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Michigan drivers pay an average of $1,590.35 per year for car insurance according to the National Association of Insurance Commissioners (NAIC), that’s about $132.53 per month. Michigan drivers pay about 34% more than the countrywide national average of $1,189.64.
The NAIC takes into account all car insurance policies within the state such as drivers who select only state minimum coverage, as well as policies that include various levels of comprehensive and collision coverage. Because car insurance rates are influenced by personal factors, you could find yourself paying significantly less.
In no-fault states, each driver pays for their own accident damages.
Drivers in Michigan are required to carry a minimum amount of liability coverage to legally drive. You may see it written as 50/100/10, but we’ll break down what that means.
Michigan requires $50,000 in bodily injury liability per person and $100,000 of bodily injury per accident. That’s on the higher end of requirements for this type of coverage across the US, with only a couple of other states with minimum limits this high.
This means $50,000 is the most your insurer will pay for a single person injured by you in an at-fault accident. And $100,000 is the maximum amount your insurer will pay if there is more than one person injured by you in an at-fault accident. Any costs outside of your bodily injury limit are required to come out of your pocket.
Michigan requires drivers to carry $10,000 of property damage liability, which pays out if you cause an accident out of state. This is on the lower end of the required property damage limits, but fairly across the states.
This means $10,000 is the maximum amount your car insurance company will pay towards damages you cause to another person’s car or property, such as repairs to a car, fence or building. You’ll have to pay out of pocket for any costs beyond your property damage liability limit.
Michigan drivers have many options for personal injury protection based on qualifications. Drivers with Medicaid can choose a minimum of $50,000 in personal injury protection to legally drive.
Otherwise, drivers can choose personal injury protection limits from $250,000 up to $500,000 or unlimited. Michigan drivers can even elect to opt out of this coverage if their health insurance covers accident injuries.
This coverage helps pay your or your passenger’s medical expenses if you’re injured in an accident, regardless of fault.
Michigan requires all drivers to carry $1,000,000 of property protection insurance to legally drive. Michigan is the only state that holds this requirement for drivers.
This coverage covers damage that you cause to fix structures or parked cars after an accident. Think buildings, fences, road signs, light poles or construction equipment.
These state-mandated requirements are the lowest amount of coverage you need to legally drive in Michigan, but may fall short if you’re in a major accident. To avoid high out-of-pocket costs after an accident, consider raising your liability limits by balancing coverage, your budget and what you can afford to pay out of pocket for certain damage.
Michigan is a no-fault state, which means that drivers pay for their own accident damage in this state, no matter who’s at fault. File a claim under your personal injury protection for medical bills, lost income and other injury expenses.
File a claim for your car’s damage under your collision coverage if you bought it. Collision coverage isn’t required to legally drive in Michigan.
However, the state lets you sue for car damage if the other driver is at least 50% at fault, according to the Michigan Department of Insurance. You can regain up to $3,000 to pay for your collision deductible or car repairs if you don’t have collision coverage.
“In Michigan, young drivers under age 25 will pay a pretty penny unless they go with Geico. Geico charges this age group $164 per month, according to our analysis of Savvy rates.
Once you hit age 25 and beyond, Progressive may stand as one of your cheapest options. USAA also offers solid rates in the state compared to other major companies.”
| Age | Allstate | Progressive | Geico | USAA |
|---|---|---|---|---|
| 16-24 | $259.89 | $244.36 | $164.24 | $186.50 |
| 25-34 | $259.54 | $185.33 | $200.10 | $190.33 |
| 35-44 | $242.04 | $172.97 | $175.26 | $161.04 |
| 45-54 | – | $190.60 | $287.01 | $213.33 |
| 55-64 | $198.86 | $158.19 | – | – |
| 65+ | – | $153.92 | – | – |
“Progressive costs drivers the least in car insurance premiums at $184 per month, according to our analysis of rates from Savvy.
However, you could try getting that cost even lower by opting into Progressive Snapshot, which tracks your driving and sets rates based on your safety.”
| Company | Allstate | Progressive | Geico | USAA |
|---|---|---|---|---|
| Rate | $237.25 | $184.23 | $200.33 | $187.98 |
Michigan drivers don’t have the luxury of low average car insurance premiums. That fact makes shopping around for insurance all the more important in this state.
To narrow down your options, we recommend these companies that get praise from locals as well as high ratings from J.D. Power, Better Business Bureau, the National Association of Insurance Commissioners and AM Best. We also compared the coverage and discounts available to make sure you have plenty of options.
Progressive
Finder score
Progressive is a big-name brand with a myriad of coverage options, discounts and additional insurance policies for bundling. We've also found Progressive to be one of the cheapest brands on the market when we compare the largest national insurers.
To keep prices low, you can use its Name Your Price tool to see how much coverage you can buy at your preferred monthly payment. With its 31% claim-free discount and accident forgiveness, drivers with clean driving records stand to save the most.
| Telematics | Snapshot |
|---|---|
| Gap insurance | Loan/lease coverage |
| Telematics | Snapshot |
|---|---|
| Gap insurance | Loan/lease coverage |
Nationwide
Finder score
Nationwide SmartMiles offers one of the only true pay-per-mile policies available. You pay a base rate as well as a rate per mile that you drive.
SmartMiles saves you the most if you drive well under 10,000 miles per year. For instance, you could save around $40 per month if you drive 6,000 miles a year. Since you're choosing a well-known national brand, you can rest assured that Nationwide has the experience and finances to back your claims.
| Telematics | Yes |
|---|---|
| Gap insurance | Yes |
| Telematics | Yes |
|---|---|
| Gap insurance | Yes |
Auto-Owners
Finder score
Give Auto-Owners a try if you're shopping for the best value for coverage and are interested in companies other than the main national brands. Auto-Owners serves customers with a human touch via independent agents, and its personalized touch may be why it's ranked highly for its customer service in Michigan.
In terms of coverage, you won't miss out on options just for choosing a regional company. Auto-Owners offers coverage for roadside service, gap insurance, a car's diminished value after an accident and more.
| Telematics | TrueRide |
|---|---|
| Gap insurance | Yes |
| Telematics | TrueRide |
|---|---|
| Gap insurance | Yes |
Factors are characteristics specific to you that car insurance companies use to set how much you’ll pay for car insurance. The less risky each of your factors is the less you pay, the riskier you are the more you’ll pay. We’ll break down Michiganian’s rating factors to keep in mind.
| Factor | How it affects your rates |
|---|---|
 Age | How old you are is a top factor in determining your car insurance rates. With each passing year, you earn more experience on the road. More experience can equal cheaper rates. Teen drivers pay the most, but rates begin to level off around your 20’s with drivers over 50 paying the least. |
 Gender | Michigan is one of seven states that bans the use of gender in calculating car insurance premiums. Insurers rely on factors such as age, location, driving record and what type of car you drive. |
 Location | Where you live affects your rates, including where you park your car. High theft rates, high traffic and a high number of uninsured drivers could mean higher rates. Michigan’s vehicle theft rate stands at 184.5 vehicle thefts per 100,000 inhabitants, according to the FBI’s most recent report on vehicle theft rates. That’s well below the national average of 246 vehicle thefts per 100,000 inhabitants. As for uninsured drivers, 25.5% of Michiganians on the road are uninsured. That’s the second highest percentage of uninsured drivers in a state across the US according to Insurance Information Institute, second only to Mississippi. |
 Vehicle and mileage | Your car’s make, model and trim directly affect how much you’ll pay for car insurance. Things like its cost, safety ratings, the likelihood of theft and sportiness all help insurers determine its cost to insure. Safer and cheaper vehicles score the lowest rates, with luxury vehicles with higher repair costs resulting in higher premiums. And, the more you’re on the road, the more at-risk you are to get in an accident, which means higher premiums. However, according to the Bureau of Transportation, Michiganians drive an average of 36.4 miles per day, that’s slightly above the average across the US of 36.1 miles per day. |
 Credit score | Michigan is one of five states that can’t use your credit score against you when setting rates. This means you won’t be penalized for bad credit, but you also won’t see any favorable rates for holding a high credit score. |
 Coverage | The more coverage you get and the higher limits you choose, the more protection you’ll have and the more you’ll pay in monthly premiums. And, if you opt for full coverage car insurance that includes comprehensive and collision, the amount of your deductible weighs into your costs too, higher deductibles mean lower monthly premiums. |
 Driving Record | The better your driving record, the lower your premium. If you’re in an at-fault accident you could see rates increases from 20% to 50%. And DUI’s in Michigan can increase your rate by around 9%, that’s lower than what we see with most states. These types of violations typically stay on your record for about three years. |
An SR-22 form, also called a financial responsibility insurance certificate, proves that you have enough auto insurance to meet your state’s minimum insurance requirements. In Michigan, they don’t use SR-22 forms but may require you to get no-fault financial responsibility insurance under certain circumstances, according to Michigan’s Secretary of State (SOS).
Michigan has the second-highest amount of uninsured drivers on the road, with 25.5% of drivers lacking auto insurance. It’s also a no-fault state and is known for harsh winters, so adding some extra coverage may be a smart move.
If you get into a vehicle accident in Michigan, there’s a one-in-four chance that the other driver won’t have auto insurance. With odds that high, adding uninsured and underinsured motorist coverage to your policy could be a saving grace. It’s not required in Michigan, but it’s definitely worth considering. Uninsured or underinsured motorist coverage can be for bodily injuries, property damage, or both.
Consider uninsured and underinsured motorist coverage if . . .
Collision and uninsured motorist coverage can step in to help with vehicle accidents, and comprehensive coverage could help with everything else. This coverage kicks in to help cover the costs of damage from events such as theft, fire, flood, animal strikes, storm damage, falling objects, and more. Michigan is known for its unforgiving climate, tough winters, and wildlife, so this coverage could help with unexpected disasters.
Consider comprehensive coverage if . . .
While comprehensive coverage can help cover the cost of repairs from unexpected events, roadside assistance could help you in the moment. In some cases, your vehicle’s manufacturer warranty already includes roadside assistance. Many Michiganders live off the beaten path, so flagging someone down for assistance may not be an option in some scenarios. If something happens while you’re out and about on a particularly snowy day in Michigan and need immediate aid, roadside assistance may just save the day.
Consider roadside assistance if . . .
We’ve pulled the top 10 companies by market share that offer coverage in Michigan according to S&P Global. Compare top companies by three major rating agencies along with our overall score.
| Provider | BBB Rating | JD Power Rating | NAIC complaint ratio | National market share % | Finder score | Go to site |
|---|---|---|---|---|---|---|
State Farm | A+ | 847/1000 | 1.93 | 16.2 | ★★★★★ 4/5 | |
Geico | A+ | 832/1000 | 1.42 | 13.6 | ★★★★★ 4/5 | |
Progressive | A+ | 830/1000 | 1.05 | 13.3 | ★★★★★ 4/5 | Get Quotes |
Allstate | A+ | 827/1000 | 2.71 | 10.4 | ★★★★★ 4/5 | |
USAA | A+ | 884/1000 | 1.9 | 6.3 | ★★★★★ 4/5 | |
Farmers | A- | 820/1000 | 1.64 | 4.9 | ★★★★★ 4/5 | |
Liberty Mutual | A+ | 827/1000 | 2.2 | 4.7 | ★★★★★ 4/5 | Get Quotes |
Nationwide | A+ | 814/1000 | 2.08 | 2.3 | ★★★★★ 4/5 | |
Auto-Owners | A+ | 847/1000 | 0.86 | 1.3 | ★★★★★ 4/5 | |
Auto club Insurance Association | A+ | 816/1000 | 1.85 | 0.8 | ★★★★★ 4/5 |
| Company | Average annual rate | Learn more |
|---|---|---|
| Meemic | $168 | |
| Hastings Direct | $239 | |
| Secura | $242 | |
| Pioneer State | $294 | |
| Wolverine | $798 | |
| AAA | $909 | Read review |
| Travelers | $1,006 | |
| Geico | $1,040 | Read review |
| Donegal | $1,224 |
Of Michigan’s largest cities, Ann Arbor has the cheapest rates and Taylor has the most expensive car insurance rates. Taylor drivers could face rates 6 times more than Ann Arbor drivers.
| Company | Annual car insurance rate |
|---|---|
| Allstate | $10585 |
| Farmers | $8029 |
| Metromile | $4261 |
| Progressive | $3330 |
| Company | Annual car insurance rate |
|---|---|
| Allstate | $9631 |
| Farmers | $5169 |
| Metromile | $3545 |
| Progressive | $3198 |
| Company | Annual car insurance rate |
|---|---|
| Allstate | $6843 |
| Farmers | $2335 |
| Metromile | $2570 |
| Progressive | $2302 |
| Company | Annual car insurance rate |
|---|---|
| Allstate | $7899 |
| Farmers | $5039 |
| Metromile | $3375 |
| Progressive | $2465 |
| Company | Annual car insurance rate |
|---|---|
| Allstate | $8381 |
| Farmers | $3660 |
| Metromile | $3443 |
| Progressive | $2554 |
States vary in many ways – car insurance and driving laws are no exception. Here are some insurance and driving laws to know if you’re a Michigan driver:
Many insurers offer roadside assistance as an optional extra, and a few offer it free, typically when you buy collision and comprehensive coverage. Roadside help could come in handy on Michigan’s notoriously rough roads, which take a beating from wintry conditions and salt. As the saying goes, there are two seasons in Michigan: winter and construction season. Watch out for the many road repair and construction projects that take over Michigan’s streets and highways in the summer.
You can also get free roadside help, not including towing, from MDOT on certain Michigan freeways, including parts of US-23, I-96, I-94 and M-14. While there’s no number to call and no way to get help immediately, if your vehicle is stranded on the side of the road and you call the police, MDOT will be notified and may be able to send a vehicle to help. Services include flat tire change, clearing debris after an accident and delivering gas if you’re out of fuel.
Dawn Daniels
Staff Associate Editor
Michigan is a no-fault state. Which means that when I was in an accident, my insurance paid for my car — even though the other driver was at fault. Luckily I had collision coverage at the time, or I would have had over $4,000 in damages out of pocket.
My no-fault insurance was convenient when dealing with a claim, because I spent less than 10 minutes dealing with my insurance to get my car fixed. The downside is that Michigan is one of the most expensive states for car insurance. I managed to score a good student discount through AAA, but my roommate was paying well over $100 a month just for PLPD coverage.
Having the best insurance coverage you can afford protects you, your family and the drivers on your neighborhood roads, no matter what state you’re in. And especially in Michigan, this can be costly.
Researching your available providers, coverage options and price points can help you find the best insurance for your needs. To learn more about these topics, visit our comprehensive guide to car insurance.
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