Michigan Auto Insurance: Cheapest Options Explained

Michigan is one of the most expensive states in the U.S. when it comes to car insurance. The average cost of car insurance in Michigan is $3,010 per year for full coverage, whereas minimum coverage averages $887 per year. The cheapest car insurance in Michigan is from Geico at $2,131 per year for full coverage and from USAA at $560 per year for a minimum-liability policy.

The cheapest car insurance in Michigan is from Geico

Overview

If you want the cheapest policy possible, get minimum coverage. The average cost of minimum coverage in Michigan is $593 per year, or $49 per month. Wolverine Mutual offers the cheapest rates in Michigan at $204 per year, on average, for minimum coverage car insurance for a 35-year-old driver with a clean driving record.

Geico vs Other Insurance Companies

According to MarketWatch, the average cost for a full-coverage policy in Michigan is $4,067 per year or $339 per month, about 52% more than the national average of $2,681 per year. USAA offers the cheapest minimum-liability car insurance coverage in the state at $560 per year or $47 per month.

Bankrate's analysis found that Auto-Owners, USAA, and Secura are some of the cheapest car insurance companies in Michigan. The state's average annual cost of car insurance is $3,010 for full coverage and $887 for minimum coverage.

U.S. News and World Report's analysis found that Geico has the lowest sample rates in Michigan, with an average coming in at approximately $1,066 per year. At the other end of the spectrum, Allstate has an average rate of $3,170 per year.

Factors Affecting Car Insurance Rates in Michigan

Various factors influence how much you’ll pay for car insurance premiums in Michigan. These include:

• Location
• Driving record
• Vehicle age, make, and model
• Credit history
• Mileage and usage
• Driver’s age
• Marital status
• Gender

The cheapest car insurance companies in Michigan are Auto-Owners, USAA and Secura

The cheapest car insurance companies in Michigan are Auto-Owners, USAA, and Secura.

Auto-Owners Insurance

Auto-Owners Insurance is a Michigan-based insurer that received a score of 842 out of 1000 in the J.D. Power 2021 auto study. They offer the cheapest rates for young drivers in Michigan, with full coverage for 16-year-old drivers costing an average of $4,886 per year, compared to the state average of $7,429. They also have the cheapest rates for drivers with poor credit, with an average annual rate of $2,933. Auto-Owners Insurance also has good rates for drivers with a recent accident on their record, with an average annual rate of $1,905.

USAA

USAA is the cheapest option for drivers with a DUI on their record, with an average annual rate of $2,028. They also have the cheapest rates for drivers with a speeding ticket, at an average annual rate of $1,438. USAA is only available to military members, veterans, and their families.

Secura

Secura is one of the cheapest options for drivers with a DUI on their record, with an average annual rate of $2,039. They also have good rates for drivers with a recent accident, with an average annual rate of $1,932.

The cheapest car insurance for young drivers in Michigan is from Auto-Owners

Auto insurance is mandatory in Michigan, and the state has the most expensive car insurance in the US. The average cost of full coverage auto insurance in Michigan is $386 per month. However, young drivers in Michigan can get the cheapest auto insurance quotes from Auto-Owners Insurance.

Cheapest car insurance for young drivers in Michigan: Auto-Owners

Auto-Owners Insurance has the cheapest auto insurance for young drivers in Michigan. The company's rates average $187 per month for a teen buying minimum coverage. Auto-Owners Insurance costs an average of $545 per month for full coverage.

USAA is another option for young drivers who are eligible for its policies. USAA is only available to current and former military members and their families.

In Michigan, 18-year-old drivers pay $156 more per month for minimum coverage car insurance than 30-year-old drivers.

Why Auto-Owners Insurance is the cheapest for young drivers in Michigan

Insurance companies charge teens more for insurance because they have less driving experience and are more likely to get in an accident. However, Auto-Owners Insurance offers the cheapest auto insurance for young drivers in Michigan.

The best way for young drivers to pay less for car insurance is to join a family insurance plan. Also, many companies offer car insurance discounts for taking driver safety classes or having good grades.

Other cheapest car insurance options in Michigan

Progressive has the cheapest full coverage auto insurance in Michigan. It costs $253 per month on average, which is 34% cheaper than the state overall.

Auto-Owners Insurance has the cheapest minimum coverage auto insurance in Michigan. An Auto-Owners policy costs $95 per month on average. That's 39% cheaper than the state average.

Factors that affect car insurance rates in Michigan

Various factors influence how much you’ll pay for car insurance premiums in Michigan. These include:

• Location
• Driving record
• Vehicle age, make, and model
• Credit history
• Mileage and usage
• Driver’s age
• Marital status
• Gender

The cheapest car insurance for drivers with prior incidents in Michigan is from Auto-Owners and Secura

If you're a driver in Michigan with a prior incident, you'll be pleased to know that Auto-Owners and Secura offer the cheapest car insurance. Bankrate's analysis reveals that Auto-Owners is the cheapest company for drivers with a ticket, an at-fault accident, or high-risk incidents on their record. According to NerdWallet, Auto-Owners also has the cheapest car insurance for 18-year-olds with an at-fault accident.

USAA is another insurance company that offers affordable rates for drivers with prior incidents. While USAA is only available to military members, veterans, and their families, it's worth considering if you fall into this category. USAA is the cheapest option for drivers with a DUI, according to US News and World Report.

In addition to Auto-Owners and Secura, there are other insurance companies that offer competitive rates for drivers with prior incidents. For instance, Progressive is the cheapest overall for most drivers in Michigan, according to Forbes Advisor. Progressive also has the cheapest rates for drivers with a speeding ticket, an at-fault accident, or a DUI.

When shopping for car insurance in Michigan, it's important to compare quotes from multiple companies, as rates can vary significantly. Additionally, consider the coverage options and discounts offered by each insurer to ensure you're getting the best value for your money.

The cheapest car insurance in Michigan for military families is from USAA

USAA is the best option for military families looking for cheap car insurance in Michigan. The company offers the cheapest minimum-liability car insurance coverage in the state at $560 per year or $47 per month. However, it is important to note that USAA policies are only available to active military members, veterans, and their immediate families.

USAA has a strong industry reputation and received the highest score in the 2024 J.D. Power Auto Insurance Study for the North Central region. The company also offers a range of discounts, including safe driver, good student, new vehicle, and military installation discounts.

In addition to affordable rates, USAA provides excellent customer service. The company scored higher than its competitors in the J.D. Power study, known for its high customer satisfaction ratings.

USAA's coverage options are fairly standard and include bodily injury and property damage liability, medical payments, comprehensive coverage, and collision coverage. The company also offers a legacy discount for individuals whose parents were military members.

For military families in Michigan, USAA is the clear choice for cheap and reliable car insurance. With its competitive rates, wide range of discounts, and exceptional customer service, USAA is the ideal provider for those seeking affordable coverage.

Frequently asked questions