Average Cost of Auto Insurance in Michigan (2021 rate)

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The average annual cost of auto insurance in Michigan in 2021 is $ 948 for minimum coverage and $ 2,309 for extended full coverage, or $ 565 and full coverage costs $ 1,674 per year.

The minimum coverage cost in Michigan is relatively high because the state has one of the highest minimum coverage requirements in the country. Another reason for Michigan’s expensive auto insurance is the historic pressure on the state’s no-fault insurance program from extremely high no-fault claims. For example, from 2002 to 2011, average claims for lost wages, medical expenses and other losses increased by 192%, or 13% per year.

How Much Does Auto Insurance Cost in Michigan?

The cost of auto insurance depends on many factors, including:

  • Driving records: Maintaining a good driving record will usually lower your fares.
  • Annual mileage: Insurers often assume that the less time you spend on the road, the lower your risk of accidents.
  • Site: High crime areas can increase the risk of vandalism or car theft, which can be reflected in your premiums.
  • Age: Older drivers are generally more experienced and less likely to have crashes than teenage and young adult drivers.

Michigan auto insurance companies are not allowed to take your credit score or gender into account when calculating your premium.

Michigan Auto Insurance Rates by Company

Michigan has a large number of licensed drivers and therefore many options for residents to choose a good auto insurance policy. Because Michigan is one of the more expensive states to purchase auto insurance, it might pay off to shop around carefully and take advantage of all the discounts available. The following table lists the 2021 average rates provided by Quadrant Information Services:

Auto insurance company Average annual premium for minimum coverage Average annual premium for full coverage
AAA $ 893 $ 2,221
Allstate $ 1,301 $ 2,726
Car owners $ 827 $ 1,982
Chubb $ 363 $ 1,639
Donegal $ 606 $ 1,690
Farmers $ 2,237 $ 4,471
Frankenmuth $ 632 $ 1,921
Geico $ 724 $ 1,467
barn $ 1,749 $ 2,465
Mutual of Hastings $ 843 $ 1,623
MetLife $ 532 $ 1,668
Pioneer state $ 927 $ 1,975
Progressive $ 683 $ 1,394
Secura $ 115 $ 826
State farm $ 2,103 $ 3,856
Hanover $ 1,511 $ 4,493
Travelers $ 101 $ 1,470
United States $ 482 $ 1,255
Westfield $ 115 $ 2,337
Wolverine mutual $ 203 $ 1,082

Michigan Auto Insurance Rates by City

The average annual premium for full auto insurance coverage in Michigan is $ 2,309. Residents of large metropolitan areas typically pay higher rates for auto insurance. In fact, Michigan residents in Detroit and Dearborn pay high rates.

City Average annual premium for full coverage % difference from the average annual state premium
Detroit $ 5,046 121%
Grand Rapids $ 2,021 -14%
Warren $ 3,346 56%
Sterling heights $ 2,935 39%
Lansing $ 2,092 -7%
Ann arbor $ 2,003 -12%
Flint $ 2,995 32%
Cherborn $ 4,083 84%
Livonia $ 2,534 12%
Westland $ 2,898 33%
Troy $ 2,628 17%
Farmington Hills $ 2,504 12%
Kalamazoo $ 1,973 -14%
Saginaw $ 2,253 4%
Wyoming $ 1,948 -16%
Southfield $ 3,550 57%
Rochester Hills $ 2,389 8%
Taylor $ 3,101 47%
Shores of Sainte-Claire $ 2,737 27%
Pontiac $ 3,202 42%

Michigan Cost of Living and Auto Insurance

When shopping for the best auto insurance rates in Michigan, it’s important to factor in your other expenses so that you look at your total cost of living. The graph below shows the average annual cost of living in Michigan, including the average cost of auto insurance. Use this chart as a guide to help you determine your overall spending so you can decide which insurance rates are within your budget.

Michigan Auto Insurance Rates by Age

Prices vary considerably depending on the age of the driver. 20-year-olds pay some of the highest rates, but can still buy affordable policies through careful research and taking advantage of plenty of discounts.

* 16 years and 17 years calculated on the disclosure of the parents’ policy

Michigan Auto Insurance Rates by Driving Record

The table below reveals to what extent a serious traffic violation can impact rates.

Driving incident Michigan average annual premium % increase in average annual premium
Speeding $ 2,881 24.7%
Accident $ 3,532 53%
DUI $ 6,554 183.8%

How To Save On Auto Insurance In Michigan

Michigan drivers can get cheap auto insurance in a number of ways. Here are a few options you may want to consider:

  • Increase your deductible: This will lower your premium, but result in a lower claim reimbursement. Evaluate your personal needs and tolerance for risk by speaking with an insurance agent before adjusting your deductible to gain peace of mind.
  • Improve your driving skills: Taking driver training can sometimes help you lower your fares. Even if you don’t take a course, avoiding accidents and tickets and maintaining a clean driving record could save you insurance surcharges.
  • Reduce or eliminate your injury protection: Until July 1, 2020, Michigan drivers were required to purchase PIP as part of their auto insurance policies. On that date, Michigan’s no-fault insurance law was amended to allow drivers to eliminate or reduce the amount of PIP coverage provided that other health insurance policies apply to cover them. bodily injury. However, it’s important to note that PIP coverage pays for your injuries and the injuries of your passengers in an accident, regardless of who is at fault. Reducing or removing coverage could mean you will be responsible for out-of-pocket expenses if you or your passengers are injured.

There are many other potential discounts on auto insurance, such as bundling home and auto coverage, senior discounts, and discounts for paying premiums as an annual lump sum or by direct debit from a bank account. or credit card. Ask what discounts the carriers you are interested in might offer you.

Michigan Auto Insurance Requirements

Michigan law establishes several minimum requirements for no-fault coverage that must be included in auto insurance policies:

  • Personal Injury Protection (PIP): As noted above, effective July 1, 2020, drivers can now reduce or eliminate this coverage under certain conditions.
  • Property Protection (PPI): Policies should cover $ 1,000,000 to pay for damage your vehicle causes to the property of others.
  • Liability for bodily injury and residual material damage (BI / PD): BI / PD covers damages for which you are responsible as a result of a car accident in which a person has been killed or seriously injured. Michigan requires 50/100/50 liability limits.

While the above minimum auto insurance requirements are meant to provide some coverage for Michigan drivers, it doesn’t always follow that these coverages are enough to meet your needs. An insurance agent can discuss the appropriate limits for you and your family.

Frequently Asked Questions

How Can I Reduce My Auto Insurance In Michigan?

There are many discounts available for auto insurance in Michigan and each insurer offers a different set of discounts. Make sure you get multiple quotes and inquire about all the discounts available. It may be a good idea to set up regular hours to review your current policy with your agent to see if new discounts are available or if a change in your circumstances qualifies you for others.

Why is auto insurance so expensive in Detroit?

As one of the most expensive cities in the country to buy auto insurance, Detroit drivers may see some relief from changes to Michigan law allowing drivers to reduce or eliminate PIP coverage in some areas. circumstances. The fact remains that Detroit’s high crime rate and the fallout from the city’s previous bankruptcy make the city a high-risk area for insurers.

Methodology

Bankrate uses Quadrant Information Services to analyze 2021 rates for all zip codes and carriers in all 50 states and Washington, DC Rates shown are based on a male and female driver with good credit and the following full coverage limits:

  • $ 100,000 liability for bodily injury per person
  • $ 300,000 in civil liability for bodily injury per accident
  • Civil liability for property damage of $ 50,000 per accident
  • $ 100,000 in bodily injury caused by an uninsured motorist per person
  • $ 300,000 in uninsured bodily injury per accident to a motorist
  • $ 500 collision deductible
  • Global deductible of $ 500

To determine the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our basic profile drivers own a 2019 Toyota Camry, commute five days a week and cover 12,000 miles a year.

Driving record rates were calculated by evaluating our baseline profile with the following incidents applied: clean record (baseline), at-fault accident, single speeding ticket, single impaired driving conviction, and lapse of coverage.

Age rates were calculated by evaluating our baseline profile with ages 18-60 (baseline: 40) applied.


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