Michigan drivers are paying more for auto insurance and a new study says it could get worse.
A report released this week by Insurify originally projected 2025 to be a stable year for premiums, with the potential for slight decreases. But following tariffs imposed by the Trump administration and a string of extreme weather events, the study now expects auto insurance rates to climb by as much as 15% by the end of the year.
Michigan has already seen a 14% jump in premiums in the first half of 2025—about $400 on average. According to the study, the added costs from tariffs on foreign-made auto parts could push that closer to $500.
“We've been in a hard insurance market for the last few years which essentially means that it's harder to place coverage,” said Ben Rathbun of Rathbun Insurance.
But while prices are increasing, Rathbun said, insurance carriers aren’t offering as broad of coverage options.
Since the pandemic, rates have surged nationwide due to a rise in accidents and higher repair costs. Inflation began to ease in early 2025, but 25% Trump tariffs on auto parts have pushed up the cost of parts—potentially raising premiums another 7%.
Rathbun said, since then, more and more people are looking for savings.
“ We track how many people call in for quotes or give us quote requests on our website and we were getting around ten a week,” said Rathbun. “In the last few months, we've been getting between thirty and forty a week.”
“It's honestly kind of hard to just keep up with quoting because everyone wants to be shopped right now.
After the pandemic, a space opened in Michigan’s insurance market for insurers like CURE Auto Insurance which promised that “real savings have arrived in Michigan.”
Still, some local repair shops say they haven't felt a significant impact yet.
“We haven’t seen much of an increase,” said Chris Louma, owner of Jerry’s Automotive in Lansing. “We always try to source parts made in the U.S. While it’s not always possible, we do our best—and I think we’re seeing the fruits of that.”
Louma acknowledges that buying parts from overseas—whether from China, Japan, or Mexico—is often unavoidable.
“Yes, there’s an increase,” he said, “but nothing outside the normal that we’d expect to see as the years go on and the dollar changes.”
Nationally, climate-related disasters are also driving up auto insurance costs. This year’s wildfires in Los Angeles County destroyed an estimated 6,300 vehicles. In Florida, last year’s hurricanes led to more than 100,000 auto claims.
In Michigan, hail makes up roughly 12% of all comprehensive auto insurance claims. This year, Michigan has seen 28 tornados – the most in over two decades.
Insurify warns that if both tariffs and weather trends continue, drivers across the U.S.—and especially in Michigan—could see even steeper increases ahead.
