The Best Car Insurance in Michigan
If you are looking for the most cost-effective option and the quality of service is not a concern, MoneyGeek’s research can guide you to the cheapest car insurance companies in Michigan.
Best Full Coverage Car Insurance Companies in Michigan: Overall
In Michigan, the best overall auto insurance company is Auto-Owners.
MoneyGeek’s ratings for the best car insurance companies in Michigan consider claims ratings, customer satisfaction and average rates.
The two best car insurance companies in the state are:
- Auto-Owners Insurance Co: MoneyGeek score of 88 out of 100 ($2,299 per year)
- Nationwide: MoneyGeek score of 84 out of 100 ($2,561 per year)
USAA received a perfect MoneyGeek score of 5 out of 5. However, it is not included in this study because its policies are only available to individuals with military backgrounds.
MoneyGeek further researched Michigan’s cheapest full coverage car insurance for those who prioritize saving.
THE TOP CAR INSURANCE COMPANIES IN MICHIGAN
A policy from Auto-Owners Insurance Co costs $2,299 annually. In Michigan, Auto-Owners Insurance Co ranks the second-highest for affordability. It also tied second for customer satisfaction and first for claims. The company offers multiple coverages to its customers.
Average Annual Cost: $2,299
Auto-Owners Insurance Co offers the Personal Automobile Plus package, consisting of more than ten additional coverages at a competitive price. It protects the customer from expenses like identity theft, rekeying locks, etc. It is an add-on feature — a policy does not automatically include it.
Read MoneyGeek's Auto-Owners Insurance Co Auto Insurance Review
Costing an average of $2,561 annually, Nationwide is ranked fifth for affordability and tied second for customer satisfaction and claims. It offers identity theft coverage.
Average Annual Cost: $2,561
Nationwide offers identity theft reimbursement coverage to its Michigan customers. In case of fraud or identity theft, Nationwide pays up to $25,000 to cover any losses incurred due to fraud. This covers family members as well. Identity theft is add-on coverage and not automatically included in your policy.
Read MoneyGeek's Nationwide Auto Insurance Review
Annual average cost: $2,161
GEICO has an average yearly cost of $2,161. It’s tied second for customer satisfaction, third for claims and is the highest-rated for affordability. GEICO offers mechanical breakdown insurance.
GEICO offers mechanical breakdown insurance (MBI) for new or leased cars less than 15 months old and fewer than 15,000 miles. MBI provides better coverage than a dealer’s extended warranty at a lower price and includes all systems and items. MBI is an add-on coverage that insurance companies rarely offer.
Read MoneyGeek's GEICO Auto Insurance Review
Average annual cost: $2,408
With an average annual cost of $2,408, Progressive is ranked third for affordability, tied third for claims and second for customer satisfaction. Progressive offers rideshare insurance to customers.
Progressive allows you to add rideshare insurance to your policy, providing coverage in case of an accident while you’re waiting to match a rider. Rideshare insurance covers all costs incurred due to injuries, damages, repairs or replacement of your vehicle.
Read MoneyGeek's Progressive Auto Insurance Review
MoneyGeek analyzed full-coverage car insurance policy quotes across many locations for a sample driver and collected user satisfaction and claims ratings from J.D. Power and NAIC to determine the cost of a full-coverage auto policy in Michigan. These rates may be different depending on your driver profile. MoneyGeek’s methodology provides more information.
MoneyGeek's Michigan Car Insurance Resources:
Best Car Insurance in Michigan for Customer Service
Hartford earned the top spot in MoneyGeek’s analysis of the best auto insurance provider in Michigan for customer service.
Take a look at our top two picks with the following scores:
- The Hartford: MoneyGeek score of 90 out of 100
- Cincinnati Insurance: MoneyGeek score of 90 out of 100
These two providers received the highest marks based entirely on claims ratings and user satisfaction, and without considering the affordability of policies.
THE TOP TWO CAR INSURANCE COMPANIES IN MICHIGAN FOR SERVICE QUALITY
Hartford has the highest customer satisfaction score in Michigan: 4.5 out of 5. It tied second for claims with a score of 4.5 out of 5.
Hartford provides full glass coverage to its customers, helping pay for a car’s headlights, mirrors and windows repairs without any deductible. It also offers gap insurance and accident forgiveness.
Gap insurance covers the difference between the car’s actual cash value and the car loan or financing balance if it’s stolen or wrecked. This add-on best suits those car owners who have leased or financed their cars.
On the other hand, it also provides coverage for roadside assistance. If you’re driving and have an accident along the way, Hartford covers the towing expenses and labor fees to ensure your vehicle is up and running.
Hartford has good customer service, which is very important for an auto insurer when you need them in a crisis.
Read MoneyGeek's The Hartford Auto Insurance Review
Cincinnati Insurance is ranked second for customer satisfaction with a score of 4 out of 5 and has the highest claims rating among other companies.
Cincinnati Insurance offers its customers the option to waive the deductible for glass replacement in case of a covered loss. Insurance providers rarely provide this coverage, and it is usually an add-on. The company also offers lock replacement and trip interruption as add-ons to a policy.
If you misplace your keys or experience theft, lock replacement covers up to $1,500 to change all door locks within 72 hours after discovering the loss. But, it is a must to notify Cincinnati Insurance in writing.
The trip interruption coverage covers up to $600 on reasonable expenses such as lodging, food and other transportation expenses. Policyholders can get this add-on to protect themselves or a family member who cannot use the covered vehicle for at least 24 hours due to mechanical or electrical breakdowns or covered accidents.
Read MoneyGeek's Cincinnati
Best Car Insurance in Michigan for Minimum Coverage
Auto-Owners Insurance Co is the winner for the cheapest car insurance in Michigan that meets the state’s minimum requirements.
The two best insurers in the state for drivers on a budget are:
- Auto-Owners Insurance Co: MoneyGeek score of 88 out of 100 ($1,430 per year)
- Nationwide: MoneyGeek score of 87 out of 100 ($774 per year)
To derive these rankings, MoneyGeek focused its analysis on companies that offer a balance of affordability and good customer service. These insurance providers adhere to Michigan’s minimum coverage requirements.
MoneyGeek also evaluated the cheapest minimum coverage car insurance in Michigan for those who prioritize their savings.
MoneyGeek’s Pick: Auto-Owners Insurance Co.
An affordable car insurance policy at $1,430 per year
Offers bundling and safe driving discounts
Offers a discount if there’s an anti-theft system installed on the car
Claims rating of 4.5 out of 5
User satisfaction rating of 4 out of 5
Does not offer a discount after a defensive driving course
With Auto-Owners Insurance Co, you can save money on car insurance premiums if you have a safe driving history. You can also get a discount if you combine auto with other qualifying policies with the company and by insuring two or more private passenger vehicles on your auto policy.
Auto-Owners Insurance Co offers discounts to individuals who pay their premiums online and have made timely insurance payments for the previous three years.
Another notable thing about this insurer, they offer a safety feature discount. You can qualify if your car has safety features like anti-lock brake systems (ABS), anti-theft devices or airbags. Plus, if you choose paperless billing, you’ll also be eligible for a discount on your policy premiums.
If these align with your preferences, you can take advantage of the discounts. Not only do you save money on your premiums, but you also get protection!
Best Car Insurance in Michigan for Young Drivers and Students
MoneyGeek found that the best insurance provider for young drivers and students in Michigan is Progressive.
We rated the best insurers in Michigan for new drivers, student drivers and young drivers based on service quality and average cost.
Based on these criteria, the top insurers in the state are:
- Progressive: MoneyGeek score of 84 out of 100 ($3,963 per year)
- GEICO: MoneyGeek score of 83 out of 100 ($4,715 per year)
These companies welcome new and young drivers with relatively affordable policies and excellent customer service — which adheres to Michigan’s minimum coverage requirements.
Based on MoneyGeek’s research, this category covered rates for those in their late teens or early 20s (high school or college age). Also, MoneyGeek found the cheapest car insurance in Michigan for young drivers and students who prioritize savings.
MoneyGeek’s Pick: Progressive
Affordable car insurance policy at $3,963 per year
Offers good student and distant student discount
User satisfaction rating of 4 out of 5
Does not offer a driver’s education course discount
Claims rating of 3.5 out of 5
Adding a young driver to a full-coverage policy can be very expensive and taxing.
Progressive balances excellent customer service and affordability. It’s essential to choose a company with good customer support as you would have to contact them in case of an accident, which may happen with a young driver.
Progressive offers student discounts to those with excellent academic records or those who live more than 100 miles away from school.
Best Car Insurance in Michigan for Seniors
MoneyGeek reviewed the top-performing insurance companies in Michigan for seniors. We reviewed their customer service records and affordability.
These are the best options for seniors in Michigan:
- Auto-Owners Insurance Co: MoneyGeek score of 91 out of 100 ($3,110 per year)
- Nationwide: MoneyGeek score of 87 out of 100 ($3,174 per year)
Each insurer’s score is evaluated based on their success rate in managing affordability and providing excellent customer service. Both of these providers comply with the minimum coverage requirements in Michigan.
Moreover, MoneyGeek assessed the cheapest minimum coverage car insurance companies in Michigan for individuals who want to concentrate on their savings.
MoneyGeek’s Pick: Auto-Owners Insurance Co
One of the most affordable companies for seniors at $3,110 per year
Offers roadside assistance and gap insurance
MoneyGeek claims ratings and user satisfaction ratings if they are 4 out of 5 or higher
Does not offer Senior or Defensive Driving discounts
Seniors tend to pay more for insurance as they experience health challenges like slowing reflexes or deteriorating vision. But, Auto-Owners Insurance Co offers affordable and excellent service premiums. Finding an insurer that performs well in these two areas is best.
While this insurer provides roadside assistance, it also offers rental car or travel reimbursements. Policyholders receive coverage for the rental car payment. If you’re stranded elsewhere, it also covers other expenses such as food, lodging and other incidental expenses.
Best Car Insurance in Michigan for Bad Driving Records
Auto-Owners Insurance Co is the best insurer in Michigan for drivers with poor driving records.
MoneyGeek’s evaluation is based on service quality and the cost of policies for those with an at-fault accident.
Based on these factors, the best insurers in Michigan are:
- Auto-Owners Insurance Co: MoneyGeek score of 88 out of 100 ($3,098 per year)
- Nationwide: MoneyGeek score of 84 out of 100 ($3,491 per year)
These companies balance affordability after an accident with excellent customer service. Also, MoneyGeek reviewed the cheapest car insurance in Michigan for those with a DUI or bad record.
MoneyGeek’s Pick: Auto-Owners Insurance Co
Insurance policy for people with a bad driving record costs $3,098 per year
Provides roadside assistance, rental car or travel reimbursement, new car replacement and gap insurance
User satisfaction rating of 4 out of 5
Claims rating of 4.5 out of 5
Does not offer accident forgiveness, better car replacement, or deductible modification
Auto-Owners Insurance Co has the best car insurance policy for people with a bad driving record in Michigan at an average cost of $3,098 per year. It has a claims rating of 4.5 out of 5 and a user satisfaction rating of 4 out of 5.
Auto-Owners Insurance Co provides the following coverages:
- Roadside Assistance: It covers the cost of towing, flat tire replacement or any other service if your car breaks down on the road.
- Rental Car/Travel Reimbursement: This coverage helps pay for rental car expenses or transportation costs if your car is damaged in an accident.
- New Car Replacement: It covers the cost of a new car of the same make and model if your brand new car is totaled in an accident.
- Gap Insurance: If you owe more on your loan than the depreciated value of the car and it is totaled in an accident, gap insurance covers the difference.
Best Car Insurance in Michigan for a Military Background
USAA is the best insurance provider in Michigan for veterans and individuals with a military background, earning a perfect MoneyGeek score of 100 out of 100.
USAA charges an average of $704 per year for minimum coverage for drivers with a clean record and just $1,128 for full coverage.
MoneyGeek’s Pick: USAA
Low full-coverage policy cost of $1,128 annually
Offers an affordable policy for drivers with a bad driving record at $1,501 per year
Offers rideshare insurance and new vehicle discount
MoneyGeek claims and user satisfaction rating of 5 out of 5
Only people with a military background are eligible
USAA offers one of Michigan's most affordable insurance policies and fantastic customer service. The company has a good reputation among its customers all over the country.
USAA offers enticing and robust coverages and discounts, such as rideshare gap coverage, car storage discounts, new vehicle discounts and accident forgiveness.
Below are more coverage offerings and discounts you may be eligible for:
- Bundling: Policyholders can combine their home or renters insurance with their car insurance.
- Rideshare Gap Coverage: When working with a rideshare company, it covers the cost of any losses incurred in case of an accident while you’re waiting for a rider.
- Accident Forgiveness: You do not get an auto policy surcharge for your first at-fault accident if you do not have an accident on your record in the last five years.
- Car Storage Discount: You can save up to 60% on insuring a stored car.
- New Vehicle Discount: You get a discount if your car is three years old or newer.
- Safe Driving Discount: Receive this discount when you have maintained a good driving record for at least five years.
Best Car Insurance in Michigan for Those With New Cars
The highest-rated insurer in Michigan offering new car replacement or better car replacement coverage is Allstate, which has a MoneyGeek score of 81 out of 100.
MoneyGeek breaks down these add-on coverages for you:
- New Car Replacement Coverage: In case your vehicle is two model years old or less, Allstate will not just give a check for the depreciated value but replace the car entirely with a new model.
- Custom Parts Coverage: This provides coverage in comprehensive and collision scenarios. Covered losses include specific carpeting, bars, custom murals, decals and graphics.
Remember that these coverages are additional features that increase your premium.
MoneyGeek’s Pick: Allstate
Affordable full-coverage car insurance policy at $2,448 per year
Claims rating of 4.5 out of 5
Offers new car replacement
Does not offer better car replacement
User satisfaction rating of 3.5 out of 5
Allstate is the most viable option for drivers with brand-new cars due to its new car replacement. This coverage pays for the expenses if your vehicle gets totaled. If your car is two model years old or less, Allstate will give a check for its depreciated value and replace the car entirely with a new model.
It’s a fact that cars depreciate right after buying them. Fortunately, you can save and protect yourself from unfortunate events such as accidents by getting insurance.
Best Car Insurance in Michigan for Low-Mileage Drivers
In Michigan, Nationwide SmartMiles is the best option for low-mileage drivers. Some insurance providers offer cheap low-mileage programs or pay-per-mile programs. With these programs, car insurance premiums depend on how many miles you drive.
MoneyGeek’s Pick: Nationwide
Affordable for people who don’t drive much
MoneyGeek claims and user satisfaction rating of 4 out of 5
If you’re a frequent driver, this program is very expensive
With Nationwide’s SmartMiles program, you pay a base rate and a variable rate, depending on how many miles you drive. If you’re on a road trip, only the first 250 miles count in a day. You can also save up to 10% if you drive safely.
How to Find the Best Car Insurance in Michigan For You
MoneyGeek’s analysis shows that the best auto insurance company in Michigan provides a balance between cost, customer service and financial stability. If you’re looking for an insurance policy in Michigan, you should consider these factors.
MoneyGeek collected this information for you; however, you can also go through the process yourself.
Research customer service reputations in Michigan
You can look up J.D. Power satisfaction scores and NAIC complaint ratios in Michigan for insurance providers that you want to research. Michigan’s Department of Insurance and Financial Services is also a great resource.
Compare quotes for yourself
MoneyGeek collected average car insurance quotes for a sample driver across many locations in Michigan, but not all of the state. You should always compare quotes from at least three insurance providers to get a good idea of how much insurance costs in your area.
Make sure the company has coverages you want in Michigan
Sometimes, insurance providers may advertise certain coverages and discounts which are not available in your location. Always confirm with the company that they offer the coverage or discount you want.
Double-check financial stability ratings
When choosing an insurance company, you should make sure that the company is financially stable. A company with a low financial stability rating may not be able to settle your claims on time.
What is the best way to figure out which insurer is best for me in Michigan?
Price is one (but only one) of the important factors in buying auto insurance. You must shop different insurers to see who will offer the best deal. It is remarkable how much variance there is in premium charges for the same coverages.
What are the best coverages to add to your car insurance policy in Michigan?
Of the optional coverages in Michigan, I recommend: (1) purchasing unlimited Person Protection Insurance coverage and (2) high limits of un- and under-insured motorist coverage
How important is it for drivers in Michigan to get car insurance from a provider with a great service reputation?
I question whether there is any insurer with an objectively established “great service reputation.” Reputations can vary among different claim representatives or different offices.
FAQs About the Best Car Insurance in Michigan
The following frequently asked questions about the top insurance companies in Michigan will help you choose the best insurance company in the state.
About Mark Fitzpatrick