marketplace. Policy premium and quote averages are based on driver data across all genders and ages unless otherwise noted.
Experian's insurance marketplace matches users with auto insurance coverage from more than 30 carriers across 50 states and Washington, D.C.
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About the author
Karen Axelton
Karen Axelton specializes in writing about business and entrepreneurship. She has created content for companies including American Express, Bank of America, MetLife, Amazon, Cox Media, Intel, Intuit, Microsoft and Xerox.
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