Auto Insurance in Michigan: Best Rates on Car Insurance

Michigan requires all drivers to carry liability car insurance, uninsured and underinsured motorist coverage, personal injury protection (PIP), and a no-fault policy. You’ll need to meet the state’s minimum coverage requirements to purchase a standard policy. In addition, Michigan requires all vehicles to be registered with proof of insurance by May 1 or within 10 days of becoming a resident. Failure to do so will result in a $200 fine and a 30-day suspension of your driver’s license.

Auto Insurance in Michigan

The average cost for insurance is around $1,500 per year. Use our free comparison tool to find the cheapest car insurance quotes in Michigan. For example, the most affordable company on our list offers full coverage car insurance for about $1,200 per year. The minimum limits for liability coverage are:

  • 10/20/3 ($10,000 of property damage per accident, $20,000 bodily injury per person in an accident, and $3,000 in personal injury protection)
  • 15/30/5 ($15,000 of property damage per accident, $30,000 bodily injury per person in an accident, and $5,000 in personal injury protection)
  • 25/50/10 ($25,000 of property damage per accident, $50,000 bodily injury per person in an accident, and $10,000 of personal injury protection)

Cheapest Car Insurance in Michigan

The cheapest full-coverage car insurance for Michigan drivers is $1,200 annually. The quote above is for a married 40-year-old with one speeding ticket and one at-fault accident on his record living in Ann Arbor.

Best Car Insurance Companies

Michigan has 28 carriers on our list of the best car insurance companies. The top five include Auto-Owners Insurance, Amica Mutual Insurance Company, Auto Club Group, Progressive, and The Hartford.

Compare Michigan Quotes Online

Using our free comparison tool, you can compare car insurance quotes in just a few minutes. Enter your zip code to see which company offers you the best rate or call us at (855) 464-7927 for a quick quote.

Average Cost of Car Insurance

Michigan has the country’s highest average car insurance rates at $2,640 per year, which is 33% above the national average of $1,921. The state’s high average cost can be attributed to its status as one of the most populous and costly auto insurance claims states (California and Florida also make the list).

Drivers With a DUI in Michigan

For the third consecutive year, drivers with a DUI on their record pay an average of $6,695 annually for car insurance – making it the most expensive offense to insure for. The state has some of the strictest DUI laws in the country, including a mandatory ignition interlock device installation for all convicted offenders.

Drivers With Tickets in Michigan

If you have any traffic violations on your record, expect an increase of 35% or more to your car insurance quote – regardless of whether they were parking tickets or serious offenses like speeding and reckless driving charges. All states take a no-tolerance policy regarding traffic violations, but Michigan has one of the highest increases in the country for this kind of offense.

Drivers With Bad Credit in Michigan

Drivers with a poor credit score can expect an average increase of around 32% when applying for car insurance in MI, however, rates depend on the specific insurer and score range. On average, drivers with a poor credit rating pay $1,394 more per year in car insurance premiums than their high-credit counterparts.

Seniors in Michigan

Michigan insures over 1 million senior drivers, who make up about 22% of all active auto insurance policies statewide. Senior car insurance rates are about 36% less expensive on average than the overall market. Drivers over 65 with full coverage car insurance pay an average of $993 per year, which is 46% lower than the state’s average rate.

Student Drivers in Michigan

Michigan’s graduated driver licensing program includes a minimum age requirement for first-time drivers and a curfew that requires drivers under 18 to be home by 12:30 am. Graduated licenses also require parents and teenagers to meet with state officials before issuing an initial license.

Military Drivers in Michigan

Unsurprisingly, active military personnel pays the least for car insurance on average – $3,826 per year, which is $1,534 less than the state’s average rate and $2,426 cheaper than the most expensive driver (drivers with a DUI on their record). Veterans of the armed forces qualify for up to a 20% discount with some carriers in MI.

Car Insurance in Michigan

Drivers can insure one vehicle under many different car insurance companies using a Michigan car insurance agent. These agents can be found online or in local areas by searching the phonebook’s yellow pages.

What is the minimum car insurance required in Michigan?

Drivers are legally required to carry a minimum amount of car insurance, but few purchase the state’s mandated coverage. The three policies are known as Personal Protection Insurance (PIP), Michigan No-Fault Auto Insurance Policy (MPI), and Property Protection Insurance Policy (PPI).

What is the average cost of car insurance in Michigan?

The state has the country’s highest average car insurance rates at $2,640 per year, which is 33% above the national average of $1,921. Drivers with a UI can expect an increase of 35% or more to their car insurance quote.

What is the cheapest car insurance in Michigan?

Drivers can reduce their monthly premiums by opting for a basic liability-only policy with no collision or comprehensive coverage. The mandatory minimums in the state require drivers to carry property damage and bodily injury protection (30/60/10), but they do not legally have to provide uninsured motorist coverage.

What are the most expensive car insurance companies in Michigan?

Over the last five years, AAA Insurance Company has been the most expensive company for auto insurance in MI, while Progressive and State Farm have had among the lowest rates.


If you’re unsure of your coverage limits, contact us to find out the best solution for you. We want to help protect our customers and ensure they know their rights regarding car insurance. As a licensed agent with years of experience in Michigan auto insurance, I’m here to answer any questions you might have about how much liability coverage you need. Hope this guide has helped you! Good luck!

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