Michigan Auto Insurance with Bad Credit

The Zebra
March 12, 2019

Auto insurance can be expensive if you have bad credit. Auto insurance companies use credit score as a major rating factor, assigning premiums based in part on clients' credit histories. Because auto insurance companies rely on historical data that show those with bad credit are more likely to file auto insurance claims, they compensate for the additional risk by charging more.

Your car insurance costs with bad credit depends on which company you choose, where you live, and a few other rating factors. See on this page average insurance rates for drivers with bad credit in primary Michigan cities and rates from popular insurance companies, plus a few tips on how to save on car insurance with bad credit in Michigan.


Car insurance for drivers with poor credit in Michigan:

  1. Average rates
  2. Prices by city
  3. Rates by company

Car insurance rates with bad credit in Michigan

Drivers in Michigan face an average penalty of $3,783 annually for having a credit score at the low end of the scale. A driver in the "poor" or "below fair to poor" credit tiers will also face a penalty.


MICHIGAN CAR INSURANCE RATES WITH BAD CREDIT

Credit TierAverage Annual Rate in Michigan
Worst$6,393
Poor$5,211
Below Fair to Poor$4,477
Average — All Credit Tiers$2,610

Compare car insurance rates now!


Auto insurance rates with bad credit in Michigan cities

Your auto insurance prices will also vary based on the geographic area in which you live. Insurance companies rely on your address to estimate your likelihood of filing a claim: the denser and claim-prone your immediate area is, the more expensive your rates.

See below major Michigan cities and their average car insurance rates for drivers with poor credit ratings.


BAD CREDIT CAR INSURANCE RATES IN MICHIGAN CITIES

CityAverage Annual Rate — Worst CreditAverage Annual Rate — Poor CreditAverage Annual Rate — Below Fair to Poor Credit
Detroit$13,753$11,173$9,539
Grand Rapids$5,470$4,471$3,847
Warren$8,686$7,090$6,050
Sterling Heights$8,103$6,609$5,643
Lansing$6,121$4,994$4,275

Find auto insurance online — compare rates now!


Best auto insurance companies for bad credit in Michigan

Another factor that contributes to your premium is the insurer you select. Each auto insurance company prices policies in a different manner, giving rating factors varying weights in their calculations. Credit is often a significant pricing differentiator between otherwise-similar car insurance companies. In Michigan, the most affordable major insurance company with bad credit is GEICO, which offers a price break of $1,368 yearly over the second-most affordable company, Home Owners Insurance Company.

See below prices from major car insurance companies in Michigan for drivers with bad credit.


MICHIGAN CAR INSURANCE PREMIUMS WITH BAD CREDIT — POPULAR COMPANIES

CompanyAverage Annual Rate — Worst Credit
GEICO$1,663
Home Owners Insurance Company$3,031
MEEMIC$3,800
USAA$3,847
Progressive$4,644

If you're having a hard time purchasing auto insurance with a low credit score, consider these tips:

  1. See car insurance quotes
  2. Know when — and when not — to file a claim
  3. Know what determines auto insurance rates