Cheapest Car Insurance in Michigan (2024)
Cheapest for full-coverage car insurance
$3,040/yr
$1,206/yr
Below average
Pros
Offers one of the cheapest rates for full-coverage policies
Offers a wide range of discounts
Cons
Has sub-par customer satisfaction ratings
Cheapest insurance companies in Michigan
Cheapest full-coverage car insurance: Progressive
For Michigan residents looking for full-coverage auto insurance, Progressive has the cheapest average rate of $3,040.
| Company | Average annual rate | LendingTree score | |
|---|---|---|---|
| Progressive | $3,040 | |
 | Auto-Owners | $3,192 |  |
 | AAA | $4,451 |  |
 | State Farm | $4,689 |  |
 | Farmers | $10,581 |  |
 | USAA* | $1,872 | |
Full-coverage car insurance includes liability, collision and comprehensive coverage. It differs from liability-only coverage, in that it covers both your damages after an accident as well as others.
Michigan state law doesn’t require you to carry full-coverage auto insurance, but your lender may require it if you’ve financed your vehicle.
Cheapest liability-only coverage: Auto-Owners
Auto-Owners has the cheapest rate for liability-only car insurance for Michigan drivers, at $1,134 a year. Progressive is the next cheapest, at $1,206 a year.
| Company | Average annual rate |
|---|---|
| Auto-Owners | $1,134 |
| Progressive | $1,206 |
| AAA | $2,089 |
| State Farm | $2,223 |
| Farmers | $3,934 |
| USAA* | $509 |
A liability-only car insurance policy covers the medical and legal expenses that can arise after an accident you cause.
Also called “minimum car insurance”, most states have required limits of liability car insurance you legally need to carry.
Cheapest rates for young drivers: Auto-Owners
Teen drivers in Michigan get the cheapest rates for liability-only car insurance with Auto-Owners, at $2,244 a year. Progressive is the next most affordable at $3,588 a year. Teens in Michigan pay $3,717 a year on average for liability-only insurance.
| Company | Annual average rate |
|---|---|
| Auto-Owners | $2,244 |
| Progressive | $3,588 |
| AAA | $3,956 |
| State Farm | $4,826 |
| Farmers | $6,870 |
| USAA* | $818 |
Teen drivers pay the most for car insurance, due to their inexperience behind the wheel and higher risk for an accident.
A good way to get cheaper coverage for a young driver is to add them onto a parent’s policy. Doing this will still raise your rates, but it will still be cheaper than if the parent and the young driver had separate policies.
Cheapest rates after a speeding ticket: Progressive
On average, drivers with a ticket on their record can pay $5,904 a year on car insurance. You can get the cheapest average rate for car insurance with Progressive, at an average rate of $3,690 a year. Auto-Owners is the next lowest at $3,768.
| Company | Average annual rate |
|---|---|
| Progressive | $3,690 |
| Auto-Owners | $3,768 |
| State Farm | $5,307 |
| AAA | $5,380 |
| Farmers | $14,863 |
| USAA* | $2,417 |
A speeding ticket can stay on your insurance record for three to five years, during which time you will see higher insurance rates.
Cheapest rates after an accident: Auto-Owners
After an accident, Michigan drivers get the cheapest car insurance with Auto-Owners with an average annual rate of $3,768. Meanwhile, drivers with an accident on their record pay $6,292 a year on average.
| Company | Average annual rate |
|---|---|
| Auto-Owners | $3,768 |
| Progressive | $4,319 |
| State Farm | $5,496 |
| AAA | $6,627 |
| Farmers | $14,871 |
| USAA* | $2,671 |
Cheapest rates after a DUI: Progressive
Progressive has the cheapest average rate for Michigan drivers with a DUI (driving under the influence) conviction on their record, at $3,590 a year.
| Company | Average annual rate |
|---|---|
| Progressive | $3,590 |
| Auto-Owners | $7,527 |
| AAA | $11,554 |
| State Farm | $12,099 |
| Farmers | $14,162 |
| USAA* | $3,444 |
After a DUI — also known as an OWI (operating a vehicle while under the influence) — you can expect higher insurance rates for three to five years. Cancellation of your policy or refusal of coverage is also possible.
In Michigan, other penalties include:
- Up to 93 days in jail (up to 180 if BAC is 0.17% or greater.)
- Up to $500 in fines (Up to $700 if 0.17% or greater BAC)
- Up to 180 day license suspension (Up to a year if 0.17% or greater BAC)
- Up to 360 hours community service
If your license is suspended, you may have to file an SR-22 to get it reinstated. An SR-22 is a form filed with the Department of Motor Vehicles that acts as proof that you carry Michigan’s minimum auto insurance limits.
Best car insurance companies in Michigan
Progressive and Auto-Owners are some of the best car insurance companies in Michigan thanks to their affordable rates and decent customer service.
| Company | LendingTree score | J.D. Power customer satisfaction |
|---|---|---|
| State Farm | 4.5 | 842 |
| USAA* | 4.1 | 881 |
| Progressive | 3.8 | 819 |
| Farmers | 3.1 | 815 |
| Auto-Owners | Not rated | 837 |
| AAA | Not rated | 827 |
Progressive
- Low full-coverage average rate of $3,040 a year
- 34% lower than state average
- Low NAIC complaint rating: 0.56
Pros
Cheap rates
Many discounts can help lower your rate
Cons
Sub-par customer satisfaction ratings
Progressive offers affordable rates and a variety of discounts, some of which are easy to qualify for. Progressive offers rates that average $253 a month for a full-coverage policy and $101 a month for a liability-only car insurance policy.
Progressive also has a low complaint rating of 0.56 from the National Association of Insurance Commissioners (NAIC), which shows that it receives fewer complaints than what’s expected for a company of its size.
On the other end, Progressive received low average customer satisfaction ratings in J.D. Power’s 2023 auto insurance study.
Auto-Owners
- Low full-coverage average rate of $3,192 a year
- 31% lower than state average
- Low NAIC complaint rating: 0.49
Pros
Cheap rates for both full-coverage and liability-only policies
Unique optional coverages
Cons
Doesn’t offer quotes online
Auto-Owners has affordable average car insurance rates in Michigan, at $95 a month for a liability-only policy and $266 a month for a full-coverage policy.
Auto-Owners also offers some unique coverages that many competitors don’t offer. For example, they will waive your collision deductible if you get into an accident with another vehicle insured by Auto-Owners.
On the flip side, Auto-Owners doesn’t offer online quotes, which can give you an estimated rate for car insurance without you having to talk to an agent.
USAA
- Low full-coverage average rate of $1,872 a year
- 60% lower than state average
- AM Best’s financial strength rating: A++
Pros
Cheapest rates in Michigan
Superb customer service
Cons
Only available to military members, veterans and their families
Limited optional coverages
USAA has a significantly cheaper average car insurance rate in Michigan compared to competitors in our study. It also has a reputation for great customer service, earning the highest score in J.D. Power’s latest auto insurance study. USAA rates average $156 a month for a full-coverage policy and $42 a month for liability car insurance.
However, USAA is only offered to military members and veterans along with their families.
Michigan insurance rates by city
Of the 25 most populated cities in Michigan, Portage gets the cheapest car insurance rates, with an average annual rate of $3,415.
Ann Arbor is the second cheapest city, at $3,601 a year.
| City | Annual |
|---|---|
| Portage | $3,415 |
| Ann Arbor | $3,601 |
| Wyoming | $3,645 |
| Kalamazoo | $3,684 |
| Grand Rapids | $3,719 |
| Kentwood | $3,748 |
| Battle Creek | $3,787 |
| Lansing | $3,903 |
| Rochester | $4,305 |
| Novi | $4,628 |
| Royal Oak | $4,979 |
| Livonia | $5,049 |
| Troy | $5,152 |
| Farmington | $5,360 |
| St. Clair Shores | $5,786 |
| Westland | $7,146 |
| Sterling Heights | $7,242 |
| Taylor | $7,433 |
| Flint | $7,687 |
| Warren | $7,775 |
| Dearborn Heights | $10,030 |
| Pontiac | $10,228 |
| Southfield | $10,713 |
| Dearborn | $11,198 |
| Detroit | $18,448 |
Best and worst drivers in Michigan
Also, the state’s younger drivers are far more likely to get a speeding ticket, be in an accident or drive under the influence (DUI) than older drivers, based on our research.
Age groups and ZIP codes with high accident and other incident rates usually pay more for car insurance. Car insurance companies charge them higher rates to offset their higher risk of filing a claim.
Best drivers in Michigan by city
Sterling Heights has the best drivers among Michigan’s biggest cities and suburbs, based on driving incident rates. Driving incidents include speeding citations, accidents and DUIs.
There were just over four driving incidents per 1,000 drivers in Sterling Heights between August 2023 and August 2024, according to our data.
| City/suburb | Incidents per 1,000 drivers |
|---|---|
| Sterling Heights | 4.05 |
| Rochester Hills | 4.84 |
| Macomb Township | 4.85 |
| Pontiac | 4.91 |
| Flint | 5.08 |
Michigan’s best drivers may live in Sterling Heights, but they don’t benefit from it by paying the state’s cheapest car insurance rates. The average cost of car insurance in Sterling Heights is $7,242 a year, which is in the middle of the pack for Michigan cities.
Worst drivers in Michigan by city
Dearborn Heights is home to Michigan’s worst drivers. Nearly 11 drivers out of every 1,000 in this Detroit suburb were part of a driving incident like speeding or an accident over the past year.
| City/suburb | Incidents per 1,000 drivers |
|---|---|
| Dearborn Heights | 10.78 |
| Waterford Township | 10.74 |
| Taylor | 9.84 |
| Dearborn | 9.83 |
| Novi | 9.68 |
Waterford Township has an incident rate that’s almost as high, our data shows.
Drivers in both of these Detroit suburbs pay some of the highest car insurance rates in Michigan, and their high incident rates likely play a key role.
Best and worst drivers by age group
Young drivers in Michigan are involved in many more traffic incidents than older drivers.
Gen Z drivers have the state’s highest incident rate of 36.71. Millennial drivers come in second, with a 17.08 incident rate.
Baby boomers are the best generation of drivers in Michigan. They have the state’s lowest number of traffic incidents at just over 11.5 per 1,000 drivers.
| Generation | Incidents per 1,000 drivers |
|---|---|
| Gen Z | 36.71 |
| Millennial | 17.08 |
| Gen X | 12.88 |
| Baby Boomer | 11.54 |
| Silent Generation | 13.42 |
Best and worst drivers by car brand
Pontiacs are the car make or brand that are least likely to be part of a traffic incident in Michigan. About 9.5 Pontiac drivers out of 1,000 were involved in an incident over the past year.
Saturn comes in second, with an average incident rate of 9.71.
Best drivers by car make
| Make | Incidents per 1,000 drivers |
|---|---|
| Pontiac | 9.44 |
| Saturn | 9.71 |
| Mitsubishi | 11.35 |
| Cadillac | 11.77 |
| Chrysler | 12.73 |
Tesla and Subaru drivers are the most likely to be involved in a traffic incident in Michigan, our data shows. These car brands are each part of 23.4 incidents per 1,000 drivers.
Ram, BMW and Infiniti round out the state’s worst drivers by car make or brand.
Worst drivers by car make
| Make | Incidents per 1,000 drivers |
|---|---|
| Tesla | 23.40 |
| Subaru | 23.40 |
| Ram | 22.05 |
| BMW | 19.70 |
| Infiniti | 18.96 |
The cost of car insurance in Michigan
The average cost of full-coverage car insurance in Michigan is $4,638 a year. The average annual premium for liability-only coverage is $1,849.
Your final quote will include other factors, including:
- Make and model of your car
- ZIP code
- Insurance claim history
- Coverage limits and your deductible
- Your insurance company’s available discounts
Car insurance laws in Michigan
Michigan is a “nonfault” state, meaning that you file a claim with your insurer to cover your injuries and property damage after an accident, regardless of who’s responsible.
This is one of the reasons for Michigan’s high car insurance rates.
Minimum coverage for car insurance in Michigan
Michigan’s required liability coverage limits are:
- $50,000 bodily injury coverage per person
- $100,000 bodily injury coverage per accident
- $10,000 property damage coverage
Michigan drivers are also required to carry personal injury protection (PIP). PIP takes care of your medical expenses, lost wages and rehabilitation costs after you’re in an accident.
Michigan drivers have options for PIP limits to purchase, ranging from $50,000 to unlimited.
Methodology
LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.
Unless noted otherwise, quotes are for a full-coverage policy for a 30-year-old man with good credit and a clean driving record who drives a 2015 Honda Civic EX.
Minimum-liability policies provide liability coverage with the state’s required minimum limits.
Full-coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: 50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured / underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Personal injury protection: $250,000
- Property protection insurance: $1 million per accident
- Collision: $500 deductible
- Comprehensive $500 deductible
Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third party customer service ratings, and app / website experience. We weighted these categories based on what customers value in an insurance company.
For third-party customer service ratings, we included NAIC’s Complaint Index scores and financial strength ratings from A.M. Best. NAIC Complaint Index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.
Overall satisfaction ratings are from the J.D. Power 2023 U.S. Auto Insurance Study. Complaint ratings are based on NAIC data from 2023.
To determine the best and worst drivers by city in Michigan, researchers calculated the numbers of driving incidents per 1,000 drivers in the 25 biggest cities (by population) in Michigan between Aug. 14, 2023, and Aug. 13, 2024.
The same process was used to determine the best and worst drivers by generation in Michigan, as well as the brand with the worst drivers in Michigan.
To define generations, LendingTree analysts used the following ranges from Pew Research Center:
- Generation Z (born between 1997 and 2005: ages 19-27 in 2024 – we only included Gen Z adults)
- Millennial (born between 1981 and 1996: ages 28-43 in 2024)
- Generation X (born between 1965 and 1980: ages 44-59 in 2024)
- Baby boomer (born between 1946 and 1964: ages 60-78 in 2024)
- Silent Generation (born between 1928 and 1945: ages 79-96 in 2024)
Frequently asked questions
Progressive has the cheapest rate for full-coverage car insurance at $3,040 a year. Auto-Owners has the lowest rate for liability-only car insurance at $1,134.
The average rate for full-coverage car insurance in Michigan is $4,638, 135% higher than the national average of $1,972 a year.
Michigan’s average rate for liability-only auto insurance is $1,849 a year, 139% higher than the national average of $773.