The cheapest car insurance in Michigan comes from Progressive, which sells liability-only car insurance for $947 per year — 57% less than average.
The cost of car insurance in Michigan can vary widely based on your policy, your driving history, location and the provider. For instance, $6,195 separates the cheapest minimum coverage policy from the most expensive. 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.
The rates on this page are based on policies issued after the enforcement of the state's new auto insurance system on July 1, 2020. For a detailed breakdown of the new laws, visit our Michigan insurance requirements page.
Cheapest auto insurance company in Michigan: Progressive
Under Michigan's revised auto insurance laws, drivers with qualifying health insurance can opt out of unlimited Personal Injury Protection (PIP) in exchange for lower levels of coverage. Most drivers will be able to select $250,000 of PIP. For these drivers, the cheapest auto insurance in Michigan is Progressive, which offers coverage for $947 per year, or $79 per month.
Alternatively, drivers may find cheap coverage with Auto-Owners or Frankenmuth. These three insurers offer average premiums that cost less than $1,000 per year. The average cost of car insurance from these three insurers is $965 per year, which is $1,327 cheaper than average.
Find Cheap Auto Insurance Quotes in Michigan
Under the reform, new minimum-coverage policies have higher liability insurance limits than before, also called personal liability and property damage (PLPD) auto insurance. These policies also don't include comprehensive and collision insurance, the protections included in full-coverage policies.
Cheapest full-coverage auto insurance: Progressive
The average cost of full-coverage auto insurance in Michigan is $4,356 per year, making the state the most expensive in the country.
The cheapest full-coverage auto insurance for most drivers in Michigan comes from Progressive. The insurer charges $1,522 per year, on average. This is 65% cheaper than the statewide average of $4,356. By comparing multiple car insurance companies, drivers could also find cheap coverage from Auto-Owners, Frankenmuth or State Farm.
For eligible drivers, USAA offers the cheapest car insurance in the state. With USAA, car insurance costs an average of $1,454 per year. However, only current and former service members and their families can buy a policy from the insurer.
USAA was not included in rankings as not all shoppers will be eligible.
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 younger than 10 years old, you should consider buying full coverage.
Cheap car insurance for drivers with prior incidents
The cost of full-coverage car insurance in Michigan is commonly much more expensive for drivers who have been in crashes or gotten citations for DUIs or traffic violations. With this in mind, ValuePenguin found the cheapest full-coverage options in Michigan for a range of drivers.
Cheapest for drivers with an accident: Progressive
On average, having one accident on your record can raise your rates by as much as $2,197, or 50%.
Despite the price hike that occurs after an accident, it's still possible for drivers who have been in an at-fault crash to find cheap car insurance in Michigan. The cost of coverage from Progressive is $4,595 less than average.
Additionally, drivers may find cheap coverage by comparing quotes from Auto-Owners and Frankenmuth after an at-fault crash. On average, these companies cost just $2,865 per year — $3,688 more affordable than the typical cost of car insurance in Michigan after an accident.
Cheapest for drivers with a speeding ticket: Progressive
After receiving a speeding ticket, drivers will see the cost of their car insurance increase. The surcharge, however, is usually less than what follows an at-fault accident. Drivers can still get affordable coverage from Progressive, which offers rates that are 67% cheaper than average. Drivers may also find cheap coverage from Frankenmuth and Auto-Owners. Both companies offer rates cheaper than $3,000 per year.
Cheapest for drivers with a DUI: Progressive
Getting cited for a DUI or DWI negatively impacts the price of car insurance. Progressive remains the cheapest option for those who have a DUI or DWI on their driving records. On average, the insurer's rates increase by $261 per year following a citation — substantially cheaper than its competitors.
Cheapest for drivers with poor credit: Progressive
Typically, insurers charge higher rates to drivers with poor credit scores. However, Michigan is one of a handful of states that prohibits insurers from determining their rates using credit. The change in Michigan was instituted on July 1, 2020. As rates are unchanged for drivers with poor credit, Progressive remains the cheapest option for full-coverage auto insurance.
Cheapest for married drivers: Progressive
Often rates can fall slightly for married drivers, as drivers may be viewed as less likely to take risks while behind the wheel. However, the same law that prohibits insurers from using credit scores as a factor in insurance pricing also bars companies from changing rates based on a driver’s marital status. Progressive remains the cheapest option, as rates are unchanged.
Cheapest car insurance for young drivers: Auto-Owners
In Michigan, young drivers pay $2,441 more for minimum coverage car insurance compared to older car owners.
Young drivers in Michigan pay much more for car insurance than their older counterparts. The cost of minimum coverage car insurance is 107% more for younger drivers than others. It's even more expensive for full coverage, which costs 136% more for young drivers, on average.
Despite the high cost of car insurance young drivers must commonly pay, it's still possible to find relatively affordable coverage in Michigan. Auto-Owners has the cheapest coverage, on average, for both full and minimum coverage. Young drivers can get full-coverage for 47% less than average. Young drivers may also find affordable rates from Progressive and Frankenmuth.
USAA was not included in rankings as not all shoppers will be eligible.
Cheapest for young drivers with one accident: Auto-Owners
Auto-Owners remains the cheapest option for car insurance for young drivers who have been in an at-fault accident. The cost of coverage for Auto-Owners doesn't change after one at-fault accident — a unique quality compared to its competitors. On average, car insurance is $2,933 more expensive for young drivers after an accident.
Cheapest for young drivers with a speeding ticket: Auto-Owners
Despite the price hike, most insurers impose on drivers who have gotten a speeding ticket, young drivers can still find affordable coverage with Auto-Owners. Again, the insurer doesn't raise rates after one incident. This makes the cost of coverage with Auto-Owners 62% cheaper than average.
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.
According to a survey commissioned by ValuePenguin, every respondent with the insurer respondents claimed that they were "extremely satisfied" by their experience with Auto-Owners. Moreover, 67% categorized the customer service they received with Auto-Owners as "excellent."
% of respondents overall extremely satisfied with most recent claim
% of respondents who rated customer service as "excellent"
Using the National Association of Insurance Commissioners' (NAIC) Complaint Index, we also compared the number of complaints each insurer received. The lower the complaint rate, the better rated a company. By this metric, Auto-Owners Insurance and Hanover rank at the top of companies we surveyed.
2019 NAIC complaint index
2020 J.D. Power Claims Satisfaction
AM Best Rating
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.
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:
|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 earn by lowering your PIP limits.
How Michigan's new PIP laws affect car insurance rates
Buying a Michigan policy with unlimited PIP is particularly expensive: policies cost substantially more than minimum liability car insurance policies in the average U.S. state. Fortunately, as of July 1, 2020, many Michiganders will be able to select lower levels of PIP coverage.
According to the state's new laws, those with Medicaid can choose limits of $50,000 of PIP, while those with Medicare A and B can opt out of PIP altogether. Most people — those with non-Medicare health insurance plans — can choose to carry $250,000 of PIP instead of an unlimited amount.
The following table compares the cost of full coverage under the old laws with the potential savings drivers may earn by carrying $250,000 of PIP. The average cost of coverage in Michigan drops by more than half under the new requirements, making full-coverage a realistic option for many drivers in the state.
Savings under new law
*USAA was not included in rankings as not all shoppers will be eligible.
Average cost of car insurance in Michigan: By city
The average cost of full-coverage car insurance in Michigan is $4,356 per year, while the cost of minimum coverage is $2,292 for a 12-month policy. The cost of coverage depends heavily on the driver's location. To illustrate how cost changes with location, we've ranked the cost of car insurance in Michigan's cities from least to most expensive.
On average, the cheapest city for car insurance in Michigan is Shoreham, while Hamtramck is the most expensive city. Detroit, where policies are 95% more expensive than average, is one of the most expensive cities for insurance.
These averages include figures from all our sample insurers. However, comparing rates should help you find cheaper rates than the average for any given city.
Difference from average
|6||Sault Ste. Marie||$3,429||-21%|
Auto insurance rate changes by company in Michigan
In Michigan, auto insurance rates have decreased by 4.3% across the largest 10 insurance providers. Amongst all the companies we analyzed, State Farm cut its premiums the most — 15.7%, which was more than triple the next closest competitor, Automobile Club Michigan (4.4%).
There may be a variety of reasons insurers decide to decrease auto insurance rates. However, in 2020, the primary reason was the coronavirus pandemic, which reduced overall driving behaviors and auto claims. This allowed the insurance providers to offer cheaper rates overall.
Premiums written (millions) 2019
Rate Change 2019
Rate Change 2020
|Automobile Club Michigan||$1,520.5||9.0%||-4.4%|
|The Hanover Insurance||$642.4||4.3%||-2.0%|
|Michigan Farm Bureau||$498.4||11.0%||-2.1%|
|Pioneer State Mutual||$184.5||12.1%||-1.7%|
Recap of the cheapest car insurance in Michigan
- Cheapest minimum coverage: Progressive
- Cheapest for full coverage: Progressive
- Cheapest with one accident: Progressive
- Cheapest with one speeding violation: Progressive
- Cheapest with one DUI: Progressive
- Cheapest for young drivers: Auto-Owners
- Cheapest full coverage for young drivers: Auto-Owners
- Cheapest for young drivers with one accident: Auto-Owners
- Cheapest for young drivers with a speeding ticket: Auto-Owners
We collected thousands of rates from ZIP codes across Michigan for the largest 10 insurers. We used a sample driver with the following profile:
- 30-year-old man
- Drives a 2015 Honda Civic EX
- Average credit
The base policy for the study was a full-coverage policy with the following limits:
|Bodily liability||$50,000 per person/$100,000 per accident|
|Personal injury protection||$10,000|
|Property damage||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$50,000 per person/$100,000 per accident|
|Comprehensive and collision||$500 deductible|
For our minimum-coverage policy, we quoted a policy with the minimum required limits in Michigan, above.
For other rates analyses (age, credit score, accident history and marriage status) the base policy listed above was alternated to reflect the new driver.
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.