Finding the best car insurance in Michigan requires you to consider individualized factors, such as your age, driving history and location. To find the lowest rates and most suitable coverage, compare personalized quotes from different companies. MoneyGeek based its ranking of top auto insurance providers in Michigan on affordability, customer satisfaction, financial strength and more to give you an idea of your expected costs. When you compare car insurance premiums from some of the most popular providers in Michigan, you could save up to $16,817.
The Best Cheap Car Insurance in Michigan for 2021
The Cheapest and Best Car Insurance in Michigan
The most affordable car insurance in Michigan is a minimum coverage policy, a plan that meets the state’s baseline car insurance requirements. Please note that liability coverage will only cover the other driver’s costs in an at-fault accident.
The cheapest car insurance companies in Michigan for minimum coverage are:
- USAA: $889 per year (only available to current and former military members)
- Nationwide: $977 per year
The costliest car insurance for minimum coverage is Farmers, with average prices of $11,856 per year.
Average Cost for Minimun Liability Coverage
Please remember that the costs are only averages and should be used to compare different insurers' rates.
These prices are only estimates based on rates for an average Michigan driver and should not be used to compare insurance prices.
In Michigan, minimum coverage is cheaper than full coverage but only covers bodily injury and property damage liability insurance, property protection and personal injury protection. If you wish to cover damages to your own car or get protection against higher liability costs, you should consider purchasing a full coverage policy.
A full coverage policy with higher liability limits and comprehensive and collision insurance can safeguard against most road accidents and off-road incidents in Michigan. While it costs more than minimum coverage, it covers the cost of damages to your vehicle and others. By comparing car insurance quotes, you can find the cheapest option in your state.
The most affordable car insurance firms in Michigan for full coverage are:
- USAA: $1,424 per year (only available to current and former military members)
- GEICO: $2,728 per year
Farmers is the most expensive company for full coverage, with average yearly costs of $18,241.
Average Comprehensive and Collision Rates in Michigan
The prices listed above are for a policy with comprehensive insurance and collision. They include $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident. Note that your rates will differ from these examples.
The Best Car Insurance Companies in Michigan for 2021
MoneyGeek’s study shows that the best car insurance companies in Michigan for most drivers are:
- Best Overall: The Hartford
- Runner-up: Auto-owners
USAA received the highest score in Michigan by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
Affordability is an important consideration, but it is also necessary for Michigan drivers to consider other aspects like claims experience, customer satisfaction and financial strength. MoneyGeek used these criteria to find the best car insurance in the state.
MoneyGeek’s unique rating system combines metrics from J.D. Power and AM Best, as well as industry standards for rating and reviewing insurance companies. Each criterion was weighted equally to calculate the final rating out of 100.
USAA offers services only to veterans, current military personnel and their families. MoneyGeek's top pick in Michigan has perfect customer satisfaction, affordability and claims ratings.
USAA ranks consistently as one of the best and most affordable insurance providers in the greater United States and Michigan. Besides standard car insurance coverage, this carrier offers additional features such as accident forgiveness, rental reimbursement and roadside assistance to eligible policyholders.Read MoneyGeek's USAA auto Insurance Review
Hartford is the second-best car insurance firm in Michigan, as per MoneyGeek’s research. It scores high marks on user satisfaction and claims ratings.
Hartford offers a host of exclusive features. Your auto insurance prices are shielded for a full year and will not change every six months like they do with other insurers. Hartford also pays you back if you can't perform household tasks like lawn maintenance and house cleaning after injuring yourself in an accident.Read MoneyGeek's The Hartford auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in Michigan
The largest three insurers in Michigan by market share are State Farm (17.4%), AAA (15.8%) and Progressive (15.8%). Market share is measured as the number of premiums written by an insurance company divided by the total number of premiums written in the state. Larger providers tend to have higher levels of financial stability, meaning that you’ll almost certainly be reimbursed if you file a legitimate claim. They may not be the best service for every driver, but they assure security to those who value that.
- CompanyMarket Share
How to Compare Cheap Michigan Car Insurance Quotes Online
Most insurance providers offer an online quote tool that you can use to get accurate quotes. Be sure to identify the coverage level you need so you can compare companies with consistent limits. For instance, if you get a quote for $300,000 in bodily liability insurance per accident from one insurer, use the same number when getting quotes from another provider.
Input your ZIP code below to compare rates or use MoneyGeek’s price information as a starting point for choosing insurers. USAA, Nationwide and Auto-Owners Insurance Co are the cheapest companies on average in Michigan, so we recommend that you begin your search by getting a quote with these firms.
What Is the Average Cost of Car Insurance in Michigan?
The annual premium for auto insurance in Michigan depends on specific aspects and circumstances related to the driver. MoneyGeek calculated rates for the average driver who has comprehensive and collision insurance. The typical driver is a 40-year-old male with a Toyota Camry with a clean driving record. To find the best car insurance in Michigan, get personalized quotes based on your age, credit score, driving history, location and coverage level.
- Average Driver: $5,471
- DUI: $14,551
- Speeding Ticket: $8,535
- Poor Credit Score: $15,181
- Seniors: $5,621
- Students: $9,177
If you have a severe driving offense like driving under the influence (DUI) on your record, you’ll pay higher car insurance rates, on average. In Michigan, the average price of car insurance for a driver with a DUI is $14,551 per year compared to $5,471 for a clean driver.
The least expensive car insurance companies in Michigan for a driver with a DUI and full coverage are:
- USAA: $2,412 per year (only available to current and former military members)
- Progressive: $3,878 per year
Although GEICO is the second cheapest insurer for full coverage for Michigan drivers with a clean record, Progressive offers lower rates for those with a DUI.
Average Car Insurance Rates With a DUI
The cost of a DUI on your car insurance rate 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 rates.
Even a minor violation like a speeding ticket can increase your car insurance premiums. The average cost of car insurance for drivers with a speeding ticket in Michigan is $8,535 compared to $5,471 for the average driver with a clean record.
The most affordable insurers in Michigan for a driver with a speeding ticket and full coverage are:
- USAA: $1,788 per year (only available to current and former military members)
- Nationwide: $3,481 per year
Nationwide has lower rates for those with a speeding ticket on their record than GEICO, which is the second cheapest company for drivers with a clean record.
Average Car Insurance Rates With a Ticket
A speeding ticket negatively impacts insurance rates because car insurance companies consider these drivers “high risk.” Likewise, auto insurers also consider drivers involved in distracted driving accidents a higher risk, resulting in higher car insurance premiums.
Drivers with low credit scores in Michigan tend to be charged higher rates than those with high credit scores. In this state, a driver with a low credit score pays $15,181 per year on average for auto insurance coverage, compared to $5,471 for a driver with good credit.
The cheapest car insurance companies in Michigan for a driver with poor credit and full coverage are:
- USAA: $2,985 per year (only available to current and former military members)
- Nationwide: $4,406 per year
GEICO offers cheaper rates for drivers with good credit, while Nationwide’s costs are lower for those with low credit scores.
Average Car Insurance Rates 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 deemed “low risk,” while those with lower credit scores are “high risk.” In Michigan, the average credit score is 706.
In Michigan, 14% of the population is age 65 or older, and it is the fastest-growing segment of the state’s population. Senior drivers in Michigan typically pay slightly higher premiums compared to younger drivers. A senior driver’s average cost of car insurance in the state is $5,621 per year, compared to $5,471 for the average non-senior driver.
The least expensive car insurance carriers in Michigan for senior drivers with full coverage are:
- USAA: $1,505 per year (only available to current and former military members)
- MetLife: $2,924 per year
GEICO offers lower full coverage rates for the average driver who is 40 years old, while MetLife’s premiums are lower for senior drivers.
Average Car Insurance Rates for Seniors
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. Doing so can help you find more affordable options.
Young adult students are relatively inexperienced drivers, which makes them riskier for insurers to cover. A student driver pays $9,177 per year on average for car insurance in Michigan, compared to $5,471 for the average driver.
The most affordable car insurance providers in Michigan for student drivers with full coverage are:
- Progressive: $5,004 per year
- GEICO: $5,953 per year
USAA presents the cheapest full coverage options for the average driver, while Progressive offers the lowest rates for student drivers.
Average Car Insurance Rates for Students
Insurance companies have different stances toward teenage drivers. Some want to be notified as soon as they get a learner's permit, while others choose to wait until the teenager has an actual license. Talk with your agent about how to best insure your child. Typically, part of the solution is giving them the safest car to drive. Placing them in a large-frame car with advanced safety features won't just lower a premium — it will also lower the risk of serious injury in case of a crash. You also should consult with your auto insurer when it’s time for the kids to go to college as each company approaches it differently.
Car insurance quotes for policies that include teens and college students typically are higher given the elevated risk for new and young drivers. In 2017, drivers between the ages of 15 and 20 accounted for 7.8% percent of all traffic deaths. 57.5% of those deaths were drivers, according to the Michigan Department of State Police.
Insurance Rate Information for Military Drivers and Veterans
Average Rates for Michigan service members
Car Insurance in Michigan: What You Need to Know
If you're planning on driving a car in Michigan, you need to insure it. On the other hand, if 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. You must keep it with you at all times while driving, and you can either use a paper certificate or a digital version stored on your cell phone. Drivers should show either version when:
- Registering or renewing a vehicle
- A police officer requests it
- 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 the accident. 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) pays for up to three years of "reasonable" medical expenses, no matter what the cost, as well as lost wages.
- Property protection insurance (PPI) pays up to $1 million if your car damages others' property, including buildings and parked cars.
- Liability insurance for injuries and property damage: $20,000 for bodily injuries per person, $40,000 for bodily injuries per accident and $10,000 for property damage.
No-fault insurance protects motorists from lawsuits, but there are certain circumstances where someone may sue you. 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
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
In such cases, the bond or the certificate of deposit work as proof of financial responsibility, and you must carry them just like standard proof of insurance.
Although motorists may think opting out of insurance is a smart financial move, it is a precarious idea. 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.
How Much Coverage Do You Need in Michigan?
Michigan tracks compliance with electronic insurance reporting, which means insurers may send policy information to the Secretary of State's office twice a month. They also notify the state when a policy is canceled. In recent years, the state's reporting process uncovered many fraudulent insurance policies — some drivers bought these policies on purpose to skate the law, while others were duped by scammers. If you fraudulently insure your car:
- You may face jail time
- You'll pay a fine (up to $500) and some administrative fees
- The state may suspend your license
If you don't have insurance and you're in an accident, things could be even worse. Here's how:
- You won't be able to benefit from personal injury protection, and you'll wind up paying your own medical bills.
- If you're at fault and get sued, you'll be fully responsible for any settlement.
Average Insurance Rate by City in Michigan
FAQs About Car Insurance in Michigan
Finding the right insurance company can be daunting. To make finding a quality provider easier, MoneyGeek answered some commonly asked questions about finding auto insurance in Michigan.
Expert Advice on Finding Cheap Car Insurance in Michigan
To help you find reliable and accurate insight on car insurance in Michigan, MoneyGeek received expert advice from trusted professionals. The views and sentiments conveyed are those of the individual contributor.
- What are the key factors drivers in Michigan should look for when searching for the best auto insurance coverage?
- How do regulations and rules in Michigan impact insurance pricing and how consumers might shop for coverage?
- What steps can drivers in Michigan take to find affordable car insurance?
Adjunct Professor - Wayne Law at Wayne State University and COO at Miller & Tischler P.C.
Dean of the College of Business Administration at the University of Detroit Mercy
Finance Professor at Grand Valley State University, Consultant, and Financial Planner
Associate Professor & Chair, Business and Economics at Alma College
Assistant Professor of Finance and Economics at Hillsdale College
Faculty Member (Business) at Kellogg Community College
Richard E. Czarnecki Endowed Collegiate Professor II, Professor, Finance at the University of Michigan, Dearborn
About the Author
- Experian. "Experian 2019 Consumer Credit Review." Accessed March 3, 2020.
- Governing: The Future of States and Localities. "Military Active-Duty Personnel, Civilians by State." Accessed January 18, 2021.
- Michigan.gov. "Michigan’s Guide for Aging Drivers and Their Families." Accessed January 18, 2021.
- National Association of Insurance Commissioners. "2018 Market Share Reports." Accessed January 18, 2021.