Michigan drivers pay a huge premium for car insurance—an average of $1,358.62 per year. In fact, Michigan is the second most expensive state for car insurance, according to the Insurance Information Institute (III). If you’re a Michigander who’s shopping for a policy that won’t break the bank, look no further. We found some of the cheapest car insurance companies in the state.
The cheapest car insurance companies in Michigan
Drivers in Michigan are legally required to carry car insurance. It doesn’t matter how often you drive, or what type of car you have. Even though insurance is expensive, there are several companies that offer below-average rates. Here are a few to consider.
Geico is best known for its catch phrase, “15 minutes could save you 15 percent or more on car insurance.” But it’s not just a gimmicky slogan. Geico offers extremely cheap car insurance to drivers around the country. In J.D. Power’s 2020 U.S. Auto Insurance Study, Geico was ranked the best provider in the North Central region, which includes Michigan.
In addition to low rates, Geico customers can also take advantage of tons of great discounts. You can save up to 40 percent for having airbags in your car, get 15 percent off if you’re a member of the military, and even lower your rate by 25 percent if you insure multiple cars on the same policy. Geico also has discounts for good students, federal employees and safe drivers.
Another option for cheap car insurance in Michigan is Progressive. The company, represented by the iconic spokeswoman named Flo, offers low rates, great online tools, a variety of coverage options, and good discounts. Progressive’s Answers section has lots of helpful information for first-time car insurance buyers.
Progressive does offer a number of basic discounts, but it stands out for its innovative saving tools. Good drivers can lower their premium by enrolling in the Snapshot program, which rewards safe drivers with a more affordable rate. You can use the Name Your Price Tool to see Progressive’s best coverages that fall within your budget. And you can even compare Progessive’s prices to competitors on the website.
USAA is widely considered to be the gold standard in terms of insurance. But unfortunately, it’s not available for everyone. USAA only sells coverage to members of the military, veterans and their spouses. If you qualify for USAA coverage, you’ll get access to affordable rates, great customer service and a variety of coverage options.
According to its website, USAA customers save an average of $707 per year when they switch from another company. Drivers can also lower their rate with discounts. If you’re a safe driver, a good student, take a driver training course, or insure a new car, you’ll save money. If you’re active-duty military, you can save up to 15 percent on comprehensive coverage for garaging your vehicle on base.
Affordable coverage for Michigan drivers
Michigan drivers are required to carry a minimum amount of car insurance. To register your car with the state’s department of motor vehicles, you must show proof that you have the minimum amount of coverage, which is:
- $20,000 bodily injury liability coverage per person
- $40,000 bodily injury liability coverage per accident
- $10,000 property damage liability coverage per accident
Additionally, Michigan is a no-fault state, which means drivers have to carry Personal Injury Protection (PIP) insurance. If you’re in an accident, PIP will pay for your medical expenses and lost wages, regardless of who caused the accident. As of 2020, Michigan drivers can choose from six types of PIP insurance to avoid overlap with their health insurance coverage.
If you want to save money on your car insurance, don’t be tempted to settle for the minimum amount of coverage. There’s no guarantee that it will cover the full cost of an accident. You could end up paying more money out-of-pocket towards a loss if you’re underinsured.
How to get cheap car insurance in Michigan
There are a few ways Michigan drivers can get cheap car insurance. Here are some options:
- Raise your deductible: Your deductible is the amount of money you’re required to pay out-of-pocket towards a claim before the insurance company will reimburse you. The higher your deductible is, the lower your monthly premium will be. If you’re going to raise your deductible, make sure you can afford the higher cost.
- Improve your credit score: Drivers with a low credit score pay more for car insurance because they are considered high-risk. If you can improve your credit score, even by a few points, the insurance company will lower your premium.
- Take a defensive driving course: Most insurance companies will lower your rate if you take an approved defensive driving or driver safety course.
- Look for discounts: Almost every insurance company offers discounts. When you’re shopping around for insurance, pay close attention to the discounts that each company offers. The more discounts you qualify for, the more money you can save.
- Shop around: Don’t buy a policy from the first company you find. Shop around and get quotes from a few providers to compare rates and see which company can offer you the lowest price.
With some investigation, you may be able to find a lower premium than you would have had otherwise.
Frequently asked questions
What is the best car insurance in Michigan?
Technically, there isn’t one car insurance company in Michigan that is the best option for every driver. Some companies are the best for low rates, while others are the best for customer service. In order to find the best car insurance company, do some research and compare several providers before choosing one.
Is Michigan a no-fault state?
Michigan is one of 12 states that is considered “no-fault.” That means your insurance company will pay for your medical bills, lost wages and other expenses stemming from an accident, regardless of who caused the crash.
Living in a no-fault state can be beneficial because the claims process is generally much more efficient. However, drivers in Michigan must carry PIP insurance, which comes at an added cost.
How much does car insurance in Michigan cost?
In Michigan, the average cost of car insurance is $1,358.62 per year, according to the III. However, every driver pays a slightly different rate. Certain factors, like your zip code, age, credit score and claims history are used to calculate your premium.