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Cheap Michigan Auto Insurance for 2026

Drivers can find Michigan auto insurance at $175/mo. Michigan policies require drivers to meet the 20/40/10 coverage minimum for bodily injury and property damage. Shop around from multiple Michigan auto insurance companies and use our free tool below to find the cheapest Michigan auto insurance.

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Chris Abrams

Licensed Insurance Agent

Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...

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Chris Abrams
Kristen Gryglik

Licensed Insurance Agent

Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...

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Kristen Gryglik

Updated July 2024

Without drivers, however, there would be no market for cars, and drivers require insurance. Understanding auto insurance makes it easier to buy the coverage you need with confidence.  Let’s take a brief look at Michigan auto insurance and how it works.

Before you buy Michigan auto insurance, take the time to shop around. Enter your ZIP code to compare free Michigan auto insurance quotes.

Michigan Auto Insurance Laws and Requirements

In Michigan, the state liability coverage minimums are:

  • Bodily Injury Liability Coverage – $20,000 per person
  • Bodily Injury Liability Coverage – $40,000 per accident
  • Property Damage Liability Coverage – $10,000 per accident

Because Michigan is a no-fault state, this coverage is known as residual liability. Take a look at how Michigan’s minimum rates compare with surrounding states.

Michigan has unusual no-fault insurance laws. Personal Injury Protection coverage is required by law and there is no limit to how much coverage is available. Your PIP will pay for all reasonable medical costs for you and your passengers regardless of fault.

You are also required to carry Property Protection Insurance which pays for property damage regardless of fault, up to $1,000,000.

There are also many optional coverage choices in Michigan, including:

  • Comprehensive Coverage
  • Limited Collision Coverage
  • Standard Collision Coverage
  • Broad Form Collision Coverage
  • Towing and Labor Coverage (Roadside Assistance)
  • Rental Car Reimbursement Coverage
  • Uninsured/Underinsured Motorist Coverage

The first and most important fact about Michigan’s auto insurance that drivers need to be well aware of is that Michigan is a no-fault state. This means that no matter who causes the accident, all parties will be covered by their own insurance.

No-fault insurance does not mean that no one is found to be at fault in the accident, only that your own insurance pays out regardless of who is at fault.

If you are at fault in the accident, your company pays your damages, but you will still see an increase in rates as a result of the accident.

Michigan has mandatory minimum amounts of coverage, like almost every other state. Drivers are required to carry $20,000 in bodily injury liability per person per accident, $40,000 in bodily injury liability total per accident, and $10,000 in property damage liability coverage per accident.

This liability coverage will kick in if you are responsible for an accident and there are costs outside of what is covered by no-fault insurance. It also protects you if you’re involved in an accident outside of Michigan where laws differ.

Personal injury protection or PIP coverage is also required; this type of coverage pays your medical expenses for any injuries you sustain in an accident as well as your passengers.

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Michigan Auto Insurance Rates

Michigan has some of the highest auto insurance rates in the nation. The average annual premium is about $2100, which comes out to about $175 per month – and that’s the average.

Many individuals are paying much higher rates for their car insurance, thanks to insurance companies pricing coverage based on variables like credit rating, past driving history, area of residence, and many other factors.

With rates being as high as they are, it’s good to see a reprieve in rates when it comes to gender. Unlike most states, Michigan has outlawed insurance companies charging different rates based on gender.

Unsurprisingly, rates increase as we get closer to city ZIP codes.

While the price has trended downward since reform to the no-fault laws, it’s still going to pay off for Michigan drivers to do some research and talk with a few auto insurance agents before committing to any Michigan auto insurance company.

Michigan Auto Insurance Rates by Company

With such expensive rates, it pays to shop around! Take a look at how rates between companies company vs. the state average.

But which companies are the largest, holding the most market share percentage in the region?

Michigan Driving Statistics

The situation is much improved for Michigan drivers when we take a look at the most recent auto crash statistics. 2009 saw a total of 291,000 accidents on Michigan roads and highways, which was a decrease of almost eight percent over the 2008 numbers.

There were 871 total fatalities and about 71,000 injuries caused by automobile accidents in 2009, which again were down eleven and five percent respectively. As more than fourteen percent of these accidents were due to excessive speed, it should come as no surprise that law enforcement and state officials are pleading with Michigan’s drivers to slow down, for the safety of everyone.

Things are looking up for Michigan residents in the auto theft department – although some of the decline is likely attributed to the population drop the state has experienced over the past couple of years. 2009 saw 29,383 auto thefts in the state – a rate of 339 per 100,000 citizens. This ranks Michigan at number 6 in the nation, a rather terrible ranking overall but at least the situation is improving.

2009’s numbers saw a drop of over 6,000 auto thefts compared to 2008, so while the situation is somewhat dire it is at least improving. Michigan drivers would do well to purchase an anti-theft device for their automobiles, which can help deter thieves from making your car their next target.

There’s no doubt that the state of Michigan is going through some tough times thanks to the national economic downturn and the troubles of the automobile manufacturers. These troubles are even reflected on Michigan roads, which saw a vehicle mileage decrease of over five percent from 2008 to 2009 as fewer drivers are getting behind the wheel and driving less when they do.

Regardless of how much you drive, you’ll still need insurance – and to get the best deal you’ll need to do some digging. As long as you take the time to do your research, you should come out on top.

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Michigan Auto Insurance Agents

Take a look below for a list of auto insurance agents in Michigan.

Michigan Auto Insurance Agents

Additional Auto Insurance Information in Michigan

The following official sources can provide assistance with Michigan driving and insurance laws.

Ready to find affordable Michigan auto insurance? Shopping around is the key, so enter your ZIP code now to compare Michigan auto insurance rates today.

Frequently Asked Questions

What are the auto insurance requirements in Michigan?

Michigan auto insurance requirements include 20/40/10 for bodily injury and property damage coverage, as well as mandatory no-fault insurance coverage.

What are the average auto insurance rates in Michigan?

The average auto insurance rates in Michigan are around $175 per month or $2,100 per year.

How can I save on Michigan auto insurance?

To save on Michigan auto insurance, it is recommended to compare quotes from multiple insurance companies. By comparing rates, you can find the best deal and potentially save money.

What is the no-fault insurance system in Michigan?

Michigan operates under a no-fault insurance system, which means that regardless of who is at fault in an accident, each party’s insurance company pays for their own damages and injuries.

What are the mandatory minimum coverage amounts in Michigan?

Michigan requires drivers to carry a minimum of $20,000 in bodily injury liability per person, $40,000 in bodily injury liability per accident, and $10,000 in property damage liability per accident.

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