Best Car Insurance Rates in Michigan 2022
Best Car Insurance Rates in Michigan 2022
Auto-Owners has the best cheap car insurance in Michigan, at $1,282 per year, or $107 per month, for minimum liability coverage.
The cost of car insurance varies widely based on your policy, driving history, location and insurer. For instance, the cheapest minimum-coverage policy in Michigan is $12,488 less per year than the most expensive. For this reason, we recommend comparing rates from multiple companies when shopping for an auto insurance policy.
Cheapest car insurance in Michigan: Auto-Owners
Auto-Owners offers the cheapest minimum-coverage auto insurance in Michigan. The company’s average annual rate is $1,282 per year, or $107 per month — 71% less than the state average.
The average cost of car insurance in Michigan is $4,386 per year, or $366 per month, for minimum liability.
Find Cheap Auto Insurance Quotes in Michigan
Active-duty members of the military, veterans and their families can take take advantage of even cheaper auto insurance rates from USAA. USAA's minimum-coverage policy is $1,122 per year, $160 less than Auto-Owners.
Company | Annual rate | Monthly rate |
|---|---|---|
| Auto-Owners | $1,282 | $107 |
| Progressive | $1,333 | $111 |
| Frankenmuth | $1,459 | $122 |
| State Farm | $2,263 | $189 |
| AAA | $9,632 | $803 |
| Hanover | $13,610 | $1,134 |
| USAA | $1,122 | $94 |
USAA is only available to current and former military members and their families.
Purchasing minimum coverage is the most affordable insurance option in Michigan. Minimum-coverage insurance is $2,775 cheaper than full coverage, on average.
However, unlike a full-coverage car insurance policy, minimum liability doesn't include comprehensive and collision coverages, meaning it won't pay for damage to your own car.
Cheapest full-coverage car insurance in Michigan: Progressive
The cheapest full-coverage auto insurance for most drivers in Michigan comes from Progressive. The company charges $2,044 per year on average — 71% cheaper than the statewide average.
The average cost of full-coverage auto insurance in Michigan is $7,161 per year, making it the most expensive state for insurance in the country.
Company | Annual rate | Monthly rate |
|---|---|---|
| Progressive | $2,044 | $170 |
| Auto-Owners | $3,119 | $260 |
| Frankenmuth | $3,338 | $278 |
| State Farm | $3,963 | $330 |
| AAA | $12,839 | $1,070 |
| Hanover | $22,649 | $1,887 |
| USAA | $2,173 | $181 |
USAA is only available to current and former military members and their families.
Full-coverage policies include liability insurance; collision insurance, which covers your own car in an accident; and comprehensive insurance, which protects your car against weather-related damage, theft and vandalism.
Cheap car insurance for drivers with prior incidents
Progressive offers the best car insurance rates for Michigan drivers with traffic violations on their record.
Michigan drivers with a history of speeding tickets, accidents and DUIs almost always pay more expensive car insurance rates than drivers with clean records. Typically, drivers who have been in an accident or have been caught committing a traffic violation are more likely to repeat those actions, making them riskier to insure.
Cheapest car insurance after a speeding ticket: Progressive
Michigan drivers with a recent speeding ticket can find affordable full-coverage insurance from Progressive, which offers rates that are 77% cheaper than the state average of $10,678 per year.
Company | Annual rate | Monthly rate |
|---|---|---|
| Progressive | $2,487 | $207 |
| Auto-Owners | $3,612 | $301 |
| Frankenmuth | $3,693 | $308 |
| State Farm | $5,085 | $424 |
| AAA | $26,098 | $2,175 |
| Hanover | $30,989 | $2,582 |
| USAA | $2,781 | $232 |
USAA is only available to current and former military members and their families.
A single speeding ticket increases insurance rates in Michigan by 49%, on average. However, some insurers raise prices more than others. Frankenmuth only raised premiums by 11%, while drivers with AAA can expect their rates to double.
Cheapest car insurance after an accident: Progressive
Progressive also has the best rates for Michigan drivers who have an accident on their record. The cost of a full-coverage policy from Progressive is $2,849 per year — $8,597 cheaper than the state average.
Additionally, drivers may find cheap coverage by comparing quotes from Auto-Owners after an at-fault crash. On average, insurance from Auto-Owners costs $3,612 per year — 68% more affordable than the typical cost of car insurance in Michigan after an accident.
Company | Annual rate | Monthly rate |
|---|---|---|
| Progressive | $2,849 | $237 |
| Auto-Owners | $3,612 | $301 |
| Frankenmuth | $4,341 | $362 |
| State Farm | $4,711 | $393 |
| AAA | $26,098 | $2,175 |
| Hanover | $35,396 | $2,950 |
| USAA | $3,118 | $260 |
USAA is only available to current and former military members and their families.
Cheapest car insurance after a DUI: Progressive
Progressive is the cheapest option for Michigan drivers with a DUI or DWI on their driving records. Full-coverage rates from Progressive average $2,386 per year.
Company | Annual rate | Monthly rate |
|---|---|---|
| Progressive | $2,386 | $199 |
| Auto-Owners | $7,357 | $613 |
| State Farm | $12,589 | $1,049 |
| Frankenmuth | $14,438 | $1,203 |
| AAA | $36,097 | $3,008 |
| Hanover | $41,551 | $3,463 |
| USAA | $3,959 | $330 |
USAA is only available to current and former military members and their families.
Car insurance companies tend to increase your rates significantly if you're cited for a DUI. On average, rates in Michigan increase by 136%.
Cheapest car insurance for young drivers in Michigan: Auto-Owners
Auto-Owners has the cheapest car insurance for young drivers in Michigan for both minimum and full coverage. Its minimum-coverage policy for an 18-year-old costs $3,089 per year, 68% less than the state average.
In Michigan, 18-year-old drivers pay $2,423 more for minimum-coverage car insurance than 30-year-old drivers.
Young drivers who are eligible for USAA can take advantage of even better rates. Its minimum-coverage policy is $1,814 per year, $1,275 cheaper than Auto-Owners.
Company | Liability only | Full coverage |
|---|---|---|
| Auto-Owners | $3,089 | $7,459 |
| Frankenmuth | $3,978 | $8,865 |
| Progressive | $4,361 | $8,017 |
| , State Farm | $6,005 | $10,324 |
| AAA | $21,399 | $28,267 |
| Hanover | $26,443 | $49,977 |
| USAA | $1,814 | $4,232 |
USAA is only available to current and former military members and their families.
Insurers raise rates for young drivers because they have less experience behind the wheel and are more likely to cause an accident.
The best way for most young drivers to lower their car insurance rates is to share a policy with an older adult, such as a parent or sibling. Many companies also offer discounts for taking additional driver training courses and maintaining a high GPA in high school or college.
Cheapest car insurance for young drivers after a ticket: Auto-Owners
Auto-Owners remains the cheapest option for young drivers in Michigan who have a recent speeding ticket. The cost of minimum-coverage car insurance with Auto-Owners doesn't change after a single ticket, unlike the other insurers we studied.
On average, car insurance is $4,013 more expensive for young drivers after a speeding violation — a 42% increase over drivers with a clean record.
Company | Annual rate | Monthly rate |
|---|---|---|
| Auto-Owners | $3,089 | $257 |
| Frankenmuth | $4,287 | $357 |
| Progressive | $4,632 | $386 |
| State Farm | $7,973 | $664 |
| AAA | $34,706 | $2,892 |
| Hanover | $38,414 | $3,201 |
| USAA | $2,077 | $173 |
USAA is only available to current and former military members and their families.
Cheapest car insurance for young drivers after an accident: Auto-Owners
The cheapest insurance for young drivers with an at-fault accident is Auto-Owners — the company doesn't raise rates for young drivers after an accident. Its rate remains at $3,089 per year for minimum coverage, making the cost of an Auto-Owners policy 79% cheaper than the state average. Other insurers in Michigan raise rates for young drivers by 50% after an accident, on average.
Company | Annual rate | Monthly rate |
|---|---|---|
| Auto-Owners | $3,089 | $257 |
| Frankenmuth | $4,814 | $401 |
| Progressive | $4,944 | $412 |
| State Farm | $7,317 | $610 |
| AAA | $34,706 | $2,892 |
| Hanover | $43,853 | $3,654 |
| USAA | $2,227 | $186 |
*USAA is only available to current and former military members and their families.
Best car insurance companies in Michigan
State Farm is our pick for best car insurance company in Michigan due to its superior rating from our editors, top J.D. Power customer satisfaction score and high financial stability marks from A.M. Best.
We recommend all Michigan drivers compare auto insurance quotes to find the lowest price, but you should also choose an insurance company 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 has a track record of being responsive and fair.
Company |
Editor's rating
|
JD Power
|
AM Best
|
|---|---|---|---|
| State Farm | 851 | A++ | |
| Auto-Owners | 842 | A++ | |
| AAA | 800 | A | |
| Frankenmuth | NR | A | |
| Progressive | 842 | A+ | |
| Citizens | NR | A | |
| USAA | 895 | A++ |
J.D. Power's Auto Claims Satisfaction Study is a yearly nationwide survey that asks insurance customers about their experience filing claims with their insurer. Higher scores are better, and the best possible rating is 1,000.
A.M. Best's Financial Strength Rating is a letter grade that describes the overall financial health of an insurance company and its ability to pay out claims. The best score is "A++". All of the companies that we studied received a "Superior" or "Excellent" Financial Strength Rating, meaning that they are well-equipped to pay out claims, even in difficult economic times.
Average car insurance rates in Michigan by city
Drivers in Shoreham pay the lowest rates in the state. Full-coverage insurance costs $5,195 per year there. On the other hand, people living in Hamtramck, a suburb of Detroit, pay the highest rates in the state — $20,366 per year.
Where you live can impact your auto insurance rates just as much as how you drive. In Michigan, rates fluctuate significantly from city to city. The difference between the most and least expensive locations is more than $15,000 a year for a full-coverage policy.
City | Average annual rate | Percent from average |
|---|---|---|
| Acme | $6,696 | -6% |
| Addison | $6,653 | -7% |
| Adrian | $6,686 | -7% |
| Afton | $5,936 | -17% |
| Ahmeek | $6,376 | -11% |
Michigan car insurance requirements
Michigan is a no-fault state, and therefore requires drivers to carry personal injury protection along with the standard bodily injury and property damage liability coverages that most states require.
Personal injury protection (PIP) pays for physical injuries to you or your passengers in an accident, as well as any lost wages while you recover, regardless of who is at fault.
Coverage | Limit |
|---|---|
| Personal injury protection (PIP) | $250,000 or opt-out |
| Property protection insurance | $1 million per accident |
| Residual bodily injury liability | $50,000 per person/$100,000 per accident |
| Residual property damage liability | $10,000 per accident |
Michigan passed an auto insurance reform, which took effect on July 1, 2020, with the intent of lowering costs for drivers statewide. The new Michigan auto insurance laws include two key changes related to minimum-coverage requirements:
- Drivers no longer have to purchase unlimited personal injury protection (PIP). They can now purchase a minimum of $250,000 in PIP coverage, or even opt out of PIP entirely if they have Medicare (Parts A and B). There is also an option to purchase only $50,000 in coverage if you are enrolled in Medicaid.
- Residual bodily injury and property damage liability limits were increased to the numbers cited above.
Recap of the cheapest car insurance in Michigan
- Minimum coverage: Auto-Owners
- Full coverage: Progressive
- After a speeding ticket: Progressive
- After an at-fault accident: Progressive
- After a DUI: Progressive
- Young drivers: Auto-Owners
- Young drivers after a ticket: Auto-Owners
- Young drivers after an accident: Auto-Owners
Frequently asked questions
What is the average car insurance cost in Michigan?
The average cost of auto insurance in Michigan for a minimum-coverage policy is $4,386 per year. For a full-coverage policy, the average rate is $7,161 per year.
How much does car insurance cost in Detroit?
The average cost of a full-coverage policy in Detroit is $15,631 per year, or $1,303 per month. The largest city in the state, Detroit has the third-highest insurance rates in Michigan — 118% above the state average.
What is the penalty for driving without insurance in Michigan?
Driving without insurance in Michigan is a misdemeanor. If you don't have an insurance policy, you could face a $500 fine, 30-day license suspension with a $125 reinstatement fee.
Why is car insurance so expensive in Michigan?
Car insurance rates are expensive in Michigan because the minimum car insurance limits required by the state are high. Even after recent reforms removed the statewide requirement for unlimited personal injury protection (PIP), the average car insurance rate in Michigan is $3,000 more per year than the second-most-expensive state, Florida.
What is the minimum car insurance in Michigan?
Michigan auto insurance law requires drivers to carry a minimum of $250,000 of personal injury protection coverage, $1 million of property protection insurance per accident, $50,000 per person and $100,000 per accident of residual bodily injury liability coverage and $10,000 of residual property damage liability per accident.
Who has the best car insurance for high-risk drivers in Michigan?
Progressive has the best cheap car insurance for high-risk drivers in Michigan. It offers the cheapest rates for drivers with accidents, speeding tickets and DUIs.
Methodology
We collected thousands of rates from ZIP codes across Michigan for the largest insurers in the state using a sample driver with the following profile:
- 30-year-old male
- Drives a 2015 Honda Civic EX
- Average credit score
The base policy for the study was a full-coverage policy with the following limits:
Coverage | Limit |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Personal injury protection | $250,000 |
| Property damage liability | $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.
For other rate analyses (credit score and driving history) the base policy listed above was alternated to reflect the new driver. For young drivers, quotes are based on a minimum-coverage policy for an 18-year-old male.
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.