Michigan drivers pay a huge premium for car insurance—an average of $948 for minimum coverage and $2,309 for full coverage per year. In fact, Michigan is the fourth most most expensive state for car insurance, according to average rates provided by Quadrant information services.
There are a few reasons Michigan is more expensive than other states. For starters, it has a large number of drivers. By the Department of Transportation’s last count, the state has well over 7 million licensed drivers on the road today. Of those 7 million, only approximately 80% are actually insured, according to the Insurance Information Institute.
More critically, in 2019, Michigan State Police reported the state to have well over 314,000 accidents, which resulted in a total of 74,963 people injured and 985 deaths. In Michigan it’s clear that you not only need affordable car insurance, but you also need the right car insurance company. If you’re shopping for a policy that won’t break the bank and looking for a place to start, Bankrate has compiled the cheapest car insurance companies in the state that also deliver exceptional service.
The cheapest car insurance companies in Michigan
Drivers in Michigan are legally required to carry car insurance, regardless of 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. The chart below shows the cheapest car insurance in Michigan based on average full and minimum coverage rates. (Read: Switch your car insurance in 9 easy steps)
|Insurance Company||Average Minimum Coverage||Average Full Coverage|
Travelers is best known for the company’s phrase “stay covered, wherever the road takes you.” Drivers can select from an extensive list of coverage options to ensure that they are fully protected wherever they go. From the more common coverage options like comprehensive and collision coverage to the more unique options like uninsured motorist to medical payments coverage and more, you can find a plan that is truly custom to your needs.
In addition to coverage options, additional add-ons, and one of the cheapest average car insurance premiums in Michigan, Travelers offers various discounts that you can apply for extra savings. By bundling your policies, you could also save up to 13% on your car insurance.
Secura has been in business since the 1900s. The insurance company is best known for outstanding service with an AM Best rating of A. In addition to the company’s excellent customer service and affordable costs, drivers can choose from a wide variety of coverage and discount options.
A few of the additional features Secura offers include MILE-STONE, renters insurance, umbrella coverage, travel and roadside rescuer, safety resources, claims service and more. Customers also reap the benefits of an easy claims portal where you can easily report a claim online.
Drivers who are looking for affordable premiums, more coverage options and a personalized quote may find Westfield to be an attractive insurance company to look into. Westfield offers local Michigan agents so that you can choose your coverage, keep in-line with state requirements and add protections that are tailored for you. The types of auto insurance coverages that Westfield offers includes liability, collision, comprehensive, medical payments and personal injury protection.
Westfield offers discounts based on location and personal details, which you would need to discuss with your local agent. The insurance company focuses heavily on the savings that come from bundling auto and home insurance through the Wespak plan.
In addition to lower than average premiums in Michigan, Wolverine Mutual offers no-fault mandatory coverage and customizable options for drivers. Wolverine Mutual lets you customize your coverage and insurance premium rates to fit your personal and family needs, budgets and goals.
You can discuss with a local agent on all of the different options to reduce your premium. Some of the featured discount options include premier driver, safe driver renewal, multi-policy, safety belt, pleasure use, safety driver, good student and insurance scoring discounts.
Chubb offers excellent customer loyalty discounts. The best option for many Michigan drivers will qualify for is the bundling discount. Bundle your car and home together with Chubb insurance and you can potentially save significantly on your premiums. Also, if you have more than one car to insure and choose to insure both with Chubb, you may qualify for a multi-car discount on your policies.
A quick and easy discount with Chubb is the defensive driving discount. Take a Chubb-approved course online at your convenience (or in person if you prefer), and Chubb will reward you with permanent savings on your monthly premium. However, Chubb also has discounts that don’t require you to do anything extra, such as owning a car that has:
- An anti-theft device installed
- Anti-lock brakes
- Driver and passenger airbags
Affordable coverage for Michigan drivers
Michigan drivers are required by the state 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) 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.
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. Plus, if you plan on financing or leasing a vehicle, the dealership will require you to have full coverage, so keep that in mind while shopping around.
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. Many companies offer similar discounts, so you may need to speak with an agent to see how much you’ll save with each discount and what the impact will be. This may tip a company in your favor that wasn’t originally in your top spot.
- 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.
- Drive an older vehicle: New cars typically cost more to insure because they cost more to replace. If you can, drive an older vehicle to save on your premium.
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. The cheapest auto insurance in Michigan may not be the best provider for you.
What is the average cost of car insurance in the U.S.?
The average annual cost of car insurance in the U.S. is currently $565 for minimum and $1,674 for full coverage. Michigan drivers average significantly more than this. The current average Michigan drivers pay is $948 for minimum coverage and $2,309 for full coverage.
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, which is why it can be difficult to find especially cheap auto insurance in Michigan.
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.
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 2018 Honda Accord, 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.