Best cheap car insurance in Ann Arbor

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Car insurance in Ann Arbor costs, on average, around $830 for minimum and $2,003 for full coverage. Though this isn’t cheap, it’s lower than the state average of $948 for minimum and $2,309 for full coverage.

Ann Arbor’s residents pay less for a few different reasons, but mainly because Ann Arbor is a pretty safe place to drive. In 2018, for example, Washtenaw County only had 11,006 accidents, which only accounted for 3.5% of all Michigan accidents. Interestingly enough, 3.5% accounts for the population density of Washtenaw county. Compared to the rest of the state, Ann Arbor of Washtenaw County is relatively small.

There are ways Ann Arbor drivers can save even more on their car insurance premiums. To find the best cheap car insurance in Ann Arbor, we looked at a variety of factors, including customer service, financial strength, amount of coverage options and discounts, as well as the average price of a premium.

Best car insurance companies in Ann Arbor

To determine the best car insurance in Ann Arbor, we compared customer service ratings from J.D. Power and analyzed coverage options, available discounts and premiums.

The table below represents our top five picks for Ann Arbor:

Insurance Company J.D. Power Score Average Annual Premium for Minimum Coverage Average Annual Premium for Full Coverage
Travelers 828 / 1,000 $91 $1,343
Geico 851 / 1,000 $612 $1,224
USAA 897 / 1,000 $448 $1,138
Progressive 824 / 1,000 $611 $1,172
Auto-Owners 845 / 1,000 $698 $1,725

Travelers

Travelers offers drivers a total of 14 discounts to choose from, many of which will shave a sizable chunk from their premium. Multiple policies with Travelers, for example, will save policyholders up to 13% on car insurance. Maintain continuous insurance between policies and companies, and you could save up to 15%. All in all, everyone can find a way to save with Travelers.

Geico

Like Travelers, Geico offers a lot of significant discounts. Save up to 25% for insuring multiple cars through Geico, up to 23% for having airbags and another 23% for having an anti-theft system installed. The most notable thing about Geico, however, is its customer service. It’s so good that J.D. Power named it the best in class for Michigan in 2020.

USAA

If you qualify for insurance through USAA, you should strongly consider it. As of right now, it only accepts current or retired military as well as their immediate family members.

Year after year, USAA is the technical winner of J.D. Power’s customer service study but is disqualified because of its eligibility requirements. It’s often also the cheapest provider for many regions across the U.S., which it can do without too many discounts. However, the discounts it does offer are either frequently used by drivers or tailor-made for active military. For example, drivers can save up to 60% for garaging their car while deployed.

Progressive

We like a lot of things about Progressive. Our favorite is the ‘Name Your Price’ tool it offers. Tell Progressive your budget and needs, and it, in turn, will tell you every option you have.

Another thing we like about Progressive is its Snapshot® discount, which uses an app to analyze your driving behavior. If you’re a safe driver, you could save up to 10% on your premium. Currently, the average savings drivers see each year is about $145.

Auto-Owners

Auto-Owners provides some unique discounts to help you save. For starters, if you pay your bill on time for three years, it will automatically reward you with a lower premium. You can also save if you open a life insurance policy with Auto-Owners.

The best part about Auto-Owners is the sheer amount of coverage options it offers to drivers in Michigan. At last count, it provides ten options for drivers.

Cheapest car insurance in Ann Arbor

Though Ann Arbor is cheaper than the state average for car insurance, it’s still much more expensive than the U.S. average. Compared to the rest of the country, Ann Arbor is $299 more expensive for minimum coverage and $379 more expensive for full. Finding a cheaper provider is definitely worth the effort.

According to our research, here are the cheapest providers operating in Ann Arbor:

Insurance Company Average Annual Premium for Minimum Coverage Average Annual Premium for Full Coverage
Travelers $91 $1,343
USAA $448 $1,138
MetLife $448 $1,333
Progressive $611 $1,172
Geico $612 $1,224

While Travelers offers the cheapest minimum coverage, it’s worth noting that Geico’s full coverage is relatively inexpensive, too. All companies provide exceptional customer service compared to other providers. Currently, Geico, Progressive and Travelers are more tech-savvy than USAA and MetLife (and offer more discounts, too). MetLife, however, is a great company to work with if you plan on bundling policies. Drivers save an average of $562 a year by using them for both car insurance and home insurance.

Ann Arbor insurance requirements

Michigan requires all Ann Arbor drivers to have a 50/100/10 policy, which means your insurance provider must cover up to:

  • $50,000 per person for bodily injury/ death
  • $100,000 per accident for bodily injury/ death
  • $10,000 per accident for property damage

Michigan also requires PIP coverage too, but it recently changed its laws. Drivers now have six options to choose from, one of which is to opt-out entirely if your health insurance provides coverage for car-related injuries at a certain level.

The question is whether minimum coverage is enough. The answer, unfortunately, is that it often is not. If we disregard medical injuries and just focus on property damage, it’s clear that $10,000 is not enough coverage for many people. For this reason, many lenders and dealerships usually require full coverage when financing or leasing a new car in Michigan. It’s a good idea to shop around and compare full coverage options or customizable packages to meet your needs. If in doubt, contact a licensed insurance agent for some guidance.

Car insurance discounts in Ann Arbor

Most car insurance providers typically provide these discounts:

  • Good Student
  • Defensive Driving
  • Multi-Car
  • Multi-Policy
  • Anti-Theft

A quick and relatively painless way to get a permanent discount on your car insurance premium is to take a defensive driving course. It does cost money, but the savings you’ll receive will typically pay for it within just a few months.

The best discounts often come from ‘customer loyalty’ discounts. Insure more than one car with the same provider, or open up another policy, and you’ll often be rewarded with some generous savings.

Frequently asked questions

What is the best car insurance company?

There isn’t one single way to answer this question because drivers often have different needs. It’s a good idea to research all the car insurance companies available in your area to compare rates and discounts. A licensed insurance agent can also give you more insight into what is available to you.

Is Michigan still a no-fault state?

Yes, Michigan is still a no-fault state. Recently, however, the state raised the minimum insurance requirements but changed personal injury protection (PIP) laws. Drivers now have the option to opt-out if they choose, but to do so, their health insurance provider must cover injuries sustained from a car accident, and the deductible must be less than $6,000.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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 coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Written by
Lauren Ward
Insurance Contributor
Lauren Ward has nearly 10 years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, and Reviews.com. She covers auto, homeowners, and life insurance, as well other topics in the personal finance industry.