If you’ve noticed your auto insurance rates in Michigan creeping up, you’re not alone—and it’s not your imagination. Across the board, consumers are seeing premium increases driven by a perfect storm of factors affecting the auto insurance market. Even drivers with clean records and no recent claims are being hit with higher costs. Understanding the “why” of rising auto insurance rates can help you navigate the current insurance landscape and make smarter decisions about your coverage.
Why Are Auto Insurance Rates in Michigan Rising?
A Surge in Auto Accident Losses – And They're More Expensive
One of the biggest drivers behind rising premiums is an increase in both the frequency and severity of auto insurance losses. In other words, there are more auto accidents happening, and when they do, they cost more.
A recent report on auto accidents in Michigan traffic revealed that fatalities had increased 15% over the previous 5 years, even though total car accidents dropped 6% over the same period. Significantly, the number of fatal car crashes in Michigan went from 905 in 2018 to 1,053 in 2022 which is a 16.3% increase.
A big part of that is due to the growing number of inexperienced, unlicensed, and uninsured drivers on the road. This leads to riskier driving conditions for everyone—and ultimately, more claims for insurers to pay out.
Also, when those claims do happen, they’re more expensive than ever. Today’s vehicles are equipped with advanced technology and complex systems that are costly to repair. Even a minor fender bender can result in thousands of dollars in sensor and bodywork costs. Repair costs have surged, and insurance companies have had to raise rates to keep up.
Litigation and Lawsuits Are Adding to the Problem
The rising cost of litigation is another contributor to increasing auto insurance rates in Michigan. Personal injury claims, legal disputes, and larger jury awards all drive up costs for insurers. Michigan’s no-fault system adds another layer of complexity, and while reforms like Public Acts 21 and 22 of 2019 concerning Personal Injury Protection (PIP) coverage have been implemented, they haven’t fully offset the pressures from mounting legal expenses.
Catastrophic Events and Unpredictable Disasters
Michigan may not be the first state that comes to mind when you think of climate disasters, but catastrophic events are becoming more frequent and widespread—even here. From severe snowstorms to flooding and wind storms, these events increase claim volumes and place additional pressure on insurers to cover large, often unexpected losses. The ripple effect? Higher premiums for everyone, regardless of whether you were directly affected.
What Can Drivers Do?
In a tough auto insurance market, pricing and availability are increasingly tied to risk management. While rates are going up across the board, insurance carriers are still rewarding policyholders who take proactive steps to reduce risk. That means:
Maintaining clean driving records
Conducting annual motor vehicle record (MVR) checks (especially for commercial policies)
Staying up to date with vehicle maintenance
Bundling auto insurance with other lines like homeowners or umbrella coverage
Drivers or businesses with strong safety programs, careful driver selection, and clean claims histories may still qualify for more favorable rates.
The Bottom Line on Auto Insurance Rates in Michigan
There’s no sugarcoating it—auto insurance rates in Michigan are climbing, and they’re likely to continue doing so for the foreseeable future. From expensive vehicle repairs and legal costs to more accidents and broader catastrophe exposure, insurers are adjusting pricing to reflect the real risk on the roads today.
If you haven’t reviewed your policy lately or explored all your options, now is the time. Our agents at Navisure Insurance Group can help you understand your coverage, compare policies, and find ways to keep your premiums as manageable as possible. Contact us today with any questions or to review your current insurance coverage.
COREY VANDERMEER | PRESIDENT
Corey started his insurance career in the claims department for a national carrier and learned the basics of insurance coverage and how it’s applied. From there he decided to take the jump into sales and joined an independent insurance agency. Here he learned how to build coverage around the needs of each individual and cater to every client. When Corey decided to start an insurance agency he did so with the intention of simplifying the process of getting insured. With a focus on technology and simplicity; his goal was to create an insurance agency that was different from those currently dominating the market place.
When he’s not working, Corey enjoys golfing, fly fishing and spending time with his wife and kids. Together they enjoy traveling to Northern Michigan and to his wife’s hometown of San Francisco.
