Are you new to Michigan and looking for inexpensive car insurance? You’ve got options, but know that you’ll pay more for auto insurance in Michigan than you’re likely used to. Though that will hopefully change in the near future with Michigan changing liability and PIP requirements, until then you’re going to have to do a little more shopping and rate comparisons than you’d like to find cheap car insurance in Michigan.
Here’s what you need to know about car insurance in Michigan.
The top car insurance companies in Michigan
Westfield is the highest rated insurer with J.D. Power and offers a whole host of coverage options. Some of these include: gap coverage, uninsured motorist coverage, umbrella coverage and motorcycle coverage. Westfield also offers great rates that are cheaper than many other providers and many ways to save, including installing mileage and safe driving apps on your smartphone.
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 a surviving spouse). 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.
Erie offers a lock in rate, meaning the price you pay for coverage will never change unless you make any major policy changes. So even if you get in an accident or get a ticket your coverage rates won’t change. Erie also offers new car protection and rideshare coverage (for Uber and Lyft drivers). Perhaps the best thing about Erie is the numerous pathways it offers for discounts, including multiple policy discounts and first accident forgiveness.
Customer satisfaction after filing an auto insurance claim with Country Financial is among the best in the industry and it has very few complaints against it for a company of its size. You can insure your car with all of the standard options, such as liability, comprehensive and collision, but you can also choose additional add-ons such as:
- New car
- Safety glass
- Personal property
- Vehicle rental
Lastly, if you need to save on your premium, Country Financial has many ways you can do just that, including a safe driver discount and a discount for new drivers who complete the company’s safety course.
State Farm is a great all around insurance company. It offers just about every type of insurance you can imagine— motorcycle, life, home, disability, renters, condo— and has multiple coverage options. If you’re looking for a company you can save with, State Farm also has numerous ways you can lower your premium, including a safe driver discount and a discount for avoiding accidents for at least three continuous years. Many people appreciate State Farm’s mobile app which you can use to update your policy, make a payment, file a claim and even call for roadside assistance.
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Finding the right cheap car insurance in Michigan for you
Finding the cheapest car insurance in Michigan usually starts with getting quotes. We recommend getting quotes from at least three insurance companies. This can seem overwhelming when searching the many car insurance companies available.
Start by narrowing things down based on your insurance needs. For example, if you have a clean driving history and are looking for insurance companies offering the best discounts, begin your search by looking for discounts. Keep in mind that insurance availability will vary from person to person based on credit history, driving record and annual mileage.
Average car insurance cost in Michigan
Part of the reason Michigan car insurance is so expensive is because it is a no-fault state. Though no-fault laws were intended to lower the cost of insurance, they’ve done just the opposite. Insurance companies have found, by and large, that it’s easier for people to file a dishonest claim with statewide no-fault laws.
Secondly, Michigan requires unlimited personal injury protection. Per Michigan’s Consumer Counselor: “If you are hurt in an auto accident, this (personal injury protection) will pay all reasonably necessary medical expenses with no maximum limit.” This means that no matter how grievous your injury is, your insurance provider must cover all costs. It sounds great (and is if you need it), but it means insurance providers have to charge more if they are to remain profitable.
Thirdly, personal injury protection (PIP) will pay 85% of your income that “you would have earned if you had not been hurt for up to three years.” Three years of income is a lot of money, even if it is just 85% of what you would have made.
This is a lot of protection insurance companies are required to pay, which is the reason Michigan residents must pay so much each year.
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; and $10,000 for property damage.
Of course, these are just the minimum requirements, and many people choose to get policies that cover more.
On July 2, 2020, Michigan will require more liability coverage and will no longer require unlimited PIP. This is great news because it should lower insurance costs significantly in the years to come.
Is Michigan a no-fault state?
Yes, Michigan is a no-fault state. This means that if you are in an accident, your insurance provider is only responsible for covering your medical expenses and not the medical expenses of others.
In Michigan you can only be sued if:
- You cause an accident where someone is killed, severely injured or disfigured
- You cause an accident with someone out of state
- You are in an accident in another state
- You cause an accident to someone else’s car that is not covered by insurance
Though Michigan is a no-fault state, you still must purchase the basic 20/40/10 liability discussed above. You also must purchase personal injury protection until July 2, 2020.
Car insurance discounts in Michigan
Finding discounts for your Michigan car insurance is easy because there are so many ways to save. Check each company for types of discounts available. Typical car insurance discounts include being a safe driver, being over 25 years old, insuring more than one vehicle and buying multiple policies (home, boat, RV, etc). Here are a few to get you started:
- Safe driving: Auto-Owners Insurance 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. Esurance, for example,rewards 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 Premium in full: Pay your entire year 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 cheapest car insurance in Michigan?
Each driver is different and so is each quote. According to J.D. Power’s 2019 ratings, USAA, Westfield Insurance and State Farm rated best in price for car insurance companies available in Michigan.
Which company gives the best discounts?
Each company differs in the amount and types of 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.