We Already Pay a Fortune for Auto Insurance in Michigan, Now It’s Getting Worse?

When I moved to Michigan, no one warned me that car insurance would practically need its own line in my budget. I was used to paying half of what I do now, and that felt like a lot back then. But in the Mitten, it’s like driving is a luxury reserved for the rich, or at least for people who don’t mind handing over a paycheck just to stay legal.

Now, just when I thought maybe I’d found a way to manage it, here comes a new problem to rob me blind: the tariffs.

Speaking of expensive, these cities cost the most to live in Michigan ⬇️

Yep, the very same global trade tariffs meant to “protect American workers” could now cost Michigan drivers an extra $400 a year in auto insurance, according to Insurify. That’s on top of what we already pay, which is already the highest in the country. Ouch.

Why? Car repairs are about to get more expensive. Michigan already has high insurance rates because we are a no fault state, meaning we are all responsible for our own repairs, even if we weren’t at fault.

Now, on top of that, tariffs are starting to drive up the cost of auto parts, and when repairs cost more, insurance companies pass that lovely little surprise on to us (of course they do.) Insurers don’t want to lose money, so they make sure we’re the ones footing the bill as if we don’t pay massively more than they’ll ever pay out to the majority of us.

Insurify predicts that premiums in Michigan could go up 17 to 20% by the end of the year. That’s not a small bump. That’s groceries, a utility bill, or a couple weeks of gas just disappearing from your budget. And while the White House says these tariffs could eventually help the economy, bring in billions, and create millions of jobs... but right now I’m not seeing those jobs. I’m seeing bills that I already am struggling with, and I’m not the only one.

All I know is I’m paying more to drive the same car on the same roads, and it’s getting harder to justify. Something’s gotta give, and I’d prefer it not to be my bank account.