Are you looking for cheap and comprehensive car insurance in Michigan? Our team researched the ins and outs of Michigan’s no-fault insurance laws, state minimum required coverage, and the cheapest auto insurance providers on average. Read on to find out which company we think offers the best car insurance in Michigan.
Overview of Car Insurance In Michigan
Auto insurance laws in the state of Michigan are some of the most complex in the country. This is because Michigan’s no-fault laws require specific coverages and do not allow drivers to make claims against other drivers’ insurance companies in the case of an accident. These complicated laws and required coverages make Michigan car insurance far more expensive than the national average.
However, if you shop around for car insurance and consider some top providers, you might be able to find great cheap Michigan car insurance.
What Is The Cheapest Car Insurance In Michigan?
According to our rate estimates, Progressive offers the cheapest car insurance in Michigan with an average monthly rate of $140 and an annual rate of $1,682 for full coverage. USAA, Auto-Owners, and AAA are also affordable providers in the state.
|Cheapest Michigan Car Insurance Providers||Average Monthly Cost Estimate||Average Annual Cost Estimate|
How Much Does Michigan Car Insurance Cost?
According to our cost estimates, Michigan full coverage car insurance costs $369 per month or $4,430 per year on average. This is more than twice as expensive as the national annual average of $1,732. These rates are for a 35-year-old driver with a clean driving record and good credit history.
Michigan is the second-most expensive state for car insurance in the nation, according to the National Association of Insurance Commissioners (NAIC).
Auto insurance companies in Michigan are prohibited from using sex, marital status, homeownership, credit score, educational level, occupation, and zip codes when setting prices for insurance premiums.
Cheapest Michigan Car Insurance: Young Drivers
According to our rate estimates, young drivers pay substantially more for an auto insurance policy in Michigan. Here are the cheapest companies for young drivers with full coverage car insurance policies.
|Car Insurance Company||Monthly Rate Estimate||Annual Rate Estimate|
Cheapest Michigan Car Insurance: Speeding Tickets
Insurance companies raise your rates for violations like speeding tickets. Based on our research, Progressive offers the cheapest rate estimate for drivers with a speeding ticket costing an average of $171 per month or $2,047 per year for full coverage insurance. Here are other providers we also found that provide affordable car insurance.
|Car Insurance Company||Monthly Rate Estimate||Annual Rate Estimate|
Cheapest Michigan Car Insurance: Recent Accidents
Having a recent at-fault accident on your record can cause your premium to spike. If you have an accident on your record, check out the providers below for the best cheap car insurance in Michigan.
|Car Insurance Company||Monthly Rate Estimate||Annual Rate Estimate|
Our Top Choices For Car Insurance In Michigan
Since Michiganders are already paying significantly more for coverage, finding the best policy for the lowest price is on nearly everyone’s mind. We researched the best car insurance companies in Michigan and found the following to be the best choices based on overall customer satisfaction, the ease of the claims process, and the quality of coverage.
|Best Michigan Car Insurance||Motor1 Rating||Average Cost|
|1. Auto-Owners Insurance||4.4||$2,221|
|2. USAA Car Insurance||4.8||$2,696|
|3. Geico Auto Insurance||4.6||N/A|
|4. Progressive Car Insurance||4.6||$1,682|
*Not all providers were included in our cost estimate data per state. Also, you may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Michigan.
#1 Auto-Owners Insurance
Since 1916, Auto-Owners Insurance has been covering drivers, and today the company provides insurance policies to nearly three million customers nationwide. Auto-Owners has over 47,000 licensed agents across 26 states, and its headquarters are located in Lansing, Michigan.
Auto-Owners Insurance holds an A+ rating and accreditation from the Better Business Bureau (BBB) and an A++ (Superior) rating with AM Best. It has been a Forbes 500 company for more than a decade and received numerous national awards for its customer service, quality, and superior employee treatment. The company has an app with high ratings that lets you check the status of a claim, view your insurance card, pay your bill, and more.
Auto-Owners offers all of the basic types of coverage, along with the following:
- 24/7 roadside assistance
- Rental car reimbursement
- Gap coverage
USAA car insurance is a great choice if you, your spouse, or one of your parents is a current or former military member. In our research, we found that the company offers reasonable prices and positive customer service experiences. Auto industry rating organizations like J.D. Power consistently give USAA high ratings. In fact, USAA received the highest score for the North Central region in the J.D. Power 2021 U.S. Auto Insurance StudySM.
USAA provides standard coverages as well as additional perks, including new car replacement, accident forgiveness, rental car reimbursement, towing, and glass coverage. USAA also has discounts for safe drivers and those who take driver training courses, plus discounts for active military personnel who store their vehicles while deployed.
Where USAA really shines is with its customer service. This is an important consideration when taking into account the low marks of many providers when it comes to claims processing.
|USAA Pros||USAA Cons|
|Affordable rates and numerous discounts||Only available for military and their families|
|Good option for military members and young drivers|
|Superior financial strength rating and A+ rating from the BBB|
To learn more about the car insurance provider, check out our USAA insurance review.
Geico received 4.6 out of a 5.0 stars in our nationwide review of the top insurance providers for its positive reputation, affordable prices, and comprehensive coverage.
Geico also has top ratings from car insurance industry experts with an A+ rating from the BBB and an A++ AM Best financial strength rating. These ratings indicate that Geico has reliable customer service and the financial means to pay out customer claims.
All Geico insurance policies come with the following benefits:
- Comprehensive coverage options
- Nationwide coverage at affordable rates
- Roadside assistance, rental car reimbursement, and roadside assistance included with all plans
Geico is also a leading provider of mechanical breakdown insurance that protects your finances from having to pay the cost of select repairs after a mechanical breakdown.
To learn more about this provider, read our review of Geico.
Progressive received an overall rating of 4.6 out of 5.0 stars from our review team. The insurer has high ratings from industry experts with an A+ financial strength rating from AM Best, indicating its ability to reliably pay out claims.
Progressive offers a couple of impressive tools that could help you save money on your car insurance:
- Progressive Snapshot® Program: A usage-based safe driving program that operates through an app on your phone and monitors your safe driving habits to qualify you for discounts.
- Name Your Price® Tool: Compare Progressive’s rates to other top insurance providers’ rates on the Progressive website when you get a quote to ensure you’re getting the best price possible.
See a breakdown of the pros and cons of Progressive below:
To learn more about the car insurance provider, check out our Progressive insurance review.
The Basics Of Car Insurance
Each state has laws that govern the minimum requirements for car insurance. Essentially, every state requires some combination of these five basic coverage types:
- Bodily injury liability (BI): This helps cover costs related to another person’s injuries if you cause a car accident.
- Property damage liability (PD): This helps cover costs related to another person’s vehicle or personal property if you cause a car accident.
- Uninsured motorist bodily injury: If the motorist who caused the accident isn’t insured, you are covered for costs related to your injuries and the injuries of your passengers.
- Uninsured motorist property damage: This coverage helps with costs related to damages to your vehicle if the motorist who caused the accident isn’t insured.
- Personal injury protection (PIP): PIP, which is only offered in some states, helps cover your medical expenses in an accident and other costs incurred due to injury (i.e. lost income).
Michigan No-Fault Laws
Michigan is one of nearly a dozen states that requires some form of “no-fault” car insurance. In a no-fault state, your car insurance includes coverage for your medical expenses and other out-of-pocket losses in the event of an auto accident regardless of who caused the crash. However, the Michigan no-fault insurance law is one of the most complicated and includes several irregularities.
- Michigan works under a true no-fault system: That means you and your insurance company are responsible for all losses and expenses in the event of an accident, regardless of how the auto accident occurs. Instead, your deductible and other pre-insurance fees will vary based on who law enforcement deems to be at fault.
- Filing a claim against another person’s insurance is rare: Because of these laws, your personal insurance will cover most or all damages and injuries in the event of an accident. This not only means that you’ll rarely (if ever) file claims against another person’s insurance, and that you likely cannot receive coverage for “pain and suffering” or other damages resulting from the accident.
- PIP is required: Because of the no-fault law, Michigan requires that all motorists carry PIP coverage. While the state used to require unlimited PIP coverage, the law changed in 2020 and now offers Michigan drivers options, including policy limits of up to $50,000, $250,000, and $500,000. Unlimited PIP insurance is still available to drivers who want it. The Michigan no-fault insurance requirements also include a property protection component (PPI).
Michigan Car Insurance Requirements
Before you can determine which company has the best car insurance in Michigan for you, you need to know what coverage is required. Here are the state minimum requirements in Michigan:
|Insurance Type||Required Coverage Amount|
|Bodily injury liability||$50,000 per person and $100,000 per accident|
|Property damage liability||$10,000 per accident|
|Personal injury protection||Options of up to $50,000, $250,000, $500,000, or unlimited coverage available|
|Uninsured/underinsured motorist coverage||Optional|
|Collision and comprehensive||Optional|
Michigan Catastrophic Claims Association (MCCA) Fee
Additionally, Michigan requires that all insured drivers pay a Michigan Catastrophic Claims Association fee. The only insured vehicles not required to pay the MCCA fee are vehicles in storage that only carry comprehensive car insurance.
Non-Insured Motorist Penalties In Michigan
Although Michigan doesn’t have an automatic program to track uninsured drivers, it does require that all car owners provide proof of insurance annually when renewing vehicle registrations and license plates. Additionally, all Michigan drivers are expected to carry proof of insurance in their vehicles at all times.
If you cannot provide proof of insurance upon police officer request in Michigan, you could be subject to the following penalties:
- License suspension
- Non-renewal of vehicle registration and license plates
- $50 fine and other legal fees
What To Consider When Shopping For Car Insurance
1. Amount of coverage: Beyond state minimum coverage, it’s important to consider what kind of policy best fits your needs. For example, if you’re driving a brand-new car that’s still under an auto loan, you’ll likely need full coverage car insurance that includes comprehensive and collision.
Also, it’s important to note that no car insurance covers repairs needed in the case of a manufacturer defect. If you’d like these additional coverages, consider an extended car warranty.
2. Your driving record: Keep in mind that your driving history will significantly impact your insurance rates. The good news is that Michigan’s points system only keeps violations on your record for two years.
3. Available discounts: Many car insurance companies offer discounts for clean driving records, driver safety courses, and more. Also, if you own a home or need other types of insurance, consider choosing companies that offer policies for all of these things so you can potentially qualify for a multi-policy discount.
4. Shopping around: Although you may want to remain loyal to a person or company you feel has treated you fairly, it’s always a good idea to compare multiple car insurance quotes and shop around for auto insurance every few years.
FAQ: Car Insurance In Michigan
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.