(The Center Square) – Michigan is no longer the most-expensive state in the nation to buy car insurance in, with a recent report finding it is now the sixth most expensive.
This drop came despite Michigan law requiring the most comprehensive medical coverage of any state.
The Insurance Alliance of Michigan says this drop is due to 2019 auto no-fault reforms, which were designed to make car insurance more affordable.
“The historic bipartisan auto no-fault reforms continue to curb costs for Michigan drivers at a time when the high cost of everything continues to be a burden for families,” said Erin McDonough, executive director of the Insurance Alliance of Michigan.
Before those reforms, Michigan consistently ranked as one of the costliest states in the U.S. for auto insurance.
“This new analysis clearly shows that reforms are working, and policymakers must let them continue working for Michiganders,” McDonough said.
The report from Bankrate found that, while the average cost of car insurance in the U.S. is $2,679 per year, Michigan has an average of $3,236. That is a 21% difference.
Yet, since the 2019 reforms passed, Michigan drivers have saved more than $8 billion, or $1,100 per vehicle, on auto insurance costs. This is according to the IAM.
The national average for minimal coverage is $808 per year, while Michigan’s is $903.
That means Michiganders are spending anywhere from $270 per month (for full coverage) to $75 per month (for minimum coverage).
Costs are still continuing to rise though.
A report from Insurify found that car insurance will likely continue to get more expensive in the coming months, with both tariffs and natural disasters playing a role in that.
In the first six months in 2025, Insurify reported that Michigan already saw a 14% increase in the average annual cost of full-coverage car insurance. It predicts it will go up 2% more throughout the rest of the year.
McDonough said Michigan lawmakers need to do more to continue to lower costs for consumers.
“The reforms have made great strides in cracking down on fraud and abuse, reining in overcharging by medical providers and giving consumers a choice in the level of medical coverage included with their auto insurance policy,” he said. “We urge lawmakers in both parties to let these reforms work and push back on special interests that want to turn back the clock on these historic improvements to our auto no-fault system.”
