Are you new to Michigan and looking for inexpensive car insurance? Or are you shopping around for a better deal? Either way, it’s important to understand what options are available. Michigan is home to over 7 million registered motorists, and over a half million of them are under the age of 20. Considering that new drivers are statistically more likely to be in a car crash, the fact that there are so many drivers under 20 years old makes it important to look at full coverage options when choosing your Michigan car insurance policy. Aside from the coverage itself, don’t forget to look for things like discounts and customer reviews, too.
Best car insurance companies in Michigan 2020
- Auto-Owners Insurance: This company has high satisfaction ratings and a variety of coverage options and discounts. You can get extra coverage like gap, diminished value, and additional expenses insurance or even the automobile plus package that includes identity theft protection, cell phone insurance and lost keys coverage.
- Esurance: Esurance offers basic coverage and additional protection such as emergency roadside assistance, rental car coverage, gap coverage and personal injury protection coverage. Esurance has several ways to save, including for multi-car policies, good driver history and car safety features.
- State Farm: State Farm is known for having low rates and high customer satisfaction. They have several discounts, including safe driver, safe vehicle, good student and loyal customer options.
- Allstate: Allstate offers lots of optional coverage possibilities like gap insurance, accident forgiveness, sound system protection and preferred repair services. It also has a safe driving bonus and many other discounts
|J.D. Power Rating||A.M. Best Rating||BBB Rating|
|Auto-Owners Insurance||5 / 5||A++||A+|
|Esurance||5 / 5||A+||A-|
|State Farm||3 / 5||A++||N/A|
|Allstate||4 / 5||A+||A+|
Finding the right cheap car insurance in Michigan for you
Finding the best Michigan car insurance company 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. See below for the cheapest car insurance companies in Michigan and their average annual premiums from The Zebra.
Cheapest car insurance for good drivers with good credit: Auto-Owners Insurance
Auto-Owners Insurance has average annual premiums of $1,669. It also offers lots of discounts that good drivers can use to their advantage to further reduce costs. These include multi-car, multi-policy, on-time payment, good student, car safety feature and upfront payment options. You can also get a discount for having fewer claims.
Cheapest car insurance for drivers with vehicle safety features: Esurance
Esurance has average insurance rates of $2,871. You can get lower premiums if you have car safety features. You can also combine that discount with other possible discounts for maximum savings.
Cheapest car insurance for low-mileage drivers: State Farm
State Farm with average annual premiums of $2,948, but it offers lower prices for low-mileage drivers that can help people save money if they typically use public transportation, work from home or otherwise don’t drive frequently.
Cheapest car insurance for accident forgiveness: Allstate
Allstate has average annual premiums of $3,065. This company is a good option for people who think they might need accident forgiveness because Allstate won’t increase the prices like other companies will.
Average car insurance cost in Michigan
Michigan residents can expect to pay above the national average for car insurance with premiums of $2,239 annually, making Michigan the most expensive state for car insurance.
Many drivers in Michigan will pay above or below the average. There are a variety of factors that impact insurance costs:
- Age: Because younger drivers typically have more car accidents, insurance companies consider coverage of those individuals to be a higher risk. Higher risk results in higher premiums. The good news is that by the time you’re 30, most insurance companies will reduce your premiums.
- Gender: According to The Zebra’s study on Average Car Insurance Costs by Gender, male drivers in Michigan paid $79 more than females for car insurance in 2019.
- Marital status: Married drivers typically pay around $75 less per year on premiums than unmarried drivers. Historical data shows that those who are married file fewer claims than single individuals, resulting in lower premiums. Additionally, many married couples bundle their car insurance together, resulting in discounted premiums.
- Credit score: Credit history plays a major role in determining car insurance costs. Michigan drivers with poor credit may pay over $5,000 more in premiums than someone with excellent credit.
Driving record: Traffic violations can increase premiums. Here are some examples of how certain driving violations in Michigan increase yearly insurance premiums:
- Failure to wear a seat belt: $42/year
- Driving too slowly: $820/year
- Driving with an open container: $2,155/year
- DUI: $4,757/year
- Hit and run: $4,917/year
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.
State minimum insurance requirements in Michigan
bodily injury will cover $20,000 per person up to $40,000 per accident for bodily injury. Also, up to $10,000 is paid when there is property damage. These are just the minimum requirements, and many people choose to get policies that cover more.
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.