Cheapest Car Insurance in Michigan (June 2024)

Westfield is the cheapest for minimum coverage car insurance in Michigan. Chubb and GEICO are the most affordable options for other drivers.

MoneyGeek found the top auto insurers in Michigan and ranked them according to how they balance service quality and affordability.

On average, the cheapest auto insurance companies in Michigan for a minimum coverage policy, according to MoneyGeek's analysis, are:

• Westfield: $369 per year
• Travelers: $421 per year

With an average yearly premium of $1,772, Hanover is Michigan's most costly auto insurance provider for minimum coverage of the companies MoneyGeek gathered quotes from.

Only bodily injury liability, property protection, and personal injury protection (PIP) are covered by auto insurance that meets Michigan's minimum requirements.

A minimum coverage policy only pays for the damages you cause to other people, not your own car. Consider a full coverage policy with comprehensive and collision insurance if you want additional financial protection for your vehicle.

On average, these companies provide the cheapest full coverage auto insurance in Michigan:

• GEICO: $1,027 per year
• Travelers: $1,253 per year

Hanover charges the highest rate of around $4,586 annually for full coverage.

Your annual rate may go up if you add comprehensive and collision insurance to your auto policy. For instance, the complete coverage option from GEICO costs $397 more than the minimum coverage option.

Full coverage auto insurance offers additional financial protection. It covers losses resulting from off-road occurrences as well as on-road collisions.

Your premium will be heavily influenced by the amount of car insurance you need. The full coverage sample policy from MoneyGeek offers liability insurance with the following limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident

You might be able to lower your insurance costs by lowering your liability limits, dropping comprehensive and collision insurance or increasing your deductible. However, you risk having insufficient coverage if you do this.

Most insurers provide car insurance quotes online. However, this process could take up to 15 minutes to complete. It also requires you to submit data to multiple companies for better comparison.

Instead of giving your personal information to various insurance companies, you can use MoneyGeek's car insurance calculator to get a quick and easy estimate. This can help you get started in your search for low-cost auto coverage.

Age is one of the biggest factors affecting car insurance rates in Michigan. MoneyGeek found that GEICO offers the cheapest options for teens, young adults, and seniors.

On average, the following insurance providers in Michigan offer the most affordable coverage for teenagers driving on a parent’s policy:

• GEICO: $1,957 per year for male and female teens
• Progressive: $2,474 per year for male and female teens

The average annual premium for a male or female teen with State Farm is the most expensive at $6,733.

Teens, regardless of gender, enjoy decreasing car insurance rates as they age, with the lowest rates offered to 19-year-olds. In Michigan, the provider offering the lowest rate for a 19-year-old is GEICO ($1,502).

Adding a teenager to your existing insurance is typically more affordable than purchasing a new policy only for them, and it may be illegal for a teen under the age of 18 to purchase a policy without a parent or guardian's consent and willingness to co-sign for it. The average individual premium for a 16-year-old in Michigan is $7,802, but adding them to their parent's policy can reduce that cost to $3,905. This is a difference of around $3,897.

Auto insurance can be expensive for families, but young drivers can qualify for savings. Auto-Owners, Encompass, Farmers, Progressive, State Farm and Travelers all offer good student and distant student discounts. GEICO also offers a good student discount.

We found that, on average, the cheapest car insurance companies in Michigan for drivers in their 20s are:

• GEICO: $1,033 per year
• Encompass: $1,386 per year

When comparing auto insurance companies for young drivers, Hanover had the highest annual premium, at $5,589. In Michigan, drivers in their 20s pay around $279 more per year for auto insurance from the cheapest company than middle-aged drivers.

The cheapest car insurance companies in Michigan for senior drivers are, on average:

• GEICO: $1,026 per year
• Encompass: $1,164 per year

Auto insurance premiums for seniors at Hanover average $3,946 annually, the highest in Michigan. Seniors in the state pay around $161 less annually for auto insurance from the cheapest company than those in their 40s and 50s. However, prices often go up for drivers in their 70s and 80s.

Michigan seniors can save money with discounts on insurance policies from GEICO and Farmers. In order to find affordable coverage, it is best to shop around and compare providers.

Chubb is the most affordable auto insurance rates in Michigan for drivers with moving violations, at-fault accidents, and impaired driving violations. GEICO is the cheapest provider for people with poor credit and sports car drivers. Taking a driving course that is recognized by the state and checking your driving record frequently for mistakes might help you build a better profile and qualify you for a lower premium.

In Michigan, drivers who have received a speeding ticket can find the most affordable average premium for full coverage with the following companies:

• Chubb: $1,522 per year
• Encompass: $1,566 per year

When comparing annual costs, Hanover is the most expensive, at approximately $6,265. If you have a history of speeding in Michigan, your vehicle insurance premium might increase by as much as $706 per year.

The most affordable providers of comprehensive auto insurance for drivers in Michigan who have committed at-fault traffic violations are, on average:

• Chubb: $1,522 per year
• Auto-Owners Insurance Co: $1,566 per year

The most expensive is Hanover, at around $6,873 annually for drivers with violations. According to our research, the average increase in annual premiums in Michigan due to being in an at-fault car accident is $934.

Affordable full coverage auto insurance in Michigan is available even with an impaired driving violation on your record, and the cheapest options on average are:

• Chubb: $1,522 per year
• Progressive: $1,609 per year

Hanover's annual premium for drivers with an impaired driving violation is the most of any company we looked at, coming in at approximately $8,369. In Michigan, if you have an impaired driving violation, your insurance may increase by about $2,696.

The following companies offer the cheapest car insurance to drivers in Michigan with poor credit:

• GEICO: $1,681 per year
• Encompass: $1,924 per year

You will find that Chubb offers the most expensive insurer with an average yearly cost of $28,039. Drivers with bad credit in Michigan will pay approximately $4,700 more per year than those with good credit.

People who have low credit scores often make more insurance claims and may have to pay higher car insurance costs. While this practice is not permitted in every state, it is allowed in Michigan. To secure lower rates, work on improving your credit score. Additionally, you can find affordable coverage by comparing quotes from different insurance companies and making use of available discounts.

In Michigan, drivers who own sports cars can get the cheapest average auto insurance by shopping with the following companies:

• GEICO: $1,212 per year
• Auto-Owners: $1,233 per year

Travelers has the highest average annual rate of any insurance provider at $2,839.

Insurance for a sports car is typically (but not always) more expensive than coverage for a regular vehicle because of the increased cost of repairs and replacement parts. However, in Michigan, sports car owners spend around $83 more per year on average compared with those who drive a Toyota Camry LE.

MoneyGeek generated quotes for a Ford Mustang, although costs might vary widely based on the make and type of the vehicle. As a general rule, the cost of insurance is higher for premium-priced vehicles like sports cars, electric cars, and luxury models.

USAA has the cheapest auto insurance in Michigan for active-duty military members and veterans, with a yearly rate of $1,006.

USAA specializes in providing services for veterans and active-duty military personnel and their families. Its policies are only available to members of the military community. It’s accessible in every state and provides quality customer service without sacrificing cost.

In Michigan, auto insurers cannot use your ZIP code as a pricing factor, but other contributing elements can result in varying average insurance rates between cities.

According to our research for our sample driver, Travelers provides the most affordable auto insurance in Grand Rapids at a yearly rate of about $1,039. At the same time, Detroit has the highest annual premium for auto insurance, at around $1,910 for a full coverage policy from Chubb.

The list of Michigan cities below shows how much car insurance typically costs for our AMI driver, depending on the city.

Like many states, Michigan requires drivers to purchase property damage liability, personal injury protection and bodily injury liability insurance. It also requires property and personal injury protection within Michigan.

At a minimum, a driver in Michigan must have bodily injury liability, property damage liability insurance and personal injury protection on their vehicle. It would help if you also had property protection and PIP coverage.

You can save money with a minimum coverage policy, but you'll be less protected financially in the event of an accident. You might be required to get an SR-22 in Michigan after severe or repeated violations. SR-22 is not insurance but a certificate of financial responsibility that proves you meet the state's established insurance requirements for high-risk drivers. Your auto insurer must file it with the DMV.

MoneyGeek suggests getting liability insurance with limits of at least $100,000 per injury and $300,000 per accident, as well as raising property damage coverage to $100,000. If you financed the purchase of your vehicle, you might be required to carry both comprehensive and collision coverage.

Comprehensive and collision coverages ensure that you won't have to worry about paying to fix or replace your car if it's damaged in an accident away from public roads. Theft, accidents, vandalism, animal destruction and natural disasters are all possible concerns.

If your car is very expensive, comprehensive and collision insurance could be worthwhile, even if you did not finance or lease it.

Auto insurance is legally required in Michigan. You must show proof of financial responsibility through a certificate of insurance. Certificates of insurance are required when registering a vehicle, renewing registration and exchanging information with the other driver after an accident.

You could opt for a pay-per-mile program like Nationwide SmartMiles to save money on your Michigan car insurance costs.

Drivers in Michigan looking for auto insurance might have questions about quality and cost. Here are some of the most frequently asked questions.