The Best Cheap Car Insurance in Michigan for 2021

The Best Cheap Car Insurance Companies for Michigan Drivers in 2021

To find the best car insurance, you should start with five of the top, familiar insurance companies operating in Michigan. This will give you an idea of which companies provide coverage and their rates.

Keep in mind the above quotes are just estimates for the average driver. Car insurance quotes are based on a number of factors, including age, gender, location, type of vehicle, driving record and more. That’s why you need to ask for quotes based on your individual factors.

The Best Car Insurance Companies in Michigan for 2021

When it comes to determining the best Michigan car insurance companies, MoneyGeek utilizes a unique rating system based on a combination of ratings from reputable companies such as J.D. Power and AM Best that look at factors such as affordability, reliability, customer service and financial viability. Weighing each rating equally, the system scores these factors on a 100-point scale.

Market Share by Company

While many companies offer car insurance in Michigan, the largest insurer in the state is State Farm, with 17.40% of the market share.

Cheapest Car Insurance for Drivers With a DUI in Michigan

Having a DUI on your driving record could result in some serious consequences, including up to 93 days in jail and fines from $100 to $500. It also could result in higher car insurance premiums.

How long a DUI impacts your car insurance rates varies from company to company, which is why you should get car insurance quotes from a variety of Michigan car insurance companies. Each company weighs a DUI differently, which results in different quotes.

Cheapest Car Insurance for MI Speeding or Distracted Driving Tickets

Having a speeding or distracted driving ticket on your driving record will have a negative impact on your car insurance rates as Michigan car insurance companies consider these drivers as a higher risk. Likewise, auto insurers also consider drivers involved in distracted driving accidents a higher risk, resulting in higher car insurance premiums. In 2018, there were 905 accidents in Michigan related to distracted driving.

The impacts of a speeding or distracted driving ticket on your car insurance rates will vary based on your individual driving record. The effects could be short-term or carry over the long term. As such, it is important for you to get personalized quotes based on your own individual factors from several different Michigan car insurance companies in order to find cheap insurance.

Cheapest Car Insurance Companies in MI for Drivers With Bad Credit

Credit scores are one of many factors Michigan car insurance companies use to evaluate a driver when quoting car insurance rates. Not surprisingly, those with a higher credit score–generally 700 or higher–are seen as low risk while those with lower credit scores are seen as higher risk. In Michigan, the average credit score is 706.

Although a lower credit score can result in higher car insurance premiums, this can be a short-term problem. By working to raise your credit score, you can improve your credit rating and, in turn, receive lower insurance rates. To do so, you will need to speak with several Michigan car insurance companies to get car insurance quotes based on your own personalized factors.

Cheapest Car Insurance Companies in Michigan for Seniors

In Michigan, 14% of the population is age 65 or older, and it is the fastest growing segment of the state’s population. While the state does not have any age-specific restrictions on obtaining or renewing a driver’s license, it does recommend being aware of changes in your mental and physical health that could affect your driving. According to the National Highway Traffic Safety Administration, there were 228 drivers aged 65 or older involved in fatal traffic crashes in 2017, a number everyone would like to see reduced.

When shopping for car insurance for seniors, it’s important to get personalized quotes from various Michigan car insurance companies based on individual factors such as age, gender, location and driving record. This will help you find cheap insurance.

Cheapest Car Insurance for Students

Car insurance quotes for policies that include teens and college students typically are higher given the elevated risk for new and young drivers. This elevated risk is based in fact: In 2017, drivers between the ages of 15 and 20 accounted for 7.8% percent of all traffic deaths, and 57.5% of those deaths were drivers, according to the Michigan Department of State Police.

Premium Comparison by Student Type

PREMIUM COMPARISON FOR TWO ADULTS + 16-YEAR-OLD

Average premium for two 2014

Mustang GTs

$8,906

Average premium for two 2008

Town and Country Limiteds

$6,511

Annual benefits of minivans:$2,395 saved

This is 27% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$1,002 DECREASE

This is a savings of 17%.

Potential discounts for teens in texas

Impact on annual premium with good student and defensive driving discounts:

$545 SAVED

Michigan students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

Average premium for a 19-year-old male

$6,269 at home

$5,386 at school

$883 IN SAVINGS

Average premium for a 19-year-old female

$6,176 at home

$5,303 at school

$873 IN SAVINGS

Insurance Rate Information for Military Drivers and Veterans

If you're moving to Michigan for military duty, already stationed here or a veteran living in The Great Lakes State, you're probably qualified for a discount on car insurance. When shopping around for the best deal, consider talking to an independent insurance agent, who may have more resources to explore for military discounts. Michigan has about 2,000 active-duty military personnel living in the state, and with a good driving record, military members can expect to pay less on auto insurance, which they'll need to have in place before registering a vehicle with the state DMV.

It's easy to apply for a vehicle title and registration in Michigan. Just complete and sign an Application for Certificate of Title and Registration (TR-11L) and provide a copy of your insurance policy or coverage ID card.

Age savings for Michigan service members

25 years$2,567
50 years$2,224

25 years$2,580
50 years$2,252

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$343 Saved

$328 Saved

Median auto insurance for service members: $2,146

Who Needs Car Insurance in Michigan?

If you're planning on actually driving a car in Michigan, then it needs to be insured. If, on the other hand, you are storing an inoperable car in the garage, you can skip the registration and insurance process.

Proof of Insurance in Michigan

In Michigan, proof of financial responsibility comes in the form of a certificate of insurance, which lists the car and the driver on the policy. It must be kept with the driver at all times. In late 2015, Michigan passed legislation allowing drivers to use electronic insurance information stored on their cell phone instead of a printed certificate. Drivers should show either version when:

• Registering a vehicle (and possibly when renewing a vehicle registration)
• A police officer requests it, after either a traffic stop or an accident
• Exchanging information with another driver after a collision

Minimum Liability Insurance Requirements in Michigan

Michigan is a "no-fault" state, meaning drivers can receive benefits regardless of who was at fault in theaccident. Not only that, but there's no hard limit on how much your insurance company might have to pay to cover your costs. Here are the details of what a plan must include:

Personal injury protection (PIP), which pays for up to three years of "reasonable" medical expenses, no matter what the cost, as well as lost wages

Property protection insurance (PPI), which pays up to $1 million if your car damages others' property, including buildings and parked cars

Residual liability insurance for injury and property damage in the amounts of $20,000 to cover bodily injury for an individual, $40,000 for multiple people, and $10,000 for property damage

No-fault insurance is meant to protect motorists from lawsuits, but there are certain circumstances where you may be sued. In such cases, liability insurance can cover legal costs and any damages the court determines you owe. People can sue you if:

• You are at fault in an accident that causes traumatic injury or death
• You are driving a car registered outside of Michigan
• The accident takes place outside the state

For more information on types of coverage, see "How Much Vehicle Insurance Do You Need?" below.

Alternatives to Insurance in Michigan

If you don't want to buy insurance, you have two other options:

• Filing a bond with the secretary of state
• Depositing money or securities with the state treasurer for an amount of his or her choosing

In such cases, the bond or the certificate of deposit work as proof of financial responsibility and must be carried like standard proof of insurance.

Although motorists may think opting out of insurance is a smart financial move, it is actually a risky one. Drivers not only leave themselves vulnerable to lawsuits and claims, but also must pay their own medical bills. At best, they may find themselves having to go back to work before they are physically ready. At worst, they could lose their savings and even their home.

Car Insurance Requirements in Michigan: How Much Coverage Do You Need?

Compare Auto Insurance Rates

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COMPARE QUOTES

Expert Advice on Finding Cheap Car Insurance in Michigan

1. What are the key factors drivers in Michigan should look for when searching for the best auto insurance coverage?

   Wayne Miller

   One must make sure that they are adequately protected. That’s what insurance is for. So rather than protecting the vehicle itself, at great expense, the following 3 coverages should be carefully considered:

   Unlimited no-fault PIP coverage. This is the medical benefits coverage. Until July 2020, people were required to have unlimited medical coverage. Since July 2020, people can make choices of coverage for much less than unlimited. This includes, in some instances, opting out entirely. Choosing less than unlimited coverage is a bad idea. Michigan no-fault coverages include catastrophic loss coverage such as long term custodial care and rehabilitation. These coverages are not found in conventional healthcare insurance or Medicare. Unlimited no-fault is perhaps the only silver lining in cases of catastrophic injury. We are already seeing cases where people chose less than unlimited coverage, have been catastrophically injured in a car crash, and simply do not have the resources to pay for the care that is needed.

   High limits of liability coverage. Drivers who buy less than unlimited no-fault medical benefits coverage now may sue the person who was at fault in causing the crash for an amount BEYOND their no-fault coverage. Previously, negligent drivers were immune from being sued for medical expenses. This tort immunity has now been taken away. Therefore, negligent drivers are exposed to a lot more in liability expenses. In July, the law also changed to require a minimum of $250,000 for liability coverage (though there is an option to go down to $50,000). I believe $250,000 is not enough to cover exposures for serious injuries. Therefore, I recommend that higher limits be chosen.

   High limits of UN- and UNDER-insured motorist coverage. This coverage is legally optional, but practically required. If a negligent driver causes you serious injury, that driver often does not have sufficient insurance coverage to be financially responsible to you for the damages caused. UN/UNDER insured motorist coverage is kind of like umbrella coverage for the other driver. It is important to purchase high limits of this coverage.

2. How do regulations and rules in Michigan impact insurance pricing and how consumers might shop for coverage?

   Wayne Miller

   Michigan insurance regulation has historically been grossly inadequate. The new law contains increased powers of oversight and regulation. It is too soon to tell how effective the new rules and regulations will be. However, preliminary indications are that regulation will continue to be inadequate. Insurers are still permitted to rate policies much as they did before. Preliminary indications are that, contrary to much hype and legislative promises, the 2019-2020 revisions to the law will not result in the advertised savings.

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Wayne MillerAdjunct Professor - Wayne Law at Wayne State University and COO at Miller & Tischler P.C. READ ANSWERS

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