Best car insurance in Michigan for 2023

Best car insurance companies in Michigan

Geico, USAA, Progressive, Auto-Owners and Travelers are among the best car insurance companies in Michigan, according to our analysis of average 2023 rates from Quadrant Information Services, customer satisfaction scores from J.D. Power, financial strength ratings from AM Best, coverage offerings and discounts. All five companies have average rates that are lower than the Michigan state average of $2,691 for full coverage and $1,104 for minimum coverage.

If you are shopping for the best auto insurance in Michigan, these companies could be a good starting place. Keep in mind, though, that the best insurer for you will depend on your individual circumstances and may not be on this list.

How Bankrate chose the best car insurance companies in Michigan

To find the best car insurance companies in Michigan, we first acquired average cost information from Quadrant Information Services for the largest Michigan auto insurers by market share. We combined this information with our extensive research on each company’s coverage options, discounts, policy features, J.D. Power customer satisfaction scores and financial strength ratings and assigned each company a Bankrate Score. The scores are on a scale of 0.0 to 5.0. Companies with higher Bankrate Scores received a higher score in the individual ranking categories.

How much is car insurance in Michigan?

The average cost of car insurance in Michigan is $2,691 per year for full coverage, far more than the national average of $2,014 per year. Michigan residents also pay more for minimum coverage car insurance at $1,104 per year versus the national average of $622 per year. Michigan drivers also pay more than drivers in surrounding states, with Indiana enjoying an average full coverage premium of $1,295 per year and Illinois drivers paying an average of $1,806 per year for full coverage. The average rates in the Great Lakes State are relatively high, but shopping for the cheapest car insurance companies in Michigan could help you get a lower premium.

The higher-than-average rates could be due in part to the millions of Michigan residents on the road and the additional 125 million visitors that visit the state each year. Michigan is no stranger to crowded roadways, which could lead to more accidents. Michigan is also a no-fault state, which may contribute to its high average rates. Drivers are required to carry personal injury protection (PIP) coverage, which pays for your injuries and the injuries of your passengers after an accident, regardless of who was at fault.

How to find the best car insurance in Michigan

To find the best car insurance in MI, you may want to start by evaluating your unique situation. All insurance companies also offer different rates, so getting quotes from multiple auto insurers as you shop for Michigan car insurance may help you find a carrier that fits your needs and budget. In general, there are a few ways you can assess your insurance needs to help you find the coverage that is right for you.

Consider minimum insurance requirements in Michigan

Auto insurance is required by law in Michigan, as it is in most states. In Michigan, you must carry at least certain minimum insurance coverage types and limits to drive legally. Because Michigan is a no-fault state, there are car insurance requirements in addition to bodily injury liability and property damage liability coverage; you must also purchase personal injury protection (PIP) and personal property insurance (PPI). Understanding your state’s minimum car insurance coverage requirements might help you determine if you need to buy higher limits, as many insurance experts suggest. Higher levels of bodily injury liability and property damage liability offer more financial protection.

Consider lender requirements

State minimum coverage does not include any physical damage coverage for your vehicle. You would need full coverage car insurance for that. If you have a loan or lease on your vehicle, your lender will likely require that you carry full coverage, which means adding comprehensive and collision coverage to your insurance policy. It could also mean carrying higher bodily injury and property damage liability limits. Lessors typically require you to carry these higher coverage limits when leasing a vehicle.

You could also consider gap insurance. This coverage is designed to pay for the difference in your new vehicle’s cash value and the balance of your loan. Having this coverage might help you avoid financial stress if your vehicle is totaled and the payout is less than what you still owe.

Consider your individual needs

Your driving history, type of vehicle and age are among numerous rating factors auto insurers use to determine your rate. One thing to note, however, is that Michigan bans the use of credit scores as a car insurance rating factor. When shopping for auto insurance in Michigan, consider if you are looking for the cheapest auto insurance rate, a company with digital assets, strong customer service ratings or a wide variety of coverage options. Once you determine what you are looking for, you can get quotes to compare them.

Michigan has the second-highest percentage of uninsured drivers in the nation. According to data from the Insurance Research Council, 25.5 percent of Michigan motorists were estimated to be uninsured as of 2019. Uninsured motorist coverage may be worth considering, as it could help pay your bills if an uninsured driver hits you.

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