Car insurance for high-risk drivers in Michigan

1
Nico De Pasquale Photography/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

You may be shopping for high-risk auto insurance in Michigan without realizing it. A high-risk driver is anyone an insurance company believes is likely to file a claim in the future. This means that if you are a teenager or have been convicted of a serious moving violation, you may pay more than average.

From an insurance company’s perspective, increased rates for high-risk drivers are warranted. In 2018, Michigan had 312,798 accidents, which resulted in 905 deaths, 55,340 injuries and 256,553 cases of property damage. That’s a lot of claims for insurance companies to process for a single state.

Rates for high-risk car insurance in Michigan

The risk-factors listed below are weighted differently by insurance companies. What one provider cares more about might have less of an increase with a different company.

Rates after a speeding ticket

The severity of your speeding ticket will be used to calculate your cost increase, but so, too, will your past driving history. Look at the table below to get an idea of what you can expect after a speeding ticket.

Car insurance company Michigan average annual premium for full coverage before a speeding ticket Michigan average annual premium for full coverage after a speeding ticket % difference
Geico $1,467 $1,681 14%
Metlife $1,668 $2,612 56%
Secura $826 1,050 27%

As you can see, the cost difference between companies is not predictable. If you received a speeding ticket, it may behoove you to shop around for a lower premium in the near future.

Rates after an accident

The cost increase after an accident can be quite significant, but the difference you see may be more or less than the numbers below. Your past driving history as well as the severity and reason for the accident will all play a role.

Car insurance company Michigan average annual premium for full coverage before an accident Michigan average annual premium for full coverage after an accident % difference
Geico $1,467 $2,032 38%
Metlife $1,668 $3,533 111%
Progressive $1,394 $2,418 73%

It’s important to note just how different the percentage difference can be between companies after an accident. While some companies may be the cheapest before an at-fault accident, they are not afterwards.

Rates after a DUI

After a DUI, some companies do not allow a driver to renew their policy. In addition to increased rates, you may have to submit an SR-22 or FR44 to the DMV as proof you are carrying insurance. The following table shows the price difference from a few providers.

Car insurance company Michigan average annual premium for full coverage before a DUI Michigan average annual premium for full coverage after a DUI % difference
Allstate $2,726 $4,300 57%
Geico $1,467 $3,227 119%
Progressive $1,394 $2,067 48%

If you broke the speed limit, injured someone while drinking and driving or you have multiple DUIs on your record, the cost difference will probably be dramatically more.

Rate for teen drivers

In 2018 Michigan teenagers were involved in a total of 68,684 accidents, which resulted in 16,583 injuries, 51,903 cases of property damage, and 198 fatalities. For such a small demographic, that’s a lot of claims. The table below shows the amount a 16 year old driver will add to their parents’ policy.

Car insurance company Average annual premium for full coverage
Geico $1,446
Progressive $1,515
State Farm $6,933

*16-year-old on their parent’s policy

Fortunately, many insurance companies offer multiple discounts that students can take advantage of to help with premium costs. Look for defensive driving courses, good student and student away at school discounts. You can also look at driving analytics discounts to help encourage your teen to drive safely. Just keep in mind that if the insurance company doesn’t like what it sees, you may end up paying more.

Who is a high-risk driver?

A high-risk driver is a driver who has or is one or more of the following:

  • Multiple speeding tickets
  • At-fault accidents
  • Past DUIs
  • Low credit score
  • Lapse in insurance coverage
  • Teenage driver

Insurance companies may believe having at least one of these traits suggests you will likely make a claim in the near future, so they charge more money for high-risk car insurance in Michigan.

The standard industry definition of a high-risk driver is anyone who is unable to get a policy with their preferred carrier. Though this may be the case, it’s by no means a certainty that your policy will be canceled or denied. What often happens is that drivers simply need to pay more for car insurance.

How to lower your rate if you are a high-risk driver

Michigan high-risk auto insurance costs a lot of money, but there are ways to lower it.

  • Shop around: As you saw, insurance companies charge different rates, which means you may not be penalized as much if you switch providers.
  • Compare discounts: Discounts are pretty commonplace among national providers (many even offering the same ones). Two companies may offer you the same discounts, but one may offer more savings.
  • Drive an older car: Old cars don’t cost as much to replace, which means they are cheaper to insure. To get the most potential for savings, purchase a car with a high safety rating that you can also pair up with discounts (such as anti-lock brakes, daytime lights and airbags).

Frequently asked questions

What is the best car insurance company?

The best company will depend on your needs and what you are looking for. For our picks based on coverage options, average rates and customer service, see our Best car insurance companies for 2021 page.

What is the average cost of car insurance?

The average cost of car insurance in the U.S. is $1,674 for full coverage and $565 for minimum coverage.

The average in Michigan is $2,309 for full and $948 for minimum.

What is the best car insurance company in Michigan?

We narrowed it down to Geico, USAA, Progressive, Auto-Owners and State Farm. To see why, read Best car insurance in Michigan 2021.

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.

High-risk drivers
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

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.