How Much is Car Insurance in Michigan?

If you’re exploring car insurance in Michigan, the first concern that comes to mind is the cost. For starters, it’s best to have an idea of the lowest to the highest cost for car insurance premiums.  

The lowest rate for car insurance in Michigan is around $320 per year for just minimum coverage, while the most expensive plans can exceed $8,000 per year for full coverage, depending on factors like your age, driving record, location, vehicle type, and coverage level.

This range is typically a rough estimate to give you an idea of the cheapest and most expensive car insurance rates in Michigan, with the highest extremes of both ends. However, to get a more accurate estimate, this article breaks down the average car insurance costs in Michigan in 2025 while exploring the key factors that influence your premiums, so you can better understand what to expect and how to save.

Average Car Insurance Cost in Michigan in 2026

While shopping for car insurance in Michigan, it’s essential to understand car insurance rates and the overall market structure. According to Bankrate and MarketWatch data, the average cost of car insurance for state-mandated minimum coverage is around $900 per year, while the average cost of full coverage can range from $2,918 to $3,207 per year.

If you carefully analyze the car insurance rates, you will find a distinctive variation. So, why is there a significant variation in car insurance costs, specifically for full coverage? Typically, car insurance rates are influenced by multiple personal and regional factors, meaning your own rate could be higher or lower than the state average.

Now, to better understand how car insurance rates work, let’s explore each key factor that affects car insurance premiums in Michigan. This will help you get a more practical idea for a more accurate car insurance estimate.

If you want to know your exact car insurance premium, consult a trusted Michigan car insurance company like USA Auto, which offers some of the cheapest car insurance policies with a wide range of coverage options.

Average Car Insurance Rate in Michigan by City

The average car insurance rates can vary significantly from one city to another. This is mainly due to differences in population, road structure, traffic density, motor vehicle accident rates, crime rates, and weather conditions, all of which affect the number and frequency of insurance claims.

The table below shows the average car insurance premiums for major cities across Michigan, ranging from lowest to highest.

Source: Bankrate | As of September 2025

Based on data provided in the table, the cheapest cities for full-coverage car insurance in Michigan are Hudsonville, Midland, and Portage, with annual premiums ranging from approximately $2,363 to $2,397, which is around 26% to 30% below the state average.

On the other end of the spectrum, the most expensive cities are Hamtramck, Detroit, and Grosse Pointe, where annual premiums range from $4,858 to $5,946, or 41% to 60% above the state average.

Michigan Car Insurance Premiums by Age

Just like any other state, the car insurance premium in Michigan is also the highest for the youngest drivers, typically between the ages of 16 and 19. According to the CDC, young drivers in this age group have a three times higher crash rate compared to drivers aged 20 and above.

Even the Michigan State Police report mentions that teen drivers are four times more likely to end up in a fatal car accident compared to adult drivers due to impulsive driving, reckless speeding, drunk driving, and not wearing a seatbelt. While senior drivers from the age of 60+ are more likely to end up in a car accident due to developing physical and mental degradation of eyesight, hearing, and response time.

Statistically, as these two age groups have a higher risk of car accidents, the car insurance rates are generally high for teen drivers, as they gradually decline from the age of 20, and steadily increase after 60.

Source: Bankrate | As of September 2025

Do Gender, Credit Score, and Marital Status Affect Car Insurance Rates in Michigan?

According to the Michigan Auto Insurance law, it is strictly prohibited to use factors like gender, credit, marital status, education level, occupation, and zip code as a metric to determine your car insurance premium.

Most states in the U.S. still use these factors to set car insurance rates. Here in Michigan, insurance premiums are more closely tied to personal driving habits and vehicle choices, rather than demographic or credit-based factors. This law is designed to promote fairness and ensure that drivers aren’t charged more based on characteristics unrelated to their actual driving risk.  

While gender, credit score, and marital status often influence car insurance rates elsewhere, your premium is determined by factors that are directly related to driving risk and choice of coverage in Michigan.

Impact of Car Insurance Cost by Driving Records in Michigan

When it comes to determining car insurance rates, your driving record is universally another crucial key factor. Whether you’re located in Michigan or any other state, your driving records will be evaluated to set your car insurance premiums. 

If you have a clean driving record, you can expect low car insurance premiums with discounts and bundle offers. However, if you have a poor driving record with a history of excessive speeding, reckless driving, car accidents, and severe traffic violations like driving under the influence (DUI) your car insurance rates can significantly increase your car insurance premiums.

Here’s how much your car insurance can go up due to traffic violations.

• A single speeding ticket can increase your car insurance rate by 20% to 29%.
• Your car insurance premium can rapidly increase by 48% or more due to an at-fault accident.
• If your driving license gets suspended, your car insurance premiums can increase by 76%, especially if you need to acquire an SR-22 certificate for being labelled as a high-risk driver.
• If you get legally penalized for a DUI offense, your car insurance rate can skyrocket to 152% or more.

For a clearer understanding, the table below shows the impact of car insurance cost by driving records in Michigan.

Car Insurance Cost by Vehicle Type in Michigan

The cost of insuring a vehicle in Michigan depends heavily on the car you choose. Repair and replacement costs vary widely between makes and models, and some cars are more susceptible to collision damage or theft. On the other hand, vehicles with advanced safety features or strong anti-theft systems tend to have lower insurance premiums.

Generally, cars with higher repair/replacement costs are more expensive to insure, and that’s why luxury and sports cars are more expensive to insure compared to standard sedans, minivans, and SUVs.

To better understand car insurance costs in Michigan by vehicle type, here’s the average insurance rate for commonly driven standard cars, sports cars, and luxury vehicles.

Car Insurance Cost of Standard Cars in Michigan

Source: Insure.com | November 2025

Car Insurance Cost of Sports Cars in Michigan

Source: Insure.com | November 2025

Car Insurance Cost of Luxury Cars in Michigan

Source: Insure.com | November 2025

Car Insurance Rate Trends in Michigan (2022 to 2025)

According to Bankrate data, the average cost of full-coverage car insurance in Michigan rose from $2,345 in 2022 to $3,207 in 2025, marking an overall increase of about 38% in just three years.

Year-over-year, rates climbed by approximately 13.7% between 2022 and 2023, 14% from 2023 to 2024, and 12% from 2024 to 2025, reflecting a consistent upward trend. 

Another market analysis found that the average premium was $2,742 at the start of 2025, increasing to $3,131 by midyear, which shows a 14% increase within six months. If this trend continues, Michigan could see an overall 19% increase by the end of 2025.

Is Car Insurance Cheap or Expensive in Michigan Compared to Other States?

When it comes to the cost of car insurance, Michigan triumphs as one of the most expensive states in the U.S., with an annual state average of $897 for minimum coverage, and $3,207 for full coverage, compared to the annual national average of $804 for minimum coverage and $2,676 for full coverage.

Typically, the car insurance rate in Michigan is significantly higher compared to other states. According to a Bankrate study, car insurance in Michigan is 63% higher than in Wisconsin, 82% higher than in Indiana, and 96% higher than in Ohio.

In fact, Detroit is the 2nd most expensive city for car insurance in the U.S., with an average full coverage premium of $5,816 per year, compared to Brooklyn, New York, where the average full coverage premium is around $6,841 annually.

So, without a doubt, it is safe to conclude that Michigan is nowhere near cheap, and it is significantly expensive for car insurance in the U.S.  

How to Lower Your Car Insurance Cost in Michigan?

Even though car insurance is generally quite expensive in Michigan, there are ways to lower it significantly by following the advice of auto insurance experts. So, if you want to reduce the cost of your car insurance premiums and qualify for special quotes, here’s what you should do.

• Maintain a clean driving record and drive safely to avoid accidents.
• Consider not claiming insurance for minor damage that you can easily afford out of pocket.
• Take a defensive driving course to prove your efforts to establish yourself as a safe driver.
• If you’re a student between the ages of 16 and 25, consider joining your parents’ car insurance policy for reduced premiums.  
• Upgrade the safety features of your vehicle by installing a superior braking system, advanced airbags, and enhanced security features like a dash cam and antitheft alarm.
• Get higher car insurance deductibles but only opt for an amount that you can easily afford to pay out of pocket.
• If you drive less than 7,500 miles a year, consider opting for usage-based car insurance, also known as telematics insurance.

If you can proactively follow these tips, you can potentially save 10% to 40% on your premiums. Typically, car insurance premiums also depend on the insurer, so it’s crucial to find a reliable insurance company in Michigan that offers affordable rates.   If you need assistance finding the right policy within your budget, contact us today to discover the best car insurance options for your needs.

Frequently Asked Questions (FAQ)

How much is car insurance in Michigan per month?

The monthly cost of car insurance in Michigan varies depending on factors like coverage type, age, driving record, and vehicle type. On average, minimum coverage costs around $75 per month, while full coverage typically ranges from $243 to $267 per month. Individual premiums may be higher or lower based on personal circumstances and the insurance provider.

How much is car insurance in Michigan per year?

On average, minimum coverage costs around $900 per year, while full coverage typically ranges from $2,918 to $3,207 per year. Individual rates may vary based on personal circumstances and the insurance company you choose.

How much is car insurance in Michigan for an 18-year-old?

Car insurance for an 18-year-old in Michigan is significantly higher than the state average because young drivers are considered high-risk. On average, an 18-year-old can expect to pay around $725 per month for full coverage, or approximately $8,701 per year. Rates may vary depending on the vehicle, driving record, coverage type, and insurance provider.

How much is car insurance in Michigan for a 20-year-old?

Car insurance for a 20-year-old in Michigan is generally lower than for teen drivers but still higher than the state average. On average, a 20-year-old can expect to pay around $591 per month for full coverage, or approximately $7,096 per year. Actual premiums may vary based on factors like vehicle type, driving record, coverage level, and the insurance provider.

How much is car insurance in Michigan in 2025?

On average, car insurance in Michigan during 2025 is estimated at about $3,207 per year for full‑coverage policies.  For minimum‑required liability coverage, the annual cost typically falls around $900 per year.

Actual rates vary significantly depending on your vehicle, age, driving record, location, coverage limits, and other factors, so your premium may be much higher or lower than these averages.