Cheapest Car Insurance in Michigan (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
The cheapest car insurance in Michigan, in terms of full coverage, is usually Progressive. It charges an average of $3,040 a year, versus the state car insurance average of $4,638.
USAA does have a cheaper average rate (at $1,872) — however they only provide insurance to military members and their families.
As for minimum-liability insurance, Auto-Owners generally has the least expensive option, at $1,134 per year, versus a state average of $1,849.
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 |
|---|---|
| Progressive | $3,040 |
| Auto-Owners | $3,192 |
| AAA | $4,451 |
| State Farm | $4,689 |
| Farmers | $10,581 |
| USAA* | $1,872 |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record. *USAA only provides car insurance to military members and their families.
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 |
Rates are for liability-only car insurance for a 30-year-old male with a clean driving record. *USAA only provides car insurance to military members and their families.
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.
| Company | Annual average rate |
|---|---|
| Auto-Owners | $2,244 |
| Progressive | $3,588 |
| AAA | $3,956 |
| State Farm | $4,826 |
| Farmers | $6,870 |
| USAA* | $818 |
Rates are for liability-only car insurance for an 18-year-old male with a clean driving record. *USAA only provides car insurance to military members and their families.
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
If you’re a Michigan driver with a speeding ticket on your driving record, you’ll 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 |
Rates are for full-coverage car insurance for a 30-year-old male with one speeding ticket. *USAA only provides car insurance to military members and their families.
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.
| Company | Average annual rate |
|---|---|
| Auto-Owners | $3,768 |
| Progressive | $4,319 |
| State Farm | $5,496 |
| AAA | $6,627 |
| Farmers | $14,871 |
| USAA* | $2,671 |
Rates are for full-coverage car insurance for a 30-year-old male with one accident. *USAA only provides car insurance to military members and their families.
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 |
Rates are for full-coverage car insurance for a 30-year-old male with one OWI. *USAA only provides car insurance to military members and their families.
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.
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 |
Rates are for full-coverage car insurance for a 30-year-old male with a clean driving record.
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
Unless stated otherwise, we looked at thousands of car insurance quotes in Michigan for a 30-year-old man with good credit and no tickets, accidents or convictions for driving under the influence, using a 2015 Honda Civic EX.
The following coverage limits were used:
- Bodily injury liability: 50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist: $50,000 per person, $100,000 per accident, where required by law
- Personal injury protection: minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive $500 deductible
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.