Cheapest Car Insurance In Michigan

Cheapest Michigan Car Insurance Coverage

Coverage level has a major impact on rates. Many quotes from providers include estimates for minimum liability and full coverage car insurance. While minimum liability is all that’s required in most states, it’s a good idea for drivers to consider full coverage auto insurance.

Below are the cheapest auto insurance options in Michigan for both coverage types.

Cheapest Liability Car Insurance in Michigan

Minimum car insurance coverage in the Great Lakes State tends to cost $1,360 per year or $113 per month on average. This makes it nearly 117% costlier than the national average of $627. The table below shows the car insurance providers that offer the cheapest state minimum coverage in Michigan.

Cheapest Full Coverage Car Insurance in Michigan

Michigan has some of the most expensive car insurance rates in the nation. However, we found that rates can be as low as $1,918 per year, or $160 per month, for a full coverage policy. This table shows the cheapest providers on average for full coverage in the Wolverine state:

Cheapest Car Insurance in Michigan

Your age and driving history will impact how much you pay for auto insurance in Michigan. Below we compare cheap car insurance estimates for Michigan drivers in these categories.

Cheapest Car Insurance in Michigan for Young Drivers

Young drivers can pay significantly more for car insurance than older adults. The series of tables below shows the cheapest car insurance for young drivers in Michigan, along with estimated monthly and annual costs.

Cheapest Michigan Car Insurance for 16-Year-Olds

Young drivers in Michigan can expect to pay some of the highest car insurance costs in the state at an average of $12,921 per year or $1,077 per month. According to our research, Auto-Owners Insurance tends to have some of the cheapest rates on average for 16-year-old drivers in the state, costing $4,614 per year or $385 per month.

Cheapest Michigan Car Insurance for 17-Year-Olds

When it comes to car insurance for 17-year-olds, Auto-Owners Insurance offers the most affordable coverage on average, costing $4,776 per year or $398 per month. USAA and Michigan Farm Bureau are also options worth considering for cheaper coverage.

Cheapest Michigan Car Insurance for 18-Year-Olds

18-year-old Michigan motorists may find slightly cheaper rates than 16- and 17-year-olds. On average, drivers can find cheap car insurance in the Wolverine State for $4,158 per year or $347 per month through USAA.

Cheapest Michigan Car Insurance for 21-Year-Olds

According to our research, Michigan drivers in their 20s pay significantly less for full coverage car insurance than teen drivers. Progressive and USAA are  the cheapest car insurance providers on average for 21-year-old drivers, costing $2,513 per year and $209 per month.

Cheapest Michigan Car Insurance for 25-Year-Olds

Our research shows USAA is the cheapest car insurance provider for 25-year-olds in Michigan. Drivers pay an average of $2,267 per year or $189 per month for a car insurance premium with the insurer.

Cheap Car Insurance in Michigan for Adult Drivers

As drivers gain more experience, the cost of their car insurance policy will go down. Michigan drivers in their 30s, 40s, 50s and 60s tend to pay cheaper rates on average, while 70-year-old drivers and older may see their rates slightly increase. 

The sections below detail the cheapest companies for car insurance in Michigan for adult drivers, with Progressive consistently offering the cheapest average rates.

Cheapest Michigan Car Insurance for 30-Year-Old Drivers

Progressive  offers the cheapest coverage for 30-year-old Michigan drivers, at $1,559 per year or $130 per month. USAA comes in at a close second, at $1,757 per year or $146 per month for comprehensive coverage.

Cheapest Michigan Car Insurance for 40-Year-Old Drivers

Progressive continues to offer the cheapest average rates, at $1,508 per year or $126 per month. This is 16% cheaper than the national average of $1,755 for 40-year-old drivers.

Cheapest Michigan Car Insurance for 50-Year-Old Drivers

Progressive and USAA both offer cheaper rates to Michigan drivers than the national average for 50-year-old drivers, which is $1,658 per year or $138 per month. Progressive’s rate of $1,434 per year or $120 per month is almost 16% less than the national average for this age group, $1,658.

Cheapest Michigan Car Insurance for 65-Year-Old Drivers

The cheapest Michigan car insurance rates for 65-year-old drivers are similar to rates for drivers 50 years of age. Progressive and USAA offer the cheapest rates once in the state once again.

Cheapest Michigan Car Insurance for 75-Year-Old Drivers

75-year-old Michigan drivers will see their rates slightly increase at this age, but it’s still possible to keep your costs relatively low. Progressive’s average rate of $1,683 per year is about 14% cheaper than the national average of $1,912 for drivers at this age.Estimated Annual Rate

Cheapest Michigan Car Insurance for High-Risk Drivers

At-risk drivers who have had a speeding ticket, DUI or recent accident can pay more for auto insurance. The sections below provide estimates for the cheapest car insurance rates for drivers who fit these driver profiles.

Cheapest Michigan Car Insurance for Drivers With a Speeding Ticket

Insurers raise your rates for moving violations like speeding tickets. Michigan drivers with a speeding ticket pay an average of $5,606 per year, or $467 per month. Progressive tends to offer the cheapest coverage with estimates starting at $2,586 per year, or $216 per month.

Cheapest Michigan Car Insurance for Drivers With a Recent Accident

You can expect to see higher rates for car insurance in Michigan following an at-fault accident. The average Michigan driver with a recent accident pays about $5,204 per year, or $434 per month. USAA tends to offer the cheapest coverage for these drivers with estimates starting at $2,706 per year, or $226 per month.

Cheapest Michigan Car Insurance for Drivers With a DUI

If you’re found guilty of a DUI, you’ll typically pay much higher rates for auto coverage. The average rate estimate for full coverage insurance for drivers with a DUI in Michigan is $8,260 per year, or $688 per month. Progressive offers the cheapest coverage for Michigan drivers with a DUI, with estimates starting at $2,446 per year, or $204 per month.

Car Insurance Deals in Michigan

Drivers in Michigan can save on car insurance premiums with various providers. The table below shows some of the discounts that the cheapest providers in Michigan offer.

Car Insurance Discounts in Michigan

Most providers will offer various discounts that help different types of drivers save money on their car insurance. It’s important to take a look at the discounts each provider offers and see which ones you’re eligible for. You can also reach out to your insurance agent to see if you’re eligible for any discounts you aren’t aware of.

Here is more information on the most common discounts offered by providers:

• Military: Applies to both active military members and veterans
• Multi-vehicle: Insuring multiple vehicles on the same policy or combining insurance policies
• Multi-policy: Bundle two or more insurance policies with the same company
• Homeowners: If you own a home, you may qualify for this discount
• Senior: Drivers who are typically 55 and over will qualify for this discount
• Good student: College and high school students under 25 who maintain a B average in their courses
• Good driver: Applies to drivers who have a clean driving record (no DUIs, no at-fault accidents or speeding tickets)
• Defensive driver: Typically earned by taking a defensive driving course
• Driver training: Get a discount by taking a driver education course
• New car: Given when drivers purchase a new car that is 3 years or younger
• Safe car: Typically applies to cars that have safety features such as anti-theft technology
• Paperless: Receive a discount for opting in to paperless billing
• Pay-in-full: Save money on car insurance by paying your full premium upfront

Best Cheap Car Insurance in Michigan

For those who would like to know about the cheapest auto insurance companies in the Great Lakes State, the sections below contain more detailed information:

Auto Insurance Rating Methodology

The car insurance marketplace can be pretty intimidating. We at the MarketWatch Guides team have put in hundreds of hours of research to make it easier for you to navigate the auto insurance world and find the right provider for your coverage needs and budget.

We’ve analyzed more than 130 auto insurers and have graded them on a variety of ranking factors. The end result was an overall rating for each company that reflects its performance in five key areas. From major national providers such as Geico and Progressive to smaller regional insurance companies such as Erie, you can trust our evaluation of the auto coverage market.

Our Rating System for Auto Insurers

To create our car insurance company rating methodology, we considered coverage, optional protections and average cost data from Quadrant Information Services. We also weighed ratings from the Better Business Bureau (BBB) and credit rating agency AM Best. In addition to gathering hundreds of data points, we conducted a survey of 1,000 consumers with auto insurance to understand what mattered most to them when shopping for coverage.

These are the five categories we used to create our auto insurance company ratings:

• Industry Standing
• Availability
• Coverage
• Cost and Discounts
• Customer Experience 

Factors We Use To Score Auto Insurance Companies

We begin our scoring process by giving each provider a rating out of 100, then later translate that into a score on a 10-point scale. This overall score is based on the average of a company’s rating in five main categories. The sections below offer expanded details on each of these categories. Note that some percentages are rounded for clarity.

Industry Standing (20%)

This category encompasses a provider’s reputation in the auto insurance industry. These are a few of the important factors that contribute to its rating:

• Market share (8%): We use a provider’s market share, as determined by the National Association of Insurance Commissioners (NAIC), as a key indicator of industry standing. A provider earns maximum points if it has a market share of 15% or more and has written 40 billion premiums or more in the previous year.
• Years in business (4%): Auto insurers with long track records have an advantage, with those having been in business for 80 years or more earning maximum points.
• BBB rating (4%): The BBB rates companies for how quickly they respond to complaints and how well they communicate with customers. A high grade and accreditation from the BBB goes a long way in our rankings.
• AM Best rating (4%): Major credit rating agency AM Best gives insurers grades of up to A++ for financial strength. As you would expect, names like Travelers, State Farm and Geico carry A++ ratings.

Availability (20%)

The size of an insurer and the availability of its policies are the key considerations here. These are the specific criteria we use:

• Exclusions (10%): A few providers lose points in this category for having eligibility restrictions. (USAA, AAA and AARP are some examples.)
• State availability (5%): A few providers in our rankings only serve a handful of states. Being available across the country is an advantage in this category.
• Insurer size (5%): The larger the provider, the higher the availability score.

Coverage (20%)

Beyond the standard auto insurance coverage options, we look for extra add-on protections an insurer offers, like roadside assistance, rental car reimbursement and more. These are a few of the specific things we consider for this category:

• Usage-based insurance programs: Most of our top-ranked insurers give drivers the opportunity to save money by tracking safe driving habits.
• Benefits: Roadside assistance, rental car reimbursement, trip interruption coverage and accident forgiveness are among the extra benefits we look for when evaluating auto insurers. The more the benefits, the higher the rating.
• Extra coverages: Offering additional coverages like pet insurance, windshield protection, and custom parts and equipment insurance help companies improve their coverage rating.
• Coverage ratings from consumers: We consider the results of our car insurance survey, which asked nearly 7,000 drivers how they would rate their providers’ coverage options. Providers with a rating of 4.0 to 5.0 — higher than the average across all providers — earn the most points.

Cost and Discounts (20%)

Coverage rates play a significant role in any driver’s choice of auto insurance. We use cost data from Quadrant Information Services to compare rates for various driver profiles. We also consider how many discounts a provider offers. Finally, the results of our car insurance survey play a part here.

Here’s a look at the key variables we weigh when we rate insurers in this category:

• Rates compared to the national average: Companies that can beat the average national cost of full-coverage auto insurance have a leg up here.
• Rate change: We also keep a close eye on how rates change year after year.
• Quotes for various driver profiles: We use cost data to help drivers with various violations on their record and drivers of all ages to get a complete picture of each provider’s rates.
• Total number of discounts: Multi-vehicle, bundling and good student discounts are pretty common, but providers that go beyond traditional savings opportunities such as with accident forgiveness or safe driving discounts get higher ratings in this category.

Customer Experience (20%)

Along with BBB and Trustpilot ratings, we also consider the results of our survey when we rate companies for customer experience. We also look at J.D. Power studies, NAIC complaint data and customer ratings of a company’s mobile app and/or usage-based insurance app.

These are the major factors we analyze for this category:

• Online customer ratings: We comb through BBB and Trustpilot to see what customers are saying about auto insurance companies.
• NAIC complaint index: The NAIC divides a provider’s share of complaints in the U.S. auto insurance market by its share of premiums to arrive at this figure.
• J.D. Power studies: J.D. Power ranks auto insurers by overall customer satisfaction, how easy it is to buy a policy and the ease of the claims process.
• App ratings: How users on the App Store and the Google Play Store rate a provider’s mobile app factors into our ratings in this category.

The Bottom Line: How To Choose the Right Auto Insurance Company

We rank auto insurance companies to help you find the best match for your budget and unique coverage needs. The information we gather on insurers in our roundup articles (that consist of multiple insurance providers) helps us rank them and add context to our reviews of individual companies.

To get the auto coverage you need at the best possible price, we recommend comparing quotes from multiple providers.

AM Best disclaimer