1. Home
  2. The Best Affordable Car Insurance in Michigan for 2020

The Best Cheap Car Insurance Companies for Michigan Drivers in 2020

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.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Michigan for the cheapest car insurance on average.
$1,424
per year
2. GEICO
In 2020, GEICO ranked #2 in Michigan for the cheapest car insurance on average.
$2,728
per year
3. Auto-Owners Insurance Co
In 2020, Auto-Owners Insurance Co ranked #3 in Michigan for the cheapest car insurance on average.
$2,903
per year
4. Progressive
In 2020, Progressive ranked #4 in Michigan for the cheapest car insurance on average.
$3,041
per year
5. MetLife
In 2020, MetLife ranked #5 in Michigan for the cheapest car insurance on average.
$3,090
per year

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 2020

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.

Expand all Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

ErieScore: 95
+

5/5

User Satisfaction

4/5

Claims Ratings

5/5

Affordability

A+

Financial Stability

3

United Farm Bureau of IN GroupScore: 92.5
+

5/5

User Satisfaction

4/5

Claims Ratings

5/5

Affordability

A

Financial Stability

4

HartfordScore: 87.5
+

4/5

User Satisfaction

4/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

5

Auto-Owners Insurance CoScore: 87.5
+

3/5

User Satisfaction

4/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

6

GEICOScore: 87.5
+

3/5

User Satisfaction

2/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

7

Cincinnati Insurance CompaniesScore: 87.5
+

3/5

User Satisfaction

5/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

8

Country FinancialScore: 85
+

4/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

9

State FarmScore: 85
+

4/5

User Satisfaction

3/5

Claims Ratings

4/5

Affordability

A

Financial Stability

10

Farm Bureau Ins of MIScore: 82.5
+

4/5

User Satisfaction

4/5

Claims Ratings

3/5

Affordability

A-

Financial Stability


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.

Company
Market Share
1. State Farm
17.40%
2. AAA
15.81%
3. Progressive
15.76%
4. Auto-Owners Insurance Co
10.29%
5. Allstate
7.90%

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.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Michigan for the cheapest car insurance for drivers with a DUI.
$2,412
per year
2. Progressive
In 2020, Progressive ranked #2 in Michigan for the cheapest car insurance for drivers with a DUI.
$3,878
per year
3. Nationwide
In 2020, Nationwide ranked #3 in Michigan for the cheapest car insurance for drivers with a DUI.
$4,148
per year
4. Esurance
In 2020, Esurance ranked #4 in Michigan for the cheapest car insurance for drivers with a DUI.
$5,866
per year
5. MetLife
In 2020, MetLife ranked #5 in Michigan for the cheapest car insurance for drivers with a DUI.
$5,867
per year

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.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Michigan for the cheapest car insurance for distracted drivers.
$1,788
per year
2. Nationwide
In 2020, Nationwide ranked #2 in Michigan for the cheapest car insurance for distracted drivers.
$3,481
per year
3. MetLife
In 2020, MetLife ranked #3 in Michigan for the cheapest car insurance for distracted drivers.
$3,786
per year
4. Progressive
In 2020, Progressive ranked #4 in Michigan for the cheapest car insurance for distracted drivers.
$4,230
per year
5. Auto-Owners Insurance Co
In 2020, Auto-Owners Insurance Co ranked #5 in Michigan for the cheapest car insurance for distracted drivers.
$4,346
per year

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.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Michigan for the cheapest car insurance for drivers with poor credit.
$2,985
per year
2. Nationwide
In 2020, Nationwide ranked #2 in Michigan for the cheapest car insurance for drivers with poor credit.
$4,406
per year
3. GEICO
In 2020, GEICO ranked #3 in Michigan for the cheapest car insurance for drivers with poor credit.
$4,484
per year
4. MetLife
In 2020, MetLife ranked #4 in Michigan for the cheapest car insurance for drivers with poor credit.
$5,625
per year
5. Auto-Owners Insurance Co
In 2020, Auto-Owners Insurance Co ranked #5 in Michigan for the cheapest car insurance for drivers with poor credit.
$5,686
per year

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.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Michigan for the cheapest car insurance for seniors.
$1,505
per year
2. MetLife
In 2020, MetLife ranked #2 in Michigan for the cheapest car insurance for seniors.
$2,924
per year
3. Auto-Owners Insurance Co
In 2020, Auto-Owners Insurance Co ranked #3 in Michigan for the cheapest car insurance for seniors.
$3,110
per year
4. Nationwide
In 2020, Nationwide ranked #4 in Michigan for the cheapest car insurance for seniors.
$3,174
per year
5. Progressive
In 2020, Progressive ranked #5 in Michigan for the cheapest car insurance for seniors.
$3,272
per year

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

Michigan Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$1,880 INCREASE

This is a difference of 58%.

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. 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.

Company
Amount
1. Progressive
In 2020, Progressive ranked #1 in Michigan for the cheapest car insurance for students.
$5,004
per year
2. GEICO
In 2020, GEICO ranked #2 in Michigan for the cheapest car insurance for students.
$5,953
per year
3. Nationwide
In 2020, Nationwide ranked #3 in Michigan for the cheapest car insurance for students.
$7,510
per year
4. Allstate
In 2020, Allstate ranked #4 in Michigan for the cheapest car insurance for students.
$11,147
per year
5. State Farm
In 2020, State Farm ranked #5 in Michigan for the cheapest car insurance for students.
$18,031
per year

Premium Comparison by Student Type

PREMIUM COMPARISON FOR TWO ADULTS + 16-YEAR-OLD

car
Average premium for two 2014

Mustang GTs

$8,906
car
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:

coins
$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.

male
Average premium for a 19-year-old male
car

$6,269 at home

graduation

$5,386 at school

$883 IN SAVINGS

female
Average premium for a 19-year-old female
car

$6,176 at home

graduation

$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

male
25 years$2,567
50 years$2,224
female
25 years$2,580
50 years$2,252

$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:

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?

What percentage of drivers in Michigan lack vehicle insurance?

20.3%

National average: 13%

Source:

Insurance Information Institute.

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.

  • You may have to face jail time.
  • You'll pay a fine (up to $500) and some administrative fees.
  • Your license may be suspended, and you'll have to show proof of insurance — perhaps for the next six months — to get it back.

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.
Auto Insurance Rates

Compare Auto Insurance Rates

Ensure you're getting the best rate for your car insurance. Compare quotes from the top insurance companies.





Sources