The best cheap car insurance in Michigan

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Michigan is the second-most expensive state for car insurance rates in the US.
Premiums are high because of Michigan’s no fault law and required unlimited personal injury protection.
Find the best cheap car insurance by shopping around and comparing quotes.
Savvy

According to the Insurance Information Institute, Michigan is the second-most expensive state for car insurance in the US with an average of $1,358.62 per year. Michigan car insurance is expensive because of two factors: no fault law and unlimited personal injury protection requirement.

Car insurance companies consider your location, age, gender, and driving record to calculate rates for premiums. Other factors like credit score, marital status, vehicle type, previous coverage, and miles driven can all play a role in the amount you’ll pay for coverage. For those who have poor credit histories or driving records, getting car insurance in Michigan can be costly.

But, that doesn’t mean you can’t find a deal. It’s worth shopping around and getting auto insurance quotes from several different companies. Then, compare those quotes to get the most insurance for your money. Your driving history, zip code, and even personal factors like your marriage status or gender could affect your rates.

Minimum car liability insurance requirements in Michigan

Liability coverage is required by law. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and its passengers. If you finance or lease your car, your lender probably requires comprehensive and collision coverage.

Michigan is a no fault state – meaning “every driver [has] to file a claim with their own insurance company after an accident, regardless of who was at fault” according to the Insurance Information Institute.

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage, to protect you when an at-fault driver hits you and they have no coverage, or not enough coverage.

Michigan requires bodily, property, and personal coverage, according to the Insurance Information Institute. Michigan’s minimum liability requirements are 20/40/10, which means up to $20,000 of injury protection for each person involved in an accident, up to $40,000 worth of injuries per incident, and up to $10,000 of property damages per incident.

Types of liability coverageDefinitionBodily injury (BI)Injury you cause to others, includes medical expenses, lost wages, and funeral expensesProperty damage (PD)Damage you cause to others’ vehicle or propertyUninsured motorist (UM)Protects you when an at-fault driver hits you with no insuranceUnderinsured motorist (UIM)Protects you when an at-fault driver hits you with not enough coverage

Best cheap car insurance in Michigan based on credit score

Consumer Reports looked at which companies offer the best rates for those with three different tiers of credit, calculated based on each company’s pricing formulas for each state. Here are the three companies that offered the most affordable rates for each credit level.

Excellent credit (FICO 800+)Good credit (FICO 670-739)Poor credit (300-579)USAA: $802 per yearProgressive: $1,300 per yearCitizens Insurance: $1,697 per yearUSAA: $1,083 per yearProgressive: $1,584 per yearHome-Owners: $1,952 per yearCitizens Insurance: $3,272 per yearProgressive: $3,277 per yearUSAA: $3,302 per year

Best car insurance for Michigan drivers with a clean record

For a driver in Michigan age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:

CompanyAverage monthly insurance premiumState Farm$175Allstate$176Progressive$178Esurance$192MetLife$198Liberty Mutual$215USAA*$263

*USAA is only available to military, veterans, and their family members

Above data obtained from Savvy, based on 1,910 policyholders in the state of Michigan

Best car insurance for Michigan drivers with one or more accidents

For a driver in Michigan age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:

CompanyAverage monthly insurance premiumAllstate$199Progressive$207Esurance$227Bristol West$230

Above data obtained from Savvy, based on 1,910 policyholders in the state of Michigan

Average premiums for seniors and teen drivers in Michigan

The table below shows the average premium senior and teen drivers can expect to pay in Michigan. Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. Most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Average premium for seniorsAverage premium for teens$2,001 per year$3,525 per year

Data provided by Goosehead Insurance

Michigan car insurance rates by metro area

Below is the estimated average annual premium of auto insurance policies per household in Michigan’s metro areas:

Metro areaAverage annual insurance premiumDetroit-Warren-Dearborn$1,260Grand Rapids-Kentwood$1,278Lansing-East Lansing$1,229Flint$1,175Ann Arbor$1,302Kalamazoo-Portage$1,235South Bend-Mishawaka$1,215Saginaw$1,182Muskegon$1,175Jackson$1,218Niles$1,210Traverse City$1,244Monroe$1,292Battle Creek$1,192Holland$1,260Bay City$1,203Adrian$1,243Midland$1,204Mount Pleasant$1,160Marquette$1,194Marinette$1,150Sturgis$1,193Cadillac$1,131Hillsdale$1,182Big Rapids$1,145Coldwater$1,193Alma$1,159Houghton$1,143Sault Ste. Marie$1,152Escanaba$1,165Iron Mountain$1,163Ludington$1,168Alpena$1,138

Data from S&P Global Market Intelligence

Best car insurance in Michigan based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. According to J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the North Central region (which includes Michigan):

GEICOIndiana Farm BureauErie InsuranceAuto-Owners InsuranceCountry FinancialWestfieldGrange InsuranceFarmers InsuranceAllstateRegion AverageState FarmNationwideTravelersAmerican FamilyProgressive

Most popular car insurance companies in Michigan based on market share

The following are the most popular car insurance companies in Michigan, based on the percentage of insured Michigan drivers who use them:

CompanyMarket Share %Progressive17.89State Farm16.33Auto Club Insurance Association15.31Auto-Owners Insurance 10.65Allstate7.74The Hanover Insurance Group6.47Michigan Farm Bureau5.02Liberty Mutual3.54USAA*3.04Pioneer State Mutual1.86Frankenmuth 1.73Farmers1.66GEICO1.00

*USAA is only for active military, veterans, and their families.

Data from S&P Global Market Intelligence

Who gets the best car insurance rates in Michigan?

Drivers who get the best car insurance rates are going to be those who have the best credit scores and driving records.

But, there are lots of factors that go into how much your car insurance will cost. Your age, your gender, the type of car you’re driving, and even where you live will have an impact on the costs of your car insurance.

Every insurance company prices their policies and looks at factors differently, so it’s important to get quotes from multiple companies and compare them. Don’t just look for the lowest premium – consider all the moving parts of the policy, including the deductible and the coverage limits for each type of liability. The best way to save on car insurance in Michigan is to shop around.

Why is Michigan car insurance so expensive?

No fault laws are one of the main reasons Michigan residents see such high car insurance rates. In a no fault state, each driver is reimbursed for damages by their own insurance company.

Additionally, personal injury protection (also called PIP) liability is required in Michigan, and it’s expensive. Michigan law requires no maximum limit on the payout for personal injury protection, which drives up prices. While it’s helpful to have if you’re hurt in an accident, the price can make car insurance expensive up front.

Related Content Module: Best Auto Insurance by State

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