As of 2018, Michigan had over 227.5 million licensed drivers on the roads. According to the Insurance Institute for Highway Safety (IIHS), Michigan had 9.7 deaths from vehicle accidents per 100,000 population in 2018.
Because Michigan has a large number of licensed drivers, residents have many options for selecting car insurance. If you are already subscribed to an insurance policy but are unhappy with your current rate, there are other car insurance companies in Michigan that may offer a better quote or the add-on coverages you want.
Best car insurance companies in Michigan
Based on J.D. Power score ratings and affordability, these insurance companies made the list of top car insurance companies in Michigan.
|J.D. Power customer satisfaction rating||AM Best financial stability rating||Average annual premium for full coverage|
Geico was ranked the best car insurance company in the North Central region by J.D. Power, which includes Michigan. It’s one of the biggest car insurance providers in the country, and there’s a reason why so many people choose Geico for insurance—cheap rates. Additionally, Geico customers can take advantage of a variety of discounts and add-on coverages, including roadside assistance, rental car reimbursement and mechanical breakdown insurance.
USAA would be higher on this list were it not for its eligibility requirements. USAA currently mandates that its members be current or former military members (or immediate family members). If this applies to you, strongly consider joining. USAA consistently scores as one of the best insurance companies in the business. It offers great rates, numerous ways to save, and has a solid mobile and online presence. Lastly, it pays its members yearly dividends whenever it exceeds certain profit margins.
Progressive is known for outstanding customer service and offers a rate within the middle range of not being too expensive at an average of $1,338 annually for full coverage. Progressive is a good choice for drivers who find 24/7 customer support, unique coverage options and multiple ways to save attractive options.
Auto-owners works primarily through independent agents, which is a pro or a con for some people. There are fewer options for managing your policy online, but working with an agent means you’ll probably get better customer service. Auto-owners offers great add-on coverages, including gap insurance, diminished value coverage and a common loss deductible. If you get into an accident with another driver who is covered by Auto-owners, there’s no collision deductible. We were also impressed by Auto-owners car insurance discounts.
Although State Farm is on the higher cost end in Michigan at a whopping average of $3,729 annually for full coverage premiums, it offers a wide range of customizable coverage options and an extensive list of discounts that may lower your annual costs. State Farm may be a good option especially affordable for teen drivers and good student drivers because of the offered discounts.
Average car insurance cost in Michigan
|Average annual premium for minimum coverage in Michigan||Average annual premium for full coverage in Michigan|
Part of the reason Michigan car insurance is so expensive is because it is a no-fault state. In a no-fault state, a driver’s insurance company pays for their losses after an accident, regardless of which driver caused the crash. Because Michigan is a no-fault state, drivers are required to carry personal injury protection (PIP) coverage.
Although PIP is beneficial to drivers, it means insurance companies are on the hook for potentially huge payouts if a policyholder gets injured in an accident. To compensate for the added risk, insurance companies in Michigan charge more money for coverage across the board.
State minimum insurance requirements in Michigan
Michigan is a 20/40/10 state. This means it requires:
- $20,000 per person who is hurt or killed in an accident
- $40,000 for each accident where people are hurt or killed
- $10,000 for property damage.
Of course, these are just the minimum requirements, and many people choose to get policies that cover more.
Michigan is a no-fault state, which means drivers must carry PIP coverage. As of July 2020, Michigan drivers can choose from six different types of PIP insurance. The new options include:
- Unlimited coverage
- Up to $500,000 in coverage
- Up to $250,000 in coverage
- Up to $250,000 in coverage with medical exclusion (for people whose non-Medicaid health insurance covers auto accident injuries)
- Up to $50,000 in coverage (for policyholders enrolled in Medicaid, and whose household members have a health insurance or car insurance policy that covers accident-related injuries.)
- PIP medical opt-out (for policyholders enrolled in Medicaid, and whose household members have a health insurance or car insurance policy that covers accident-related injuries.)
How to get the best car insurance
To find the best car insurance in Michigan, take a look at your individual and personal circumstance. A few questions you may want to ask revolve around your past claims history, vehicle make and model, bundling opportunities and marital status as all of these can affect your car insurance premium.
It might make sense to get Michigan’s minimum insurance requirements because it’s cheaper. However, obtaining full coverage insurance will always be a smarter choice when searching for car insurance because you don’t want to end up paying for unexpected damages and accidents.
For a list of the best car insurance companies, Bankrate composed its 2020 Best Car Insurance Companies to help in your research. Comparing various car insurance companies and their reviews, JD Power scores and AM Best ratings is the best way to find the best car insurance for you.
Evaluate your individual needs
Evaluate your car insurance needs by understanding your circumstances and identifying what you’re looking for in your car insurance. Your credit score, driving history and record, type of vehicle and personal information like gender and marital status are all things that can affect your premium costs. When researching the best car insurance companies in Michigan, consider your zip code, any discounts you may be able to apply such as good student discounts, and whether you’ll need to bundle insurance policies.
For example, if you have a newer model of an electric car, you can apply several discounts from the type of car you own. Most insurance companies offer discounts for electric cars as well as newer cars, which could help you save a lot.
Consider state factors
Insurance companies offer additional add-on coverage options for drivers. Considering Michigan is a colder state, it snows and rains often so it may be a smart idea to look into add-ons that can protect your vehicle from cold weather or can assist you in the case of bad weather conditions on the road.
According to the III, 20.3% of Michigan motorists are uninsured, which makes Michigan one of the states with the most uninsured drivers in the nation. The uninsured motorist coverage add-on can help you pay less if you’re involved in a no-fault accident with an uninsured driver.
Car insurance discounts in Michigan
If you live in Michigan, it’s easy to find discounts on your car insurance because most providers offer ways to save. Each company offers their own unique discounts, so check each company to see what discounts they have.
Here are some of the common discounts:
- Safe driving: Most Michigan insurance companies offers some great discounts for safe drivers (drivers with a clean driving record). Many insurance companies offer this automatically, but if they don’t, be sure to ask.
- Student discounts: If you are a student, ask your insurance agent about discounts. USAA, Geico, and Auto-owners, for example, reward students who meet certain criteria with lower premiums.
- Multi-policy or bundle discounts: All of the car insurance companies covered here offer multi-policy or bundle discounts. This means you may earn a discount if you use one insurance company for all your insurance needs including car, home, renters or other types of insurance.
- Paying in full: Pay your entire annual premium in advance, as opposed to month to month, and you can save.
- Driver safety course: If you’re under 21 and you complete a driver safety course, many providers will give you a discount on your premium.
Frequently asked questions
What is the best car insurance in Michigan?
There isn’t one car insurance company in Michigan that is the cheapest for everyone. Each driver is different and so is each quote. According to J.D. Power’s 2020 ratings, Geico and USAA tend to offer the lowest rates in Michigan.
Which company gives the best discounts?
Every insurance company offers different discounts. The biggest companies are often the ones that offer the most discounts, with categories such as safe driver, multi-policy and military discounts.
How long does it take to get my money after filing a claim?
There are many factors taken into account after a claim gets submitted. Most companies try their best to resolve any claims within 30 days, but the time can vary from a few weeks to a few months. Big claims usually take the longest to get resolved.
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 cleaning 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.