Average car insurance cost in Ann Arbor, Michigan

Why you can trust Insure.com

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

According to our data, the average annual cost of car insurance in Ann Arbor is $2,628 – $518 less than the Michigan average cost and $115 more than when compared to the national average.

Insurance rates can vary significantly depending on where you live. Factors such as population density and accident and theft rates influence premium costs, making some areas more expensive or affordable than others.

Understanding how rates in Ann Arbor compare to state and national averages can help you spot a good deal, or know when it’s time to shop around. Below, we’ll break down local trends, show how rates vary, and explain how to save.

Cheap car insurance companies in Ann Arbor

GEICO provides the lowest full coverage car insurance rate in Ann Arbor, with an annual premium of $1,602 for the liability limits of $100,000 per person, $300,000 per accident and $100,000 for property damage.

Travelers also offers cheap full coverage car insurance rates at an average annual cost of $2,032.

Every insurance company calculates premiums differently based on its unique underwriting guidelines. This means prices can vary widely, so getting quotes from multiple insurers is one of the best ways to find affordable coverage tailored to you.

Below is a breakdown of average yearly and monthly car insurance rates from different insurers in Ann Arbor.

Read about the best car insurance companies.

Average car insurance cost in Ann Arbor by coverage limits

Here’s a breakdown of average car insurance rates in Ann Arbor by coverage type.

• State minimum coverage: $587 per year (limits are $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident and $25,000 property damage liability per accident).
• Liability only coverage: $630 per year (limits are $50,000 bodily injury liability per person, $100,000 total bodily injury liability per accident and $50,000 property damage liability per accident).
• Full coverage: $2,628 per year (limits are $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident and $100,000 property damage liability per accident).
• Non-owners coverage: $417 per year

While liability insurance is required in nearly every state to drive legally, the minimum coverage limits differ by state. This coverage protects you financially if you’re responsible for injuring someone or damaging their property in a crash.

Minimum liability insurance only covers damage or injuries you cause to others – it won’t help with your own medical bills or car repairs. You should consider adding collision and comprehensive coverage for adequate protection.

Average car insurance rates by gender in Ann Arbor

In Ann Arbor, female drivers pay an average of $2,628 per year for car insurance. In comparison, male drivers pay $2,628 annually, which is equals to what female drivers pay. Most states consider gender when calculating premiums. However, states such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor to determine insurance rates.

According to the Insurance Information Institute, or Triple-I, women tend to be safer drivers than men and are less likely to be involved in severe accidents. Insurers account for this risk by charging male drivers higher premiums.

Read more on how gender affects car insurance rates.

Our agents make it hassle-free to get the right quote.

Call (844) 814-8854

Ethan Available Now

Jack Available Now

Robbie Available Now

Ellie Available Now

Average car insurance rates by age in Ann Arbor

Teen drivers in Ann Arbor pay the highest car insurance premiums, at $7,704 per year or $642 per month.

Data from the Insurance Information Institute shows that teens aged 16 to 19 are more likely to be involved in crashes due to inexperience, which leads to higher insurance rates. On average, teen drivers pay $3,192 more annually than young adult drivers.

As teen drivers get older and gain more experience, their car insurance premiums usually decrease. On average, young adults aged 20 to 24 pay $4,512 per year for car insurance – that’s $3,192 less than what teen drivers typically pay.

Adult drivers aged 25 to 55 pay an average of $2,609 per year for car insurance, while seniors aged 60 to 75 pay around $2,583 annually.

Read more on auto insurance for seniors.

Below you’ll find average annual full coverage car insurance rates for drivers of different age groups.

Car insurance rate trends in Ann Arbor

From 2023 to 2025, drivers in Ann Arbor experienced an upward trend in car insurance premiums, with average rates Increased by 24% or about $509.

The graph below tracks insurance costs from 2022 to 2025, highlighting long-term trends that help explain today’s rate changes.

How drivers can save on insurance even with higher rates

Car insurance rates in Ann Arbor are lower than the Michigan state average. To find affordable coverage, consider comparing quotes from at least three to five insurers. You can also save by taking advantage of discounts for safe driving, low annual mileage or bundling your policies.

Methodology

Insure.com commissioned car insurance rates in 2025 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors 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 rates may vary.

Shivani Gite

Contributing Writer

 

|

 . .

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.