Are you looking for cheap and comprehensive car insurance in Michigan?
To help you navigate the confusing Michigan car insurance policies, we researched the ins and outs of Michigan’s no-fault insurance laws, state minimum required coverage, and which providers offer the cheapest auto insurance. Read on to find out which company we think offers the best car insurance in Michigan.
Whenever you shop for car insurance, we recommend getting auto insurance quotes from multiple providers so you can compare coverage and rates. Use our tool below to start comparing personalized car insurance quotes.
In this article:
- Overview Of Car Insurance In Michigan
- Our Top Choices For Car Insurance In Michigan
- The Basics Of Car Insurance
- Michigan Car Insurance Requirements
- What Are Average Michigan Car Insurance Rates?
- What To Consider When Shopping For Car Insurance
- FAQ: 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 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 gain great cheap Michigan car insurance.
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|
2. Auto-Owners Insurance
*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 MetLife Car Insurance
With over 145 years of experience, MetLife isn’t just an industry leader within the United States, but around the world. The company operates in 50 countries and continues to expand. In addition to auto insurance, MetLife offers life, homeowners, and health insurance, plus retirement and savings products. MetLife boasts over 100 million customers, and the company directly serves 90 of the top 100 Fortune 500 companies in the U.S.
MetLife auto insurance has low rates, even in several of the most metropolitan areas like Detroit, Grand Rapids, Lansing, and Ann Arbor. In addition to standard Michigan auto insurance coverages, MetLife offers these benefits:
- New car replacement: If you total your new car within one year of purchase or during the first 15,000 miles, MetLife will cover a replacement at full cost.
- Major parts replacement: The provider will cover the replacement of certain major parts (tires, brakes, batteries, etc.) no matter their condition at the time of your accident.
- Glass repairs without a deductible: MetLife will complete windshield repairs with a waived deductible.
- Roadside assistance and towing coverage: MetLife provides 24/7 roadside and towing assistance regardless of the reason you need it.
- Legal defense costs: If you're sued, the provider will cover your legal fees and reimburse you for up to $200 per day for lost wages.
- Lease/loan Guaranteed Asset Protection (GAP) coverage: If your vehicle is totaled while under lease or loan, MetLife will cover the gap between the depreciated value and a new car replacement.
|Specialty coverage, unique add-ons, and a high number of discounts||Negative customer reviews regarding claims process|
|Superior financial strength rating and A- rating from the BBB|
|Local agents available|
To learn more about the car insurance provider, check out our review of MetLife auto insurance.
#2 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
Besides offering some of the cheapest car insurance in Michigan, Auto-Owners Insurance is also known for its No Problem® claim service. In a recent U.S. Auto Claims Satisfaction Study, J.D. Power ranked Auto-Owners 3 out of 5 for overall satisfaction, with higher ratings for the repair process and rental experience.
|Local licensed agents throughout Michigan|| |
Only available in 27 states
|Helpful app|| |
You have to contact an insurance agent to get/file a quote
|Auto Plus Package|
#3 USAA Car Insurance
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, in the U.S. Auto Claims Satisfaction Study mentioned above, USAA received a score of 5 out of 5 overall.
USAA provides standard coverage like liability auto insurance, collision coverage, and comprehensive insurance in Michigan and offers 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.
|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.
#4 Geico Auto Insurance
Geico received 4.5 out of a possible 5.0-star rating overall according to our research. Geico offers car insurance products in all 50 states including Michigan and plans prices are tailored to meet Michigan’s minimum car insurance requirements.
Geico also has top ratings from car insurance industry experts with an A+ rating from the Better Business Bureau and an A++ AM Best Financial Strength Rating. These ratings indicate that Geico has reliable customer service and the financial means to payout 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 failure or breakdown. Be sure to weigh the pros and cons of this provider as listed below:
|Superior financial strength rating and A+ rating from the BBB||Average quotes experience|
|Many choices for coverage||Usage-based app not available in all states|
|High level of customer satisfaction|
|Available in 50 states|
To learn more about this provider, read our review of Geico.
#5 Progressive Auto Insurance
Progressive received an overall rating of 4.5 out of 5.0 stars. Progressive has high ratings from auto insurance industry experts with an A+ from AM Best and an A+ from the Better Business Bureau (BBB).
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:
|One of the top auto insurers in the United States||Average claims process|
|Superior financial strength rating and A- rating from the BBB||Mixed customer service reviews|
|Great choice for high-risk drivers|
|Several money-saving features and easy quote process|
To learn more about the car insurance provider, check out our Progressive insurance review.
What Are Average Michigan Car Insurance Rates?
Since the insurance system in the Great Lakes State greatly differs from most other U.S. states, it’s no surprise that Michigan auto insurance rates are well above the national average.
According to the National Association of Insurance Commissioners (NAIC), Michigan car insurance rates in 2018 averaged $1,470 per year. This was significantly higher than the national average of $1,057, making Michigan the fourth most expensive state for automobile insurance. Here’s a breakdown of the coverage costs for car insurance in Michigan that year according to the Insurance Information Institute:
|Type Of Coverage||Average Annual Expenditure in 2018|
*Most drivers carry liability coverage but not necessarily other types of auto insurance. Total average annual expenditure measures what Michigan drivers actually spent on auto insurance in 2018.
To see car insurance quotes for your area in Michigan, use the tool below to start seeing prices in your zip code.
Michigan Car Insurance Rates By Age
Young drivers can pay significantly more for car insurance in Michigan.
|Age||Michigan Annual Car Insurance|
Michigan Car Insurance Rates By Gender
According to our rate estimates, your gender doesn't affect your car insurance cost in Michigan.
|Gender||Michigan Annual Car Insurance|
Michigan Car Insurance Rates For Drivers With Bad Credit
Having a poor credit rating can double your car insurance rates in Michigan.
|Credit Rating||Michigan Annual Car Insurance|
Michigan Car Insurance Rates For Bad Drivers
Not everyone has a clean driving record. However, having a DUI in Michigan can triple your rates.
|Driving Record||Michigan Annual Car Insurance|
Factors That Impact Michigan Car Insurance Rates
Although most people would guess that snowy winters or poor road conditions would be the main cause of such high rates, that’s actually not the case. Here are the main factors driving the cost of Michigan car insurance:
- Around 26 percent of Michigan drivers are uninsured, according to the Insurance Research Council.
- According to the Insurance Information Institute (III), only 12 states run under a no-fault insurance system, including Michigan.
- Michigan struggles with excessive amounts of insurance fraud, and this problem is passed onto policyholders in their rates.
Factors That Affect Car Insurance Quotes In Michigan
The cost of car insurance in Michigan depends on a variety of factors regulated by the Michigan Department of Insurance and Financial Services. It is then up to each individual insurance company to award discounts and adjust car insurance rates depending on factors like:
- Your driving record
- Your age, gender, and marital status
- Your location
- Prior auto insurance coverage
- How many miles you drive
- How many years you’ve been driving
- Vehicle year, make, and model
In 2020, Michigan state lawmakers signed a law that barred insurance providers from using credit scores to determine the price of car insurance.
The Basics Of Car Insurance
Each state has laws that govern the minimum requirements for car insurance. Essentially, though, 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).
Although each state has its own factors to determine minimum requirements, every state except Florida requires that all motorists carry at least bodily injury liability and property damage liability. Inversely, only a handful of states require that drivers carry PIP coverage.
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. It’s important to note that laws are changing in Michigan in 2020 with regards to required PIP coverage. The Michigan no-fault insurance requirements also include a property protection component (PPI).
Michigan Car Insurance Requirements
Since Michigan is a no-fault state, the car insurance comes with several unique rules. Before you can determine who has the best car insurance in Michigan for you, you need to feel fairly confident in your knowledge of required coverage. Here are the basic minimums required for car insurance in Michigan:
|Insurance Type||Required Coverage Amount|
|Bodily injury liability||$20,000 per person and $40,000 per accident|
|Property damage liability||$10,000 per accident|
|Personal injury protection||$500,000|
|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: Although Michigan has fairly set state minimum coverage, the minimums required may or may not work for your specific situation. 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, if you drive a luxury vehicle, the minimum Michigan auto insurance requirements may not provide enough coverage to account for costly repairs and parts replacements.
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 definitely impact your insurance rates. The good news is that Michigan’s points system only keeps violations on your record for two years. If you can't remember how long that speeding ticket has been on your record, check with the Michigan Department of Motor Vehicles. If a ticket or points you earned are about to disappear, wait until that happens before you shop for Michigan car insurance.
3. Available discounts: Many car insurance companies offer discounts for clean driving records, your credit score, or even your marital status. 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. Because Michigan car insurance laws are changing next year, you may find that some companies start offering more competitive rates or new plan options.
Enter your zip code in the tool below to collect and compare car insurance quotes from providers available in your state.
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.
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