Average car insurance cost in Ann Arbor, MI

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Based on an analysis by Insure.com, the typical car insurance expense in Ann Arbor, Michigan is $2,119 annually. Furthermore, car insurance premiums in Ann Arbor are $233 less than compared to the state average in Michigan and $224 more than the national average.

Car insurance premiums differ widely depending on the location, city demographics, population density, average resident age, accident rates, and theft and vandalism.

This article looks at the most affordable car insurance companies in Ann Arbor, the average car insurance rates by age and gender, and the costs in Ann Arbor based on coverage limits.

Whether you’re a new or experienced driver, this article will guide you in finding the most affordable car insurance in Ann Arbor. Keep reading to learn more.

Cheap car insurance companies in Ann Arbor

At an average of $1,356 per year with full coverage limits of 100/300/100, Geico provides the most affordable car insurance in Ann Arbor.

Ranked as the second most affordable company in Ann Arbor, Progressive provides car insurance at $1,516 per year.

As previously noted, car insurance rates differ among companies due to variations in the factors used for calculating the rates. So, it is best to compare quotes from several insurers to secure affordable car insurance rates in Ann Arbor that align with your needs before selecting a policy.

The table below lists the average annual and monthly costs for the various car insurance companies providing coverage in Ann Arbor, Michigan:

Read about the best car insurance companies.

Average car insurance cost in Ann Arbor by coverage limits

In Ann Arbor, the average car insurance rates based on coverage types are as follows:

• State minimum coverage: $582 per year (limits are 25/50/25)
• Liability only coverage: $619 per year (limits are 50/100/50)
• Full coverage: $2,119 per year (limits are 100/300/100)
• Non-owners coverage: $445 per year

In most states, drivers must have the state minimum coverage to drive legally, but these vary by state. However, state minimum coverage does not cover any vehicles listed on your policy in an at-fault accident.

To avoid compromising on the coverage and pay out-of-pocket expenses, it is better to have full coverage or non-owner coverage if you don’t own a car but borrow or rent one frequently.

Average car insurance rates by gender in Ann Arbor

The average car insurance per year for female drivers in Ann Arbor, Michigan, is $2,119.

Whereas the yearly average car insurance rate for male drivers is $2,119, which is equals to what female drivers pay.

According to the Insurance Information Institute, women are considered to be safer drivers than men, and statistics have proved this. They often enjoy lower auto insurance premiums due to their lower incidence of severe accidents compared to men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Ann Arbor

In Ann Arbor, car insurance rates are highest for teens, averaging $6,097 per year or $508 per month. According to the Insurance Information Institute, these higher rates for 16- to 19-year-olds are due to their increased likelihood of road accidents due to their lack of driving experience.

Specific teen driving laws have been implemented to help them become better drivers. Additionally, parents can lower teen insurance rates by adding them to their existing auto insurance policy.

As teens grow older and build a positive driving history, their car insurance rates decrease. Young adults usually pay $3,597 annually for their car insurance, which is $2,500 less than what teens pay for their coverage.

In Ann Arbor, adult drivers pay an average of $2,109 per year for car insurance, while senior drivers pay $2,132 annually.

According to the Insurance Information Institute, rates for adults and seniors are significantly lower than for teens and young adults, as they are more likely to obey speed limits and follow road rules.

Read more on auto insurance for seniors.

The table below lists the average annual rates for drivers of different age groups:

Car insurance rate trends in Ann Arbor

If we look at the car insurance rates trends in Ann Arbor, Michigan, it was on an upward swing from 2022 to 2023. From 2022 to 2023, the rates increase overall by 11%, or $211.

The table below shows the trend for last four years:

Conclusion

In conclusion, the insurance rates in Ann Arbor, are lower than the average insurance cost in Michigan. Shopping around and taking advantage of available discounts, drivers in Ann Arbor can find affordable car insurance options. Many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

• Insurance Information Institute. “What determines the price of my auto insurance policy,” Accessed September 2024.
• Insurance Information Institute. “Auto insurance for teen drivers,” Accessed September 2024.
• Insurance Information Institute. “Senior driving safety and tips,” Accessed September 2024.

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Prachi Singh

Contributing Researcher

 

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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.