Michigan has more than 6.9 million licensed drivers, which is nearly 70 percent of the state’s population. That’s more drivers than most other states have. Based on estimates from seven insurance companies, Michigan has an average insurance rate of about $10,500. However, the insurance rate you pay depends on a number of factors.
Unlike some other states, the average insurance rates in Michigan don’t vary widely by gender. However, there is a vast range in average costs between drivers of different ages. While this is true of most states, Michigan’s rates have a much wider price range between age groups than that of a state like New Jersey. While there’s about a $4,000 rate difference between a 17-year-old male and a 60-year-old male in New Jersey, the difference between these two demographics in Michigan is more than $12,000.
On the plus side, Michigan is a no-fault insurance states, which means more coverage for you no matter who is at fault for an automotive accident. Additionally, no-fault insurance covers all family members living in the same household. Still, you may want to consider adding additional coverage, as the basic no-fault plan has limited protection from some potential legal fees and property damage costs.
Average Annual Car Insurance Rates in Michigan
How We Found the Cheapest Car Insurance in Michigan
U.S. News worked with Quadrant Information Services to provide a report of average insurance rates in all 50 states from the 10 largest national car insurance companies. The rates are based on profiles for both male and female drivers aged 17, 25, 35, and 60. Vehicles used include the 2018 Honda Civic, 2018 Toyota RAV4, 2018 Ford F-150, 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage of 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation and one DUI were also used in the calculations. The rates shown here are for comparative purposes only. Individual rates will differ.
How Much Does Car Insurance Cost in Michigan?
See the Cheapest Car Insurance Companies
The insurance rate you pay also varies based on what insurance company you have a policy with. USAA offers the cheapest car insurance in Michigan, with an average annual rate of $3,619.99. That’s much less than the most expensive company, Allstate, which charges an average annual rate of more than $20,000 in Michigan. At just about $20,000, Liberty Mutual is another expensive car insurance option for Michigan residents.
While USAA has the cheapest car insurance in Michigan, you need to be a member of the military, a veteran, or an immediate member of a military family to get USAA car insurance. The next cheapest option for car insurance in Michigan is Progressive, with an average annual rate in Michigan of $5,364.55.
When comparing Michigan’s average insurance rates by demographic, every insurance company charges younger, single drivers significantly more than older, married drivers. For example, a 17-year-old single male driver has an average rate of $19,780, while a 60-year-old married male driver has an average rate of $6,940. That’s a $12,840 difference. There’s a similar price difference of $12,390 between the average rate for 17-year-old single female drivers and 35-year-old married female driver. Prices also vary slightly between genders, with female teens saving a marginal amount of money over male teens. However, males see slightly more saving than females once at age 25. By 60, married males reclaim the pricing advantage, but only by about $25 on average. Overall, 60-year-old married females have the best average insurance rate in Michigan: $6,935.
|Company||Single 17-year old female||Single 17-year old male||Single 25-year old female||Single 25-year old male||Married 35-year old female||Married 35-year old male||Married 60-year old female||Married 60-year old male|
Drivers with lower annual mileage generally get better rates than those who drive more miles, so be sure to consider your daily commute and regular travel habits before choosing an insurance policy. Depending on your insurance policy in Michigan, you could pay an average of $5,470 to cover a car that is driven 10 miles per day, or 6,000 miles per year. A car driven 25 miles daily (12,000 miles per year) would have an average rate of $5,560.
Customers with good credit are awarded better rates than those with poor credit. Based on average rates, a driver with good credit could get coverage for about $4,200. On the other hand, someone with poor credit would have an average rate of $7,260. With fair credit, you can expect to spend about $5,090 for car insurance.
Avoiding driving infractions is a great way to get the best insurance rates in Michigan. A driver with a clean record pays an average of $4,230 for an insurance policy, while someone with one DUI offense pays about $6,500 for coverage. Average pricing for a driver with one speeding violation is $5,000, and drivers with one accident on their record can expect to pay around $6,330. If you don’t have a clean driving record, you may be able improve your rates by avoiding additional infractions or taking a state-run driving course and exam.
|Company||Clean record||With 1 speeding violation||With 1 accident||With 1 DUI|
Michigan Auto Insurance Minimum Coverage Requirements
All Michigan drivers are required to purchase no-fault auto insurance. The Basic no-fault policy has three parts: personal injury protection (PIP), property protection (PPI), and residual liability insurance (bodily injury and property damage).
PIP coverage pays for any reasonably necessary medical expenses (with no maximum limit) resulting from injury in an accident. It will also cover up to 85 percent of the income you would have earned had you not been hurt, for up to three years. The lost income amount limit changes each year. As of this writing, the maximum is $5,700 per month. If you are killed in an auto accident, your policy will pay your family a maximum of $5,700 per month for three years, depending on your circumstances. The basic policy also entitles you to $20 per day in replacement services, such as hiring household help if you’re unable to complete some tasks due to injuries.
PPI coverage includes up to $1 million for damages caused by your car to another person’s property in Michigan. This includes damage done to fences, buildings, and properly parked cars. Bodily injury (BI) and property damage (PD) coverage protects insured persons from being sued as a result of an auto accident, with a few exceptions.
Your required minimum coverage no-fault policy will cover up to a certain amount if you are found liable for an accident. Although insurance companies offer additional coverage with higher limits, the minimum coverage offers up to $20,000 for a person who is hurt or killed in an accident, up to $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. This coverage combination is known as 20/40/10.
Cheapest Car Insurance in Michigan
Basic coverage – the minimum required insurance policy – is generally the least expensive coverage option available from any insurance company. In Michigan, a low-coverage auto insurance has an average rate of $5,020, medium coverage typically costs about $5,580, and high coverage costs about $5,940. While high coverage is the best option in the event of an accident, low coverage is a good option if you have a tight budget, an inexpensive car, and few assets to protect – or if you rarely drive.
The lowest insurance rates in Michigan are in Ann Arbor, Clinton, Kalamazoo, and Wyoming, all of which have an average coverage rate of about $9,000 or lower. On the other end of the spectrum, Detroit coverage rates are nearly triple that. Dearborn and Southfield are also on the high end with average prices of $17,770 and $20,930, respectively. You’ll get mid-level pricing for the state in areas like Livonia, Farmington Hills, Troy, and Westland, which have average coverage rates of between $11,260 and $13,180. Insurance pricing is based heavily on where the car is located, so expect to pay more in areas in high-population where car accidents and insurance claim happen frequently.
Why Car Insurance Rates Vary in Michigan
Car insurance rates vary in Michigan based on where you live. Congested areas with high crime and lots of traffic carry more risk from theft, vandalism, and accidents, so insurance rates in those areas tend to be higher.
Insurance rates also vary for different type of drivers. New drivers, single drivers, and drivers with poor credit represent a higher risk of an accident. As such, these groups tend to pay higher insurance rates. Drivers with previous accidents, DUI convictions, or lots of traffic tickets also pay higher rates.
How to Get Cheapest Car Insurance in Michigan
You should also shop around and ask insurance companies about discounts and coverage options. For example, lots of insurers offer policy holders discounts for insuring cars that come with active safety equipment like a rearview camera, anti-lock brakes, and anti-theft devices. However, your insurer may put a limit on the number of discounts that can be applied to your policy.
You could potentially save money by adding extra protection beyond the mandatory coverage. Some insurance companies will deduct a percentage from your premium if you add collision and/or comprehensive coverage to your policy. However, if you have an older car, the extra cost of more coverage may not be a good value. You can also get group discounts or save money by insuring more than one car under the same policy. Good credit and a clean driving record can also have a positive impact on your insurance rates.
Be sure to consider the cost of insurance before purchasing your next car, as the year, make, and model of a vehicle is a major factor in policy pricing. You should get multiple insurance quotes before you purchase either a car or an insurance policy. Increasing your deductible is another common way to lower your insurance bill. That means, the more money you’re willing to pay in the event of an accident, the more you could save overall.
Ask your insurance agent about coordinating your health insurance with your car insurance. If you’re injured in an accident and your health insurance covers most of the expenses, your insurance company may pay the remainder and offer you a discount.
There are things you can do as a driver to improve your insurance rates. Michigan offers a Defensive Driving Course, known as a Basic Driver Improvement Course (BDIC). It teaches motorists defensive driving techniques, state traffic laws, violations, and road rules. You can take the course online or in a classroom. The class lasts from four to 12 hours, depending on court orders or DMV requirements. Upon completing the course, you must pass the final exam. Benefits from completing the class include potential insurance discounts based on things like an improved driving record, a reinstated license, or traffic ticket dismissals.
Insurance companies assign policy holders eligibility points to determine their rate based on risk factors. The fewer violations you have, the fewer points you’re given, which means you pay a lower premium. These points are not the same as those on your driving record. Insurance companies would give you four points for careless driving (driving more than 15 mph over the speed limit) and for having two or more accidents in which you are more than 50 percent at fault. You get three points for driving 11 to 15 mph over the speed limit or for the first accident in which you are more than 50 percent at fault. Two points are given for other moving violations or driving 15 mph over the speed limit on freeways that previously had a speed limit of 70 mph.
Important Laws Around Auto Insurance in Michigan
Michigan requires every car owner to have no-fault insurance, which pays for medical expenses, wage loss, benefits, replacement services, and damage you cause to another person or their property, regardless of who is at fault. Basic no-fault insurance does not cover car repair expenses. Most states are at-fault states, which means that in an accident involving two or more motorists, the one at-fault driver is liable for the other parties’ damages. In general, the at-fault motorist’s bodily injury insurance would cover other drivers’ medical costs, and their property damage insurance would cover car repairs. Still, you should consider collision and comprehensive insurance, as no-fault insurance does not cover repairs if your car is damaged in an accident. Other options available by some insurers include towing and rental coverage or limited property liability insurance (mini-tort).
Michigan provides auto liability coverage for people who don’t own a vehicle but use one owned by someone else. This policy, called non-owner coverage, is a practical option for people who rarely drive, as it meets the state’s minimum auto insurance requirements. It’s also a cheaper option than most policies for car owners. Keep in mind, however, that it doesn’t come with as much protection as most other policies. Available extended non-owner policies provide auto liability coverage to a driver of a non-owned vehicle used for business purposes.
Michigan Driving Laws and Punishments
In 2016, distracted drivers were the cause of nearly 12,790 car accidents in Michigan, resulting in 43 fatalities and 5,103 injuries, according to the Michigan State Police Criminal Justice Information Center. Accidents caused by drivers using cell a phone made up 15 percent of the total distracted driver accidents in 2016.
Distracted driving in Michigan includes operating a motor vehicle on a street or highway while eating, drinking, talking to passengers, grooming, reading (including maps), using a PDA or navigation system, watching a video, adjusting media functions (including the radio), or playing loud music. You are permitted to use a mobile device while driving under certain emergency conditions, including to report a traffic accident, medical emergency, or serious road hazard. You may also use your phone if you’re concerned for your own safety or that of someone else’s, or to prevent or report a crime.
Michigan also bans the use of certain electronic devices while driving. It’s illegal to drive while using a cell phone or other wireless two-way communication device that doesn’t include a navigation or GPS system affixed to the vehicle.
Texting and driving are illegal under Michigan law. You’re prohibited from typing, reading, or sending a text message while operating a vehicle in the state. There is a $100 fine for a first-time texting and driving offense in Michigan. Subsequent offenses carry a $200 fine. Distracted driving offenses do not have a negative impact on or add points to your driving record.
Distracted driving is the leading cause of teen deaths in the U.S., according to the AAA Foundation for Traffic Safety. Michigan’s Kelsey’s Law bans teen drivers with Level 1 or Level 2 Graduated Drivers licenses from using a mobile phone to initiate a call, answer a call, or engage in verbal communication through a mobile phone. Violations may result in fees up to $240. There are exceptions for reporting crashes, crimes, medical emergencies, road hazards, and situations in which you’re concerned for your own safety or that of others. Voice-activated features integrated into the car are also exempt.
There are thousands of injuries and hundreds of deaths due to alcohol- and drug-related auto accidents in Michigan every year. Under Michigan law, it is illegal to drive while impaired or intoxicated by alcohol, illegal drugs, and some prescribed medications. It’s a crime to drive with a blood alcohol content (BAC) of 0.08 percent or more. A 0.17 percent or greater BAC is considered a High BAC. It’s also illegal to have any amount of cocaine or a Schedule 1 controlled substance in your body while driving.
If you’re 21 years old or younger, you’ll receive a Zero Tolerance charge for having a BAC of 0.02 to 0.07 percent, or any presence of alcohol in your body. The one exception is for small amounts of alcohol consumed during religious ceremonies.
Michigan’s Anti-Drunk and Drugged Driving laws require violators to complete a number of mandatory steps to clean up their record and regain driving privileges. Courts decide drunk driving and drugged driving cases within 77 days of the arrest. There is a mandatory 6-month driver license suspension, even for a first conviction. The driver may be eligible for a restricted license after serving 30 days of the suspension.
Michigan Car Insurance FAQs
Insurance is required in Michigan, and it is against state law to drive or let your car be driven without no-fault auto coverage. With this coverage, your auto insurance will pay for any reasonably necessary costs with no maximum limit, in addition to up to $20 per day for wage losses for up to three years. Required auto coverages include bodily injury (BI), property damage (PD), personal injury protection (PIP) and property protection (PPI).
You’re required to carry proof of your Michigan no-fault auto vehicle with you any time you drive. The Secretary of State may suspend your driver’s license until there is proof of insurance. You may be required to prove that a car is insured for no less than six months and pay $50, plus any other required fees. The state will not renew, transfer, or replace your car’s license plate without valid insurance, and your plates may be canceled under failure to produce valid insurance.
Which cars are required to be insured in Michigan?
Michigan requires no-fault insurance coverage for all passenger vehicles, vans, and light trucks. Motorcycles don’t require no-fault coverage, but they do require insurance.
Residual bodily injury (BI) and property damage liability (PD) coverage pays – up to the limits of your policy – for your legal defense expenses and any damage you are found liable for as a result of an accident in which someone was seriously injured or killed. Every vehicle must have a minimum coverage of $20,000 per person in the event someone is hurt or killed in an accident, $40,000 for each accident if several people are hurt or killed, and up to $10,000 in the event that your vehicle causes property damage in another state. This combination is commonly called 20/40/10 coverage. However, you can also purchase increased limits of BI liability coverage. For example, you could increase your limits to cover $50,000 for each person hurt or killed in an accident, $100,000 per accident, and $20,000 for property damage. You should speak with your insurance company or agent about possible coverage combinations available to you.
When should I get car insurance in Michigan?
Michigan requires all drivers to have car insurance, so be sure you have coverage before getting behind the wheel. If you plan to purchase a car in Michigan, you should start researching insurers, considering policies, and comparing rates as early as possible to find the best value for you.
What happens if my car is not properly insured in Michigan?
If you own or drive a car, or allow someone else to drive yours, you’re required to have basic no-fault auto insurance. You can be sued or held legally responsible for any injuries or damages (including your own) that result from an accident. You could also be convicted of a misdemeanor and fined between $200 and $500, put in jail for up to one year, or both.
Failure to present proof of valid car insurance with a paper or digital insurance card can result in a $195 fine if paid with 14 days, or $235 thereafter. Your license may also be suspended for 30 days or until you can verify your insurance.
Is Michigan a no-fault state?
Yes, Michigan is a no-fault state. No-fault auto insurance is required by Michigan law. All vehicle owners must buy certain insurance coverage in order to register a vehicle in Michigan. Michigan’s no-fault coverage includes three types of protection: personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance, which includes bodily injury (BI) and property damage (PD) coverage.
Do I need uninsured motorist coverage in Michigan?
No, neither uninsured motorist insurance nor underinsured motorist bodily injury insurance is required in Michigan, but they are available from some insurers. With this coverage, you are compensated for bodily injury and excess wage loss if you or a family member is seriously injured and is unable to recover damages from an uninsured or underinsured driver at fault for an accident.
Is liability insurance required in Michigan?
Yes, liability insurance is required in Michigan. Liability coverage is included with your no-fault insurance policy, which state law requires for every vehicle. It covers the costs of bodily injury and property damage as the result of an accident. Liability insurance pays for losses to other people and their property caused by the policy holder’s negligence. It also covers legal costs and legal payouts for which the insured would be responsible if found to be at fault for an auto accident.
Does Michigan accept digital insurance cards?
Yes, Michigan accepts digital cards as proof of insurance. You can display an image of your insurance card with cell phones, smartphones, computers, tablets, and other electronics with a digital display. An officer viewing an electronic insurance card is only allowed to view the proof of insurance, as displaying a digital insurance card is not a presumption of consent to a search. However, an officer may require you to send a copy of your insurance to a safer location where they can verify your information. The state, law enforcement, and state employees are not responsible for any damage that occurs as the result of viewing an electronic device for insurance verification, regardless of who was in possession of the device as the time the damage or occurred.
Both paper and digital cards are required to show the policy expiration date, a description of the vehicle, the name of each person on the policy, policy declaration, or a declaration certification whose operation of the automotive would void the liability coverage.