The Complete Guide to Michigan Car Insurance
Lemonade is on the way to the Great Lake State and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things MI car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in Michigan?
Car insurance in Michigan averages $260/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Detroit | $657 |
| Grand Rapids | $265 |
| Warren | $404 |
| Sterling Heights | $361 |
| Ann Arbor | $233 |
Source: ValuePenguin
Why is car insurance so high in Michigan?
Michigan drivers face unique risks that drive insurance costs
Uninsured drivers
25.5% of drivers in Michigan are uninsured vs. 13% nationally, raising costs for everyone else.
Car theft
FBI data shows there were 23,432 reported motor vehicle thefts in 2024 in MI, down 17% from the previous year.
Natural disasters
MI has a relatively moderate FEMA disaster rating of 70, with the highest risks of inland flooding and winter weather, driving up comprehensive coverage costs.
What car insurance do I need in Michigan?
All Michigan drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for Michigan drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $50,000 (per person) $100,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $10,000 outside of Michigann$1,000,000 inside MIchigan | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
| Personal injury protection (PIP) | $250,000 | Your medical bills and often lost wages after any car accident, regardless of who’s at fault | Car damage, pain and suffering, may have limits on who’s covered |
What additional car insurance coverages are offered in Michigan?
Beyond state minimums, these optional coverages provide
extra protection for Michigan drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in Michigan?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from two-tracking up north
How much car insurance do I need in Michigan?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local Michigan labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Detroit | $74 | $101 | $144 | $74 |
| Ann Arbor | $75 | $101 | $164 | $75 |
| East Lansing | $75 | $107 | $139 | $75 |
| Mount Pleasant | $69 | $80 | $118 | $69 |
| Canton | $74 | $101 | $144 | $74 |
Source: Caliber
What happens if I drive without insurance in Michigan?
Michigan takes uninsured driving seriously, and the penalties add up fast.
Fines
Michigan requires specific insurance coverage levels but penalty details not specified in database.
Suspension
Suspension details not specified in the database for insurance violations.
Jail time
Jail time information not specified in the database for insurance violations.
What do you need to get a car insurance quote in Michigan?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in Michigan?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
Michigan car insurance FAQs
Is Michigan a no-fault state?
Yes, Michigan is a no-fault state. You file injury claims with your own insurance regardless of who caused the accident. Michigan’s no-fault system includes mandatory PIP coverage with different coverage level options. Lawsuits are limited to serious injuries and vehicle damage claims.
Do I need insurance to register a car in Michigan?
Yes, insurance is required to register a car in Michigan. You must carry no-fault insurance with mandatory Personal Injury Protection (PIP). Proof of insurance is required during registration, and coverage must stay active for the registration to remain valid.
What are the top risks for driving in Michigan?
Michigan’s brutal winters create icy roads and extensive pothole damage that affects vehicle safety. Rural highways pose risks due to high speeds and wildlife crossings, while distracted driving incidents continue to increase. Poor road conditions throughout the state elevate crash risks year-round.
How long do I have to report an accident in Michigan?
Michigan requires accidents involving injury, death, or property damage of $1,000 or more to be reported immediately to police. Officers usually file the official report. You should also notify your insurer promptly to preserve no-fault benefits. Failure to report can complicate claims.
What are the top safety tips for driving in Michigan?
In Michigan, take it slow on icy roads and watch for potholes, especially after winter ends. Stay alert for wildlife on country highways. Don’t get distracted in city traffic. Give yourself extra room to stop when it’s snowing or raining.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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