In Michigan, the average cost of car insurance in 2021 will be $948 for minimum coverage and $2309 for extended full coverage. Full coverage costs $1,674 annually.
Michigan has one of the most stringent minimum coverage requirements in America. This means that Michigan’s minimum coverage costs are quite high. The state’s high no-fault auto insurance premiums are another reason Michigan is so expensive. In fact, the average claim for lost wages, medical expenses, and other losses rose by 192 percent between 2002-2011, which is 13 percent per annum.
What is the cost of Michigan car insurance?
The cost of car insurance depends on many factors.
- Driving record: A good driving record can lower your rates.
- Annual mileage: Insurance companies often believe that the more time you spend on the road, and the fewer accidents you are at risk for, the better.
- High crime areas may mean higher chances of vandalism and car theft. This could affect your premiums.
- Age: Older drivers tend to be more experienced and less likely have an accident than young adults and teens.
Michigan car insurance companies are not permitted to take into account your gender or credit score when calculating your premium.
Michigan auto insurance rates by company
Michigan is home to many licensed drivers. This means that residents have many options when it comes to choosing a good policy for car insurance. Michigan is the most expensive state to buy car insurance. It’s worth shopping around and taking advantage of any discounts. Quadrant Information Services has provided the following table, which shows average rates for 2021:
Michigan auto insurance rates by location
Michigan’s average premium for car insurance is $2,309. Large metropolitan areas tend to pay higher car insurance rates. High rates are paid by Michigan residents living in Detroit and Dearborn.
Michigan cost of living and Michigan car insurance
It is important to consider your other expenses when searching for the best Michigan car insurance rates. This will allow you to calculate your total living expenses. Below is a graph that shows Michigan’s average annual cost of living, as well as the average cost for car insurance. This graph can be used to determine your annual expenses and help you decide on the best insurance rates for your budget.
Michigan car insurance rates based on age
Rates can vary depending on the driver’s age. While twenty-year-old drivers pay the highest rates, they may still be able to buy affordable policies if they do their research and take advantage of many discounts.
Michigan: How to Save on Car Insurance
Michigan drivers have many options for affordable car insurance. These are some options that you might want to think about:
- Your deductible can be increased: This will lower your premium and result in a lower payout. Talk to an agent to assess your risk tolerance and personal needs before you adjust your deductible. This will give you more peace of mind.
- You can improve your driving skills by taking a driver training class. Even if you don’t take a course but avoid accidents and tickets, and maintain a clean driving record can help you avoid paying insurance surcharges.
- Personal injury protection can be reduced or eliminated: Michigan drivers had to have PIP coverage as part of their auto insurance policies until July 1, 2020. Michigan’s No Fault Insurance Law was modified to allow drivers to reduce or eliminate PIP coverage if they have other health insurance policies that cover personal injury. PIP coverage covers your injuries as well as the injuries of your passengers in an auto accident regardless of fault. You could be responsible for any out-of-pocket costs incurred by you or your passengers if the coverage is reduced or removed.
There are many other possible auto insurance discounts , such as bundling auto and home coverage, senior discounts, and discounts for paying premiums either in an annual lump sum or automatically from a bank account or credit card. Ask about any discounts offered by the carriers you are most interested in.
Michigan requirements for car insurance
Michigan law imposes minimum requirements to ensure no-fault coverage in car insurance policies.
- Personal Injury Protection (PIP: As mentioned above, beginning July 1, 2020, drivers will be able to reduce, or even eliminate, this coverage, depending on certain conditions.
- Property Protection: To cover damage to property other than your own, policies must be $1,000,000
- Residual bodily injuries and property damage liability (BI/PD), also known as BI/PD, covers the damages that you are liable for in a car accident where someone is seriously or fatally injured. Michigan has 50/100/50 liability limits.
Although the minimum car insurance requirements are intended to provide certain protections to Michigan drivers, this does not necessarily mean that they are adequate to meet your needs. An agent can help you determine the right limits for your family.
Questions frequently asked
How can I lower my Michigan car insurance?
Many discounts are available in Michigan for auto insurance. Each insurer offers different packages of discounts. Ask for all discounts and get multiple quotes. You might consider setting up regular reviews with your agent to check if there are any new discounts or changes in your situation that could qualify you for other discounts.
Why is Detroit so expensive for car insurance?
Detroit is one of the most expensive places in the country to purchase car insurance. However, drivers might be able to get some relief from changes to Michigan’s law that allows drivers to reduce or remove PIP coverage in certain circumstances. However, Detroit’s high criminal rate and the legacy of its bankruptcy are making it a high-risk location for insurers.
