Finding Affordable Auto Insurance In Michigan: A Guide

How to Get Cheap Auto Insurance in Michigan

Auto insurance in Michigan is among the most expensive in the US, with the average annual rate being $2,639, 73% higher than the national average. However, there are ways to get cheaper insurance.

Cheapest Companies

According to a 2024 study, Geico has the lowest average annual rate in Michigan at $1,066. For those eligible, USAA is another good option, with an average annual rate of $1,918.

Cheapest for Minimum Coverage

Auto-Owners has the cheapest minimum coverage in Michigan, with an average annual rate of $95.

Cheapest for Full Coverage

Progressive has the cheapest full coverage in Michigan, with an average annual rate of $253.

Cheapest for Drivers with Prior Incidents

Pioneer State and Auto-Owners offer the cheapest rates for drivers with prior incidents, such as speeding tickets, at-fault accidents, or DUIs.

Cheapest for Young Drivers

Auto-Owners also has the cheapest rates for young drivers, with an average annual rate of $187 for teens buying minimum coverage.

Cheapest car insurance companies in Michigan

Car insurance in Michigan is more expensive than in other states, with the average cost of full coverage car insurance in Michigan being $386 per month. Michigan also has the highest required car insurance limits in the country.

Minimum coverage

The cheapest car insurance company in Michigan for minimum coverage is Auto-Owners, with an average rate of $95 per month.

Full coverage

For full coverage, Progressive is the cheapest option, with an average rate of $253 per month.

For drivers with prior incidents

For drivers with a history of speeding tickets, accidents, or impaired driving violations, Pioneer State and Auto-Owners offer the cheapest rates.

For young drivers

Auto-Owners is the cheapest option for young drivers, with an average rate of $187 per month for teens buying minimum coverage.

For military families

USAA offers the cheapest rates for military members, veterans, and their families, with an average rate of $1,006 per year.

By city

In Michigan, auto insurance rates vary by city, with Grand Rapids offering the cheapest rates and Detroit offering the most expensive.

Other cheap options

Other cheap car insurance companies in Michigan include Chubb, GEICO, Travelers, and Westfield.

Cheapest car insurance for minimum coverage

According to NerdWallet, the cheapest car insurance company in Michigan is Geico, with an average annual rate of $1,140 for full coverage. However, if you're looking for minimum coverage, Wolverine Mutual offers the cheapest rates in Michigan at $204 per year, on average, for a 35-year-old driver with a clean driving record.

MarketWatch also found that USAA offers the cheapest minimum-liability car insurance coverage in the Wolverine State at $383 per year, or $32 per month. However, USAA is only available to military members and their families.

Bankrate's analysis found that Auto-Owners is the cheapest company for minimum coverage, with an average annual premium of $378, or $32 per month.

Minimum coverage requirements in Michigan

Michigan drivers are required to carry at least a minimum amount of car insurance, or a liability-only policy. To register your vehicle with the state’s department of motor vehicles (DMV), you must show proof that you purchased at least the following amounts:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $10,000 property damage liability per accident (for damage in other states)
• $1 million property protection insurance (PPI)

Cheapest car insurance for full coverage

The cost of car insurance in Michigan is higher than the national average, with the average cost of full coverage car insurance in the state being $2,301 per year, or about $192 per month. However, there are ways to find cheaper options.

Cheapest car insurance companies in Michigan

According to a 2024 study by NerdWallet, the cheapest car insurance company in Michigan is Geico, with an average annual rate of $1,140 for full coverage. This is followed by Hastings Mutual, at $1,188 per year, and Wolverine Mutual, at $1,582 per year.

Cheapest car insurance for young drivers in Michigan

For young drivers, Auto-Owners Insurance offers the cheapest rates. For a 20-year-old driver, the company's full coverage insurance costs $2,651 per year, or $221 per month.

Cheapest car insurance after an accident

If you have been in an accident, Auto-Owners Insurance also offers the cheapest rates. For a 30-year-old driver, the company's full coverage insurance costs $2,076 per year, or $173 per month.

Cheapest car insurance after a DUI

For drivers with a DUI, Progressive offers the cheapest rates. For a 30-year-old driver, the company's full coverage insurance costs $2,558 per year, or $213 per month.

Cheapest car insurance by city in Michigan

The cost of car insurance in Michigan varies depending on where you live. Drivers in Shoreham and Grand Haven have the cheapest car insurance quotes in the state, while those in Hamtramck have the highest rates.

Ways to get cheaper car insurance in Michigan

To get cheaper car insurance in Michigan, you can:

• Compare quotes from multiple companies
• Look for discounts, such as those for safe driving, low mileage, or paperless billing
• Keep a clean driving record
• Maintain a high credit score
• Explore usage-based insurance options
• Increase your deductibles

Cheapest car insurance for drivers with a poor record

Michigan has some of the most expensive car insurance rates in the nation. However, there are still ways to find the cheapest car insurance for drivers with a poor record. Here are some of the cheapest car insurance companies in Michigan for drivers with a poor record:

Poor credit

For drivers with poor credit in Michigan, the following companies offer the lowest average rates for full coverage:

• Geico
• Hastings Mutual
• Fremont
• Wolverine Mutual
• Chubb

Speeding ticket

For drivers with a speeding ticket in Michigan, the following companies offer the lowest average rates for minimum coverage:

• Pioneer State Mutual
• Auto-Owners
• Michigan Farm Bureau
• Progressive
• USAA

At-fault accident

For drivers with a recent at-fault accident in Michigan, the following companies offer the lowest average rates for full coverage:

• Auto-Owners
• Wolverine Mutual
• Progressive
• USAA
• Bristol West

DUI

For drivers with a DUI in Michigan, the following companies offer the lowest average rates for full coverage:

• Progressive
• USAA
• Auto-Owners
• Bristol West
• Wolverine Mutual

Cheapest car insurance for young drivers

Car insurance rates for young drivers in Michigan are some of the highest in the state, with 16-year-olds paying an average of $12,921 per year or $1,077 per month. However, there are still ways for young drivers to find cheaper insurance. Here are some tips to help you get the cheapest car insurance as a young driver in Michigan:

• Compare quotes from multiple insurance companies. The cheapest car insurance for young drivers in Michigan will vary depending on your age, driving record, and other factors. By comparing quotes, you can find the company that offers the best rate for your specific situation.
• Consider a usage-based insurance program. Some insurance companies offer discounts to young drivers who install a tracking device in their car that monitors their driving habits. This can help you save money if you consistently demonstrate safe driving behaviours.
• Look for companies that offer discounts for young drivers. Many insurance companies offer discounts for students with good grades, as well as those who take driver safety classes.
• Join a family insurance plan. This is often the most cost-effective way for young drivers to get insurance.
• Choose a company with low rates for young drivers. Progressive and USAA are known for having some of the cheapest rates for young drivers in Michigan. Auto-Owners Insurance is also a good option, especially for teen drivers.
• Consider the level of coverage you need. Full coverage insurance is more expensive, but it may be worth it if your car is worth more than $5,000 or is less than 8 years old. If you have an older or cheaper car, minimum coverage may be a better option.
• Maintain a clean driving record. Accidents, speeding tickets, and other violations can cause your insurance rates to increase significantly.
• Compare quotes from multiple companies. The cheapest car insurance for you will depend on a variety of factors, so it's important to shop around to find the best rate.
• Consider the level of coverage you need. Full coverage insurance includes collision and comprehensive coverage, which can be useful if you want protection against damage to your car. However, it is more expensive than minimum coverage insurance.
• Look for discounts. Many insurance companies offer discounts for things like bundling policies, being a safe driver, or being a student with good grades.
• Choose a company with low rates. In addition to Progressive, USAA, and Auto-Owners Insurance, other companies that offer cheap car insurance in Michigan include GEICO, State Farm, and Michigan Farm Bureau.

Frequently asked questions