Car insurance is a great deal for most car owners, especially if you belong to lower-income families. A large chunk of your salary goes into insurance, and you may wonder if it is worth it. As you all know, Michigan is not as expensive as other states, but how much is enough for auto insurance premiums?
In this article, you will learn a lot more about auto insurance policies and how much you must spend on them. You will also learn about the factors affecting car insurance premium rates and the average rate in Michigan.
How Much Does Average Cost of Car Insurance In Michigan?
The average rate of car insurance in Michigan is around $916 for minimum liability coverage and around $3000 for full coverage insurance policies. You might feel it is less than what residents of other states, such as California or Florida, pay. However, you must understand that location and local government policies greatly affect the premium rate. Lower insurance rates show that the local government has better policies for car owners and charges minimum taxes.
Average Cost of Car Insurance Per Month
Michigan drivers usually pay around $70 for minimum coverage and around $250 for full coverage auto insurance premiums every month. Despite lower premium rates than most states, Michigan car owners still pay around 44% more on minimum coverage policies. Your premium rates might shoot up if you have accidents or traffic violations in your driving history.
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Who Offers The Best Car Insurance Rates in Michigan
When looking for the best car insurance rates in Michigan, several companies stand out for their affordability and customer satisfaction:
- Travelers: Known for offering the cheapest average rate for full coverage, around $1,355 per year. It’s a top choice for budget-conscious drivers seeking comprehensive coverage​.
- Geico: Another affordable option with average annual premiums of about $1,553. Geico is particularly noted for its user-friendly website and mobile app, making it convenient for those who prefer managing their insurance online​ ​.
- Auto-Owners Insurance: This company offers competitive rates and is highly regarded for its customer service. It’s exceptionally affordable for young drivers with clean records, offering rates around $2,080 per year​​.
- USAA: While it’s only available to military members and their families, USAA offers some of the lowest rates and best customer service scores. Their rates are highly competitive, particularly for high-risk drivers​.
- Progressive: Offers competitive rates and is a good option for drivers with past violations, such as DUIs. Progressive’s average full coverage rate is about $2,069 annually, and it also provides various discounts and coverage options.
Average Cost of Minimum Liability Coverage in Michigan
Minimum coverage for Michigan residents is compulsory insurance that is a must for car owners. Drivers can face hefty fines if they fail to show proof of insurance. Minimum coverage insurance rates are around $70-$100 monthly, 44% more than the national average. If you find minimum coverage in your state expensive, you can explore insurance providers with better offers that will help you afford them.
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Average Cost of Full Coverage Car Insurance in Michigan
The average cost of full coverage car insurance depends on a lot of factors. Full coverage insurance includes collision, comprehensive, PIP, MedPay, and various other forms of coverage that one might select for maximum protection. The more coverage one opts for, the higher the premium cost. Also, premium costs for luxury or heavy vehicles go up. The average cost for full coverage auto insurance revolves around $3000-$3500 annually. One can find other more affordable options if they select lesser protection for their vehicle.
Factors That Influence Car Insurance Costs in Michigan
You might be surprised to find out how your location, vehicle type, and driving history impact your premium rate. Multiple factors impact Michigan auto insurance premiums:
ZIP code: This is mainly because premiums are usually paid at a higher level in areas with high crime rates and high traffic density than in the countryside with fewer offenses (ZIP code).
Age: Drivers under 25 are statistically riskier than experienced ones and, thus, are bound to pay higher rates.
Marital Status: Married motorists must pay more than their divorced and unmarried counterparts.
Credit Score: Low credit scores are often linked with high insurance bills because insurance companies rely on their credit scores to assess the risks they face.
Driving Record: Since no tickets or accidents will be incurred, the person will be given low rates, but if there are violations, the rates will be high.
Type of Vehicle: Insurance premiums are lower for vehicles with the best safety results and the shortest maintenance costs.
Level of Coverage: They charge higher rates due to more safeguards and higher coverage boundaries.
Past Claims: A person’s history of making claims may lead to higher rates.
Michigan car insurance rates by city
One must also consider a variation of insurance premiums with defense in location. You might be surprised, but car insurance premiums can differ as you move to a new city. This might be due to changes in local government and local laws. Here are some Michigan cities with their monthly and annual full coverage premium rates:
City Full coverage Monthly premium Full coverage Annual Premium
| City | Full coverage Monthly premium | Full coverage Annual Premium |
| Utica | $251 | $3017 |
| Waterford | $233 | $2800 |
| Oxford | $223 | $2679 |
| Novi | $227 | $2725 |
| Wixom | $223 | $2725 |
| Applegate | $225 | $2672 |
| Bad Axe | $219 | $2698 |
| Dryden | $223 | $2630 |
| Pleasant Ridge | $273 | $2680 |
| Yale | $238 | $3279 |
Michigan car insurance costs by age and gender
You might be surprised that your age and gender also play a vital role in your auto insurance rates. A young male is considered riskier than an experienced driver. Also, teenage drivers tend to have lower premium rates if they are under their parents’ policy. If a young driver takes auto insurance on their own behalf, they must pay around $ 8,000 annually. Similarly, drivers over sixty are also considered at risk, as older people tend to have weak eyesight and reflexes.
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Car insurance rates in Michigan by credit score
Credit scores heavily influence insurance premiums:
Excellent Credit: Credit scores equal to or above 750 are expected to accompany lower insurance quote premiums. Rates are relatively better for clients with good credit within the agency because they pose fewer risks to the institutions.
Good Credit: The rates range reasonably higher for good credit than for the other two categories, which is above average but shy of excellent credit. Some of the things to do are as follows: Even when one has had a clean credit reputation, they could end up saving lots of cash.
Poor Credit: Rates as high as $8,000 per year are possible for those with poor credit because of the perceived increased risk. Premiums are higher for people with poor credit because insurance firms see it as a sign of higher risk.
Michigan car insurance rates by vehicle type
Vehicle insurance prices are mostly influenced by various factors, including safety features, crash data, and repair costs associated with different makes and models. Your auto insurance rates are heavily influenced by the vehicle type you drive, and here are some cars and their premium rates:
Mid-Size Sedan: Around $2,990 per year. Cars of this kind usually have average insurance rates since they have safety features that are neither too hot nor too cold and moderate repair costs.
Full-Size Pickup Truck: A full-size Ford F-150 pickup truck can cost $2,530 a year. The average cost of full coverage for pickup vehicles is also lower due to their general resistance and the fact that they are less likely to be stolen.
Minivan: Minivan owners spend approximately $2,407 on annual auto insurance premiums. Insurance premiums tend to be lower for minivans because of their safety features, which are aimed squarely at families.
Luxury Sedan: A luxury sedan, such as a BMW 330i, can cost around $3,530 each year for a Michigan resident. Insurance premiums for luxury vehicles tend to be higher due to their greater repair costs and associated theft rates.
Hybrid Vehicles: Hybrid car’s auto insurance premiums cost about $2,914 annually (for example, a Toyota Prius). Due to their enhanced safety features and possibly more extraordinary repair expenses, hybrids often have modest insurance premiums.
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How to Save Money on Car Insurance in Michigan
The best way to save money is to evaluate your financial decisions carefully. With practical tips, you can check whether or not your financial planning is helping you save money. There are several ways to lower your Michigan auto insurance premium:
Telematics Programs: You can enroll in programs that follow your driving activity and offer you discounts on car insurance. Such programs are a great way to save funds in a short time.
Get the Most Out of Your Discounts: Also, you can utilize multi-policy, good student, and safe driver discounts that most insurance providers offer. They find good students and safe drivers less risky than vice versa.
Low Mileage: Less mileage can also help you get better premium rates. The lower rates will only apply if you can prove that you drive less than 7500 miles annually.
Improve Credit Score: Your credit score can help you reduce your auto insurance premium rates. A high credit score shows your responsibility to the insurance provider. The next step in reducing insurance costs is to get a good credit score.
Get Multiple Quotes: The best way to reduce the price is to compare multiple insurance providers. Compare insurance quotes regularly to get the best rates.
Bundle Policies: You can also bundle multiple insurance provider policies to save money. You can save money by combining your auto and house insurance policies.
Raise Deductibles: Lower your monthly rates by opting for greater deductibles, but be sure you have enough money to pay the deductible if you ever need to make a claim.
Conclusion
The average rate of Michigan auto insurance for car owners is increasing significantly. Due to a lack of financial stability, some car owners might end up in money trouble. With the right money management strategy and planning your expenses you can afford, you can decide which insurance policy is right for you. Beem is a super app that offers you a sneak peek into the world of insurance providers. With the AI-powered Smart Wallet App, you can explore various insurance premiums and compare rates to find your fit easily. Download the app to know more!
FAQs (Average Cost of Car Insurance in Michigan)
Why Michigan Car Insurance Is Getting More Expensive?
Michigan car insurance is getting more expensive due to the rise in taxes. With inflation, necessary goods and bills, including car insurance rates, increase. You must understand how to manage your bills with the increase in your insurance premium rates. One must consider only auto insurance rates if one can afford them; if you have a lower balance, you must pay for minimum coverage only.Â
Is it better to pay car insurance in full or monthly?
The way you pay for your auto insurance depends totally on your choice. You must consider monthly payments if you do not have any short-term debt or interest payments. Otherwise, you must consider annual payments. Sometimes, insurance providers offer some discounts to car owners who pay their premiums in full.Â
How much is car insurance for teens in Michigan?
The average car insurance for young or teen drivers is around $1000 per month. Teen drivers are less experienced and riskier as they have no understanding of traffic rules. They also rarely have a credit history or financial stability, which makes teen auto insurance rates risky. As soon as they reach the age of 20, their auto insurance premium rates drop significantly.Â
