The Cheapest Auto Insurance Companies in Michigan in 2024

Driving in Michigan isn’t cheap, even after average annual rates decreased by almost $500 after new cost-cutting legislation went into effect in 2020. Today, Michigan drivers can expect to pay an average of $191 per month for minimum-liability coverage or $369 per month for full coverage, according to Compare.com data.

Luckily, savvy shoppers have several ways to get lower rates on auto coverage — and we’ll cover them all in this comprehensive guide to car insurance in Michigan. Whether you’re a Yooper or a Troll, we’ve got you covered. Let’s dig in.

Key Takeaways:

• Auto-Owners offers the cheapest average car insurance rates in Michigan, at $69 per month.
• The monthly average car insurance rates in Michigan are $191 for minimum coverage and $369 for full coverage.
• Auto insurance reform laws introduced in 2020 mean you have many more choices and more ways to save on insurance costs.

In This Article:

• Average Price for Car Insurance in MI
• Cheapest MI Car Insurance Companies
• Best Michigan Insurers of 2024
• Average Michigan Rates by Age and Driving Record
• Michigan Auto Insurance Requirements
• How to Get Cheap Car Insurance in MI
• Frequently Asked Questions

How Much Is Car Insurance in Michigan?

The average cost of car insurance in Michigan is $280 per month when looking at all policies and coverage options combined, according to data from Compare.com. Drivers who pay for full coverage will pay more, but people looking to save money can buy a minimum-coverage policy.

Here’s how much those policies cost:

The average car insurance premium for a full-coverage policy is quite costly, at $369 per month, according to Compare.com data. A minimum-coverage policy, on the other hand, typically costs much less: $191 per month.

Choosing your coverage level is one of the biggest ways to tweak your car insurance rates, but it’s not the only one. Let’s look at some others.

Michigan’s Cheapest Car Insurance Companies

The average Michigan driver may pay $280 per month for car insurance, but that doesn’t mean you’re stuck with that rate, too.

The following companies offer the cheapest average rates in Michigan, according to Compare.com data. After choosing which coverage level you need, deciding on which company to go with can help you save even more.

Auto-Owners offers the cheapest rates among Michigan insurers, costing an average of $91 per month, according to our data.

But keep in mind that this may or may not be the best deal for you, depending on your situation. Car insurance rates are based on several factors, so some insurers may charge less, and some more. The best way to save money on car insurance is by shopping around and comparing personalized quotes from multiple insurers. The companies featured below are a great place to start.

The Best Michigan Insurance Companies of 2024

Each insurance company uses a different pricing formula, so there’s no single “best car insurance” for everyone. We’ve hand-picked the following three insurers that offer the most competitive rates and features for different types of Michigan drivers.

Best for affordable coverage: Auto-Owners

• Average premium: $91 per month
• Compare.com Rating: 4.43 out of 5

Pros:

• Highly rated customer service
• Excellent financial stability rating
• Classic car coverage available

Cons:

• Not available in all states
• Poorly rated mobile app
• Only available through agents

Auto-Owners is a good choice if you plan on staying in Michigan since it’s not available in all states. It’s an especially good choice if you’re a Detroit auto history buff and classic car fan since it offers special coverage for these types of vehicles. As a bonus, it also offers cheap car insurance to drivers across the Wolverine state.

Best for military members: USAA

• Average premium: $92 per month
• Compare.com Rating: 4.91 out of 5

Pros:

• Plentiful discount options
• Full-service financial institution
• High overall rating for all aspects

Cons:

• No Michigan storefronts
• Potentially difficult shopping experience
• Only available to military members

Michigan has one of the highest populations of veterans in the country, as well as tens of thousands more active-duty, National Guard, and reserve members. If you count yourself among that number, or if you’re related to someone who does, chances are you’re eligible for a USAA auto policy.

USAA is one of the highest-rated and most affordable insurers in the country, and it offers great rates to Michigan drivers, too.

Best for families: Safeco

• Average premium: $119 per month
• Compare.com Rating: 4.59 out of 5

Pros:

• Highly rated mobile app
• Multiple homeowner discounts available
• Insures RVs, boats, snowmobiles, classic cars

Cons:

• Subpar financial stability rating
• Potentially confusing shopping experience
• Poor customer satisfaction ratings

One of the best parts of living in Michigan is enjoying the outdoors, whether you’re camping, snowmobiling through the woods, or enjoying the endless lakes. Safeco offers excellent insurance coverage for all of these toys, too. Homeowners will appreciate the bundling discount, plus you’ll only have to pay one deductible if you file a claim against your home and auto policy.

Cheapest State-Minimum Car Insurance in Michigan: Auto-Owners

We’ve noted how the types of coverage you buy can affect your rates, but let’s look a bit more closely at how much different companies charge for the minimum coverage that Michigan law requires. This will generally be your most affordable option, after all.

The table below shows the five cheapest Michigan insurers for state-minimum policies, according to Compare.com data.

Auto-Owners offers the lowest rates for state-minimum car insurance in Michigan, at an average cost of $69 per month. That said, it’s a good idea to consider a higher amount of coverage if you can, and your lender may even require it.

Cheapest Full-Coverage Car Insurance in Michigan: Auto-Owners

If you’re leasing your car or paying off an auto loan, chances are your lender will require you to buy full-coverage auto insurance. These types of policies typically add collision and comprehensive coverage to protect your vehicle if you get in a car accident, so it’s a bit more expensive. Even if you’re on a tight budget, many insurance experts recommend considering this coverage.

Here’s how much different insurers charge for these types of policies in Michigan:

Auto-Owners has the cheapest rates for full-coverage policies in Michigan, coming in at an average of $112 per month, according to Compare.com data. Even among these two policy options — minimum coverage and full coverage — your rates may vary based on other factors, so let’s take a look at those.

Compare Michigan Auto Insurance Rates by Age

After the new Michigan insurance reform laws went into effect, insurers couldn’t use your sex, credit history, ZIP code, and other common factors to determine your car insurance rates. Unfortunately, age wasn’t a part of that — insurance companies can still price policies higher for teens, much to the chagrin of many Michigan parents.

Here’s how your age affects your rates in the state, according to Compare.com data:

Cheapest for Michigan teens: Auto-Owners

Teen drivers generally pay the highest rates for auto insurance, and that’s especially true in Michigan. Dodging potholes and snow drifts without losing your cool can take years of experience, after all — something that young drivers don’t have yet.

In Michigan, Auto-Owners offers the most affordable car insurance for young adults, costing $131 per month, on average. That’s much less than the $369 monthly rate for the average Michigan teen.

Cheapest for Michigan seniors: Auto-Owners

Rates tend to decline with age as you have more experience, especially once you retire and don’t necessarily need to drive every day. The average Michigan senior pays around $281 per month for car insurance, according to our data.

Auto-Owners offers the lowest-cost auto policy for senior drivers in Michigan, charging substantially less — an average of $77 per month.

In Michigan, Medicaid recipients and older drivers covered under Medicare may be able to save even more by opting for a lower personal injury protection (PIP) coverage level. You may also be able to decline certain coverages that don’t matter anymore, such as benefits for losing your job.

Compare Michigan Auto Insurance Rates by Driving Record

When calculating your rates, insurance companies will also check your driving history to see whether you’re at increased risk of filing a claim. If you’re a good driver and can back it up with a clean driving record, you can expect to get lower rates. But even a single infraction can drive your rates up.

The following table shows the average Michigan car insurance rates based on your driving history, according to Compare.com data.

Cheapest in Michigan after a ticket: Auto-Owners

Zooming down Interstate 75 sounds fun until you get a speeding ticket — which increases national average rates by 27%, according to Compare.com data. Speeding puts you at a higher risk of getting into an accident, with it causing over 24,000 statewide accidents in 2021, according to a recent study from the Michigan State Police.

Auto-Owners offers the lowest rates for car insurance in Michigan if you have a speeding ticket, charging an average of $91 per month. That’s much less than the statewide average of $337 for all recently ticketed drivers.

Cheapest in Michigan after an accident: Auto-Owners

If you become the culprit of an at-fault accident, you can expect your rates to increase by 34%, according to Compare.com data. Your insurance may have to pay out for medical expenses and physical damage, and, as a result, it’ll pass those costs back onto you.

In Michigan, the average driver with an at-fault accident pays around $342 per month for coverage. That said, Auto-Owners charges the best rate for these drivers, at an average of $110 per month, according to our data.

Cheapest in Michigan after a DUI: Auto-Owners

Drivers with a DUI on their record pay the highest car insurance costs of all. That’s especially true, given that you may be more likely to do it again, potentially causing even more damage and heartache next time. For this reason, insurers raise rates by an average of 50%, according to Compare.com data. On top of that, many insurers may even decline you for coverage.

Michigan drivers with a DUI on their record often find Auto-Owners offers the cheapest coverage, at an average premium of $108 per month. That’s a great deal, considering the average Michiganian with a DUI pays $398 monthly for the same coverage.

Michigan Auto Insurance Requirements

Michigan is unique when it comes to its auto insurance requirements, with more coverage types and higher coverage limits than most other states. You can learn more about Michigan’s new auto insurance law on the state website’s Frequently Asked Questions section. We also explain Michigan’s unique car insurance requirements in detail below.

Bodily injury and property damage liability (BI/PD) requirements in Michigan

Auto liability insurance covers the other driver and their passengers if you injure them or damage their property in an accident.

The default liability limits for Michigan car insurance are commonly described as 20/40/10, or:

• $20,000 per person in bodily injury liability (BI) coverage
• $40,000 per accident in BI coverage
• $10,000 for property damage you cause in another state (more on this below)

No-fault insurance in Michigan

Insurance rates are high in Michigan because it’s a “no-fault” state. No-fault insurance means your insurer pays for your injuries and medical costs, no matter who’s at fault in the accident.

But suppose you severely injure or kill someone. In that case, you can be responsible for their treatment costs and any pain and suffering you cause.

Higher liability limits can protect you since you could face asset seizure, wage garnishments, or a license suspension if you don’t have enough insurance coverage.

Besides Michigan, 11 other U.S. states (plus Puerto Rico) have no-fault laws.

Personal injury protection (PIP) insurance in Michigan

It’s essential to have enough personal injury protection (PIP) coverage in a no-fault state since you must pay for your own injuries after an accident. PIP can cover your medical expenses, lost wages, funeral costs, and replacement services that cover things like yard work.

If you don’t have qualifying health coverage, you can coordinate PIP coverage with your health insurance company to lower your PIP premium, unless you have Medicaid, Medicare, or a Medicare Supplemental policy.

Property protection insurance (PPI) in Michigan

Michigan also has a property protection insurance (PPI) requirement. You must purchase $1 million in PPI, which will pay for damage your vehicle causes to:

• Another person’s or business’s property, such as fences, buildings, utility poles, and guard rails
• Someone else’s properly parked car

Your property damage liability coverage — which we discussed above — only applies outside Michigan. While you’re only required to have $10,000 in coverage, purchasing a higher limit might be a good idea to protect yourself financially — especially if you frequently travel to other states.

Penalties for driving without auto insurance in Michigan

If you drive without auto insurance in Michigan, you could face the following penalties:

• Misdemeanor charge
• Fines up to $500
• Up to one year of jail time
• License suspension of up to 30 days

It costs $125 to reinstate your driver’s license in Michigan. The state can also suspend your vehicle registration until you provide proof of car insurance that meets or exceeds Michigan’s auto insurance requirements.

SR-22 auto insurance in Michigan

An SR-22 form is proof of insurance your insurance company provides to the Michigan Department of Insurance and Financial Services (DIFS). It confirms you’re complying with the state’s minimum-coverage requirements.

You might need an SR-22 form if you have been convicted of certain driving offenses, such as driving under the influence (DUI) or reckless driving. If you have an SR-22 requirement, you must keep the policy in force for a certain period of time — typically two years.

How to Get Cheaper Car Insurance in Michigan

Michigan is one of the most expensive states in the country for auto insurance, so finding affordable coverage is more important than ever. If you’re looking for ways to get cheap car insurance, check out these five expert tips:

• Consider usage-based insurance. Letting an insurance company track how you drive could lower your rate. Pay-per-mile insurance might also be cheaper if you drive fewer than 12,000 miles per year.
• Bundle your insurance. “If you have other insurance policies, such as homeowners or renters insurance, you may be able to save money by bundling them with your car insurance,” says John Espenchied, owner of Insurance Brokers Group.
• Consider a higher deductible. You’ll lower your premium by choosing higher comprehensive and collision coverage deductibles. But remember that you’ll be on the hook for larger out-of-pocket costs if you need to file a claim.
• Only make claims when necessary. Any claim could raise your rates, so be mindful and only file claims for severe damage or injuries — and avoid claims for minor damage that you can afford to cover yourself.
• Shop regularly and compare quotes. “Get quotes from multiple insurers before you buy a policy and at renewals,” Espenchied advises. “You may be surprised at how much your rates can vary from company to company.”

Michigan Auto Insurance FAQs

If you’re running into problems with higher rates on your insurance policy, these quick info bites may be able to help.

What’s the cheapest auto insurance company in Michigan?

Auto-Owners is the cheapest auto insurance company in Michigan, according to Compare.com data. Its average premium is just $91 per month.

How much is car insurance in Michigan per month?

Michigan auto insurance typically costs $280 per month, according to Compare.com data. As with all insurance products, your exact rates depend on whether you’re a high-risk driver, which insurers infer based on your age, vehicle, driving experience, and more.

Why is car insurance so expensive in Michigan?

Previously, car crash victims in Michigan essentially had a blank check on restitution, which led to many fraudulent claims. That created a spiral with more uninsured drivers, driving up costs even more.

State lawmakers have since passed new legislation that seems to be helping the problem, but it hasn’t fixed things overnight.

How can you lower your car insurance in Michigan?

If you’re prepared to pay higher medical costs if you get into an accident, you can save on car insurance by lowering your personal injury protection coverage. Shopping for a wide range of offers on car insurance and looking for discounts can also be good ways to lower costs.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

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8. Michigan Department of Insurance and Financial Services, “Frequently Asked Questions,” accessed July 16, 2024.
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