The 2022 average cost of car insurance in Ann Arbor, Michigan, is $1,884 per year for full coverage, or $157 per month. A minimum coverage policy costs an average of $741 per year. Bankrate’s insurance editorial team took a close look at the companies writing policies in the city to help you find the best car insurance in Ann Arbor at a price within your budget.


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The cheapest car insurance companies in Ann Arbor are Secura, USAA, Geico, Progressive and AAA, according to Bankrate’s study of quoted annual premiums. However, to find the best car insurance in Ann Arbor, many drivers may consider more than just price. That’s why Bankrate considered carriers that offer a strong combination of affordable average rates, great customer service, positive financial strength ratings, and coverage type and discount variety.

Best cheap car insurance companies in Ann Arbor

Secura, USAA, Geico, Progressive and AAA offer some of the best cheap car insurance in Ann Arbor, according to our analysis of rates provided by Quadrant Information Services. Average rates in Ann Arbor from these carriers fall below the city averages of $1,884 per year for full coverage and $741 for minimum coverage. For comparison, the national annual average cost of car insurance is $545 for minimum coverage and $1,771 for full coverage.

To help compare these companies based on factors that are important to drivers, Bankrate assigned a Bankrate Score to each one out of a possible 5 points. This Score is based on various criteria, including coverage options and discounts. We also looked at third-party scores from J.D. Power for customer satisfaction and AM Best ratings for financial strength.

Insurance company Bankrate Score J.D. Power score (North Central region) Average annual premium for full coverage Average annual premium for minimum coverage
Secura 3.2 Not scored $895 $117
USAA 4.3 891/1,000* $962 $241
Geico 4.4 847/1,000 $1,003 $420
Progressive 4.2 827/1,000 $1,314 $677
AAA 2.9 Not scored $1,418 $377

*USAA is not officially ranked with J.D. Power due to eligibility restrictions


Secura is a regional insurer that sells policies in 13 states, including Michigan. The company’s average rates for Ann Arbor drivers are some of the lowest on our list, but all Secura policies are bundled. You need to purchase both homeowners and auto insurance as a package deal, for which you will pay a single premium. If you are comfortable with that arrangement, Secura may be worth looking at. Secura policyholders may also save for driving a hybrid or electric car and remaining claims-free, among other discounts. However, Secura’s digital tools are not as developed as some other carriers on this list.

Learn more: Secura Insurance review


USAA is consistently one of the highest-scoring providers in J.D. Power Auto Insurance studies but is not considered for official ranking because of its eligibility requirements. USAA only writes policies for active-duty military members, veterans and their eligible families. For drivers who qualify, USAA offers low average Ann Arbor rates and military-focused discounts like potential savings for garaging a vehicle on a military base. USAA doesn’t have as many endorsements as some competitors, but some add-ons are available, like roadside assistance and car rental reimbursement.

Learn more: USAA Insurance review


Geico is well-known for low average rates and plenty of discounts. Potential savings are available for military members, good students, bundling, alumni groups, professional organizations and more. Drivers may be able to build a more robust policy with Geico with endorsements for emergency roadside service, rental reimbursement and mechanical breakdown insurance. Geico’s digital tools are highly rated for virtual policy management, but it does not have many brick-and-mortar locations, which may be a drawback for shoppers who prefer to work with in-person agents.

Learn more: Geico Insurance review 


For drivers looking for a little bit of everything, Progressive offers a strong balance of low rates, strong digital tools and a robust list of endorsements and discounts. Add-ons include rental car reimbursement, custom parts coverage, ridesharing coverage and gap insurance. Progressive scored well below the segment average in J.D. Power’s 2022 Auto Insurance Study, so drivers who value customer service may want to speak with existing policyholders about their experience.

Learn more: Progressive Insurance review


Insurance from the American Automobile Association, or AAA, is available through regional clubs. There are several AAA offices in Ann Arbor and the surrounding region, so if you appreciate doing business with a local agent who understands the needs of drivers in your city, AAA may be worth considering. Average AAA car insurance rates are not the cheapest on our list, but they’re still far below the Ann Arbor average. AAA offers lots of potential extras for members and policyholders, including travel discounts and DMV services. However, AAA customer service and coverage options may vary based on the club, so it may be beneficial to speak with existing policyholders to get a sense of their experience with the company.

 Learn more: AAA Insurance review

How to get and keep the cheapest car insurance in Ann Arbor

Average car insurance rates in Ann Arbor are above the national average, so it may take some extra work to find cheap coverage. However, these strategies may help you achieve affordable rates and keep them stable over time.

  • Maintain a clean driving record. Insurance companies are in the risk business, so they will likely charge you higher rates if you have accidents, tickets or other high-risk incidents on your record. Maintaining a clean driving record may help you save, even if you already have a few marks on your record.
  • Re-shop insurance after a big life event. Personal rating factors impact your car insurance rates, so it may benefit your wallet to shop around when you experience a big life change. This may include buying a new car, moving, getting married or adding a teen driver to your policy. A different company may quote you lower rates or additional discounts for your new circumstances.

Frequently asked questions

    • The best car insurance companies in Michigan will likely depend on what is most important to you as a driver. Some shoppers may value customer service, while others might be looking for a great bundling discount. Making a list of your key priorities and comparing quotes from companies that meet your criteria may help you identify the best car insurance company for you.
    • Some insurers do offer discounts to college students, although these may vary from company to company. Common savings opportunities include maintaining a good GPA and leaving your car at home while you’re away at college. Some carriers also offer affiliation discounts for members of approved student organizations and professional groups.
    • The amount of car insurance you need to purchase likely depends on your personal circumstances. Although you will need to meet Michigan’s minimum car insurance requirements to drive legally, any additional coverage types you choose are up to you. Most insurance professionals recommend purchasing full coverage, which includes comprehensive and collision insurance, if you can afford to do so to offer financial protection for your vehicle in the event of an accident or other covered event. Speaking with a licensed insurance agent may help you identify if you could benefit from any other auto insurance endorsements.
    • Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
      • $100,000 bodily injury liability per person
      • $300,000 bodily injury liability per accident
      • $50,000 property damage liability per accident
      • $100,000 uninsured motorist bodily injury per person
      • $300,000 uninsured motorist bodily injury per accident
      • $500 collision deductible
      • $500 comprehensive deductible

      To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.These are sample rates and should only be used for comparative purposes.

    • Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
      • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
      • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
      • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.