Although most drivers are expected to receive a $400 insurance premium refund in 2022, Michigan is one of the most expensive states in the country for car insurance. However, affordable rates are available, although it could take a bit of research to find them. Based on Bankrate’s analysis, Travelers offers the cheapest minimum coverage rates in the Great Lakes State, with an average premium of just $101 per year. If you are looking for more robust coverage, you can still protect your budget. Secura’s average annual premium for full auto insurance coverage is just $826 per year — the cheapest on our list.
The average cost of car insurance in Michigan is $948 per year for minimum coverage and $2,309 per year for full coverage, significantly higher than the national average. It’s no surprise then that finding the cheapest auto insurance in Michigan is a priority for many drivers. To help make your search for the cheapest car insurance easier, Bankrate analyzed average premiums from the state’s most popular car insurance companies.
The cheapest car insurance companies in Michigan
Finding the cheapest auto insurance in Michigan may take a bit of research, but it is worth the effort. Bankrate’s insurance editorial team partnered with Quadrant Information Services to obtain average rates for the largest insurance companies by market share. Knowing the average cost of car insurance from several carriers might help you understand if your premium is competitive. Although price is the primary concern for many Michigan drivers, we also evaluated each company’s available coverage options, discounts and third-party customer satisfaction scores.
If you are searching for cheap car insurance in Michigan, you might want to consider getting quotes from the five auto insurers Bankrate analyzed.
The cheapest companies for minimum coverage in Michigan
Minimum coverage car insurance refers to a policy that only meets Michigan’s state-required coverage and limits. While minimum coverage can help you get the cheapest rates, most insurance professionals recommend that you purchase higher limits for greater financial protection. If you are in the market for just the state-required coverage, these companies are among the cheapest:
|Car insurance company||Average annual minimum coverage premium||Average monthly minimum coverage premium|
The cheapest companies for full coverage in Michigan
Full coverage car insurance typically costs more than minimum coverage, but also gives you more financial protection. You’ll gain coverage for damage to your vehicle because full coverage includes both comprehensive coverage and collision coverage. While full coverage might be optional for some drivers, it’s usually required if you finance or lease your vehicle. These cheap car insurance companies have some of the most affordable rates for full coverage in the state:
|Car insurance company||Average annual full coverage premium||Average monthly full coverage premium|
Events that can impact your cheap rates in Michigan
Car insurance rates aren’t static; they can change based on your current circumstances. You might want to consider shopping around for coverage if your rate has recently changed because you:
- Added a teen driver: Teens pay some of the highest average rates of any age group due to their inexperience. Adding a teen driver could skyrocket your insurance costs, so you might want to check around for companies that are cheaper for teens. You can also take advantage of teen discounts, like savings for good students and those who participate in teen driver safety programs.
- Received a speeding ticket: Speeding tickets are typically a red flag for auto insurers that your driving habits aren’t safe. If you get a speeding ticket, you can expect your rates to be higher for the next three to five years. The amount of the premium increase you incur will depend on the specifics of your ticket; you will likely see a more significant increase the faster you were going over the speed limit.
- Were involved in an at-fault accident: If you cause one accident, insurance companies worry that you’ll cause more. Because of the change in your perceived risk level, you’ll likely be charged more for coverage for three to five years. If you have a clean driving record at the time of your accident and you have an accident forgiveness feature on your insurance policy, you might avoid this surcharge.
- Were deemed a high-risk driver: Several scenarios can result in you being considered a high-risk driver. Having multiple accidents, several tickets or a DUI conviction — or a combination of these — can mean you are a greater risk to an insurance company. Not all auto insurers will write policies for high-risk drivers, so you might have limited options for cheap car insurance in Michigan. Doing more research and getting quotes from companies that tailor their coverage to nonstandard drivers might help you find more affordable rates.
Cheapest cities for car insurance in Michigan
As a way to protect consumers from what could be considered discriminatory rating factors, Michigan has banned the use of information not directly related to your driving history as factors for calculating your car insurance premium. The ban precludes auto insurers from using information like your age, ZIP code, occupation, marital status and homeownership to determine rates. Because of this ban, average premiums across Michigan are fairly similar. However, other geographic factors can still affect the cost of coverage, like the price of vehicle repairs and medical care in your area, as well as the statistical likelihood of accidents.
Minimum coverage requirements for Michigan drivers
Like drivers in most states, Michigan drivers are required to carry at least a minimum amount of car insurance. To register your vehicle with the state’s department of motor vehicles (DMV), you must show proof that you purchased at least the minimum amount of coverage, which is 50/100/10:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $10,000 property damage liability per accident (for damage in other states)
Michigan policies default to 250/500/10 coverage, so you will need to select lower limits if you want to purchase minimum coverage.
Additionally, Michigan is a no-fault state, which means drivers have to carry personal injury protection (PIP) coverage. If you are in an accident, personal injury protection will pay for your medical expenses and lost wages, as well as the same costs for any passengers you have, up to your coverage limits, regardless of who caused the accident. As a result of auto insurance reform implemented in 2020, Michigan drivers can choose from six options for 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.
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 so that you are financially protected from significant losses. Minimum coverage also does not provide any coverage for damage to your vehicle, including collisions, storm damage and theft. 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 car.
Here is how to find (and keep) cheap car insurance in Michigan
Average car insurance premiums in Michigan are some of the highest in the country, but there are ways to find cheap rates. Once you have a cheap policy, you can also work toward keeping your rates low with these tips:
- Shop around: Car insurance companies all have different average rates. Shopping around can help you find the company that can offer the cheapest rate for the coverage you need. The Insurance Information Institute (Triple-I) recommends you get a minimum of three quotes to compare coverage and costs.
- Keep a clean driving record: Drivers with clean driving records avoid surcharges that can increase policy premiums. Avoiding accidents, tickets and DUI convictions can help you keep your premium low.
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 research and compare several carriers before choosing one.
Why is car insurance expensive in Michigan?
Michigan drivers pay more for auto insurance than drivers in many other states. There are several reasons for this. Although driving without insurance in Michigan is illegal, 25.5% of drivers in the state are estimated to be uninsured, which is the second highest volume in the U.S. according to the Insurance Research Council. This may contribute to the higher premiums because insurance companies are more likely to pay out claims caused by uninsured motorists. Additionally, Michigan has relatively high minimum coverage requirements, a large 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 auto insurer may pay for your medical bills, lost wages and other expenses stemming from an accident, regardless of who caused it. It does not mean that fault cannot be assigned in an accident or that the at-fault driver’s insurance company will not have to pay for any damages. It also does not guarantee that the at-fault driver cannot be sued for damages under certain circumstances.
How much does car insurance in Michigan cost?
In Michigan, the average cost of auto 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 is important to note that auto reform legislation in Michigan restricts the factors that auto insurers can use to determine how much you pay for insurance. While your motor vehicle record and make, model and year of your car are used to calculate your premium, insurers can no longer use your ZIP code, gender or credit-based insurance score.
Bankrate utilizes Quadrant Information Services to analyze 2022 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 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.