Cheapest car insurance in Michigan for 2021

1
Cristian Bortes / EyeEm/Getty Images

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Michigan is one of the most expensive states in the country for car insurance. Drivers pay an average of $948 per year for minimum coverage and $2,309 per year for full coverage, rates that are significantly higher than the national annual average cost of insurance. The high cost could be due to the fact that over 25% of Michigan drivers are estimated to be uninsured. Additionally, Michigan has a relatively high incidence of car accidents, with over 300,000 occurring in 2019, the most recent year with available data.

Because it is so expensive, finding the cheapest car insurance in Michigan may be a priority for many drivers. Bankrate’s insurance editorial team partnered with Quadrant Information Services to obtain current premium information for the largest insurance companies. This information may help you find cheap car insurance in Michigan.

The cheapest car insurance companies in Michigan

Finding the cheapest auto insurance in Michigan may take a bit of research, but it is possible. Bankrate has reviewed the largest Michigan insurance companies by market share and analyzed the average premiums of each. Although price is the primary concern for many Michigan drivers, we also evaluated each company’s available coverages, discounts and third-party scores.

If you are searching for cheap car insurance in Michigan, you might want to consider getting quotes from the following companies:

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $482 $1,255
Progressive $683 $1,394
Auto-Owners $827 $1,982
AAA $893 $2,221
Pioneer State $927 $1,975

USAA

USAA’s average minimum and full coverage premiums are well below Michigan’s average. However, you only qualify for USAA coverage if you are a current or past military member or an immediate family member. Although the company is not eligible for official J.D. Power rankings due to these eligibility restrictions, USAA consistently receives high scores.

If you qualify for coverage, USAA claims that drivers save an average of over $700 when they switch their coverage. In addition to low average premiums, USAA offers several discounts which may help you save even more. You might save for insuring a new vehicle, garaging your vehicle on a military base or storing your vehicle while you are deployed.

Progressive

Progressive may be a good choice if you are looking for low average premiums combined with strong digital tools. You can pay bills, file claims, make changes, access ID cards and get quotes from the company’s website or mobile app.

Progressive offers the ability to get quotes from several different insurance companies from its website, which could save you time when shopping for insurance. If you decide to purchase a Progressive policy, you may have access to optional coverages like custom parts coverage, loan/lease payoff and ridesharing coverage.

Auto-Owners

Auto-Owners is a regional carrier headquartered in Lansing, Michigan. The carrier only sells insurance in 26 states, but because it was established in Michigan, it may be uniquely positioned to understand the insurance needs of Michigan drivers.

Auto-Owners does not disappoint when it comes to coverage options or discounts. You may want to consider adding coverages like diminished value or road trouble service, and you could qualify for discounts like paid-in-full or claims-free. Auto-Owners also received a high ranking in the 2020 J.D. Power U.S. Auto Insurance Study, indicating that customers are generally happy with the company’s service. However, Auto-Owners insurance cannot be purchased online. You must work with a local agent to obtain coverage.

AAA

The first thing that comes to mind when you think of AAA is likely emergency roadside assistance, but the company also sells insurance products. Though its full coverage premium is the highest on our list, you may want to consider a quote from AAA.

The company offers a variety of coverage options, including enhanced total replacement cost, which will pay to replace your totaled vehicle with a comparable model that is one to two years newer; ridesharing coverage, which you may need if you drive for a company like Uber or Lyft; and OEM coverage, which pays for original manufacturer parts to be used to repair your vehicle after a claim.

Pioneer State

Pioneer State is a company local to Michigan, so, just like Auto-Owners, it may be more understanding of the unique needs of Michigan drivers. If you prefer face-to-face interactions, Pioneer State may be a good choice for your insurance. The company sells its products through independent agents.

Pioneer State’s auto insurance offers several ways to tailor your coverage to your needs. The Personal Auto Pioneer Advantage package includes new car replacement and trip interruption coverage. You may also be able to add options like pet injury coverage, preferred location towing and customized equipment coverage.

Minimum coverage requirements for Michigan drivers

Like drivers in most states, 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 50/100/10:

  • $50,000 bodily injury liability coverage per person
  • $100,000 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) coverage. If you are in an accident, PIP will pay for your medical expenses and lost wages, as well as the same expenses for any passengers you have, regardless of who caused the accident. As of 2020, Michigan drivers can choose from six options of PIP insurance. Drivers are also required to purchase property protection insurance (PPI), which applies to damage caused to other people’s property within Michigan, like fences or buildings, up to $1 million dollars.

If you want to save money on car insurance, you may be tempted to purchase minimum coverage. While minimum coverage is often a cheaper option, most insurance professionals advise that you purchase higher liability limits if you can afford them. Minimum coverage also does not provide any coverage for damage to your own vehicle. For that, you will need full coverage. You may even be required to purchase full coverage if you have a loan or lease on your vehicle.

How to get cheap car insurance in Michigan

Car insurance in Michigan may be expensive, but there are ways to save. If you are trying to find cheap car insurance in Michigan, you may want to:

  • Raise your deductible: Your deductible is the amount of money you are required to pay out-of-pocket if you file a comprehensive or collision claim for damage to your own vehicle. Generally, the higher your deductible is, the lower your monthly premium will be. Usually, your collision deductible will have a bigger impact on your premium than your comprehensive deductible. Just be sure to choose a level that you feel comfortable paying in case you file a claim.
  • Look for discounts: Almost every insurance company offers discounts. When you are shopping for insurance, you may want to research the discounts that each company offers. If you can qualify for one or more discounts, you could save money on your premium.
  • Shop around: Getting quotes from several companies could help you find the coverage you need for a lower price. When you review several different companies, you can compare premiums, coverage offerings, discounts and third-party rankings.
  • Reconsider your car: Although buying a different car may not be the easiest way to save money on insurance, some cars are cheaper to insure than others. If you are driving an expensive vehicle and need to find cheaper coverage, finding a different car could help lower your premiums.

Every company has different discounts and underwriting regulations, so getting quotes from several companies is one of the easiest ways to search for cheaper coverage.

Frequently asked questions

What is the best car insurance in Michigan?

There is not one car insurance company in Michigan that is the best option for every driver. Because everyone has different needs from their auto insurance, different companies will fit the needs of different drivers. If you are looking for the best car insurance company, you may want to do some research and compare several providers before choosing one.

Why is car insurance expensive in Michigan?

Michigan drivers do pay more for insurance than drivers in many other states. There are several reasons for this. The high percentage of uninsured drivers may contribute to the higher premiums, since insurance companies are more likely to have to pay out claims caused by uninsured motorists. Additionally, Michigan has relatively high minimum coverage requirements, a high number of licensed drivers and a relatively high incidence of accidents.

Is Michigan a no-fault state?

Michigan is one of 12 states that is considered “no-fault.” That means your insurance company may pay for your medical bills, lost wages and other expenses stemming from an accident, regardless of who caused it.

How much does car insurance in Michigan cost?

In Michigan, the average cost of car insurance is $2,309 per year for full coverage, whereas minimum coverage averages $948 per year. Every driver pays a slightly different rate based on certain factors. However, it may be worth noting that Michigan’s newest law no longer allows non-driving factors to be included in insurance rates.

This means that while information regarding your driving history will still be relevant, other pieces of information such as your marital status or credit score will not impact premiums. Certain factors, like your ZIP code, age, credit score and claims history are used to calculate your premium.

Methodology

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 coverages that meet 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.

Written by
Cate Deventer
Insurance Editor
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in professional and technical writing from Indiana University East. She began writing for Bankrate in January 2021 and has nearly a decade of experience in the insurance industry as a licensed insurance agent. Cate has worked with over a dozen insurance companies and is experienced with auto, home, flood, umbrella and life insurance.
Edited by
Insurance Editor