How Much is Auto Insurance in Michigan?

If you consider the minimum auto insurance coverage cost in Michigan, then on average it ranges from $890 to $1,360 per year according to Bankrate, and MarketWatch. On the other hand, the average cost of full coverage insurance, which typically combines both mandatory and optional coverage options, varies from $3,049 to $3,643 per year.

Now when it comes to determining your auto insurance premium, there are multiple factors that will come into consideration. These include your location, age, gender, driving record, insurance history, vehicle model, and marital status.

The cost of auto insurance can widely vary from person to person. So, to get a more accurate estimate it is essential to understand how these factors affect your auto insurance rate.

Average Auto Insurance Costs by Cities in Michigan

Auto insurance rates can significantly vary based on location. Even within the same state, the rates can widely vary from one city to another. The variation is mainly influenced by population density, level of urbanization, number of roads, and highways, frequency of traffic accidents, and of course the lifestyle and driving habits in each city.

Typically, the cities with lower population, and traffic have fewer car accidents, so the auto insurance rate is lower in those cities. Similarly, larger and more populated cities with heavier traffic have more road accidents, so the auto insurance rate there is higher.

The table below shows the cost of auto insurance in 10 cities in Michigan from lowest to highest.

Source: Bankrate | As of November 2024

If you are looking for a reliable auto insurance agency in Michigan, PLPD Insurance offers affordable coverage with a personalized auto insurance policy. We have regional offices in Flint, Saginaw and Mount Pleasant.

How Age Impacts Auto Insurance Rates in Michigan?

When it comes to determining auto insurance rates, age happens to be a crucial factor. This is especially because teenagers between the age of 16 and 19, and young adults from 20 to 25 are more prone to getting into accidents compared to mature and experienced drivers from the age of 30 to 60.

Senior drivers above the age of 60 and 70 have experience, and maturity but due to old age the risk of getting into road accidents increases due to slower response time, and a general lack of situational awareness. So, that’s why the cost of auto insurance steadily increases for drivers aged 70 and above.

In general, teenagers, and young adults from the age of 16 to 20 pay the highest for auto insurance, but the rate also varies depending on whether many other factors as well. Here’s the average cost of auto insurance by age per year with full coverage as follows.

• 16 years old: $6,742 to $12,921
• 18 years old: $7,387 to $8,862
• 20 years old: $6,918 to $3,194
• 25 years old: $3,627 to $4,230
• 30-35 years old: $3,231 to $3,643
• 40-45 years old: $3,049 to $3,531
• 50-55 years old: $2,612 to $3,244
• 60 years old: $2,339 to $2,663
• 70 years old: $2,727 to $2,968

Oftentimes, the auto insurance cost data varies from one source to another, which makes it difficult to interpret the actual range of cost. Based on the overall analysis from reliable sources like Bankrate, MarketWatch, TheZebra and our own research, we have compiled a general range of auto insurance costs by age.

Gender-Based Differences in Auto Insurance Costs

In Michigan, it is legally prohibited to determine auto insurance rate based on gender. So, that’s why auto insurance companies cannot typically determine auto insurance rates based on gender.

Despite the prohibition, women generally pay a slightly higher auto insurance than men in Michigan. According to recent statistics, it was found that on average women pay $2,549 per year on auto insurance, whereas men pay $2,492.

The Impact of Insurance History on Costs

Auto insurance companies basically evaluate risk factors based on your insurance history. The insurance you’ve claimed, the higher your auto insurance rate is likely to be. On average, your auto insurance premium can increase 40% to 50% after an at-fault accident, and for no-fault accidents it can increase up to 4%.

So, depending on the severity of the accident, your previous insurance claim(s), and how auto insurance you were covered with, your next premium can increase up to $2,000 for full coverage insurance in the following year. If you already have an existing auto insurance policy, the new rate will apply when your auto insurance is renewed.

Even if you switch auto insurance companies, your next insurer can also charge a relatively higher amount, but that also depends on their pricing policies. In some cases, some auto insurance companies have an accident forgiveness plan, which usually applies for first-time accidents.

Another factor that impacts your auto insurance history is the policy lapse. Policy lapse is the gap between having an active auto insurance and having no insurance. Insurance companies consider policy lapse a substantial risk as it shows a possibility that you may cancel your auto insurance in the near future, or you may not be able to pay on time.

On average drivers in Michigan with a policy lapse of 30 days or less have faced an 8% increase in their insurance premiums, and drivers with over 30 days policy lapse saw an increase of up to 35%.

Effect of Vehicle Model and Type on Insurance Premiums

Your auto insurance rate widely depends on the vehicle, and the type of vehicle that you own. Usually, heavier vehicles like minivans and SUVs with enhanced safety features are less prone to severe damage upon collision, whereas regular sedans or even lightweight sports car are at high risk of being wrecked.

The repair and replacement also vary based on the car’s brand, type, make and model, and most importantly the availability and cost of parts. Also, there’s a special auto insurance premium for luxury, or classic cars which comes at a much higher rate.

The data below, sourced from CarEdge, provides average full coverage costs for five popular car models in Michigan.

• Toyota Camry: $3,922
• Honda Accord: $4,317
• Honda Civic: $4,624
• Toyota Prius: $4,722
• Chevrolet Impala: $4,790

Car Insurance Rates Based on Marital Status

According to the legal amendments in Michigan’s auto insurance laws, Governor Gretchen Whitmer has prohibited the use of marital status for determining auto insurance rates. Auto insurance companies don’t necessarily charge based on marital status, but they have bundle offers, and discounts for married couples.

So, that’s why married couples in Michigan pay a relatively lower auto insurance premium compared to people who are single or unmarried. On average, married couples pay $2,454 whereas single people pay $2,492 for auto insurance in Michigan.

There are optional auto insurance policies like Supplemental Spousal Auto Insurance. which makes it relatively cheaper for couples in Michigan to acquire auto insurance. What is Supplemental Spousal Auto Insurance.

Why is Car Insurance so Expensive in Michigan?

The main reason car insurance is so expensive in Michigan is its high population density, diverse urban traffic system, rising auto repair cost, no-fault auto insurance laws, additional auto insurance requirements, and more. According to Governor Gretchen Whitmer, people in Michigan pay 81% more for auto insurance than the national average. This makes Michigan among the most expensive states for auto insurance in the USA.

If you’re interested to know more, please check the detailed article on Why is Auto Insurance So Expensive in Michigan? Why is Auto Insurance so Expensive in Michigan?

Tips to Save on Auto Insurance Cost in Michigan

When it comes to auto insurance rates, it is mainly determined based on individual profiling. So, your auto insurance premium will be determined by analyzing and considering all these factors. This gives you an open opportunity to apply some techniques to lower and save on auto insurance costs suggested in the following tips.

• Maintain a Clean Driving Record: Auto insurance companies mainly evaluate your individual profile based on your driving record. So, a clean driving record is strong evidence that you drive safely with a lower chance of getting into a road accident
• Get a Defensive Driving Certificate: Attending a defensive driving course shows that you are aware of the traffic rules, and you’ve taken steps to be a more responsible driver.
• Look for Insurers Offering Affordable Rates: Auto insurance rates vary from one insurance company to another, so it’s crucial to find insurance companies that offer affordable rates with the best coverage plans within your budget.
• Review Your Auto Insurance Policy Before Renewal: Oftentimes auto insurance companies may increase your policy rates in the following year. So, that’s why it’s important to review and negotiate it with your current insurer or consider switching to another insurance company.
• Explore Bundle Offers and Discounts: Check bundle offers on the auto insurance company website, and ask their agent to offer you bundle plans, and discounts. You can even use community platforms like Quora and Reddit to find bundle offers and discounts either by asking there or engaging in existing threads.

Bottomline

So far, you have come across the main factors that affect auto insurance rates in Michigan with the average costs. Even though auto insurance is expensive in general, it can widely vary based on your individual stance which includes your location, age, driving records, insurance history and more.

Plus, different companies have different rates, and policies. So, it’s crucial to explore your options and find the best auto insurance company that offers auto insurance policies and coverage within your budget.

If you’re looking for a reliable auto insurance company in Michigan, please contact us for a free quote. One of our insurance agents will get in touch with you shortly to help you make a personalized auto insurance plan within your budget.