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


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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 Logo IconBest & CheapestCar InsuranceAnn Arbor
2024

Cheapest and Best Car Insurance in Ann Arbor

Why Trust MoneyGeek? We analyzed 50,284 quotes in Michigan from 14 companies, used six sources and conducted original research to rate the cheapest companies and develop a scoring system for Ann Arbor insurance providers based on ZIP codes in the city only. Our scores are based on affordability, customer satisfaction, claims experience, coverages offered and financial stability.

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These rates reflect the cheapest car insurance quotes in Ann Arbor, MI, as of June 2024.

50,284Quotes Analyzed
 
14Companies Compared

Cheapest Minimum Coverage Car Insurance in Ann Arbor

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.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Minimum Coverage
Travelers$138$12
Westfield$306$25
Chubb$489$41
Pioneer State Mutual Ins Co$508$42
Auto-Owners Insurance Co$537$45
Encompass$559$47
Farmers$560$47
GEICO$566$47
Progressive$581$48
Grange Insurance$594$50
Farm Bureau Ins of MI$689$57
State Farm$917$76
Hanover$1,045$87

State Minimum Liability Requirements

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.

Cheapest Full Coverage Car Insurance in Ann Arbor

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.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
Travelers$894$75
GEICO$929$77
Progressive$1,021$85
Pioneer State Mutual Ins Co$1,051$88
Auto-Owners Insurance Co$1,186$99
Farmers$1,238$103
Grange Insurance$1,258$105
Chubb$1,263$105
Westfield$1,358$113
Farm Bureau Ins of MI$1,386$116
Encompass$1,459$122
State Farm$1,717$143
Hanover$2,702$225

Do You Need Full Coverage in Michigan?

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.

Cheapest Car Insurance in Ann Arbor After a Driving Offense

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.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
Incident:
Incident:Speeding
Progressive$1,231$103
Chubb$1,263$105
Auto-Owners Insurance Co$1,503$125
Pioneer State Mutual Ins Co$1,535$128
Farmers$1,627$136
Westfield$1,634$136
Grange Insurance$1,639$137
Encompass$1,653$138
Travelers$1,682$140
Farm Bureau Ins of MI$1,842$154
GEICO$2,054$171
State Farm$2,534$211
Hanover$3,995$333

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.

Cheapest Car Insurance in Ann Arbor for Teens and Their Families

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.

Data filtered by:Results filtered by:
Age:
Age:16
Gender:
Gender:Female
GEICO$2,046$2,213
Progressive$2,508$6,378
Auto-Owners Insurance Co$2,939$2,241
Encompass$3,244$3,756
Farmers$3,754$10,988
Travelers$5,615$5,476
State Farm$7,669$5,305

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.

Cheapest Car Insurance in Ann Arbor for Military Drivers

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
Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
USAA$772$64
Travelers$894$75
GEICO$929$77
Progressive$1,021$85
Pioneer State Mutual Ins Co$1,051$88
Auto-Owners Insurance Co$1,186$99
Farmers$1,238$103
Grange Insurance$1,258$105
Chubb$1,263$105
Westfield$1,358$113
Farm Bureau Ins of MI$1,386$116
Encompass$1,459$122
State Farm$1,717$143
Hanover$2,702$225

How to Compare Cheap Ann Arbor Car Insurance Quotes Online

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.

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Rates updated:

Dec 06, 2024

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Best Car Insurance in Ann Arbor: Overview

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.

Overall Best Car Insurance in Ann Arbor

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.

Company logo for Chubb
Best OverallChubb
MoneyGeek Score:
93/ of 100

Overview

Chubb's outstanding MoneyGeek score is attributed to top-notch claims handling and customer satisfaction. Chubb offers the two most common car insurance coverages: rental car and/or travel reimbursement and roadside assistance. The company also offers original equipment manufacturer (OEM) coverage, ideal for those seeking repairs with original parts.

With an impressive array of car insurance coverages, Chubb caters to diverse needs. OEM coverage is particularly valuable for maintaining a vehicle's integrity with brand-specific parts after an accident. Diminished value coverage lets you claim the loss in resale value from accident-related damage. Both options are rare coverages, with OEM coverage being widely applicable, ensuring policyholders get comprehensive protection. Although Chubb doesn't offer some common coverages, it is still a premier option due to its perfect satisfaction and claims scores.

Best Car Insurance in Ann Arbor for Customer Service

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.

Company logo for Chubb
Best for Customer ServiceChubb
MoneyGeek Score:
93/ of 100

Overview

Leveraging outstanding Satisfaction and Claims handling performances, Chubb boasts a high MoneyGeek Score due to outstanding customer satisfaction and claims handling performance. It offers common coverages such as rental car and/or travel reimbursement and roadside assistance, which is important for comprehensive auto insurance.

Chubb's robust insurance portfolio caters to diverse needs. Antique/classic car insurance is a rare coverage that protects valued vintage vehicles against loss. OEM coverage is widely applicable and ensures that any repairs maintain the integrity and value of your car with original manufacturer parts — a significant advantage for newer, luxury or leased vehicles. Diminished value coverage is great for retaining investment value after an accident. Although Chubb lacks some common coverages, it's still an excellent choice given its solid satisfaction, claims and coverage scores.

Best Cheap Car Insurance in Ann Arbor

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.

Company logo for Chubb
Best Cheap CompanyChubb
MoneyGeek Score:
86/ of 100

Overview

Chubb's high MoneyGeek Score is attributed to its stellar customer satisfaction and claims handling. Its minimum coverage policy costs $489. The average driver reaps the benefits of minimal coverage costs annually. Chubb offers comprehensive discount options for having anti-lock brakes and taking a defensive driving course.

Chubb's broad range of discounts encompasses all the four most familiar savings opportunities: bundling, good student, multiple car and safe driving. This extensive selection underscores the company's commitment to providing multiple avenues for clients to reduce their insurance expenses. Additionally, drivers can benefit from VIN etching, which provides savings for etching the vehicle identification number onto the car's window glass, enhancing theft prevention. Daytime running lights, another very rare discount, offers savings for vehicles equipped with automatic lighting designed to increase visibility during the day.

Average Cost of Car Insurance in Ann Arbor

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.

Ann Arbor$1,358
Detroit$4,200
Grand Rapids$1,452
Lansing$1,587
Sterling Heights$2,108
Warren$2,683

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.