Why is my car insurance premium so high in Michigan when I drive such a cheap car?

I'm paying $210 a month for car insurance on a $1,200 vehicle. Why is Michigan so expensive for car insurance?

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Eric Schad
Answered on Apr 28, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“The average premium in Michigan is over $2,600 a year (so you’re about right on with your current rate), about 80% more than the national average.
So why is it so expensive? For several reasons, including:
  • Unlimited personal injury protection coverage, meaning that if someone hits you, insurers can potentially fork out millions of dollars for your care
  • The highest minimum insurance requirements in the country (50/100/10)
  • The second-highest number of uninsured drivers in the country (25.5%)
  • Michigan’s status as a no-fault state
Together, these factors drive prices way up. To curb your costs as much as possible, shop for car insurance quotes online. That’s the only way you can tell for sure if you’re paying far too much.”
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