The 2021 average cost of  insurance in Ann Arbor, Michigan, is $2,003 annually for full coverage, or $167 a month, while a minimum coverage policy costs $830 per year. These rates are significantly higher than the national average, so it may be a priority for many drivers in Ann Arbor to find the best cheap car insurance.

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The cheapest car insurance company in Ann Arbor is USAA, according to Bankrate’s study of quoted annual premiums. However, to find the best car insurance in Ann Arbor, it’s important to consider more than price alone, which includes considering more than just minimum coverage. It’s important to choose a provider that offers the right combination of affordable rates, great customer service, coverage types suited to your situation and a positive financial strength history.

Best cheap car insurance companies in Ann Arbor

USAA, Progressive, Geico and Auto-Owners have the cheapest car insurance in Ann Arbor, according to our research of rates from Quadrant Information Services. To help compare these companies on factors that are important to drivers, Bankrate assigned a Bankrate Score to each one, out of a possible five points. The Score is based on various criteria, including coverage options, discounts, financial strength ratings and customer satisfaction scores, which may help to determine the best car insurance in Ann Arbor, Michigan.

While finding the cheapest car insurance in Michigan may be a starting point for Ann Arbor drivers, the best car insurance provider for your circumstances may not necessarily be the one with the lowest rates in the market. Consider how the following insurance providers compare:

Insurance company Bankrate Score J.D. Power score (North Central region) Average annual premium for full coverage Average annual premium for minimum coverage
USAA* 5 895/1,000 $1,138 $448
Progressive 4.4 842/1,000 $1,172 $611
Geico 4.7 837/1,000 $1,224 $612
Auto-Owners 4.5 842/1,000 $1,725 $698

*Not officially ranked with J.D. Power due to eligibility restrictions


USAA has the cheapest rates in Ann Arbor for full coverage among insurers in this review. However, qualifying for membership to USAA may be a limitation for some drivers, since the company only accepts current or former military members and their qualifying immediate family members.

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. For drivers who qualify, USAA is often one of the cheapest car insurance companies in many regions across the U.S., which makes it a great cheap car insurance option to consider. The discounts and coverage options offered by USAA are especially fitting for those in the military lifestyle. For example, drivers can save up to 15% for parking their car on a military base.

Learn more: USAA Insurance review


Progressive has quite a bit to offer, including the second cheapest car insurance in Ann Arbor for full coverage rates. Beyond affordability, it offers the NameYourPrice tool, which allows you to set your budget and determine which coverage types will fit within your policy price range. While it might not offer as many specialty coverage options as other providers, Progressive has sound financial strength, with a rating of A+ (Superior) from AM Best.

Learn more: Progressive Insurance review


Geico offers a generous number of discounts, which further props it up as one of the cheapest insurance companies in Ann Arbor. You could potentially qualify for significant savings with discounts of up to 23% savings for air bags, or even more savings if you have an anti-theft system. While it does not earn an above-average customer satisfaction ranking in the 2021 J.D. Power Auto Insurance Study, Geico does hold an A++ (Superior) rating with AM Best.

Learn more: Geico Insurance review 


Auto-Owners offers discounts to help you save, although it does have the highest rates among our list of cheapest car insurance companies for Ann Arbor. However, if you pay your bill on time for three years, Auto-Owners may automatically reward you with a lower premium. Auto-Owners also offers a multitude of coverage options, which let you personalize a policy to fit your exact needs. Auto-Owners has the second-highest ranking for customer satisfaction in the North Central region among the other insurers in this review.

Learn more: Auto-Owners Insurance review

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

When considering the cheapest car insurance companies in Ann Arbor, you may want to ensure you are doing what you can to keep rates affordable once obtained.

  • Compare numerous insurance providers. Whether you are purchasing a brand new policy or trying to find a new provider, comparing multiple quotes can show you which one has the best rates for your situation. Rates can vary tremendously from one provider to another, even with the same coverage factored into the quote, so it’s worth assessing side-by-side.
  • Re-shop insurance after a big life event. As the big moments in life take place — new job, relocation, new home, marriage or adding a teen driver to your policy — it’s possible for new discounts, better rates or improved coverage options to become available for your new life situation by re-shopping coverage. What may have fit your budget with one insurer could change as your life situation shifts.

Frequently asked questions


Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 2019 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.

Bankrate Score

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.