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
|J.D. Power Rating||AM Best Rating||BBB Rating|
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 a few 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 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.
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.
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.
Finding the right cheap car insurance in Michigan for you
If you’re looking for the cheapest car insurance in Michigan, start by getting price quotes. We recommend getting quotes from at least three insurance companies so you can compare rates and find the best deal.
If you’re feeling overwhelmed when shopping for car insurance, 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 that offer good driver savings, begin your search by looking at the discounts each provider has. 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. 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; and $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.)
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.
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.
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: 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 cheapest 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.