Best car insurance in Michigan for 2021

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The average Michan driver pays $2,309 annually for full coverage car insurance, according to Bankrate’s 2021 study of quoted annual premiums. Michigan is one of the most expensive states in the nation for car insurance. This could be due in part to the 7.1 million licensed drivers on the road and the over 125 million visitors that visit each year. The state is no stranger to crowded roadways, and the no-fault insurance system could be driving average premiums up.

If you are looking for the best car insurance in Michigan, Bankrate’s research could help you choose a company and coverages that fit your needs. When shopping for car insurance, Michigan drivers may want to consider several aspects of a car insurance company. Our insurance editorial team has analyzed data for the largest car insurance companies by market share in Michigan to make your research easier.

Best car insurance companies in Michigan

Michigan’s average car insurance premium may be higher than the national average, but there are ways to find affordable coverage that still fits your needs. We first acquired average premium information from Quadrant Information Services for the largest Michigan car insurance companies by market share. We combined this information with our extensive research on each company’s coverages, discounts, policy features, customer satisfaction scores and financial strength 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.

If you are shopping for the best auto insurance in Michigan, these companies could be a good starting place:

Car insurance company Bankrate Score Average annual full coverage premium J.D. Power auto claims satisfaction score
USAA* 4.8 $1,255 890 / 1,000
Auto-Owners 4.6 $1,982 890 / 1,000
Progressive 4.1 $1,394 856 / 1,000
Allstate 3.6 $2,726 876 / 1,000

*USAA is not officially ranked by J.D. Power due to eligibility restrictions

USAA

USAA has the lowest premium on our list but only sells insurance to current or former military members and immediate family members. Because of this, USAA is not eligible for official ranking with J.D. Power. However, the company consistently receives high scores. USAA offers great rates, numerous ways to save and has a solid mobile and online presence. If you qualify for coverage with USAA, you may want to consider getting a quote.

Learn more: USAA Insurance review

Auto-Owners

Auto-Owners sells its coverage through independent agents, so if you prefer to handle your insurance face-to-face, Auto-Owners might be a good option. The company offers great add-on coverages, including gap insurance, diminished value coverage and a common loss deductible — meaning if both your home and car are insured with Auto-Owners and are damaged in the same incident, your auto deductible will be lowered by the amount of your home deductible or waived entirely.

Learn more: Auto-Owners Insurance review

Progressive

Progressive offers the second-lowest rate on our list. If budget is a concern and you do not qualify for USAA, you may want to get a quote from Progressive. Progressive is also a good choice for drivers looking for 24/7 customer support, unique coverage options and multiple ways to save. However, the company did receive a below-industry-average score from J.D. Power for claims satisfaction.

Learn more: Progressive Insurance review

Allstate

Although its average premium is higher than Michigan’s average, Allstate may be a good choice if you are looking for a policy that you can tailor to your needs. The company offers several common endorsements, like roadside assistance and ridesharing coverage, alongside more unique options like sound system equipment coverage. And several discounts might help you save, like early signing savings, a new car discount and a smart student discount.

Learn more: Allstate Insurance review

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Average car insurance cost in Michigan

The average cost of car insurance in Michigan is $2,309 per year for full coverage, far more than the national average of $1,674 per year. Michigan residents also pay more for minimum coverage at $948 per year than the national average of $565 per year.

Average annual premium for minimum coverage in Michigan Average annual premium for full coverage in Michigan
$948 $2,309

Michigan is a no-fault state, which may contribute to its high average premiums. 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.

Part of Michigan’s high premiums may also be due to the number of accidents and drivers on the roads. The state experienced over 300,000 traffic accidents in 2019. And in addition to its local drivers, Michigan is visited by numerous tourists each year, adding to the number of cars on the road.

State minimum insurance requirements in Michigan

Auto insurance is required by law in Michigan, as it is in most states. Michigan is a 50/100/10 state. This means you must carry at least the following minimum insurance coverages and limits:

  • $50,000 bodily injury per person
  • $100,000 bodily injury per accident
  • $10,000 property damage

Michigan drivers are also required to carry property protection insurance (PPI). PPI pays up to $1 million for damage that you cause to someone’s property, including buildings and fences, as well as to damage you cause to parked vehicles within the state of Michigan. It does not pay for damage you cause to other moving vehicles.

Most insurance professionals recommend that you purchase higher liability limits if you can afford them to provide you with greater financial protection if you cause an accident. Additionally, minimum coverage does not include any coverage for your own vehicle. You would need full coverage for that. If you have a loan or lease on your vehicle, your lender will likely require that you carry full coverage.

Because Michigan is a no-fault state, drivers must also carry PIP coverage. Michigan drivers have six different PIP levels to choose from:

  • 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)

While you may have the option to opt out of PIP coverage, the requirements are strict, so most drivers likely carry this protection.

How to get the best car insurance in Michigan

To find the best car insurance in Michigan, you may want to look at your unique situation. A few questions you may want to ask revolve around your claims history, vehicle make and model, bundling opportunities and marital status, as all of these can affect your car insurance premium.

Insurance companies also offer different rates, so getting quotes from several different providers may help you find a cheaper insurance company. In general, there are a few ways you can assess your insurance needs to help you find the policy that is right for you.

  • Evaluate your individual needs: Understanding your individual circumstances and identifying what you are looking for in your car insurance may be a good place to start when you are shopping. Your driving history, type of vehicle and age are all things that can affect your premium. When shopping for auto insurance in Michigan, consider if you are looking for the cheapest rate, a company with digital assets, strong customer service ratings or a wide variety of coverages. Once you know what you are looking for, you can get quotes to compare them.
  • Consider state factors: Most insurance companies offer additional add-on coverage options for drivers. Parts of Michigan are relatively remote; if you travel often, you may want to consider roadside assistance coverage. If you have a newer vehicle, gap coverage might be a good idea. And because Michigan is commonly affected by strong summer and winter storms, comprehensive coverage could be a good idea.

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

Car insurance discounts in Michigan

If you live in Michigan, it is usually easy to find car insurance discounts because most providers offer ways to save. Each company provides its 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 offer discounts for safe drivers. Many insurance companies offer this automatically, but you may need to request that it be added to your policy if you have no accidents or tickets.
  • Student discounts: If you are a student, you may want to ask your insurance agent about discounts. Many companies offer discounts for students who get good grades or who go to college without taking a car with them.
  • Multi-policy or bundle discounts: If your company sells both auto and home insurance, it likely offers a discount for purchasing both policies. You could earn a discount on your auto and home policies by insuring them with the same company.
  • Paying in full: Paying your entire premium in full, as opposed to paying in monthly installments, could help you save.

You can often find information about a company’s discounts on its website, or you can talk to your agent or a representative from your company’s customer service department. They may be able to help you identify savings opportunities.

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Frequently asked questions

What is the best car insurance in Michigan?

There is not one car insurance company in Michigan that is the best or cheapest for everyone. Each driver is different, and so is each quote. Identifying your wants and needs when it comes to insurance and then getting multiple quotes might help you find a policy that is right for your situation.

Which company gives the best discounts?

Every insurance company offers different discounts, but typical discounts include multi-car, multi-policy, good student and paperless discounts. Getting quotes from companies that offer several discounts you qualify for might help keep your premium down.

How long does it take to get my money after filing a claim?

There are many factors taken into account after a claim is submitted. Most companies try their best to resolve claims within 30 days, but the time can vary from a few weeks to a few months, depending on the severity and the individual circumstances of the accident.

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.

Bankrate Scores

Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.

Written by
Cate Deventer
Insurance Editor
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in professional and technical writing from Indiana University East. She began writing for Bankrate in January 2021 and has nearly a decade of experience in the insurance industry as a licensed insurance agent. Cate has worked with over a dozen insurance companies and is experienced with auto, home, flood, umbrella and life insurance.
Edited by
Insurance Editor
Reviewed by
Bankrate Financial Review Board