Best Car Insurance Rates in Michigan

Best Car Insurance Rates in Michigan

Find Cheap Auto Insurance Quotes in Michigan

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The rates on this page are based on policies issued on or before the enforcement of the state's new auto insurance system on July 1, 2020. To see how much you may be able to saving by reducing your Personal Injury Protection (PIP) limits under the new laws, visit our Michigan insurance requirements page.

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ValuePenguin dug into car insurance rates throughout the state to determine the cheapest car insurance companies in Michigan.

We found that switching to the cheapest company could save drivers almost $4,000 a year when compared to the state average.

And the average cost of car insurance in Michigan is the highest in the country: $2,641 for a six-month policy, or $5,282 per year.

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But insurance rates in Michigan and elsewhere can vary widely based on the policy you select, your driving history, your location and other factors. Read our analysis below, or enter your ZIP code above for a list of cheap auto insurance companies near you to begin more local comparison shopping.

Cheapest auto insurance companies in Michigan

If you purchase a policy with unlimited Personal Injury Protection (PIP), the default policy offered by insurers, we found that Auto-Owners Insurance and USAA are the cheapest companies, costing an average of $1,485 and $1,304 per year, respectively. For those who aren't eligible for USAA or want to shop elsewhere, Frankenmuth Insurance ($1,556 per year) and Progressive ($1,729) also had some of the most affordable quotes.

This graph shows the five cheapest car insurance companies in Michigan with the best rates

Find Cheap Auto Insurance Quotes in Michigan

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The Michigan average is driven up by the fact that some of the biggest companies in the state — including Hanover, Allstate and AAA — are extremely expensive. You can usually find much cheaper rates by shopping around.

Below, we rank our sample companies from cheapest to most expensive for drivers shopping for a minimum-coverage policy. The actual quotes you'll get will differ based on your own circumstances.

RankCompanyAverage annual cost
1Auto-Owners$1,485
2Frankenmuth$1,556
3Progressive$1,729
4State Farm$2,909
5AAA$9,771
6Allstate$9,819
7Hanover$13,685
N/A*USAA$1,304
*USAA was not included in rankings as not all shoppers will be eligible.

Buying a Michigan policy with unlimited PIP is particularly expensive: policies cost fives times more than minimum liability car insurance policies in the average U.S. state. Michigan auto insurance reforms enacted July 1, 2020 allow consumers to reduce their PIP coverage or even opt-out entirely, potentially resulting in thousands of dollars in savings per year.

Under the reform, new minimum-coverage policies have higher liability insurance limits than before, also called personal liability and property damage (PLPD) auto insurance. But in the event you're at fault for costly injuries to others in a major car accident — and if Michigan's no-fault laws don't apply — you could still find the minimum policy insufficient to cover your costs.

These policies also don't include comprehensive and collision insurance, the protections included in full-coverage policies.

Cheapest full-coverage auto insurance: Auto-Owners Insurance

States don't require comprehensive and collision insurance — the key components of full-coverage car insurance — but you should consider adding them to your policy if you have a new or expensive car. However, these policies are 65% more expensive in Michigan.

We found that Auto-Owners Insurance and USAA also offer the cheapest full-coverage policies in Michigan, on average, with USAA the clear winner if you're eligible. Progressive provided similarly priced policies to Auto-Owners.

  • Only current and former service members can buy a USAA policy, but the company offers great savings. A full-coverage policy cost $2,651 per year, which is 70% cheaper than the state average.
  • Auto-Owners Insurance is once again the cheapest widely available insurer. But its full-coverage policies are much more expensive than its minimum-coverage equivalents. Auto-Owners cost our driver $3,138 per year on average.
  • Progressive is much more competitive for full-coverage policies than for minimum coverage. Its prices for our driver rival Auto-Owners, at $3,172 per year.

Full-coverage policies include liability insurance, collision insurance to cover your own car in an accident, and comprehensive insurance, which covers weather-related damage, theft and vandalism. As a rule of thumb, if your car is worth $4,000 or more, you should consider buying full coverage.

RankCompanyAverage annual cost
1Auto-Owners$3,138
2Progressive$3,172
3Frankenmuth$3,522
4State Farm$4,917
5Auto Club Group$12,975
6Allstate$16,289
7Hanover$23,118
N/A*USAA$2,651
*USAA was not included in rankings as not all shoppers will be eligible.

Cheapest auto insurance after an at-fault accident: Auto-Owners Insurance

Your driving record is one of the most important factors in setting your auto insurance rates. And if you're at fault in an accident, your car insurance rates in Michigan could jump by hundreds or even thousands of dollars.

Once again, our research shows that Auto-Owners is the cheapest widely available insurer based on our comparison data, while USAA is the cheapest insurer for those who are eligible. After an accident, Auto-Owners Insurance had the smallest increase in rates, as our driver was only charged 17% more.

In extreme instances, such as with AAA, an insurer may double rates after just one accident. This shows why Michigan drivers should regularly compare rates across car insurers, especially if they have an accident or violation in their driving history.

RankCompanyRates after accidentRates before accidentDifference
1Auto-Owners$3,675$3,138$536
2Frankenmuth$4,566$3,522$1,044
3Progressive$4,606$3,172$1,434
4State Farm$5,865$4,917$947
5AAA$26,469$12,975$13,494
6Allstate$26,892$16,289$10,603
7Hanover$32,353$23,118$9,235
N/A*USAA$3,491$2,651$839
*Annual are for an at-fault accident causing $2,000 in property damage. USAA was not included in rankings as not all shoppers will be eligible.

Best auto insurance companies in Michigan

We recommend all Michigan drivers to shop around and find the lowest auto insurance quotes, but you should also get a policy from an insurer with a great reputation.

How you balance savings and quality of service is up to you, but you'll likely make an auto insurance claim in a time of stress and need. It helps to know you'll be working with an insurer that will be responsive and fair.

Measured by the rate of customer complaints, we found the best insurance companies in Michigan are:

  • Auto-Owners Insurance
  • Frankenmuth Insurance
  • Hanover Insurance

The lower the complaint rate, the better rated a company.

Considering that Auto-Owners Insurance and Frankenmuth also offer some the cheapest policies in Michigan on average, these companies are great starting points for your auto insurance search.

RankCompanyMarket shareComplaint Index
1Auto-Owners Insurance16.6%0.08
2Frankenmuth Insurance14.7%0.14
3The Hanover Insurance Group (Citizens Insurance)13.9%0.16
4Progressive10.5%0.4
5Michigan Farm Bureau7.4%0.47
6AAA (MemberSelect)6.0%0.56
7Allstate4.9%0.6
8State Farm3.4%0.69
9Liberty Mutual2.7%0.95
10USAA1.9%1
The Complaint Index is taken from the National Association of Insurance Commissioners. A lower number indicates fewer customer complaints against the company, adjusted for market size. The national median is 1.0, meaning insurers with an index below that number offer better service than the median insurer.

Cheapest auto insurance in Michigan, by city

Michigan car insurance rates can vary a great deal depending on where you live. Our research found that for the 50 most populous cities in which rate data was available, USAA and Auto-Owners Insurance almost always had some of the cheapest rates.

The next-best option is Frankenmuth Insurance, which ranked as one of the three cheapest insurers in 35 out of 50 cities.

CityCompanyAnnual premium
Allen ParkUSAA$1,745
Frankenmuth Insurance$1,896
Auto-Owners Insurance Co$2,006
Ann ArborUSAA$1,133
Auto-Owners Insurance Co$1,227
Frankenmuth Insurance$1,398
Auburn HillsUSAA$1,638
Auto-Owners Insurance Co$1,683
Frankenmuth Insurance$1,788
Battle CreekUSAA$1,164
Auto-Owners Insurance Co$1,346
Frankenmuth Insurance$1,422
Bay CityUSAA$1,320
Auto-Owners Insurance Co$1,353
Progressive$1,496
BedfordUSAA$1,111
Auto-Owners Insurance Co$1,328
Frankenmuth Insurance$1,442
BirminghamUSAA$1,306
Auto-Owners Insurance Co$1,675
Progressive$1,764
BurtonUSAA$1,496
Frankenmuth Insurance$1,516
Progressive$1,551
ByronUSAA$1,366
Frankenmuth Insurance$1,442
Auto-Owners Insurance Co$1,535
DearbornUSAA$1,754
Auto-Owners Insurance Co$2,702
Frankenmuth Insurance$3,107
Dearborn HeightsUSAA$1,661
Auto-Owners Insurance Co$2,205
Frankenmuth Insurance$2,614
DetroitUSAA$2,268
Auto-Owners Insurance Co$2,902
Frankenmuth Insurance$3,406
East LansingUSAA$1,127
Progressive$1,367
Auto-Owners Insurance Co$1,376
EastpointeUSAA$1,888
Frankenmuth Insurance$2,144
Auto-Owners Insurance Co$2,224
Farmington HillsUSAA$1,274
Auto-Owners Insurance Co$1,558
Frankenmuth Insurance$1,767
FlintUSAA$1,660
Progressive$1,870
Auto-Owners Insurance Co$1,884
Garden CityUSAA$1,489
Auto-Owners Insurance Co$1,939
Frankenmuth Insurance$2,174
Grand RapidsUSAA$1,222
Auto-Owners Insurance Co$1,260
Frankenmuth Insurance$1,268
HollandFrankenmuth Insurance$1,096
USAA$1,151
Auto-Owners Insurance Co$1,248
InksterUSAA$1,822
Auto-Owners Insurance Co$2,274
Frankenmuth Insurance$2,416
JacksonUSAA$1,220
Auto-Owners Insurance Co$1,282
Progressive$1,293
KalamazooUSAA$1,076
Auto-Owners Insurance Co$1,318
Frankenmuth Insurance$1,380
KentwoodFrankenmuth Insurance$1,204
USAA$1,253
Auto-Owners Insurance Co$1,342
LansingUSAA$1,263
Auto-Owners Insurance Co$1,414
Progressive$1,433
Lincoln ParkUSAA$1,574
Frankenmuth Insurance$2,080
Auto-Owners Insurance Co$2,122
LivoniaUSAA$1,297
Frankenmuth Insurance$1,665
Auto-Owners Insurance Co$1,685
Madison HeightsUSAA$1,575
Auto-Owners Insurance Co$1,923
Progressive$2,095
MidlandUSAA$1,309
Auto-Owners Insurance Co$1,379
Frankenmuth Insurance$1,380
Mount PleasantUSAA$1,319
Auto-Owners Insurance Co$1,346
Frankenmuth Insurance$1,442
MuskegonUSAA$1,254
Auto-Owners Insurance Co$1,356
Frankenmuth Insurance$1,378
NoviUSAA$1,266
Frankenmuth Insurance$1,499
Auto-Owners Insurance Co$1,572
Oak ParkUSAA$1,869
Auto-Owners Insurance Co$2,370
Progressive$2,606
PontiacUSAA$1,676
Auto-Owners Insurance Co$1,968
Frankenmuth Insurance$2,002
Port HuronUSAA$1,366
Auto-Owners Insurance Co$1,561
Frankenmuth Insurance$1,848
PortageUSAA$1,024
Auto-Owners Insurance Co$1,257
Progressive$1,451
RomulusUSAA$1,489
Auto-Owners Insurance Co$1,813
Progressive$2,515
RosevilleUSAA$1,710
Auto-Owners Insurance Co$1,987
Progressive$2,229
Royal OakUSAA$1,412
Progressive$1,517
Auto-Owners Insurance Co$1,807
SaginawUSAA$1,390
Frankenmuth Insurance$1,400
Auto-Owners Insurance Co$1,570
SouthfieldUSAA$1,728
Auto-Owners Insurance Co$2,370
Progressive$2,393
SouthgateUSAA$1,517
Auto-Owners Insurance Co$1,698
Progressive$2,178
St. Clair ShoresUSAA$1,477
Auto-Owners Insurance Co$1,868
Frankenmuth Insurance$2,004
Sterling HeightsUSAA$1,453
Auto-Owners Insurance Co$1,879
Frankenmuth Insurance$2,067
TaylorUSAA$1,517
Auto-Owners Insurance Co$1,957
Frankenmuth Insurance$2,416
TroyUSAA$1,307
Auto-Owners Insurance Co$1,740
Frankenmuth Insurance$1,787
WarrenUSAA$1,675
Auto-Owners Insurance Co$2,175
Progressive$2,323
WestlandUSAA$1,656
Auto-Owners Insurance Co$1,806
Frankenmuth Insurance$2,052
WyandotteUSAA$1,513
Auto-Owners Insurance Co$1,671
Frankenmuth Insurance$2,102
WyomingFrankenmuth Insurance$1,180
USAA$1,196
Auto-Owners Insurance Co$1,291
YpsilantiUSAA$1,342
Auto-Owners Insurance Co$1,464
Frankenmuth Insurance$1,635

To provide Michigan shoppers with greater detail, we've highlighted the costs in the five largest cities in the state by population:

  • Detroit
  • Grand Rapids
  • Warren
  • Sterling Heights
  • Ann Arbor

USAA is the cheapest company in each location, but prices can vary widely city to city.

Auto insurance in Detroit

  • Average annual cost = $13,404
  • 154% more expensive than Michigan average

Even for Michigan, Detroit is incredibly expensive for car insurance. Across our sample insurers, a minimum-coverage policy costs an average of more than $13,000 per year.

But even more surprising is the range of prices. Auto-Owners Insurance costs less than $3,000 a year, while Allstate, AAA and Hanover all cost more than $20,000 per year. The variability in this market means shoppers should definitely shop around and find the company that offers them the best rate.

Auto insurance in Grand Rapids

  • Average annual cost = $4,148
  • 21% less expensive than Michigan average

Despite being the second most populous city in Michigan, Grand Rapids has relatively affordable car insurance policies. Our driver found an Auto-Owners Insurance policy cost $1,260 per year, and Frankenmuth, Progressive and State Farm all charged less than $2,000 per year.

Auto insurance in Warren

  • Average annual cost = $9,325
  • 77% more expensive than Michigan average

Though not nearly as expensive as Detroit, Warren is the second most expensive city of these five. All our sample insurers are much more expensive in Warren, but USAA and Progressive increased their prices the least compared to their state averages.

Auto insurance in Sterling Heights

  • Average annual cost = $8,593
  • 63% more expensive than Michigan average

Sterling Heights is the 11th most expensive major city in the state for car insurance. But the average is driven up by major rate increases for this location by insurers such as AAA, Hanover, Allstate and State Farm. As is typical for Michigan, the cheapest insurers — USAA and Auto-Owners — raised rates the least in Sterling Heights.

Auto insurance in Ann Arbor

  • Average annual cost = $4,339
  • 18% less expensive than Michigan average

Young drivers in every state typically pay more for car insurance. But despite being a student town, Ann Arbor is one of the cheaper major cities in the state for car insurance.

Here, an insurer like State Farm has much more competitive prices than it does for the state as a whole. Its average rates in the city are 27% lower than its average rates for all of Michigan.

Average cost of car insurance in Michigan: By city

The average cost of a minimum-coverage policy in Michigan is $5,282 per year, and a full-coverage policy costs $8,723 per year; both the most expensive averages in the country.

Average rates can change a lot depending on where you live. Below, we've ranked the 50 most populous cities in the state (where data was available) from cheapest to most expensive minimum-coverage policies.

  • Portage is the cheapest major city in the state, with an average minimum coverage rate of $3,707 per year.
  • Detroit is easily the most expensive city; the average rate there is $13,404 per year.

These averages include figures from all our sample insurers. However, shopping around should help you find rates that are cheaper than the average for any given city.

RankCityAnnual premiums
1Portage$3,707
2Holland$3,797
3Wyoming$3,974
4Kalamazoo$3,987
5Midland$4,045
6Kentwood$4,046
7Grand Rapids$4,148
8East Lansing$4,285
9Mount Pleasant$4,328
10Ann Arbor$4,339
11Jackson$4,443
12Battle Creek$4,702
13Bedford$4,766
14Muskegon$4,894
15Bay City$4,997
16Novi$5,132
17Farmington Hills$5,144
18Lansing$5,335
19Saginaw$5,558
20Port Huron$5,673
21Byron$5,727
22Ypsilanti$5,782
23Livonia$5,896
24Auburn Hills$5,912
25Birmingham$6,075
26Royal Oak$6,119
27Burton$6,189
28Troy$6,335
29Wyandotte$6,532
30Southgate$6,684
31Westland$6,964
32Madison Heights$6,995
33St. Clair Shores$7,275
34Lincoln Park$7,280
35Flint$7,296
36Allen Park$7,319
37Taylor$7,992
38Romulus$8,322
39Garden City$8,366
40Sterling Heights$8,593
41Pontiac$9,117
42Warren$9,325
43Roseville$9,342
44Dearborn Heights$9,350
45Southfield$10,120
46Eastpointe$10,643
47Oak Park$10,725
48Inkster$10,781
49Dearborn$12,522
50Detroit$13,404

Michigan car insurance requirements

Starting July 1, 2020, Michigan enacted auto insurance reform with the intent of lowering costs for drivers statewide. The reform implements two key changes related to minimum coverage requirements were:

  • You no longer have to purchase unlimited Personal Injury Protection (PIP). You can now buy coverage of up to only $250,000 in medical expenses, or even opt out entirely if you have Medicare (Parts A and B). There is also an option to only buy $50,000 in coverage if you are enrolled in Medicaid.
  • Residual bodily injury and property damage liability limits were increased to the numbers cited below.

A minimum coverage policy in Michigan now has the following required limits:

Required coverageRequired limits
Personal injury protection$250,000 or opt-out
Property protection insurance$1 million per accident
Residual bodily injury liability$50,000 per person and $100,000 per accident
Residual property damage liability$10,000 per accident

In Michigan, a no-fault state, liability insurance is labeled as "residual" because it will only be used in special circumstances involving serious injuries or with out-of-state drivers.

You can read more in our guide on Michigan state auto insurance requirements, which describes the reforms enacted in July 2020 and the potential savings you could garner by lowering your PIP limits.

Methodology

This analysis used quotes from thousands of Michigan cities. The quotes were for a 30-year-old man with a 2015 Honda Civic EX. The driver had a minimum-coverage policy meeting Michigan state requirements before the July 1, 2020 reform. If he had a full-coverage policy, it had the following limits:

Coverage typeStudy limits
Bodily liability$50,000 per person/$100,000 per accident
Property damage$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.