Best car insurance in Michigan in 2021
USAA and Auto-Owners offer some of the best car insurance in Michigan, based on Bankrate’s extensive research. Progressive and Allstate may also be good options based on our evaluation criteria. If you are looking for the best car insurance in Michigan, Bankrate’s research could help you choose a company and coverage types that fit your needs.
Michigan is one of the most expensive states in the nation for auto insurance. The average Michigan driver pays $2,309 annually for full coverage car insurance, according to Bankrate’s 2021 study of quoted annual premiums. However, when shopping for insurance, Michigan drivers may want to consider several aspects of an auto insurer in addition to price. 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 premium 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, 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|
*Not officially ranked by J.D. Power due to eligibility restrictions
USAA has the lowest average annual auto premium on our list, but it only sells insurance to current or former military members and immediate 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. Progressive is also a good choice for drivers looking for 24/7 customer support, unique coverage options and saving multiple ways. 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 average, yet it 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 at $948 per year versus the national average of $565 per year. Bankrate obtained up-to-date rates from Quadrant Information Services in 2021.
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 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.
Consider lender requirements
State minimum coverage does not include any physical damage coverage for your 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, 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 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, age and occupation 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 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
What is the best car insurance in Michigan?
Because everyone brings a different set of circumstances to the insurance buying process, the best company will be different for everyone. Understanding what you need and want from a policy, analyzing third-party reviews and getting quotes from several insurance companies might help you find the provider that best fits your situation.
What is the cheapest car insurance company in Michigan?
Based on Bankrate research, the cheapest car insurance companies in Michigan include USAA, Auto-Owners and Progressive. These companies offer minimum and full coverage average rates that are below the state’s average. If you are looking for cheap car insurance coverage, getting quotes from these companies may be a good idea. But just like with the best home insurance company, the cheapest company won’t be the same for everyone. Your rates will depend on your individual rating factors and might be higher or lower than the average.
Which company gives the best discounts?
That will depend on your situation and what discounts you qualify for. Insurers offer different discounts, but common auto insurance discounts include multi-car, multi-policy, good student and paperless billing 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 an auto insurance 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.
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, Michigan or Washington.
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.