Best car insurance in Michigan in 2022
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USAA and Auto-Owners sell some of the best car insurance in Michigan, followed by Progressive and Allstate, according to Bankrate’s research into the insurance market in the Great Lakes State. Our research into the best car insurance in this state could help you evaluate Michigan car insurance companies based on their average rates, coverage options, discounts and third-party scores.
Michigan is one of the most expensive states in the nation for auto insurance. The average cost of car insurance in Michigan is $2,309 annually for full coverage car insurance. However, while finding the cheapest car insurance for your needs may be important, there are other aspects of a carrier to consider. Our insurance editorial team analyzed data for the largest car insurance companies by market share in Michigan to make your research easier.
Best car insurance companies in Michigan
USAA, Auto-Owners, Progressive and Allstate are among the best car insurance companies in Michigan, according to our analysis.
We first acquired average cost information from Quadrant Information Services for the latest 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.
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 customer satisfaction score (North Central region)|
*Not officially ranked by J.D. Power due to eligibility restrictions
USAA has the cheapest auto insurance premium in Michigan on average out of the companies on our list, but it only sells insurance to current or former military members and qualifying family members. Because of this, USAA is not eligible for an official ranking with J.D. Power. However, the company consistently receives high customer satisfaction scores. USAA offers great average 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 offers its products exclusively 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 coverage options, including gap insurance, diminished value coverage and a common loss deductible — meaning if both your home and vehicle 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. The company does not have an online quote tool though, so it may not appeal to drivers looking for digital options when shopping for coverage.
Learn more: Auto-Owners Insurance review
If budget is a concern, you may want to consider Progressive. According to Bankrate’s analysis, this national auto insurer offers the second-lowest rate in Michigan. In addition to low average rates, Progressive is also a good choice for drivers looking for 24/7 customer support, unique coverage options and multiple discount opportunities. Progressive may also be a good choice for high-risk drivers due to its nonstandard auto insurance program. However, the company received a below-industry-average score from J.D. Power for claims satisfaction.
Learn more: Progressive Insurance review
Allstate’s average premium ranks highest on our list and is more than Michigan’s statewide average, so it might not be a good fit if you are looking for the cheapest car insurance. However, the carrier may be a good choice if you are looking for a policy that you can tailor to your needs. The company offers several common auto policy endorsements, like roadside assistance and ridesharing coverage, alongside more unique options like sound system equipment coverage. And several discounts might help you reduce your premium, like early signing savings, a new vehicle discount and a smart student discount.
Learn more: Allstate Insurance review
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 car insurance at $948 per year versus the national average of $565 per year. These rates are relatively high, but shopping for the cheapest companies in Michigan could help you get a lower premium. Bankrate obtained up-to-date rates from Quadrant Information Services.
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.
|Average annual premium for minimum coverage in Michigan||Average annual premium for full coverage in Michigan|
How to find the best car insurance in Michigan
To find the best car insurance in Michigan, you may want to start by evaluating your unique situation. All insurance companies also offer different rates, so getting quotes from multiple auto insurers 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, according to the Insurance Information Institute (Triple-I).
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 the more than a dozen rating factors auto insurers use to determine your rate, according to the Triple-I. 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% 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.
Car insurance discounts in Michigan
Finding car insurance discounts in Michigan is relatively easy because most auto insurers offer ways to save. Each carrier provides its own unique discounts, though, so check each company to see what discounts they have.
Here are some of the common discounts for Michigan drivers:
- Young driver discounts: If you are a full-time student, you may want to ask your insurance agent about discounts. Many companies offer discounts for students who maintain good grades or who are away at college without a vehicle.
- Safe driver discounts: Most Michigan auto 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 on your driving history.
- Other discounts: If your insurer offers both auto and homeowners insurance, it likely offers a discount for bundling both policies. You could earn a significant discount on your auto and home policies by insuring them with the same company. Paying your entire premium in full, as opposed to paying in monthly or quarterly installments, could also help you save.
You can often find information about a company’s discounts on its website or you can get this information from your insurance agent. They may be able to help you identify numerous savings opportunities.
Frequently asked questions
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 coverage that meets 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.
Credit was not used as a rating factor in California, Hawaii, Massachusetts and Michigan.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.