The Cheapest Car Insurance in Michigan for 2022

While Nationwide is the most affordable car insurance provider in Michigan, many other factors contribute to your final cost of car insurance. These include your age, coverage amount and driving record.

For instance, Nationwide remains the cheapest for drivers with a ticket and those with bad credit, but Progressive offers the lowest rates for young drivers as well as those with a DUI. For senior drivers, MetLife is the most affordable.

For those looking for an even more local solution, we also broke down the cheapest companies by city, as well as the best car insurance companies in Michigan for those looking to balance quality service and cost.

To find out how MoneyGeek calculated the cheapest car insurance in Michigan, read our methodology.

cheapestauto insuranceMichigan2022

The Cheapest Car Insurance in Michigan

Cheapest for minimum liability - Nationwide

Cheapest for full coverage - GEICO

Cheapest for drivers with a DUI - Progressive

Cheapest after an accident - USAA

Cheapest for drivers with a ticket - Nationwide

Cheapest for drivers with bad credit - Nationwide

Cheapest for senior drivers - MetLife

Cheapest for student drivers - Progressive

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:

• Nationwide: $774 per year
• Auto-Owners Insurance Co: $1,430 per year

USAA, for military members and their families, is the cheapest option in the state at an average of $704 per year. The costliest car insurance for minimum coverage is Farmers, with average prices of $9,390 per year.

Cheapest Minimum Car Insurance in Michigan

These prices are only estimates based on rates for an average Michigan driver and should not be used to compare insurance prices.

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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 car insurance firms that offer the most affordable full coverage auto insurance policies in Michigan are:

• GEICO: $2,161 per year
• Auto-Owners Insurance Co: $2,299 per year

For current and former military members, USAA offers the cheapest option at $1,128 on average per year. Farmers is the most expensive company for full coverage, with average yearly costs of $14,477.

Cheapest Full Coverage Car Insurance 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.

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.

Use the MoneyGeek calculator to obtain quote estimates from various insurers without providing specific personal information. For personalized quotes, you will need to give more details. 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.

Auto Insurance Calculator

State

Michigan

Age

30-65

Driving Record

Clean

Credit Score

Excellent

Vehicle Type

Compact

Vehicle Year

2020

Liability Coverage

State Min

Comprehensive and Collision Insurance

None

Gender

Female

Add Student Driver

Average Annual Auto Insurance Rates

Click the section of the wheel in your price range to see options.

low end

on average

high end

Click your preferred price range to see company options.

Click an insurer below to visit their review page or continue to your personalized quote.

Company

Average Annual Rates

1.

Nationwide

$896

2.

USAA

$981

3.

Auto-Owners Insurance Co

$1656

4.

GEICO

$1724

5.

MetLife

$2215

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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, and you might also be required to file an SR-22. 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 for a driver with a DUI and full coverage in Michigan are:

• Progressive: $3,071per year
• Nationwide: $3,285 per year

USAA offers an affordable option for current and former military members at an average rate of $1,911 per year. AAA is the costliest option for drivers with a DUI in Michigan at an average of $24,133 per year.

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.

If you have an at-fault accident, you will pay more for car insurance than Michigan residents with a clean driving record. On average, drivers with at-fault accidents pay about $6,838 per year for car insurance.

The most affordable auto insurance providers in Michigan for drivers with at-fault accidents are:

• Auto-Owners Insurance Company: $3,098 per year
• Nationwide: $3,491 per year

For eligible Michigan drivers, USAA is also a cheap option as it costs about $1,501 per year for military drivers with at-fault accidents.

Cheapest Car Insurance With an At-Fault Accident

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:

• Nationwide: $2,757 per year
• MetLife: $2,999 per year

USAA, exclusively available to current and former military members, is the cheapest option at $1,416 on average per year. Farmers car insurance for drivers with tickets is the most expensive option in Michigan at $18,721 on average annually.

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:

• Nationwide: $3,489 per year
• GEICO: $3,551 per year

For military members and their families, USAA offers the most affordable option in Michigan at $2,346 per year, on average. The most expensive insurance for drivers with bad credit is Farmers at an average of $48,190 per year.

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:

• MetLife: $2,316 per year
• Auto-Owners Insurance Co: $2,463 per year

USAA, exclusively for military members and their families, is the most affordable option at an average of $1,192 per year. Farmers insurance for senior drivers in Michigan is the costliest option at $14,342 on average per year.

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 drivers pay more for car insurance than senior drivers. That’s because they are still inexperienced drivers and are considered high risk to insure.

In Michigan, car insurance costs an average of $10,103 per year for 16-year-old drivers and $4,332 per year for 25-year-olds.

The most affordable auto insurance provider for drivers between 16 and 25 years of age is GEICO, which was found to be the cheapest for most of the ages within this range for the MoneyGeek sample driver.

Annual Car Insurance In Michigan for Young Drivers

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• Age
  Average Cost
  Cheapest Company
  Company Cost
• 16
  $10,103
  Progressive
  $4,186
• 17
  $9,324
  Progressive
  $4,186
• 18
  $8,284
  Progressive
  $3,517
• 19
  $9,151
  GEICO
  $3,787
• 20
  $7,596
  GEICO
  $3,471
• 21
  $6,020
  GEICO
  $2,741
• 22
  $5,567
  GEICO
  $2,640
• 23
  $5,094
  GEICO
  $2,519
• 24
  $4,767
  GEICO
  $2,441
• 25
  $4,332
  GEICO
  $2,185

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To help keep car insurance premiums affordable, young drivers can be added to their parent's policy, drive a safer vehicle model, such as a midsize sedan, get good grades and participate in a driver safety course.

Additionally, you should consult with your auto insurer when it’s time for your young driver to go to college, especially in another state, as each company approaches it differently and may need advance notice. This way, you can be sure to lock in the best car insurance for college students.

If you're moving to Michigan for military duty, already stationed here or are a veteran living in The Great Lakes State, you're probably qualified for a military 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. 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.

Average Rates for Michigan service members

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

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

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.

Cheapest Car Insurance in Michigan by City

In Michigan, your location can influence how much you pay for car insurance. For instance, average drivers in Grand Rapids pay $1,738 per year for the cheapest full coverage car insurance. Meanwhile, drivers in Detroit pay the highest cost, at $5,471 per year.

To find out more about car insurance rates in your area, click on your city.

Average Insurance Rate by City in Michigan

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• City
  Annually
  Monthly
• 1.
  Ann Arbor
  $1,671
  $139
• 2.
  Detroit
  $5,471
  $456
• 3.
  Grand Rapids
  $1,738
  $145
• 4.
  Lansing
  $1,836
  $153
• 5.
  Sterling Heights
  $2,956
  $246
• 6.
  Warren
  $3,707
  $309

Show more

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.

1. What are the key factors drivers in Michigan should look for when searching for the best auto insurance coverage?
2. How do regulations and rules in Michigan impact insurance pricing and how consumers might shop for coverage?
3. What steps can drivers in Michigan take to find affordable car insurance?

Wayne Miller

Adjunct Professor - Wayne Law at Wayne State University and COO at Miller & Tischler P.C.

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Dr. Joseph G. Eisenhauer

Dean of the College of Business Administration at the University of Detroit Mercy

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Gregg Dimkoff, Ph.D., CFP, CLU

Finance Professor at Grand Valley State University, Consultant, and Financial Planner

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Bob Cunningham

Associate Professor & Chair, Business and Economics at Alma College

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Qianying (Jennie) Zhang

Assistant Professor of Finance and Economics at Hillsdale College

READ ANSWERS

Kim Madsen

Faculty Member (Business) at Kellogg Community College

READ ANSWERS

Vivek Singh Ph.D.

Richard E. Czarnecki Endowed Collegiate Professor II, Professor, Finance at the University of Michigan, Dearborn

READ ANSWERS

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About the Author

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Karon Warren is a professional journalist who has covered personal finance, health insurance, home insurance, car insurance, mortgages, banking and more for two decades.

Karon earned her bachelor of arts degree in journalism from the University of Southern Mississippi. She is also a member of the American Society of Journalists and Authors. Karon uses her journalist skills to create in-depth, well-researched finance stories that educate people so they can make informed financial decisions that best serve their financial goals.

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