Ann Arbor, Michigan Car Insurance Guide (Post-Reform)

Defined by the massive footprint of the University of Michigan, ‘A2’ features dense pedestrian traffic and expensive vehicles.

Average Car Insurance Costs in Ann Arbor by Coverage Type

Ann Arbor rates are elevated by student density, high bodily injury risk to pedestrians, and high vehicle values.

Coverage Type	Annual Cost
Liability Only (No PIP Opt-Out)	$912
Basic (100k/300k + Coordinated PIP)	$1,216
Standard (250/500 + Full Coverage)	$1,654
Full Coverage (Unlimited PIP)	$2,111
Comprehensive + Broad Form Collision	$2,442

Extreme pedestrian density. Maximum bodily injury limits strongly recommended.

Upscale historic area. High localized property values require strong PD liability.

Heavier commuter mix and international driver density.

Fast-moving commuter zones mixing with heavy slow commercial traffic.

Traffic surges exponentially on football Saturdays and during student move-in/out windows.

Standard Southeast Michigan winter. Prompt plowing mitigates some risk.

Low overall violent crime, but vehicle break-ins and bike theft are common in student zones.

Generally excellent, though downtown streets are narrow with heavy pedestrian crossover.

The Pedestrian Hazard: Ann Arbor is incredibly walkable. The risk of hitting a pedestrian or cyclist is high. Never carry state minimum liability limits here.
Good Student Discount: U-M students maintaining a B-average absolutely must claim this to offset brutal under-25 age penalties.
Resident Student Rule: Out-of-state or distant U-M students who leave their car at home should claim the ‘away at school’ discount.