Edited By Renata Balasco
Here's what you need to know when driving in Michigan
Auto insurance is expensive in Michigan. The average car insurance rate in Michigan is $3,096 per year — twice as expensive as the national average, making it the most expensive state in America for car insurance.
Your car insurance costs are impacted by more than just the state in which you live. Car insurance premiums incorporate an array of considerations, including your driving record, credit history, gender, age, and marital status.
We reviewed average Michigan car insurance rates by each of the most common rating factors. See below how much car insurance costs in your state — or enter your ZIP code to compare quotes from top car insurance companies.
Learn more about Michigan's July 2020 car insurance law modifications.
Affordable insurance companies in Michigan
What's the cheapest car insurance in Michigan?
| Rank | Company Name | Avg. Annual Premium |
|---|---|---|
| 1 | Safeco | $368 |
| 2 | MetLife | $1,337 |
| 3 | USAA | $1,477 |
| 4 | Chubb | $1,704 |
| 5 | MEEMIC | $2,004 |
| 6 | Pioneer State Mutual | $2,149 |
| 7 | Progressive | $2,281 |
| 8 | State Farm | $3,475 |
| 9 | Farmers | $4,111 |
| 10 | Hanover | $5,421 |
Want to see more rates? Enter your ZIP code below to compare quotes from dozens of top companies that provide coverage in Michigan.
Compare Michigan car insurance quotes from top providers.
Cheap auto insurance for good drivers in Michigan
Drivers with great driving records typically enjoy cheaper car insurance rates than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. Michigan drivers without a recent at-fault accident typically save 57% on their car insurance premiums — 7% more than the national average. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.
MICHIGAN CAR INSURANCE AVERAGE SAVINGS FOR GOOD DRIVERS
| Rating Factor | $ Savings | % Savings |
|---|---|---|
| No Traffic Tickets | $1,919 | 61.98% |
| No Accidents | $1,772 | 57.24% |
| Good Credit | $4,175 | 94% |
Cheap auto insurance for young drivers in Michigan
Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16-19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. Michigan is an extraordinarily expensive state in which to insure a teen driver: the average teen will pay $8,820 per year in Michigan, compared to the annual national average of $5,023.
MICHIGAN CAR INSURANCE RATES BY AGE GROUP
| Age | Annual Average Premium |
|---|---|
| 16 | $11,442 |
| 17 | $9,226 |
| 18 | $8,234 |
| 19 | $6,379 |
| 20s | $3,820 |
Cheap auto insurance for bad drivers in Michigan
If you have a clean driving record in Michigan — no at-fault accidents, speeding tickets, DUIs, or other recent citations — you'll probably pay less for car insurance. Conversely, a bad driving record will cause your rates to skyrocket: car insurance premiums typically increase by 196% after a DUI, 57% after an at-fault accident, and 62% after a speeding ticket in Michigan.
MICHIGAN CAR INSURANCE RATES BY FACTOR
| Rating Factor | Annual Rate | % Increase |
|---|---|---|
| At-Fault Accident | $4,868 | 57% |
| DUI | $9,158 | 196% |
| Speeding Violation | $5,015 | 62% |
Compare insurance rates quickly and easily.
Top rated car insurance companies in Michigan
Every auto insurer emphasizes its low costs. But as with any product or service, the cheapest car insurance is not always the best idea. Considering the stakes, it's worth doing your due diligence to retrieve an insurance policy that protects your car adequately after an accident. Work to find the best value, rather than settling for the most affordable car insurance in your state.
Use the table below to better understand the quality of service you'll receive. You'll see reviews for popular auto insurers' financial strength, claims satisfaction, and customer satisfaction including an internal satisfaction score from The Zebra's customers.
| Insurance Company |
Claims Satisfaction (J.D. Power) |
Customer Satisfaction (J.D. Power) |
Financial Strength (A.M. Best) |
Customer Satisfaction (The Zebra) |
| Chubb | N/A | N/A | Superior | 4.2 / 5 |
| Esurance | N/A | N/A | Superior | N/A |
| Farmers | Excellent | Below average | Excellent | 4.3 / 5 |
| GEICO | Average | Average | Superior | 4.4 / 5 |
| MetLife | N/A | Below average | Excellent | N/A |
| Nationwide | Average | Poor | Superior | 4.3 / 5 |
| Progressive | Below average | Below average | Excellent | 4.3 / 5 |
| Safeco | Average | Average | Excellent | N/A |
| State Farm | Above average | Above average | Superior | 4.5 / 5 |
| USAA | Excellent | Excellent | Superior | 4.6 / 5 |
Michigan auto insurance laws
In Michigan, the state minimum coverage requirements are as follows:
Liability:
- Bodily Injury $50,000 per person
- Bodily Injury $100,000 per accident
- Property Damage $10,000 per accident (in another state)
Personal Injury Protection:
As of July 2020, the state of Michigan has changed the required amounts of PIP coverage. The following options are now available:
- Unlimited
- $500,000
- $250,000
- $50,000 (lowest option available for Medicaid recipients)
- Opt-out (available only for those with qualifying health care plans)
Property Protection Insurance:
- $1,000,000 per accident
Optional coverage in Michigan (varies by carrier):
- Comprehensive
- Collision
- Limited Property Damage
- Loan/Lease Payoff
- Rental Car Reimbursement
- Roadside Assistance
- Uninsured/Underinsured Motorist Bodily Injury
For the legal minimum coverage level in Michigan, you could owe about $1,745 yearly. This expenditure is more costly than the nationwide average by 181%. If you opt for a higher level of car insurance coverage, you can select a policy with comprehensive and collision coverage, insuring against the costs of car-vs.-car collisions, theft, or weather conditions. Better insurance comes at a price: in Michigan, a comprehensive policy with a $1,000 deductible costs $2,832, 62% more than the minimum insurance coverage. For a comprehensive policy with a $500 deductible, expect to pay 77% more than for a basic policy.
Note: As of July 1, 2021, Michigan's new no-fault reform law stipulates that insurance companies are no longer obligated to pay for more than 56 hours per week of family-provided in-home care. In addition, rehabilitation providers will only be reimbursed at 55% of what they were in 2019 for any services outside of medicare.
Learn more about Michigan's auto insurance laws.
Get Michigan car insurance now!
How tickets change insurance rates in Michigan
When you receive a ticket your car insurance costs will probably go up. How much your rates rise depends on the type of violation, your car insurance company's pricing standards, and differences in local insurance risks and regulations. That's why tickets may have a different impact on insurance in your state compared to the national average.
Below is a look at typical auto insurance rates in Michigan after a few common citations.
Michigan car insurance FAQs
Who has the cheapest car insurance in Michigan?
It is very difficult to find cheap insurance in Michigan. Our data shows Safeco with the cheapest rate at $368 per year. Your best bet for finding insurance in Michigan is using our comparison tool to see local and national companies to compare rates.
Why is Michigan car insurance so expensive?
The main reasons Michigan drivers pay so much for auto insurance are the high number of uninsured drivers, insurance fraud claims and the unlimited amount of PIP coverage required for bare minimum coverage.
Is Michigan car insurance going down?
Restructuring insurance laws has been a big legislation pain point for Michigan's government. At this time, there has been no changes to the state's insurance requirements or costs.
How much does car insurance cost in Michigan cities?
Car insurance companies calculate your rate based on many factors, location of the vehicle being an important one. The cheapest car insurance is found in Kalamazoo, Michigan, and the most expensive in Detroit, Michigan.
| Rank | City | Avg. Annual Premium |
|---|---|---|
| 1 | Detroit | $6,280 |
| 2 | Dearborn | $5,147 |
| 3 | Warren | $4,425 |
| 4 | Sterling Heights | $4,109 |
| 5 | Flint | $3,901 |
| 6 | Livonia | $3,248 |
| 7 | Lansing | $2,901 |
| 8 | Grand Rapids | $2,686 |
| 9 | Ann Arbor | $2,634 |
| 10 | Kalamazoo | $2,546 |
Related Content
