Compare the Cheapest Car Insurance Quotes in Ann Arbor, MI

In Ann Arbor, the average cost of car insurance is $1,671 per year, which is less than the state average. With an average premium of $896, GEICO is the cheapest carrier. MoneyGeek analyzed the cheapest companies by coverage level and driving history to help you find the best rates. MoneyGeek also rated insurers that balance quality and affordability.

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Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

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Last Updated: 11/25/2022
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GEICO is the cheapest auto insurance provider for full coverage, state minimum insurance and if you have a speeding ticket. However, your coverage level and driver profile influence your rates.

If you have a military background, USAA is your cheapest option.

According to our research, Hartford balances cost and customer service, making it the best overall insurer in Ann Arbor.

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The Cheapest and Best Car Insurance in Ann Arbor

The Cheapest Car Insurance Companies in Ann Arbor

On average, the cheapest auto insurance providers in Ann Arbor that offer full coverage are:

  • GEICO: $896 per year
  • MetLife: $1,272 per year

USAA offers the most affordable annual premium, costing $862. Although it’s the cheapest provider, USAA is exclusively for veterans, active military members and their families.

A full coverage policy with GEICO is 214.6% cheaper than Hanover, the most expensive auto insurance provider. Full coverage offers more protection since you get collision and comprehensive insurance in addition to basic liability coverage.

Cheapest Car Insurance in Ann Arbor
Full Coverage 100/300/100
  • Company
    100/300/100per year
  • 1.
    USAA
    $862
  • 2.
    GEICO
    $896
  • 3.
    MetLife
    $1,272
  • 4.
    Progressive
    $1,319
  • 5.
    Auto-Owners Insurance Co
    $1,402
  • 6.
    Nationwide
    $1,556
  • 7.
    State Farm
    $1,628
  • 8.
    Travelers
    $1,692
  • 9.
    AAA
    $1,724
  • 10.
    Esurance
    $1,735
  • 11.
    Allstate
    $1,758
  • 12.
    Farmers
    $1,953
  • 13.
    Mercury
    $1,975
  • 14.
    Hanover
    $2,819

MoneyGeek compiled average rates for a 40-year-old male driver with a full coverage policy in Ann Arbor based on our methodology.

Full coverage is pricier than minimum coverage, but it provides more protection in case your car is damaged. It adds comprehensive and collision insurance on top of state minimum liability.

  • Collision insurance: protects you from expenses caused by a vehicular accident
  • Comprehensive insurance: protects you against damages due to theft, vandalism and hail

If your full coverage policy costs more than your older vehicle, you may end up paying more for your premiums. To get the cheapest rates, you can purchase state minimum or liability-only insurance.

Compare Car Insurance Rates in Ann Arbor

Ensure you're getting the best rate for your car insurance. Compare quotes from the top insurance companies.

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Insurance Rates

Cheapest Car Insurance in Ann Arbor for Minimum Coverage

If you’re looking for the most affordable coverage, consider state minimum or liability-only coverage. For state minimum policies, the most affordable auto insurance providers in Ann Arbor are, on average:

  • GEICO: $575 per year
  • Nationwide: $596 per year

USAA offers the most affordable premiums at $549 per year, but it is only available for military members and their families.

Hanover offers the most expensive policy, costing $1,701 per year. This means GEICO’s policies are $1,126 cheaper.

Although minimum coverage is your most affordable option, it doesn’t include collision or comprehensive insurance. Therefore, you risk not being fully covered. If you want to check how your costs change with higher liability coverage, you can toggle the table below.

Cheapest Minimum Liability Car Insurance in Ann Arbor
State Minimum

A state minimum policy is the cheapest coverage you can purchase in Michigan, but it offers the least protection. The state minimum car insurance in Michigan only includes liability insurance, unlimited personal injury protection and property protection with 20/40/10 limits.

You may end up paying more for out-of-pocket expenses even if it’s cheaper to purchase a state minimum policy. If you’re in an at-fault accident and incur $60,000 in medical expenses, you’re only covered $40,000 for bodily injury liability. As a result, you’ll need to pay $20,000 out of pocket.

Michigan Minimum Liability Requirements

  • Item
    Description
  • Bodily Injury
    $20,000 per person and $40,000 per accident. A more protective level is 100/300/100.
  • Personal Injury Protection
    Unlimited per person. Unlimited per accident.
  • Other
    $1 million property protection.

Cheapest Car Insurance in Ann Arbor if You Have Driving Violations

If you have a poor driving record, your premiums become more expensive. If you have driving violations, the cheapest providers in Ann Arbor are, on average:

  • Cheapest after a ticket: GEICO at $1,499 per year
  • Cheapest after an at-fault accident: GEICO at $1,655 per year
  • Cheapest after a DUI: Progressive at $1,589 per year

For military members and their families, USAA offers the cheapest policies for all violations.

It takes time to improve your driving record, but doing so can help you get cheaper rates. While waiting, you can browse different auto insurance companies with the best deals after a ticket or accident.

Cheapest Car Insurance in Ann Arbor With a Violation
Speeding Ticket

Average Cost of Car Insurance in Ann Arbor

Ann Arbor$1,671
Michigan$5,471
U.S.$1,424

Car insurance costs vary by city. In Michigan, the average annual cost of car insurance is $5,471. The average auto insurance premium in Ann Arbor costs $1,671 per year and is 69.5% cheaper than the state average. However, Ann Arbor’s rates are 17.3% more expensive than the national average.

Personalized Quotes to Get You the Cheapest Car Insurance in Ann Arbor

Insurance companies consider factors like car make and model, coverage level, age and more when determining your auto insurance premiums. Because of this, it’s advisable to compare auto insurance quotes from different insurers to find the best deal.

Compare Car Insurance Rates in Ann Arbor

Ensure you're getting the best rate for your car insurance. Compare quotes from the top insurance companies.

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Insurance Rates

The Best Car Insurance Companies in Ann Arbor

Customer satisfaction, claims ratings and affordability were reviewed by MoneyGeek to determine the best car insurance providers in Ann Arbor. Based on our findings, the best auto insurance companies in Ann Arbor are:

  • GEICO: MoneyGeek score of 86.8 out of 100
  • Auto-Owners Insurance: MoneyGeek score of 81 out of 100

USAA got a MoneyGeek rating of 100 out of 100, making it the best company for drivers with an eligible military background. MoneyGeek did not feature USAA among the best overall insurance companies in Ann Arbor because its policies are only available to current and former military members and their families.


1
GEICO
Score:87

5/5

Affordability

2/5

Claims Ratings

3/5

User Satisfaction

A++

Financial Stability

Geek Quick Take
Geek Quick Take

In Ann Arbor, a GEICO full coverage policy for a 40-year-old costs around $896 annually. GEICO is the most affordable in the city and received a perfect stability score and high customer satisfaction score. Policyholders may add mechanical breakdown insurance (MBI) to an auto policy.

More About GEICO

Ann Arbor drivers who have a GEICO policy can add MBI if their vehicle is less than 15 months old with less than 15,000 miles. This coverage costs less than extended warranties from dealers but covers vehicle parts and systems their warranties do not include. GEICO also offers accident forgiveness coverage that prevents your car insurance premium from increasing after your first at-fault accident. You can earn accident forgiveness or purchase it as an add-on. GEICO has roadside assistance coverage, too, that pays for the cost of changing a flat tire, towing, jumpstarts and lockout services.

Read MoneyGeek's GEICO auto Insurance Review
2
Auto-Owners Insurance Co
Score:81

3/5

Affordability

4/5

Claims Ratings

3/5

User Satisfaction

A++

Financial Stability

Geek Quick Take
Geek Quick Take

Auto-Owners Insurance got a high score for claims and customer satisfaction alongside a perfect financial stability score. A full coverage policy for a 40-year-old with Auto-Owners Insurance in Ann Arbor costs an average of $1,402 per year. Policyholders can add diminished value coverage to their policy.

More About Auto-Owners Insurance Co

If you have diminished value coverage from Auto-Owners Insurance and your car is involved in an accident, you get compensation for the reduction in the value of your car post-repairs. Auto-Owners Insurance also provides an add-on coverage package to Ann Arbor drivers that includes over 10 coverages that protect you from incurred expenses like re-keying locks, identity theft and replacing your damaged phone, among others. Policyholders may also purchase new car replacement or gap insurance, depending on their needs.

Read MoneyGeek's Auto-Owners Insurance Co auto Insurance Review

Average Cost of Car Insurance by Postal Code

Your ZIP code in Ann Arbor determines the risk level in your location. Insurance providers use it to determine your premiums since rates of car theft, accidents and vandalism vary by area.

There is an $18 difference between ZIP codes 48104 and 48103. Drivers that live in the 48103 area pay roughly $1,680 per year, and drivers in 48104 pay around $1,662 annually.

  • Zip Code
    State Minimumper year
  • 48104
    $1,662
  • 48103
    $1,680

Factors That Impact Insurance Costs in Ann Arbor

In addition to individual driver needs and history, location-specific factors like personal injury protection coverage requirements and the percentage of uninsured motorists also contribute to car insurance rates in Ann Arbor. How Ann Arbor ranks compared to the 300 most populous cities in the United States can have a significant impact on premium costs.

accident2 icon
Most Accidents With Fatalities249th/300
handcuffs2 icon
Most Car Thefts8th/300
uninsured icon
Most Uninsured Motorists by State4th/50
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Personal Injury Protection RequiredYes
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Most Annual Rainfall171st/300
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Most Rainy Days23rd/300

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.