ValuePenguin's recent study looked at car insurance rates throughout the state of Michigan to help our readers determine which cities offered the most affordable auto insurance premiums. For our study we sampled rates from the 50 largest cities in Michigan, and costs differed a lot depending on where drivers live. For example, drivers in the most expensive city pay 2.6x more than people driving in the cheapest city in Michigan. Even within the same city, rates fluctuated depending on insurance company. The cheapest company statewide cost just 22% what the most expensive city was charging - that is savings of 78%, the high end of what comparison shopping can net you. For more details, read the results from our comparison analysis below, or enter your zip code for a list of cheap auto insurance companies to begin more local comparison shopping:
It's helpful to know which auto insurance companies are more affordable in your state than others. Below we've ranked 15 companies based on their average annual premiums in Michigan to give drivers a starting point in their search for the cheapest rates in the state. Rates are based on a thirty-year old single male driver. We found that Liberty Mutual ranked as the cheapest insurer in Michigan with the lowest average rates at $576 annually. Conversely, Allstate was the most expensive with drivers paying over $2,600 per year on average.
This can look different depending on where you actually live, drive, and park your car. For those people who'd like to see which insurers operate in your town and have the cheapest rates, just enter your zip code in the box below to start your search:
As we mentioned, where you live plays a large role in determining how much it costs to insure your car. In this section, we'll take a look at costs for the largest and most expensive cities.
Detroit is the most populous city in Michigan and also its most expensive when it comes to auto insurance. This isn't the first time Detroit has found itself towards the top of insurance lists before. It is widely regarded as one of the most expensive auto insurance cities not only in MI but in the entire country. Based on our driver's profile, Detroit's annual rates average $3,401 or 102% more expensive than the state average.
Cheap auto insurance in Detroit does exist, however. We found some of the lowest rates at Liberty Mutual and MetLife Auto Insurance. For example, average annual rates of $1,416 a year at MetLife can represent savings of 58% for a single 30-year old male driver.
Grand Rapids, MI
The 2nd largest city in Michigan and less than 30 miles from the eastern shores of Lake Erie, Grand Rapids is nicknamed "River City" for the beautiful Grand River that runs through its center. There are many things to do in Grand Rapids, from golfing, to shopping, hanging at the beach, or even discovering one of the many art exhibits around town. Economically, GR's largest employer is Spectrum Health with almost 20,000 employees.
Car insurance rates in Grand Rapids are very favorable despite the city being the second largest in Michigan. Overall, Grand Rapids ranks as having the 10th cheapest insurance premiums in the state at $1,370 per year. That's a full 18% cheaper than the state average. Liberty Mutual, MetLife, and GEICO were three cheap car insurance companies in Grand Rapids based on our comparison data.
Home to the Michigan State University Spartans in addition to being the capital city of Michigan, Lansing is the 5th largest city in the state with almost 115,000 residents. Lansing is also called "The Heart of Michigan" partly because it is quite literally in the center of the state. The state government and MSU provide many of the jobs in Lansing but there's strong private enterprise as well with plenty of national and regional companies keeping their headquarters in the city.
The cost of insuring your vehicle in Lansing is $1,488 per year which is 12% cheaper than the state average and almost $2,000 less than residents of Detroit are paying! To save even more, start comparison shopping at Liberty Mutual, MetLife, and GEICO for some of the cheapest rates.
Ann Arbor, MI
Much like Lansing above, Ann Arbor is home to another large university, the University of Michigan Wolverines. With 114,000 citizens in the city, Ann Arbor is the 6th largest town in "The Great Lakes State". No stranger to awards, Ann Arbor has consistently placed on "Top Places to Live" lists for years and is widely considered a safe and friendly town with a very reasonable cost of living.
In our 2014 study, the city placed fantastically well. Ann Arbor had the second cheapest auto insurance costs in the state overall with annual premiums of $1,318 or $110 per month. This makes Ann Arbor 21% cheaper than the average Michigan city.
Just 9 miles away from Detroit is our second most expensive city in the state, and the headquarters of the iconic Ford Motor Company. Drivers here can pay an average of $2,618 a year to insure their car, which is about 56% more expensive than the state average. Even so, cheap car insurance can be found in Dearborn: Liberty Mutual and MetLife are two great companies to start with. Quotes can be about 60% lower here than with other companies.
It's important at least consider the complaint ratio of whatever companies you're looking at for car insurance. If you just look at the premium price there's always a risk that you end up with a company that has great rates but a lousy overall experience (claims servicing is slow, customer service is rude, etc). Below you'll find many of the largest auto insurance operators in Michigan and their corresponding complaint ratio. The lower the complaint ratio, the better rated a company is:
|Rank||Company||Complaints||Premiums Written||Complaint Ratio|
|5||Pioneer State Mutual||7||$97,622,844||0.07|
Michigan's most expensive car insurance rates were in Detroit followed by Dearborn and Southfield. Detroit residents were paying an average of over $3,000 per year to insure their vehicles while those in Dearborn and Southfield were paying $2,618 and $2,371, respectively. Regarding the most affordable cities, Georgetown, Ann Arbor, and Pittsfield finished in the top 3 positions with a yearly average of $1,313 between the three of them.
Here's a look at 50 cities scattered throughout the state and their average annual auto insurance rate. Cities are listed in alphabetical order.
|St. Clair Shores||$1,697|
The quotes we compiled were for a 30 year old single male driving a Toyota Camry. Our hypothetical driver drives between 10k and 15k miles per year in his vehicle, which he owns. His driving is primarily for commuting purposes. The driver has no accidents or traffic incidents on his record in the past 5 years. He also has excellent credit and opted for basic auto insurance coverage. Coverage consists of $50k / $100k Bodily Injury coverage, $25k Property Damage coverage, $50k / $100k Uninsured Motorist coverage, and a $500 deductible. Finally we sampled quotes from 15 auto insurance companies and average the sample rates to come up with an average for each city. The companies we looked at were: GEICO, State Farm, Nationwide, MetLife, Allstate, Liberty Mutual, USAA, Chubb, AAA, Encompass, Mercury Insurance, National General, Auto Owners, Grange Mutual, and Farm Bureau.
Surveyed auto insurance costs in Michigan are for illustrative purposes only and actual quotes will vary based on your physical residence, driving history, and other factors.