Cheap Car Insurance in Michigan (2023)

Michigan is the most expensive state for car insurance, Insurify data shows. High state coverage requirements, severe winter weather, and a relatively high percentage of uninsured drivers all contribute to the high costs of insurance in the Great Lakes State.^[1]

The average monthly insurance rate in Michigan is $487 — exceeding the national average by more than $200. To find cheap car insurance in Michigan, shop around and compare quotes online from multiple insurers by entering your ZIP code and vehicle and driver information.

Best cheap car insurance in Michigan: American Family

1

American Family

Several auto insurance providers offer cheap car insurance in Michigan. American Family and USAA are two examples, with average monthly quotes of $228 and $248, respectively. Progressive also offers affordable rates of $259 per month. The table below highlights the top cheap car insurance options in the Great Lakes State.

Learn More: Best Car Insurance Companies

Minimum car insurance requirements in Michigan

Michigan requires insurance for all motor vehicles operated or parked on state Michigan roads. Michigan is a no-fault state, which means when an accident occurs, each party’s insurance is responsible for paying their own damages. The state’s complex minimum liability insurance requirements include three parts:^[2]

Personal injury protection (PIP)

PIP pays medical expenses for you and your passengers in case of an accident, up to the policy’s coverage limit. In Michigan, you must purchase PIP with unlimited coverage. The coverage options for PIP are:

• $500,000 per person, per accident

• $250,000 per person, per accident

• $250,000 per person, per accident with exclusions (but only if someone on the policy has health insurance that’s not Medicare)

• $50,000 per person, per accident (only if everyone on the policy has health insurance or is covered by another policy with PIP, and the named insured is enrolled in Medicaid)

• No medical PIP coverage (only if the named insured has Medicare Parts A and B, and all others on the policy are covered by health insurance or another auto policy that does have PIP medical coverage)

Property protection insurance (PPI)

PPI pays for damage your vehicle does to someone else’s property (like a fence or mailbox), or parked car, but it won’t pay for any other damage to vehicles.

• Up to $1 million

Residual bodily injury and property damage liability

Because Michigan is a no-fault state, you largely can’t be sued because of a car accident, although there are exceptions. Instead, your bodily injury liability will pay the medical expenses of anyone else injured in your car. The trade-off for this security, though, are higher required amounts of minimum coverage:

• $50,000 per person, per accident

• $100,000 per accident

• $10,000 for property damage in another state^[3]

Driving in Michigan, you’ll need to carry proof of insurance with you in your car at all times and be ready to show it when necessary, such as at the request of law enforcement or when you register your vehicle.

Michigan DMV information

The Michigan Secretary of State (SOS) Office runs the DMV duties in the state. It allows you to renew your driver’s license, change your address, check personalized plate availability, and perform many other services online.^[4]

If you need in-person service, there are many SOS offices in Michigan, and you don’t have to visit a specific one — you can simply locate the one closest to you. Most SOS branches are open on weekdays from 9 a.m. to 5 p.m., and some offices may be open on Saturdays.

Public transportation in Michigan

Several public transportation options exist in Michigan. MichiganFlyer offers motor coach connections between Lansing, Brighton, Ann Arbor, and the Detroit Metropolitan Airport. You can also find public transportation through Amtrak, Greyhound, Indian Trails, and Megabus.

In addition, 82 local public transit agencies operate throughout the state.^[5] Some examples include the Detroit People Mover, Charlevoix County Public Transit, Huron Transit Corporation, St. Joseph County Transportation Authority, and The Rapid.

Tips for getting cheap car insurance in Michigan

For a fast, easy way to find cheap insurance in Michigan, compare quotes from multiple insurers online. Comparison shopping is a good idea because car insurance providers offer different rates based on driver history, vehicle type, age, and more. You can also lower your rates by taking advantage of discounts, bundling multiple policies, or increasing your deductible.

Liability-only vs. full-coverage insurance in Michigan

If you live in Michigan, you can opt to carry liability-only auto insurance, which can make sense if:

• You have a low-value vehicle.

• You can afford to repair or replace your car out of your own pocket.

• Getting the cheapest insurance possible is your top priority.

For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, weather, and animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed.

If you have a high-value vehicle, or couldn’t afford to repair or replace your car out of pocket, full coverage might also be a good option for you. Here’s a look at the cheapest average monthly quote for auto insurance in Michigan by policy type.

How your driving history affects your Michigan car insurance rates

Your driving history will play a major role in your car insurance costs. If you have a clean record, for example, you’re likely to lock in a cheaper auto insurance policy than someone with a history of traffic violations. Below, you’ll find the average quotes for Michigan drivers with clean records, speeding tickets, at-fault accidents, and DUIs.

The following table illustrates average monthly quotes for good drivers, and those with certain violations on their records. Note that some insurers may decline coverage to drivers with serious infractions like a DUI.

See More: SR-22 Car Insurance Michigan

SR-22 insurance in Michigan

An SR-22 is a special form that auto insurance companies complete on behalf of policyholders to prove financial responsibility. Michigan requires an SR-22 to reinstate a driver’s license after a suspension for a serious offense, like reckless driving or a DUI. Below is a list of the insurance companies that offer SR-22s in the Great Lakes state.

See More: High-Risk Car Insurance Michigan

How credit scores affect Michigan car insurance quotes

In Michigan, insurance companies are prohibited from using your credit history or credit-based insurance score to deny, cancel, or refuse to renew your car insurance policy. In addition, they can’t use your credit score to determine your premiums. That said, the table below shows our data on the average car insurance rates by credit tier in the state. Drivers with excellent and good credit tend to pay less than drivers with poor credit.

See More: Bad Credit Car Insurance Michigan

How your city affects Michigan car insurance quotes

The city you live in is another factor that will affect your auto insurance costs in Michigan. Busier cities, like Detroit and Southfield for example, tend to have more traffic and accident claims, so rates in those cities are often higher than rates in smaller cities. Here’s a look at the average monthly quotes in some of the most populated cities in Michigan.

How your age affects Michigan car insurance rates

Since there is a strong correlation between age and driving experience, your age influences what you pay for your auto insurance premiums, along with other factors like driving history, credit history, and more. Teen drivers pay the most on average, and drivers in their 60s, 70s, and 80s benefit from the lowest premiums. The table below shows how age affects average monthly costs in Michigan.

Quotes for younger drivers

Young drivers often pay higher premiums for full-coverage auto insurance. Accidents, DUIs, and other driving violations can push their rates higher. The following table compares how different insurance factors can affect average monthly rates for drivers younger than 30.

Quotes for middle-aged drivers 

As drivers gain experience and enter their late 20s and 30s, car insurance rates generally decline. Drivers who maintain a clean record free of speeding tickets, DUIs, and accidents stand to enjoy the biggest decrease.

The following table provides insight into how certain coverage types and violations can affect the car insurance rates of middle-aged drivers in Michigan.

Quotes for senior drivers

Senior drivers generally have the lowest car insurance rates of any age group. Their years of experience count in their favor with insurers, as does their tendency to drive fewer miles than working-age motorists. But senior drivers who get into an accident may have trouble finding a company willing to insure them, or to offer them a lower rate.

The table below compares average car insurance rates for seniors, depending on the type of policy they purchase and their driving history.

Michigan car insurance FAQs

Here are answers to some commonly asked questions about car insurance in the state of Michigan.

Insurify Insights

How Michigan Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Michigan below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Michigan drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Chevrolet Malibu

Most Popular Car in Michigan

#40

State with the Most Speeding Tickets Rank

#50

State with the Moving Violations Rank

#36

State with the Most DUIs Rank

#36

State with the most Suspended Licenses

• Accidents in Michigan

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Michigan is the #50 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #50
  • Percent of drivers in Michigan with an accident: 4.1%
• DUIs in Michigan

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Michigan is the #36 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #36
  • Percent of drivers in Michigan with a DUI: 1%
• Reckless Driving in Michigan

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Michigan is the #17 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #17
  • Percent of drivers in Michigan with a reckless driving offense: 1.5%
• Rude Driving in Michigan

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Michigan is the #20 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #20
  • Percent of drivers in Michigan with a rude driving violation: 1.7%
• Speeding in Michigan

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Michigan is the #40 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #40
  • Percent of drivers in Michigan with a speeding ticket: 6.8%
• Failure to Yield Rates in Michigan

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Michigan is the #47 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #47
  • Percent of drivers in Michigan with a failure to yield violation: 0%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.