Compare Car Insurance Rates in Michigan

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Cheap Car Insurance Michigan: Full and Minimum Coverage

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  • Car insurance in Michigan averages $119 per month for minimum-coverage policies and $292 each month for full coverage.
  • USAA offers the lowest average prices in Michigan for both minimum and full-coverage car insurance policies.
  • High-risk drivers with at-fault car accidents, DUIs, and speeding tickets on their driving records often pay more for Michigan car insurance.

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If you’re a driver in Michigan, you may find the cheapest car insurance at USAA, which offers a minimum-coverage premium of $30 per month on average. Auto-Owners Insurance typically offers the second-cheapest auto insurance in Michigan, which makes it a strong choice for drivers that can’t qualify for USAA coverage.

Our Automoblog reviews team has looked at the insurance options, industry reputations, and average premiums of 43 different companies to find which providers offer the cheapest and best car insurance in Michigan. We’ll break down the average costs for the cheapest companies located in the Great Lakes State.

Best Car Insurance Rates in Michigan

Michigan motorists can usually find the cheapest auto insurance at USAA, Auto-Owners Insurance, and Pioneer State Mutual. Below, you’ll find average car insurance premiums for several different driving profiles. Here’s a quick rundown:

  • Cheapest full coverage: USAA, followed by Progressive
  • Cheapest minimum coverage: USAA, followed by Auto-Owners Insurance
  • Cheapest for teen drivers: Auto-Owners Insurance, followed by Farm Bureau of Michigan
  • Cheapest for drivers with a traffic violation: USAA, followed by Auto-Owners Insurance

Remember that it’s important to get personalized quotes from each of these companies and see which provider has the best coverage and rates for you. It’s also important to know that while USAA offers the cheapest car insurance on average for Michigan drivers, only military members, veterans, and their immediate family members can qualify for USAA coverage.

Our Research Tactics

To find the cheapest coverage options for Michigan residents, our research team took a deep dive into the cost data provided by Quadrant Information Services. The average car insurance premiums you’ll see below are for different driver profiles, coverage types, and cities in the Great Lakes State.

There are five key things we look at to determine a company’s overall rating. We rate each category out of 5.0 points:

  • Industry standing
  • Availability 
  • Coverage options
  • Customer experience
  • Affordability

Cheapest Car Insurance Companies in Michigan

Below is a quick look at the best and cheapest auto insurance providers in the state of Michigan. While USAA has the Great Lakes State’s cheapest rates overall, State Farm received the highest score of any company we researched.

Car Insurance ProviderOverall RatingAverage Monthly Rate: Minimum CoverageAverage Monthly Rate: Full CoverageNumber of Discounts
State Farm4.7$143$29012
Auto-Owners Insurance4.3$49$19612

Cheapest Car Insurance Coverage in Michigan

Getting the absolute cheapest car coverage in Michigan means getting a minimum-coverage policy. This would include only liability insurance and in most circumstances, personal injury protection (PIP insurance). To legally drive on the road, you’ll need to get the minimum amount of state-mandated coverage for each of these insurance types.

However, we recommend getting a full-coverage policy that includes collision coverage, comprehensive insurance, and underinsured/uninsured motorist coverage. This policy will be more expensive but could save you from having to pay hefty out-of-pocket costs after an accident with your car.

This is also important because only getting the state-minimum coverage means your car’s repairs will not be covered in any case.

Cheapest Minimum-Liability Car Insurance in Michigan

The average rate estimate for a minimum-coverage policy in Michigan is $119 per month or $1,427 per year. USAA tends to offer the cheapest minimum-liability policies with estimates of $30 per month or $366 per year.

Car Insurance ProviderAverage Monthly Rate for Minimum CoverageAverage Yearly Rate for Minimum Coverage
Auto-Owners Insurance$49$592
Pioneer State Mutual$60$721
Farm Bureau of Michigan$80$954
State Farm$143$1,713
Hanover Insurance$317$3,802

Cheapest Full-Coverage Car Insurance in Michigan

In Michigan, the average rate for full-coverage auto insurance is $292 per month or $3,499 per year. Overall, USAA offers the cheapest average estimates for full-coverage insurance at $126 per month or $1,510 per year.

Car Insurance ProviderAverage Monthly Rate for Full CoverageAverage Yearly Rate for Full Coverage
Auto-Owners Insurance$196$2,348
Pioneer State Mutual$226$2,707
Farm Bureau of Michigan$233$2,799
State Farm$290$3,475
Hanover Insurance$779$9,348

Michigan Car Insurance Quotes by Driver Profile

The quotes above can give you a ballpark idea of what your rates could be, but your own premium averages will likely vary. This is because there are specific parts of your own profile that car insurance companies will use to set your rates.

car insurance cost factors

Luckily, Michigan is one of those rarer states that prohibits insurers from using many different parts of a motorist’s profile to set their rates. These are often things that drivers in other states have to worry about when trying to sign up for coverage. 

In Michigan, insurers will look at the following factors when determining a car owner’s premium:

  • Age
  • Driving history
  • Vehicle’s age
  • Vehicle’s make and model

Michigan Car Insurance: What Companies Can’t Use To Set Your Rates

As of July 1, 2020, auto insurance providers in Michigan are prohibited from using the following things to set your rates:

  • Gender on license
  • Marital status
  • ZIP code
  • Credit score
  • Homeownership status
  • Occupation
  • Education

Cheapest Car Insurance in Michigan: Age

If you’re a Michigan driver under 25 years old, your rates will likely be higher than older drivers. This is because auto insurance companies typically think of younger drivers as more irresponsible and less experienced behind the wheel. Teen drivers will pay the most for coverage in Michigan.

The table below shows the average car insurance premiums per month for different age groups. Keep in mind that your rates could vary significantly from what’s listed below.

Driver AgeAverage Monthly Rate for Minimum CoverageAverage Monthly Rate for Full Coverage

Cheapest Michigan Auto Insurance: High-Risk Drivers

Unlike most other states, Michigan prohibits car insurance companies from using many common factors to determine your rates, like your marital status and credit score. However, you can always count on your driving history to be a large determinant on what you’ll pay for auto coverage every policy period.

Drivers who have gotten speeding tickets, DUIs, or punishments for various traffic violations will always see their rates rise afterwards. This is because insurers consider these types of drivers more likely to cause accidents and file claims.

But every company is different in how it handles the rates for high-risk drivers. In the table below, you can see the large cost differences between high-risk drivers and motorists who have spotless driving records.

Car Insurance ProviderAverage Monthly Rate for Clean Driving RecordsAverage Monthly Rate for High-Risk Drivers
Auto-Owners Insurance$49$92
Pioneer State Mutual$60$106
Farm Bureau of Michigan$80$154
State Farm$143$267
Hanover Insurance$317$542

Car Insurance Rates in Michigan: Speeding Ticket

Getting so much as a single speeding ticket can raise your rates. Luckily, USAA and Auto-Owners Insurance have the cheapest rates for Michigan motorists that get a speeding ticket. With USAA, you may get an average of $41 per month or $486 per year for minimum coverage.

Car Insurance ProviderAverage Monthly Rate After a Speeding TicketAverage Yearly Rate After a Speeding Ticket
Auto-Owners Insurance$83$993
Pioneer State Mutual$112$1,343
Farm Bureau of Michigan$139$1,665
State Farm$247$2,967
Hanover Insurance$462$5,540

Car Insurance Rates in Michigan: At-Fault Accident

You can always count on more expensive car insurance after you’ve gotten into an accident, especially if you’re found at fault for that accident. If this applies to you, you may find luck with USAA, which sports an average of $43 per month or $520 per year for drivers that have been in recent at-fault accidents.

Car Insurance ProviderAverage Monthly Rate After an At-Fault AccidentAverage Yearly Rate After an At-Fault Accident
Auto-Owners Insurance$59$710
Pioneer State Mutual$74$891
Farm Bureau of Michigan$92$1,107
State Farm$173$2,071
Hanover Insurance$537$6,438

Car Insurance Rates in Michigan: DUI

Insurance companies will naturally see you as more at risk for getting into a car crash if you’re caught driving under the influence (DUI) of drugs or alcohol. 

If this happens to you, your best bet for finding the cheapest coverage possible is at USAA, which offers an average policy of $53 per month for a minimum-liability policy. Progressive and Pioneer State Mutual also offer competitive average premiums.

Car Insurance ProviderAverage Monthly Rate After a DUIAverage Yearly Rate After a DUI
Pioneer State Mutual$133$1,595
Auto-Owners Insurance$133$1,595
Farm Bureau of Michigan$231$2,774
State Farm$382$4,578
Hanover Insurance$627$7,530

Average Cost of Car Insurance in Michigan

The average cost of Michigan auto insurance averages out to $3,499 per year for full coverage ($292 monthly). This is about 84% higher than the national average, which is $1,730 annually. 

For minimum-liability insurance, Michigan’s average is about $1,427 per year ($119 monthly). These rates are about 128% higher than the national average, which is $635 annually.

Average Car Insurance Cost in Michigan by City

Michigan is one of the few states where a car owner’s ZIP code can’t be used against them to determine their car insurance premium. The table below shows the average rates for both minimum and full-coverage car insurance in Michigan’s largest cities.

Cities in MichiganAverage Monthly Rate for Minimum CoverageAverage Monthly Rate for Full Coverage
Grand Rapids$76$229
Sterling Heights$174$361
Ann Arbor$79$218
Farmington Hills$109$286
Rochester Hills$102$264

Michigan Minimum Car Insurance Coverage

Michigan’s car insurance laws have changed as of July 1, 2020. The state now has different insurance requirements and protections in place for policyholders. 

Personal Injury Protection Requirements

Michigan provides six options for personal injury protection (PIP insurance) that a driver must choose when signing on for a new policy:

  • Unlimited coverage
  • Up to $500,000 in coverage
  • Up to $250,000 in coverage
  • Up to $250,000 in coverage (with medical exclusions)
  • Up to $50,000 in coverage
  • PIP coverage opt-out (under certain conditions)

To get up to $250,000 in coverage with medical exclusions, you’ll have to have non-Medicare health insurance that will take care of injuries from auto accidents. To opt out of PIP insurance entirely, you’ll have to be on Medicare and be a household member of a driver that does have an auto insurance policy that covers medical expenses.

Property Protection Insurance and Liability Coverage Requirements

In addition to $1 million of personal property protection insurance within Michigan, you’re also required to have these state-minimum liability coverage limits:

  • $50,000 in bodily injury liability per person
  • $100,000 in bodily injury liability per accident
  • $10,000 in property damage liability per accident

Liability and PIP insurance are vital coverages to have, but they won’t protect your car from repair costs. Liability insurance only applies to other drivers and parties involved in an accident you cause, but if you get collision insurance, your car’s repairs will be covered. 

Getting comprehensive coverage will repair your car’s damages from hail, floods, fire, fallen objects, and other natural disasters. It can also cover your car if it gets stolen or vandalized. Uninsured/underinsured motorist coverage will cover your vehicle if it’s hit by a driver with little to no car insurance.

Cheap Car Insurance in Michigan: Conclusion

You have the best chances of finding the cheapest car insurance in Michigan at USAA. The average monthly premium comes out to $30 for a minimum-coverage policy. You can also find fairly affordable coverage with Auto-Owners Insurance. 

To get the best idea for what you’d pay from both providers and others, remember to collect and compare auto insurance quotes. Certain companies may offer you the cheapest coverage, but that doesn’t mean they’ll offer the exact coverage you need.

Best Car Insurance in Michigan: Recommended Providers

If you’re looking for the best car insurance in Michigan, you should consider getting quotes from State Farm or USAA. Auto-Owners Insurance may be cheaper than State Farm on average, but those looking for more car insurance discount opportunities and high-quality coverage should check out State Farm. USAA offers the best coverage in Michigan in addition to the cheapest.

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State Farm: 4.7 out of 5.0

State Farm makes the top of our list for best car insurance companies, narrowly beating out USAA. This is largely due to its extreme customer satisfaction across many rating sites and J.D. Power studies. On top of that, State Farm offers two usage-based insurance programs (Drive Safe & Save™ and Steer Clear®) that can help policyholders save up to 30% on premiums.

Read more: State Farm insurance reviews

USAA: 4.6 out of 5.0

USAA offers the cheapest car insurance in Michigan. However, the company is only available to active military, veterans, and their family members. If this applies to you, you can take advantage of USAA’s many discounts, such as its low-mileage discount, good student discount, military on-base discount, and more. USAA also consistently scores the highest in customer satisfaction for several J.D. Power consumer studies.

Read more: USAA insurance reviews

Cheapest Auto Insurance in Michigan: FAQ

Which company gives the cheapest car insurance?

USAA and Auto-Owners Insurance typically offer the cheapest car insurance in Michigan. USAA’s average minimum-coverage premium for auto insurance in Michigan is $30 per month and $366 per year. Auto-Owners Insurance’s premium for minimum-coverage car insurance is $49 per month and $592 per year.

How much is car insurance per month in Michigan?

In Michigan, car insurance costs $119 per month for a minimum-coverage policy and $292 monthly for full coverage. Our team found rates in Michigan as low as $30 per month for minimum coverage and $126 for a full-coverage policy.

How to reduce car insurance in Michigan?

To reduce car insurance in Michigan, you can:

1. Bundle your auto insurance with other policies, like homeowners or renters insurance
2. Increase your deductible
3. Opt for lower amounts of coverage
4. Look for special discounts at your company
5. Enroll in a usage-based insurance program (if your company offers one)

How much is car insurance on average in Michigan?

Car insurance in Michigan averages out to $1,427 per year for minimum coverage and $3,499 annually for full-coverage policies.

Is it illegal to drive without insurance in Michigan?

Yes, it’s very illegal to drive without car insurance in Michigan. If you get caught driving without car insurance in the Great Lakes State, it’s considered a misdemeanor, and you could face an entire year in jail in addition to fines up to $500 and a suspension of your license and plates.

Is it cheaper to pay car insurance every six months or monthly?

If you pay car insurance every six months, it could be cheaper than paying monthly. Many car insurers offer ‘pay-in-full’ discounts for drivers that pay for their entire policy every six months or every year. However, a lot of insurance companies don’t offer this discount.

Our Methodology

Our expert review team takes satisfaction in providing accurate and unbiased information. We identified the following rating categories based on consumer survey data and conducted extensive research to formulate rankings of the best car insurance providers.

  • Affordability: A variety of factors influence cost, so it can be difficult to compare quotes between providers. Our team considers auto insurance rate estimates generated by Quadrant Information Services and discount opportunities when giving this score.
  • Coverage: Because each consumer has unique needs, it’s essential that a car insurance company offers an array of coverage options. We take into account types of insurance available, maximum coverage limits, and add-on policies.
  • Industry Standing: Our team considers Better Business Bureau (BBB) ratings, financial strength, and years in business when giving this score.
  • Availability: Auto insurers with greater state availability and few eligibility requirements are more likely to meet consumer needs.
  • Customer Service: Reputable car insurance providers operate with a certain degree of care for consumers. We consider complaints filed with the National Association of Insurance Commissioners (NAIC), J.D. Power claims servicing scores, and customer feedback.
  • Online Experience: Insurers with easy-to-use websites and highly rated mobile apps scored best in this category.

*Data accurate at time of publication.