Auto Insurance in Michigan

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If you’ve never purchased car insurance in Michigan before, brace yourself for a shock. This state, which is home to so many automobile manufacturers, is by far the most expensive state in terms of car insurance. Premiums in the Wolverine State are almost three times the national average.


Population: 9,909,877
US Average

The reason for this isn’t so much to do with the geography of the state, although accident rates can increase during its snowy winters, and some southern regions are in Tornado Alley. Instead, it’s Michigan’s unique insurance laws that have pushed premiums so high. Drivers in this state, which is one of the largest in America, are obliged to have much more extensive insurance coverage than those in other states, and that leads to premiums that are vastly more expensive than elsewhere.

Michigan Minimum Liability

Bodily Injury

per person
per accident

Property Damage

per accident

As a no-fault insurance state, Michigan requires drivers to have unlimited personal injury insurance, as well as property damage insurance up to $1 million. This ensures that all drivers are thoroughly covered but creates some very hefty annual premiums.

Drivers are also required to have residual coverage, which protects them if they are found liable for an accident in another state. These limits are actually quite low; you must have $20,000 per-person and $40,000 per-accident bodily injury coverage, as well as $10,000 of cover against property damage. Most insurers would actually say that this is not enough, and you should have a minimum of 50/100/50. The average payout in bodily injury claims in 2013 was $15,443, and property damage claims averaged $3,231. Half of all payouts were more expensive than that, and if the settlement is greater than your coverage, you must pay the balance.

The more residual coverage you can afford, the greater peace of mind you’ll have. If you can afford 100/300/100 coverage, you’ll know you’re covered in every state. It’s vital to shop around. Insurers have a vast array of rates, some of which are hidden, and often you’ll have to dig deep in order to find the best, most affordable coverage available to you.

Cheapest Car Insurance in Michigan

Yearly Rate

  • $5,427
  • $4,914
    Auto Club Group
  • $3,714
    State Farm
  • $2,422
  • $2,069
    Auto-Owners Insurance Co

If you’re struggling to pay your bills, you may just want to go for the cheapest car insurance option. That’s understandable with premiums as high as they are in Michigan, and this list shows the best bargains on the market right now.

But remember that you may be making sacrifices to save a few bucks each month – sacrifices such as giving up a reasonable standard of customer service. Worse still, you may end up with coverage that doesn’t offer the help you need when disaster strikes.

Where is car insurance most affordable?

Michigan’s unique laws mean that you’ll pay above the national average no matter where you are in the state.

However, there’s a great variation within the state itself from city to city, with Detroit in particular being very hard-hit by high premiums.

All of Michigan’s major population centers are situated in the Lower Peninsula, with a few smaller cities dotted around the Upper Peninsula. Take a look at your neighborhood, and see how you stack up against your neighbors.

Ann Arbor Auto Insurance

Population: 114,024
Ann Arbor

Home to the University of Michigan, Ann Arbor is a large, vibrant city with a young population. It’s also one of the largest cities in the state, with a population of 114,000, most of whom use automobiles to get around. Insurance is not terribly expensive here, with average premiums being significantly lower than the state average, although still much higher than the national average.

Dearborn Auto Insurance

Population: 97,775

Dearborn holds a very special place in motoring history. The former home of the grandfather of automobiles himself, Henry Ford, Dearborn also plays host to the Ford Motor Company’s global headquarters. A busy city of nearly 98,000 people, it has average insurance premiums that are about $500 above the state average.

Dearborn Heights Auto Insurance

Population: 58,264
Dearborn Heights

Dearborn Heights is often written off as a commuter city, where people lay their heads at night before heading off to work elsewhere in the county – usually Dearborn. It is a place with its own character, though, and the 58,000 or so people living here pay, on average, much lower insurance rates than their neighbors in Dearborn and a little less than the state average.

Detroit Auto Insurance

Population: 688,701

Detroit is famous for many things, including Motown and “Robocop,” but it’s also famous for something that of which it’s less proud. This is the most expensive place in America to insure a car, running up to four times the national average. In this huge city of more than 688,000 people, with poor public transportation compared to other big cities, you unfortunately have little choice but to drive if you want to travel beyond walking distance.

Farmington Hills Auto Insurance

Population: 82,111
Farmington Hills

Farmington Hills is often ranked as one of the safest cities in America, and that’s reflected in its insurance premiums, which are substantially below the Michigan average. Along with its rich local cultural scene relatively low insurance rates are one of many things that make this such a nice place to live. Just over 82,000 people live here, making it the second-largest city in Oakland County.

Flint Auto Insurance

Population: 99,763

Flint’s most famous son is controversial, Oscar-winning documentary filmmaker Michael Moore, who featured the city in the movies “Roger and Me” and “Bowling for Columbine.” For the close to 100,000 residents of Flint, there’s nothing controversial about their insurance premiums, which are roughly average for Michigan.

Grand Rapids Auto Insurance

Population: 188,800
Grand Rapids

The huge and delightful city of Grand Rapids is home to almost 189,000 people most of the year, although that number increases enormously when thousands of tourists descend to see the sights each summer. It’s a nice city for walking, and the cost of auto insurance here is substantially less than the state average, which is another reason it’s such a great place to live.

Kalamazoo Auto Insurance

Population: 77,145

Kalamazoo is home to Gibson Guitars, one of the most iconic brands in rock music. It’s also got a vibrant cultural scene with a full calendar of arts festivals. Why are the 77,000 residents so relaxed in Kalamazoo? It could be because they have some of the lowest insurance premiums in the entire state. Rock on, Kalamazoo.

Lansing Auto Insurance

Population: 113,128

Lansing is the capital of Michigan, though it’s only the fifth-biggest city in the state, with a population of 113,000. The city, located roughly in the center of the Lower Peninsula, has got a solid bus service and some terrific cycling paths, but it’s still a city that’s mostly for driving. Fortunately, insurance premiums are relatively low in Lansing, so it won’t cost a fortune to get around.

Livonia Auto Insurance

Population: 100,545

More of a municipality than a city, Livonia is a collection of neighborhoods to the northwest of Detroit. More than 100,000 people live here, and getting around can be tough. A bus service links Livonia to Detroit over roads that are notorious for speed traps. A least Livonians have affordable car insurance, with rates that are roughly half of those in Detroit and well below the state average.

Pontiac Auto Insurance

Population: 66,337

Pontiac is a prestigious name, taken from the Ottawa war chief who fought British occupation. It later graced the iconic car that defined a generation. This is where General Motors’ Pontiac plant once stood, and the city is still home to the PontiacSilverdome. More than 66,000 people live in this midsize city, and they pay car insurance premiums that are just a little higher than the state average.

Saginaw Auto Insurance

Population: 61,799

Part of the Tri-Cities area, Saginaw is a city with a population of over 61,000. Like the other cities in the area, it has struggled to recover from the decline in manufacturing at the end of the last century, and investment in public transportation has been low. Fortunately, insurance premiums are also low – significantly lower than the state average.

Southfield Auto Insurance

Population: 78,296

One of the more upscale parts of the Detroit region, Southfield is home to the Golden Triangle of skyscrapers and a thriving business center. Southfield is part of the SMART bus system that serves the Detroit area, but most people rely on their own vehicles to get around. For the 60,000 or so residents, car insurance is still quite expensive, although it’s substantially cheaper than in Detroit.

Sterling Heights Auto Insurance

Population: 131,224
Sterling Heights

Although it’s part of metropolitan Detroit and something of a suburb, Sterling Heights is itself the fourth-biggest city in Michigan. It has a population of over 131,000 and was previously home to rapper Eminem. It’s also got one of the lowest insurance costs in the Detroit area, with average premiums costing slightly more than half the average of its larger neighbor.

Troy Auto Insurance

Population: 80,959

Another city in the Detroit metro area, Troy has seen its stock increase recently as it’s become known as one of the best places to live in the U.S., according to a survey by CNN. It’s a great place to shop, too, with some awesome malls in the neighborhood. And one of the best things you can buy in Troy is auto insurance; average rates here are substantially less than the Michigan average.

Warren Auto Insurance

Population: 138,247

The third-largest city in Michigan, Warren was once home to several automobile plants, and Chrysler and General Motors still have operations here. A number of other major companies have their headquarters in the city, including Big Boy Restaurants. For the 138,000 residents, insurance isn’t too painful, with premiums being slightly less than the state average.

Westland Auto Insurance

Population: 86,602

Hometown of NHL Hall of Famer Mike Modano, Westland is the 10th-biggest town in Michigan, with a population of over 86,000. A compact city, it doesn’t have much in the way of public transportation, so locals rely on their cars to get most places. If you’re one of those residents, then you’re in luck; insurance premiums here are significantly lower than the state average.

Wyoming Auto Insurance

Population: 69,368

Located close to Grand Rapids, the city of Wyoming has one distinction that makes its 69,000 citizens extremely happy. Wyoming auto insurance is, on average, the cheapest in the entire state and not too far off the national average. For a place that’s only been a city since 1959, that’s something to celebrate.

Find the best auto insurance in your area

Start by entering your zipcode and we’ll pull our top partners so you can get quotes quick.