Car Insurance in Michigan
Michigan is a no-fault state with one of the most distinctive auto-insurance systems in the country. After the 2020 reforms, drivers now choose their PIP limit (from $50,000 up to unlimited), instead of paying for unlimited medical benefits by default — which significantly lowered premiums for many drivers.
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Michigan at a glance
Data as of 2023Average cost
$1,444/yr
≈ $120/mo
vs U.S. average
+13%
above the national avg of $1,282/yr
Required minimums
50/100/10
+ $250K PIP
Source: NAIC (2023). Annual average expenditure per insured vehicle.
Michigan is a no-fault state with one of the most distinctive auto-insurance systems in the country. After the 2020 reforms, drivers now choose their PIP limit (from $50,000 up to unlimited), instead of paying for unlimited medical benefits by default — which significantly lowered premiums for many drivers.
Required liability is 50/100/10, and your PIP pays your medical costs after a crash regardless of fault. Comparing quotes is essential because each carrier prices the PIP tiers differently.
Michigan minimum car insurance requirements
Michigan requires $50,000 of bodily injury liability per person, $100,000 per accident, $10,000 in property damage liability, and a PIP level you choose (commonly $250,000). The PIP choice has the biggest single impact on your premium, so price out a few options before deciding.
Michigan reformed its no-fault system in 2020: PIP is no longer required to be unlimited — drivers can choose between $50,000 (Medicaid-eligible), $250,000, $500,000, or unlimited. Default minimum liability is 50/100/10. Uninsured motorist is optional.
How much does car insurance cost in Michigan?
The average driver in Michigan pays $1,444 per year for auto insurance — that's 13% above the U.S. national average of $1,282/yr. Higher-than-average rates often reflect denser traffic, higher claim severity, or stricter state coverage requirements.
Michigan vs the national average
13% above the national average of $1,282/yr.
Source: NAIC (2023). Annual average expenditure per insured vehicle.
How Michigan premiums have changed since 2019
Auto insurance costs in Michigan have fallen 4% over the past five years. The 2022–2023 jump mirrors a national trend: rising repair costs (vehicle complexity and parts inflation), more frequent severe accidents, and higher litigation costs pushed premiums up faster than overall inflation.
5-year trend: Michigan vs national average
Michigan is down 4% from $1,499 in 2019 to $1,444 in 2023.
Source: NAIC Auto Insurance Database Report (2022/2023), Table 4 — Average Expenditure.
Types of car insurance coverage
A Michigan policy is built from a few core coverages. Liability is required; the rest are optional but often worth it.
| Coverage | What it covers | Required? |
|---|---|---|
| Liability | Injuries and property damage you cause to others | Required (state minimum) |
| Collision | Repairs to your own car after a crash | Optional* |
| Comprehensive | Theft, fire, weather, vandalism, animal strikes | Optional* |
| Uninsured motorist | Your costs if the at-fault driver has no insurance | Varies by state |
*Collision and comprehensive are usually required by your lender if you lease or finance your vehicle.
Driving without car insurance in Michigan
Driving uninsured in Michigan can be costly. Penalties typically include fines, suspension of your license and registration, and reinstatement fees. You may also be required to file an SR-22 certificate to reinstate your license.
How to find cheaper car insurance in Michigan
Rates for the same driver can vary widely between insurers in Michigan, so comparing several quotes is the most effective way to save. A few other ways to lower your premium:
- Raise your deductible if you can cover it in a claim
- Ask about every discount you qualify for
- Keep a clean driving record and good credit (where the state allows it as a rating factor)
- Reconsider collision and comprehensive on an older vehicle
For more, see our guides on how to lower your premium and what affects your rate.
Coverage requirements last verified May 29, 2026. Always confirm current minimums with your state’s Department of Insurance.
Michigan car insurance FAQs
Common questions about auto insurance in Michigan
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