Average Car Insurance Cost in Michigan in 2024

Michiganders know, perhaps better than residents of any other state, that car insurance is no small decision. Michigan auto insurance costs, on average,  nearly $3,000 annually for a full coverage policy. The average price of a full coverage car insurance policy in the United States is about $2,160, meaning the average cost of auto insurance in Michigan is over 25% more than car insurance for the average American.

The average cost of car insurance in Michigan is $2,855 annually for a full coverage policy or $1,001 annually for a minimum coverage policy. Nationally, the average cost of a full coverage policy is about $2,160 annually, whereas the average cost of a minimum coverage policy is about $643 annually. That said, car insurance rates in Michigan are over 25% above the national average for various reasons.

While average Michigan auto insurance rates range from $1,001 to $2,855, you may pay above or below average for your Michigan auto insurance policy because insurance companies and agencies use several factors about you to determine your premiums, such as your age, gender, type of car you drive, credit score, and several other factors.

Your insurer uses these things about you to determine risk –- that is, how much your insurer is risking by insuring you. In Michigan, however, insurers aren’t permitted to use gender, credit score, marital status, or other personal details to determine your premiums.

Some drivers, like teenage boys or older folks, are riskier to insure than others. People in these groups often pay the most for car insurance because they have a higher risk of car accidents than other groups. Insurers can use age to determine your premiums, but not gender.

When it comes to car insurance rates in Michigan, prices may vary based on the type of car you drive. If you drive an older car that you own, you will likely pay more than average in car insurance premiums because insurers consider older cars risky. Similarly, if you lease or finance a new car, you may pay more than average in premiums due to the different coverage types your lender or leaser may require you to have on your policy.

Factors about you as a driver are only one part of determining premiums. If you’re still asking yourself why is Michigan car insurance so high, you’ll find the number of uninsured drivers and population density are two of the biggest determinants of car insurance rates in the state. Similarly, another large-scale factor is Michigan’s no-fault law, which we’ll dive into shortly.

The average auto insurance cost in Michigan is about $238 per month for a full coverage policy or $83 per month for a liability policy. While PLPD in Michigan may be cheaper, which refers to a policy with personal liability and property damage coverages,  many drivers in the state opt for a full coverage policy due to the high number of uninsured or underinsured drivers in the state.

About 20% of drivers in the state are uninsured or underinsured, whereas only about 12% of drivers nationally drive uninsured or underinsured.

If you value cost over coverage, the average price of a policy that meets all the minimum car insurance requirements in Michigan but doesn’t exceed them is about $83 per month, or about 65% less than the cost of a full coverage policy. A minimum coverage policy, also called PLPD auto insurance in Michigan, is enough coverage to be legally protected but likely insufficient if you were to get into a severe accident. Here at Clovered, we recommend Michiganders opt for a full coverage policy to ensure they’re protected in any accident, even with uninsured or underinsured drivers. 

There are various factors that contribute to the high average Michigan car insurance rates, such as the state’s no-fault law, high mandatory PIP limit, population size, population density, the high number of uninsured or underinsured drivers across the state, and possibly even climate change.

If you’ve seen Michigan auto insurance rates in a lineup with other rates from states across the country, you’re probably wondering why is Michigan auto insurance so expensive and how just a few factors could possibly contribute to such a vast difference in premiums.

A no-fault law means that, in an accident, a driver will automatically default to their own insurance to pay for their medical expenses or repairs to their vehicle instead of that at-fault party. Many states with no-fault laws require drivers to carry some PIP or personal injury protection. Michigan requires drivers to have around $250,000 worth of PIP coverage, with lower limits available to those enrolled in Medicare or Medicaid. A high PIP minimum is among the most significant factors contributing to the high average cost of car insurance in Michigan.

On top of PIP, Michigan’s no-fault law also requires all drivers to carry a minimum of $50,000 of bodily injury per person per accident, $100,000 of bodily injury per accident, $10,000 of property damage liability  (50/100/10 liability coverage) and, at most, $1 million in property protection insurance (PPI). Bodily injury and property damage liability are at-fault coverage types. If you’re involved in an accident and deemed at fault, the funds from these coverage types will go toward the victim’s medical expenses and vehicle repairs. Due to the expansive nature of this coverage, average car insurance rates in Michigan are higher than the national average. 

PPI is another no-fault coverage, similar to PIP, that the policyholder invokes to help cover the cost of repairs to the other party’s property, regardless of who was at fault in the accident. PPI will only cover the cost of repairs for properties like fencing, mailboxes, or parked cars. PPI does not cover the cost of repairs for a vehicle damaged while in use. Michigan average car insurance rates may be above average due to this somewhat rare type of no-fault coverage. 

Since Michigan is also the 17th most densely populated state, the roadways have a high number of drivers, meaning there is a higher risk of car accidents than in many other states. The increased risk of car accidents and the volume of insufficiently insured drivers means insurance companies are taking a high risk by insuring drivers in the state. When it comes to insurance, the higher the risk, the higher the premium. Thus, the average full coverage car insurance cost in Michigan is much higher than in most other states in the nation.

There are plenty of other factors contributing to the Michigan car insurance increase, too. Namely, climate change is a driving force in rising auto insurance premiums. Similar to the home insurance crisis, frequent and severe storms pummel vehicles, causing the number of claims to rise and, thus, premiums too. All this to say, there are several nuanced reasons as to why Michigan auto insurance is so high.

While the average price of car insurance in Michigan is one of the highest in the nation, lawmakers are pushing for lower rates. In 2024, policyholders are finally seeing relief from reforms passed in 2019, easing up on the state’s mandatory no-fault laws and slowing the Michigan auto insurance increase. 

The average auto insurance in Michigan is a policy that at least meets all the legally mandated requirements. State law requires all drivers to carry at least 50/100/10 of bodily and property damage liability coverage, around $250,000 of personal injury protection (PIP), and up to $1 million of property protection insurance (PPI). For those who lease or finance their vehicle, the average policy will also include a minimum of collision coverage and comprehensive coverage required by their lender.

The average car insurance in Michigan will likely be a policy with a higher liability limit than the state-mandated minimum. Many drivers will opt for a 250/500/10 liability limit, thus raising the cost of their premiums but providing much more coverage.

PLPD insurance in Michigan averages $1,001 per year. PLPD may mean something different in each state, but in Michigan, it refers to the minimum amount of legally required insurance. So, PLPD car insurance in Michigan refers to the state-mandated minimum amounts of bodily injury liability, property damage liability, PIP, and PPI.

Michigan PLPD insurance coverage will certainly help you if you’re in an accident, but it may not provide adequate coverage in every scenario. Here at Clovered, we recommend full coverage car insurance in Michigan rather than a minimum PLPD policy. You must always select the policy that best suits your needs. Still, due to the high number of uninsured drivers in the state, you will likely be safer with a full coverage policy than a minimum coverage policy.

Whether you’re wondering how much is auto insurance in Michigan, getting a policy for the first time, or shopping around for a lower rate, getting car insurance quotes in Michigan may come with some initial sticker shock. However, getting and comparing quotes online is one of the best ways to see all of the car insurance in Michigan prices, so you can then determine which policy works the best for you.

Here at Clovered, we have a free quoting tool to help you compare Michigan car insurance quotes in minutes. If you would rather speak with an agent, you can call us at 833-255-4117 or email us at [email protected].