Michigan Vs Ohio: Who Offers Cheaper Auto Insurance?

Michigan has some of the most expensive car insurance rates in the nation. The average cost of full-coverage car insurance in Michigan is $3,643 per year or $304 per month. This is about 81% more than the national average of $2,008 per year.

However, you can still find cheaper rates. According to our research, USAA offers the cheapest full-coverage car insurance in Michigan, costing $1,918 per year or $160 per month.

Progressive is the cheapest option for auto insurance in Michigan and is our top pick for drivers in the state. USAA, Auto-Owners Insurance, Frankenmuth Insurance and Michigan Farm Bureau are also great options.

Minimum and Full Coverage Insurance

In the US, the minimum level of car insurance legally required is known as liability insurance. This covers the cost of damage to other people and their property in the event of an accident. Liability insurance does not cover the cost of repairs to your own vehicle.

Full coverage insurance includes liability insurance, as well as collision and comprehensive insurance. Collision insurance covers the cost of repairs to your own vehicle in the event of an accident, while comprehensive insurance covers the cost of repairs to your own vehicle in the event of damage caused by something other than a collision, such as theft, vandalism, or natural disasters.

The cost of full coverage insurance is higher than that of minimum liability insurance. However, full coverage insurance may be required by lenders when you finance a car. It is also recommended for drivers who cannot afford to repair or replace their car after an accident.

In Michigan, the minimum level of liability insurance required is:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $10,000 property damage liability per accident
• $1 million property protection insurance

The average cost of minimum coverage in Michigan is $887 per year.

The cheapest company for minimum coverage in Michigan is Auto-Owners.

The average cost of full coverage insurance in Michigan is $3,010 per year.

The cheapest company for full coverage in Michigan is Hastings Mutual.

Insurance for Young Drivers

Shop around for the best rates

Young drivers typically pay higher insurance rates because they are considered high-risk. However, rates can vary significantly between insurance companies, so it's essential to compare quotes from multiple providers. Some companies, like Progressive, Geico, and Auto-Owners, offer lower rates for young drivers. Additionally, USAA offers affordable rates for military members and their families.

Take advantage of discounts

Many insurance companies offer discounts for young drivers. For example, good student discounts are available for students with good grades, and some companies offer discounts for students who attend college away from home. Other common discounts include those for driver's education courses, safe driving habits, and multiple cars or policies.

Consider usage-based insurance

Usage-based insurance programs, like Progressive's Snapshot® and Nationwide's SmartRide, can help young drivers save money by tracking their driving habits and rewarding safe behaviours. These programs typically involve installing a device in the car or using a mobile app to monitor driving.

Stay on a parent's policy

For teen drivers, staying on a parent's insurance policy is usually the most cost-effective option. This allows them to benefit from the lower rates that their parents have earned through their driving experience and good credit history. Additionally, it's more convenient to manage a single policy, and the teen can be insured to drive all the vehicles listed on the policy.

Choose the right coverage

While it's tempting to opt for minimum coverage to save money, it's important to ensure you have adequate protection. Consider increasing liability limits and adding comprehensive and collision coverage to protect against various risks. However, you can also lower your rates by increasing your deductible, though this will result in higher out-of-pocket costs if you need to make a claim.

Insurance for Drivers with a Speeding Ticket

A speeding ticket can have a significant impact on your insurance rates. While the consequences of a speeding ticket vary depending on the state and insurance company, it generally leads to higher insurance premiums. In California, for example, a speeding ticket can result in a 36% to 38% increase in insurance rates, while the national average increase is around 21%.

The impact of a speeding ticket on your insurance rates in Michigan may differ from other states due to regulatory changes implemented in July 2020. These changes prohibit auto insurers from using certain non-driving factors when setting rates, including gender, marital status, homeownership, and credit score. As a result, insurance companies in Michigan primarily consider your driving record and the type of vehicle you drive when determining your insurance rates.

If you have a speeding ticket on your record, you may want to consider the following strategies to help mitigate the impact on your insurance rates:

• Shop around for insurance: Compare quotes from different insurance providers to find the most competitive rates. Some companies may be more lenient towards speeders, so it's worth exploring your options.
• Consider a high-risk insurance provider: If you have multiple speeding tickets or other violations on your record, you may be considered a high-risk driver. In this case, you might want to look into insurance companies that specialize in high-risk insurance.
• Improve your driving habits: Signing up for a telematics program can help you demonstrate safe driving habits to your insurance company. These programs track your driving behaviour and can lead to discounts that offset the premium hike from your ticket.
• Adjust your insurance policy: Review your current insurance policy and consider making adjustments to reduce your premium. This could include raising your deductible or dropping optional coverage. However, keep in mind that these changes may increase your financial responsibility in the event of an accident.
• Explore legal options: If you believe your speeding ticket was unjustified, consider consulting a legal professional. They can help you explore potential avenues to get your case reduced or dismissed, which could positively impact your insurance rates.

Remember that the impact of a speeding ticket on your insurance rates may vary depending on the specific circumstances, such as the number of tickets, the severity of speeding, and your driving history. It's always a good idea to review your insurance policy and explore options to minimize the financial consequences of a speeding ticket.

Insurance for Drivers with an At-Fault Accident

If you are found to be at fault in a car accident, your insurance premium will likely increase. In most states, the at-fault driver's insurance will cover the other drivers' medical and vehicle repair expenses. The at-fault driver's liability insurance will not cover their own injuries or property damage, however.

The increase in insurance premium depends on several factors, including the insurance company, the state, and the extent of the damage. On average, insurance premiums go up by 50% after an at-fault accident. The increase in premium usually lasts for about 3 to 5 years.

• Get accident forgiveness from your insurance company: Most major insurers offer accident forgiveness, either as a paid product or a loyalty add-on.
• Shop around for insurance: Get quotes from different insurers every 6-12 months to ensure you are getting the best deal.
• Alter your policy: Consider dropping optional types of insurance or raising your deductible to pay a lower rate. However, make sure the deductible is still set to an amount that you can afford.
• Look for discounts: Many major insurers offer discounts for taking a defensive driving course, setting up autopay, or switching to paperless billing.
• Practice safe driving: Insurance rates only go up temporarily after an at-fault accident. By avoiding moving violations and staying safe on the road, your premium will eventually go back down.

Insurance for Drivers with a DUI

If you have a DUI on your record, you will likely be considered a high-risk driver by insurance companies. This means that your insurance rates will be higher than those of a driver without a DUI. Your DUI will affect your insurance rates for at least three to five years, and it may stay on your record for much longer, depending on the state. In California, for example, a DUI stays on your record for ten years.

The cost of your insurance after a DUI will depend on a number of factors, including your age, location, and the insurance company you choose. On average, you can expect your auto insurance rate to increase by $800 per year or more. Some insurance companies will not insure drivers with a DUI, but others, like Progressive, specialize in high-risk drivers.

If you have a DUI, you will likely need to file an SR-22 form with your state. This proves that you have the required liability insurance. Not all insurance companies will file this form, so you will need to find one that does.

Frequently asked questions