Cheapest and Best Car Insurance in Ann Arbor, MI (June 2024)

In Ann Arbor, Michigan, Travelers is the most economical for both minimum and full coverage car insurance. GEICO offers the most cost-effective option for families with teens. Chubb is the overall best company; it is also the top company for customer service and offers the best value for price and service. However, the optimal choice for you will reflect your needs and preferences.

MoneyGeek found that these are the top two most cost-effective providers of minimum coverage car insurance in Ann Arbor:

• Travelers: $138 per year
• Westfield: $306 per year

Hanover has the most expensive minimum coverage policy in Ann Arbor, with an annual rate of $1,045 — costing $907 more than the cheapest option. Remember to compare rates to ensure you get the cheapest car insurance for your needs.

Michigan state law mandates that all drivers carry at least the minimum coverage car insurance with the following limits:

• $50,000 bodily injury per person
• $100,000 bodily injury per accident
• $10,000 property damage liability per accident
• Unlimited personal injury protection (PIP) per person

If you're at fault in a crash and the other person's injuries cost $65,000, your policy will cover up to $50,000. The remaining $15,000 would be your financial responsibility. If two people are injured and the total expense is $120,000, your insurance will cover $100,000, and you'd be liable for the remaining $20,000 out of pocket. Remember that these figures are the minimum — additional coverage is often recommended for greater financial protection.

MoneyGeek found that Travelers offers the cheapest full coverage car insurance in Ann Arbor. The top two most affordable options are:

• Travelers: $894 per year
• GEICO: $929 per year

Hanover has the most expensive full coverage policy in Ann Arbor at $2,702 per year. This $1,808 difference between Travelers and Hanover highlights why you should compare rates. Full coverage policies are more costly than minimum coverage because they provide extensive financial protection, including collision and comprehensive.

A full coverage insurance plan enhances coverage limits well beyond the state minimums. This upgraded policy provides $100,000 for bodily injury liability per individual, $300,000 for all injuries in a single accident and $100,000 for property damage liability. Professionals in the insurance industry usually refer to this as a 100/300/100 policy. This full coverage policy includes both comprehensive and collision insurance, extending your vehicle’s protection in various scenarios:

• Collision Insurance: This ensures your vehicle is covered for any damages incurred from an impact with another vehicle or a stationary object like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This secures your vehicle against a range of non-collision-related incidents, such as theft, vandalism, fires, damage due to extreme weather conditions or being hit by an animal.

If you've invested in a new vehicle, it's prudent to opt for full coverage insurance to adequately protect your financial commitment. However, the additional premium might outweigh the benefits if you have an older vehicle. Deciding on how much car insurance you need involves weighing the cost of your premium against the risk of being underinsured.

These providers offer lower rates for a full coverage policy after various driving incidents:

• Speeding Ticket: Progressive ($1,231 per year)
• At-Fault Accident: Pioneer State Mutual Ins Co ($1,228 per year)
• DUI: Progressive ($1,120 per year)

Hanover offers the most expensive average annual rate after a speeding ticket and an at-fault accident at $3,995 and $4,432, respectively. Encompass has the most expensive policy after a DUI, costing around $7,602 per year. Driving incidents and serious infractions can lead to higher insurance costs, but you can still find affordable rates.

In Ann Arbor, insurance rates escalate with the severity of a driving offense as insurers perceive these drivers as higher risk. Drivers with a speeding ticket can face an average annual premium of approximately $3,794. Someone with a DUI might see rates of around $6,291 per year. This difference underscores the importance for drivers with offenses to diligently compare insurance policies to find the most cost-effective coverage in light of their driving history.

MoneyGeek found that GEICO offers the cheapest car insurance for teens in Ann Arbor for both female and male teens. These are the two most competitive companies:

• GEICO: $2,046 per year for female and male teens
• Progressive: $2,508 per year for female and male teens

These rates are for a policy covering two parents and a teen driver. State Farm has the priciest teen family policy at $7,669 annually for both male and female teens. This costs $5,623 more than the cheapest option from GEICO, underscoring the importance of shopping around due to the high-risk nature of insuring teenage drivers.

In Ann Arbor, teen drivers often face steep insurance costs, with individual policies averaging $5,194 per year, compared to $3,968 for those included in a family plan — a significant difference of $1,226 per year. Elevated rates for individual policies are due to the high risk associated with inexperienced drivers. Insurers also hesitate to issue individual policies to teens, as the likelihood of claims is higher without the risk mitigation from a family plan. Teens are encouraged to join a family policy for the financial benefit and increased chances of approval.

MoneyGeek found that USAA is the cheapest option for full coverage car insurance tailored for those with military backgrounds in Ann Arbor. The two providers offer the cheapest car insurance for military backgrounds:

• USAA: $772 per year
• Travelers: $894 per year

In Ann Arbor, comparing car insurance rates is the key to savings. However, thorough research across multiple companies typically takes over an hour.

MoneyGeek's car insurance calculator can help streamline the process. To receive rate estimates, input information like your age, driving record, credit score and desired coverage.

Finding the right auto insurance depends on your preferences related to service quality, cost, coverage and other factors. MoneyGeek's comprehensive evaluation uncovered that Chubb leads the rankings in Ann Arbor for various consumer needs:

• Best overall: Chubb (MoneyGeek score 93 out of 100)
• Best for service: Chubb (MoneyGeek score 93 out of 100)
• Best cheap: Chubb (MoneyGeek score 86 out of 100)

Chubb is the best insurer in Ann Arbor for overall value, exemplary service and affordability. The insurer meets a wide range of client expectations, reinforcing that one provider can excel across the board.

MoneyGeek found that Chubb is the best option in Ann Arbor for drivers seeking the best car insurance. Drivers can depend on Chubb's excellent coverage options and competitive rates. Below are the top two providers in Ann Arbor:

• Chubb: MoneyGeek score of 93 out of 100 ($1,263 per year)
• Westfield: MoneyGeek score of 84 out of 100 ($1,358 per year)

Chubb's remarkable score is due to high satisfaction and affordability ratings among policyholders. It provides a balance of favorable customer service and reasonable pricing for a full coverage policy.

MoneyGeek found that Chubb is the best option in Ann Arbor for those seeking top-notch customer service without considering the cost.

• Chubb: MoneyGeek score of 93 out of 100 ($1,263 per year)
• Westfield: MoneyGeek score of 86 out of 100 ($1,358 per year)

Chubb stands out in Ann Arbor's competitive insurance market due to its superior general satisfaction and claims service ratings. These elements showcase its commitment to customer service excellence.

MoneyGeek found that Chubb is the best option for cheap car insurance in Ann Arbor, considering a well-rounded assessment of cost and quality.

• Chubb: MoneyGeek score of 86 out of 100 ($489 per year)
• Westfield: MoneyGeek score of 85 out of 100 ($306 per year)

Chubb is the leading provider of minimum coverage policies, with a high MoneyGeek score reflecting its superior claims process and customer satisfaction. Chubb delivers outstanding value by balancing cost-effectiveness and service quality.

Ann Arbor's average car insurance cost is $1,358 per year. This figure is $929 lower than the average car insurance cost in Michigan, which is $2,287 per year. Michigan's average exceeds the national average car insurance cost of $1,720, with the state's premiums being $567 higher annually.

Car insurance premiums are contingent on various factors like driving history and vehicle type. Geographical influence is most important, as traffic density, risk of theft and the likelihood of accidents affect pricing. In Michigan, Detroit has the highest premium at $4,200, which is substantially higher by $2,842 than Ann Arbor's average of $1,358. Ann Arbor enjoys the status of being the city with the lowest insurance expense. Insurance rates may be even lower in more rural areas with reduced traffic density, reflecting the lessened risk of road mishaps.