What affects your rate in Michigan
Michigan bans credit-based insurance scores in auto rating and historically had the highest premiums in the US due to its unlimited-PIP no-fault system (reformed in 2020).
How Michigan compares
| Benchmark | Per year |
|---|---|
| Michigan | $1,572 |
| National average | $1,438 |
| Most expensive — Florida | $1,994 |
| Cheapest — Maine | $926 |
Source: NAIC 2022/2023 Auto Insurance Database Report (combined average premium per insured vehicle, 2023 data, released February 2026).
Frequently asked questions
How much does car insurance cost in Michigan?
The average driver in Michigan pays about $1,572 per year — roughly $131 a month — for full-coverage car insurance, according to the NAIC 2023 Auto Insurance Database Report. State-minimum coverage typically costs much less.
Is car insurance more expensive in Michigan than the U.S. average?
Yes. At $1,572 per year, Michigan is about 9% above the national average of $1,438. That ranks it 12th out of 51 states and D.C. by cost.
Why is car insurance more expensive in Michigan?
Michigan bans credit-based insurance scores in auto rating and historically had the highest premiums in the US due to its unlimited-PIP no-fault system (reformed in 2020).
Does Michigan use your credit score to set car insurance rates?
No. Michigan is one of only four states (California, Hawaii, Massachusetts, Michigan) that ban credit-based insurance scoring, so your credit history cannot legally affect your premium here.
How can I lower my car insurance in Michigan?
Compare quotes from several insurers, raise your deductible, bundle auto with home or renters, and keep a clean driving record. For the same driver, premiums in Michigan can differ by hundreds of dollars between companies, so shopping around is the biggest lever.
About this estimate. The base figure is the NAIC combined average premium for Michigan (liability + collision + comprehensive, 2023). The calculator applies published industry multipliers (age, credit, record, coverage) from secondary sources (Bankrate / ValuePenguin modeled rates) and is an estimate for informational purposes only — not an insurance quote or offer. Credit-tier adjustments are not applied in states that ban credit-based insurance scoring (California, Hawaii, Massachusetts, Michigan). See our full methodology.