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See Michigan’s car insurance cost for both new and used cars. Also see what coverage you need, how your car’s value and credit score affect your rate, and where you can cut costs without leaving yourself in trouble.

Michigan drivers pay about 11-82% more for car insurance than the national average, depending on the coverage level. Full coverage runs roughly $1,650-$3,150 per year, while minimum coverage averages $714-$1,600 annually. Michigan has historically ranked among the most expensive states for car insurance in the nation.

Updated: June 3, 2026

Curious about car financing? See real Michigan car loan rates shared by our community.

Michigan’s No-Fault System: PIP, PPI, and 50/100/10 Liability

Michigan requires no-fault auto insurance with three mandatory coverages. This is more complex than most states:

Personal Injury Protection (PIP):

• Pays your medical expenses, lost wages, and rehabilitation costs after an accident — regardless of who caused it.
• You choose your coverage level: unlimited, $500,000, $250,000, $100,000 (with qualified health insurance), or $50,000 (if you have Medicaid).
• If you have qualifying health insurance, you may opt out of PIP entirely.
• The default is unlimited coverage unless you specifically choose lower limits.

Property Protection Insurance (PPI):

• $1 million mandatory coverage for damage your car causes to other people’s property in Michigan.
• Covers damage to buildings, fences, parked cars, and other fixed objects.
• Does not cover damage to moving vehicles involved in the accident.

Bodily Injury Liability (50/100):

• $50,000 per person and $100,000 per accident minimum.
• The default limit is $250,000/$500,000 unless you specifically request lower limits.
• Protects you if you cause serious injury to someone else and they sue.

Property Damage Liability:

• $10,000 minimum for damage you cause to vehicles or property outside Michigan.
• Only applies to accidents that occur in other states.

Michigan’s no-fault system means your own insurance pays for your injuries regardless of who caused the accident. You can only sue the at-fault driver for “pain and suffering” if you suffer serious impairment of body function, permanent serious disfigurement, or death.

MFP Tip: Michigan prohibits insurers from using credit score, ZIP code, gender, marital status, education, occupation, or home ownership to set your rates. But your PIP coverage choice has the biggest impact on your premium — choosing $250,000 instead of unlimited can save $400-$600 per year.

Michigan New Car Insurance Costs

Your new car monthly premium depends on three main factors: your PIP coverage level, whether you add collision and comprehensive, and your driving record. Location matters less in Michigan than other states because ZIP code rating is prohibited.

Car Value	Coverage	750+ (Excellent)	700–749 (Good)	650–699 (Fair)	600–649 (Below Fair)
Under $30K	Full	$220	$288	$324	$547
	Standard	$160	$209	$235	$397
	Liability only	$106	$139	$156	$263
$30K–$60K	Full	$260	$340	$382	$646
	Standard	$190	$248	$278	$470
	Liability only	$116	$151	$170	$287
Over $60K	Full	$321	$419	$471	$796
	Standard	$231	$302	$339	$572
	Liability only	$125	$164	$184	$311

Michigan Used Car Insurance Costs

Car Value	Coverage	750+ (Excellent)	700–749 (Good)	650–699 (Fair)	600–649 (Below Fair)
Under $15K	Full	$128	$168	$188	$318
	Standard	$108	$141	$158	$267
	Liability only	$73	$96	$108	$182
$15K–$25K	Full	$154	$201	$226	$381
	Standard	$128	$168	$188	$318
	Liability only	$85	$111	$125	$210
$25K–$40K	Full	$174	$228	$256	$432
	Standard	$146	$190	$214	$361
	Liability only	$92	$120	$134	$227
Over $40K	Full	$200	$261	$293	$496
	Standard	$166	$217	$244	$412
	Liability only	$101	$132	$149	$251

What Each Coverage Level Means

Full Coverage: Includes collision, comprehensive, and all mandatory no-fault coverages. Typical limits are unlimited PIP plus 250/500 bodily injury liability. This pays to repair or replace your car after accidents, theft, vandalism, or weather damage. Required if you finance or lease.

Standard Coverage: Same protections as full coverage but with lower PIP limits ($250,000 or $500,000) and higher deductibles. A good middle ground if you have qualifying health insurance to cover some medical expenses.

Liability Only (PLPD): Meets Michigan’s legal minimums — PIP, PPI, and 50/100/10 liability. Covers injuries to yourself and damage you cause to others, but nothing for your own vehicle. Best for older cars where the premium would exceed the car’s value.

Michigan Bans Credit Score Rating But Other Factors Still Matter

Michigan is one of the few states that prohibits insurers from using credit scores to set auto insurance rates. The 2019 insurance reform law also banned rating based on ZIP code, gender, marital status, education, occupation, and home ownership.

This means your premium is based primarily on:

• Your driving record: A DUI can increase your rates by 152%. An at-fault accident raises premiums by about 46%.
• Your PIP coverage choice: Unlimited vs. limited PIP is the single biggest factor in your premium.
• Your vehicle: Newer, more expensive cars cost more to insure.
• Your age: Young drivers pay far more — a 16-year-old pays an average of $10,300/year vs. $2,296 for drivers in their 50s.
• Your claims history: Filing claims raises your rates, even if you weren’t at fault.

MFP Tip: Even though credit scores can’t be used directly, some studies show drivers with poor credit still pay more in Michigan. This may be because credit correlates with other factors insurers can use, like claims history. Shop around — rates vary widely between insurers.

How to Choose the Right Coverage

Buying a New Car

If you’re financing or leasing, your lender will require full coverage including collision and comprehensive. You don’t have a choice on this — it protects their investment.

Beyond lender requirements, gap insurance is worth considering. New cars depreciate 20-30% in the first year. If your car is totaled, your insurance pays the actual cash value (what it’s worth today), not what you owe on the loan. Gap insurance covers the difference.

MFP Tip: Gap insurance costs $20-$50 per year when added to your auto policy — much cheaper than buying it through a dealer, who may charge $500-$700 as a one-time fee.

Buying a Used Car

With a used car you own outright, you have more flexibility. The key question: does it make sense to pay for collision and comprehensive coverage?

The 10% Rule: Add up your annual collision and comprehensive premiums. If that total exceeds 10% of your car’s current market value, you might save money by dropping those coverages and setting aside money for repairs or a replacement.

Example: Your 2016 Ford Escape is worth $12,000. If collision and comprehensive cost $1,000/year (about 8%), keeping those coverages makes sense. If your 2010 Chevrolet Malibu is worth $5,000 and collision plus comprehensive runs $700/year (14%), you might be better off banking the premium savings.

Michigan Exception: Michigan has over 58,000 deer-vehicle collisions per year — among the highest in the nation. Comprehensive covers deer strikes, and collision does not. Think twice before dropping comprehensive even on an older car.

$10,000 Property Damage Won’t Cover an Out-of-State Fender Bender

Michigan’s no-fault system handles most in-state accident costs through PIP and PPI. But the liability minimums leave gaps, especially for out-of-state accidents:

When You Damage Someone’s Vehicle in Another State

The $10,000 property damage minimum only applies to accidents outside Michigan. If you rear-end someone in Ohio, Indiana, or any other state, that $10,000 won’t cover much.

The average new car costs over $48,000. Even a moderate fender-bender with a new SUV or truck can exceed $10,000 in repairs. If your insurance maxes out, you pay the difference out of pocket.

If You Seriously Injure Someone

The $50,000 per-person bodily injury minimum can be exhausted by a single serious injury. Spinal injuries, traumatic brain injuries, or multiple surgeries easily run into hundreds of thousands of dollars.

Under Michigan’s no-fault system, you generally can’t be sued for minor injuries. But if you cause “serious impairment of body function” or death, the injured party can sue you for damages beyond what their own PIP covers. Your 50/100 liability limits may not be enough.

When an Uninsured Driver Hits You

About 20% of Michigan drivers don’t have insurance — one of the highest rates in the nation. Michigan ranked 5th highest for uninsured drivers in 2022, though the rate dropped after 2019 reforms.

Michigan does not require uninsured motorist (UM) coverage. Your PIP will cover your medical expenses, but if you want to recover damages for pain and suffering from an uninsured at-fault driver, you need UM coverage.

MFP Tip: Given Michigan’s high uninsured driver rate, attorneys recommend buying UM/UIM coverage with limits of at least $250,000/$500,000. This protects you if the at-fault driver has no insurance or not enough to cover your damages.

What Shapes Michigan Rates

Michigan is a No-Fault State

Michigan’s no-fault system is unique. After an accident, your own insurance pays for your medical expenses and lost wages through PIP — regardless of who caused the crash. You don’t sue the other driver for medical bills.

The trade-off: you can only sue for “pain and suffering” if you suffer serious impairment of body function, permanent serious disfigurement, or death. Minor injuries are handled entirely through your own PIP coverage.

 

The 2019 Insurance Reform Changed Everything

Before July 2020, Michigan required unlimited lifetime PIP medical benefits — one reason the state had the highest insurance rates in the country. The 2019 reform law allowed drivers to choose lower PIP coverage levels for the first time.

The result: average premiums dropped about 19% ($357/year) between 2019 and 2024. Wayne County (Detroit) saw the largest decrease — $539 per year on average. Drivers over 64, who already have Medicare, saved 22% on average.

Nearly 30% of insured vehicles in Michigan now have limited or no PIP coverage. But this creates new risks — if you choose limited PIP and suffer catastrophic injuries, your coverage may run out.

Deer Collisions: 58,000 Per Year

Michigan ranks among the top four states for deer-vehicle collisions, with over 58,000 crashes in 2024. These accidents peak in October and November during mating season. Oakland County has the highest number of deer strikes in the state.

Deer collisions are covered under comprehensive insurance, not collision. If you drop comprehensive to save money, you’re unprotected against this common Michigan hazard.

Detroit and Urban Areas Still Pay More

While Michigan banned ZIP code rating in 2019, urban areas like Detroit still see higher premiums. Detroit drivers average $5,667/year for full coverage — nearly double the state average. This is partly because claims costs are higher in urban areas regardless of how rates are calculated.

Rural areas and smaller cities like St. Joseph ($98/month for full coverage) pay far less than Hamtramck ($295/month).

How to Lower Your Michigan Car Insurance Costs

Choose the right PIP level. If you have qualifying health insurance through an employer, Medicare, or Medicaid, you may be able to choose lower PIP limits or opt out entirely. This is the single biggest way to reduce your Michigan premium.

Shop around aggressively. Rates vary wildly between insurers. GEICO averages $70/month for full coverage in some analyses, while other carriers charge $115+ for similar coverage.

Bundle your policies. Combining auto and renters or homeowners insurance with the same company often saves 10-25%.

Maintain a clean driving record. Since credit can’t be used in Michigan, your driving record matters even more. A single at-fault accident can raise your rates by 46%.

Try a safe-driver tracking program. Many insurers offer discounts of 10-30% if you let them monitor your driving habits through an app.

Raise your deductible. Increasing your deductible from $500 to $1,000 can cut your collision and comprehensive premiums by 15-25%.

Ask about the Michigan Catastrophic Claims Association (MCCA) fee. If you choose unlimited PIP, you pay a $90 MCCA fee. Other PIP levels pay only $20. This mandatory fee helps cover catastrophic claims.

MFP Tip: The 2019 reforms led to a 19% average premium decrease through 2024. But rates are rising again — expect 16%+ increases in 2025-2026 due to inflation and higher repair costs. Lock in rates now and shop at each renewal.

Buying a Car in Michigan? Here’s What to Do

Get Insurance Before You Drive

Michigan requires no-fault insurance before you can register a vehicle or drive legally. If you’re buying from a dealer, you’ll need proof of Michigan no-fault insurance before taking possession.

Out-of-state insurance doesn’t count. You must have a Michigan no-fault policy — even if your car is also insured in another state.

Title and Register Within 15 Days

You have 15 days from the purchase date to title and register your vehicle in Michigan. You can drive without plates for the first 3 days to get to the Secretary of State office. Bring:

• The signed-over title (all owners must appear in person or provide power of attorney).
• Proof of Michigan no-fault insurance.
• A valid Michigan driver’s license or state ID.
• Payment for registration fees and taxes.

If you buy from a dealer, they typically handle the paperwork. For private sales, the Secretary of State recommends you and the seller visit an SOS office together.

New Michigan residents must title and register their vehicles “without delay” — there’s no grace period like some states offer.

Review Coverage Annually

Your car loses value every year. The full coverage that made sense for a new $35,000 car may not make sense when that car is worth $18,000 five years later.

Check your coverage at each renewal and adjust based on your car’s current value. Michigan’s insurance market is competitive — shopping around every year or two is worth the effort, especially given recent rate increases.

End Note

Michigan’s no-fault system is unlike any other state’s. Understanding how PIP, PPI, and liability coverage work together is the key to getting the right protection at a price you can afford.

The 2019 reforms gave drivers more choices and lowered average premiums by 19%. But those savings came with trade-offs — if you choose limited PIP and suffer catastrophic injuries, you may face enormous medical bills your insurance won’t cover.

Base your coverage decisions on your health insurance situation, your car’s actual value, and your ability to absorb a loss. The right PIP level depends on whether you have other medical coverage. The right collision and comprehensive coverage depends on your car’s value and Michigan’s high deer-strike rate.

Use the rate tables above to estimate what you’ll pay, then shop around. With Michigan’s wide rate variations, a few hours comparing quotes can save you hundreds per year without sacrificing the protection you need.