How Much Is Car Insurance In Michigan?

Full-coverage car insurance in Michigan costs about $3,045 per year, which is higher than the national average of $2,388. On the other hand, minimum coverage in Michigan costs around $891 annually, above the national average of $664.

In this article, we’ll explore the different types of car insurance in Michigan, their costs, and the factors that affect your premiums. With over 12 years of experience in the car insurance industry as a licensed agent, I’ll guide you through the process to help you make the best choice.

On average, full coverage car insurance costs around $3,045 per year, but this amount can be higher or lower depending on factors like your driving record, vehicle type, and where you live. Additionally, Michigan drivers who choose the minimum coverage option typically pay around $891 annually.

Despite the high costs, Michigan also offers several ways to reduce premiums, such as bundling policies, maintaining a clean driving record, and shopping around for the best rates.

Personal factors like your age, credit score, and marital status can also influence your car insurance premium. Knowing how these factors impact your rates can help you make better choices when shopping for car insurance in Michigan.

Cost Of Car Insurance In Michigan By Age

Car insurance rates can change a lot depending on a driver’s age and experience. Younger and less experienced drivers usually pay higher premiums than older, more seasoned drivers. As drivers gain more experience and keep a clean driving record, their rates generally go down.

Insurance costs tend to be similar for drivers between the ages of 30 and 60, but they may rise again once a driver reaches 70 or older.

Here is a table displaying the average car insurance costs by age:

Average Michigan Auto Insurance Rates By Insurance Company

The auto insurance company you pick will affect your insurance rates. Some providers offer lower rates for Michigan drivers than others.

The cheapest provider isn’t the same for everyone, even in the same state. Each company has its own way of calculating rates, so the lowest-cost policy for one person might be higher for someone else.

Here is a table displaying average auto insurance rates by six national carriers in Michigan:

Average Michigan Car Insurance Premiums By Credit Score

Credit scores are important in setting car insurance rates in Michigan. Insurance companies use them to judge how reliable a driver is and how likely they are to make a claim.

For instance, drivers with excellent credit (800 or higher) usually pay an average yearly premium of $1,305, while those with poor credit (below 670) may face premiums as high as $4,000.

In general, a higher credit score means lower insurance costs. A good credit score is between 670 and 739. Lower scores tend to lead to higher premiums.

Here is a table displaying average car insurance premiums based on different credit score categories in Michigan:

Average Car Insurance Costs In Michigan By Gender

In most parts of the U.S., men pay higher car insurance rates than women because they are considered higher-risk drivers. However, in Michigan, where auto insurance companies cannot use gender to set rates, women typically pay a little more than men on average.

Here is a table displaying average car insurance costs by gender in Michigan:

Cost Of Michigan Car Insurance By Driver Record

Your driving record plays a big role in determining your car insurance rates in Michigan. Drivers with a clean record usually pay lower premiums, while those with violations, accidents, or claims may face higher rates.

For example, a driver with no accidents or tickets will generally pay less than someone with a history of speeding tickets or a recent at-fault accident. The more clean your record, the better your chances of getting a lower insurance rate.

Here is a table displaying average car insurance costs by marital status in Michigan:

Average Michigan Auto Insurance Costs By Marital Status

In many states, married drivers typically pay around 5% less for car insurance than single drivers. However, Michigan’s laws that prevent insurance companies from using gender to set rates also stop them from charging higher premiums based on marital status.

In July 2020, Governor Gretchen Whitmer signed a law that prohibits insurers from considering marital status when determining car insurance rates. Despite this, married couples in Michigan generally pay slightly lower premiums than single, divorced, or widowed drivers.

Here is a table displaying average car insurance costs by marital status in Michigan:

Cost Of Car Insurance In Michigan By Coverage Type

In Michigan, car insurance costs vary based on the level of coverage you choose. For example, the average monthly cost for minimum coverage is around $74, while full coverage costs about $160 per month. While full coverage is more expensive, it offers better financial protection, making it a good choice.

Additionally, including comprehensive and collision coverage in your policy will increase your premium. However, choosing higher deductibles for both types of coverage can help lower these costs. Keep in mind that each deductible applies separately to comprehensive and collision coverage.

Here is a table displaying average car insurance costs by coverage type in Michigan:

Average Michigan Car Insurance Rates By City

Your location can have a big impact on your car insurance rates. If you live in a busy city with lots of traffic, your rates may be higher due to the increased risk of accidents. On the other hand, areas with less traffic and fewer accidents tend to have lower rates. In Michigan, Ann Arbor offers the most affordable full coverage at $1,361 per year, while Detroit has the highest at $3,987.

In the following table, we explore the average car insurance costs in ten different Michigan cities to illustrate these differences.

Average Michigan Car Insurance Rates By ZIP Code

Car insurance rates in Michigan can vary significantly depending on your zip code. Areas with higher population density, more traffic, and a greater risk of accidents tend to have higher insurance costs. On the other hand, areas with fewer cars on the road and lower accident rates often have more affordable rates.

To get an idea of how rates differ by location, it’s important to compare the average costs across different ZIP codes in Michigan.

Michigan Car Insurance Prices Compared To Other U.S. States

Comparing Michigan car insurance prices to those in other U.S. states is important because it helps you understand how your rates stack up and why they might be higher. Michigan has some of the highest car insurance premiums in the country due to its no-fault insurance system, which requires drivers to have personal injury protection (PIP).

By comparing rates with other states, you can better evaluate if you’re paying too much for coverage and potentially find ways to save.

In the following table, we provide you with a comprehensive comparison of average car insurance rates across all U.S. states, providing a clearer picture of how Michigan fares on the national stage.