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Cheap Car Insurance in Michigan (2023)
Some of the cheapest car insurance providers in Michigan are American Family, GEICO, and Liberty Mutual.
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Written by
Anna Baluch
Insurance Writer
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
Edited by
Evelyn Pimplaskar
Editor-in-Chief, Director of Content
Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.Prior to joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative, and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as Credit Karma’s tax editor, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.
Data reviewed by
Konstantin Halachev
VP of Engineering
Konstantin has led data science and engineering projects across multiple domains: biology, travel and insurance. He loves finding data nuggets that help people.
Updated December 14, 2022
Michigan is the most expensive state for car insurance, Insurify data shows. High state coverage requirements, severe winter weather, and a relatively high percentage of uninsured drivers all contribute to the high costs of insurance in the Great Lakes State.[1]
The average monthly insurance rate in Michigan is $487 — exceeding the national average by more than $200. To find cheap car insurance in Michigan, shop around and compare quotes online from multiple insurers by entering your ZIP code and vehicle and driver information.
Quick Facts
The average cost of car insurance in Michigan is $487/mo.
American Family is the cheapest top provider in Michigan, with average rates of $228/mo.
The easiest way to cut car insurance costs is to compare quotes online.
Table of contents
- Best cheap car insurance in Michigan: American Family
- Minimum car insurance requirements in Michigan
- Tips for getting cheap car insurance in Michigan
- Liability-only vs. full-coverage insurance in Michigan
- How your driving history affects your Michigan car insurance rates
- How credit scores affect Michigan car insurance quotes
- How your city affects Michigan car insurance quotes
- How your age affects Michigan car insurance rates
- Michigan car insurance FAQs
Best cheap car insurance in Michigan: American Family
1
American Family
Several auto insurance providers offer cheap car insurance in Michigan. American Family and USAA are two examples, with average monthly quotes of $228 and $248, respectively. Progressive also offers affordable rates of $259 per month. The table below highlights the top cheap car insurance options in the Great Lakes State.
| Car Insurance Company | Insurify Composite ScoreThe Insurify Composite Score is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company. Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. | Average Monthly Quote |
|---|---|---|
| American Family | 89 | $228 |
| USAA | 96 | $248 |
| Progressive | N/A | $259 |
| Allstate | 85 | $287 |
| GEICO | 88 | $377 |
| Erie | 85 | $172 |
| Safeco | 86 | $232 |
| State Auto | 76 | $311 |
| Bristol West | N/A | $358 |
| Liberty Mutual | 82 | $444 |
| State Farm | 88 | $493 |
| USA Underwriters | N/A | $550 |
| Midvale Home & Auto | N/A | $585 |
| Everest National | N/A | $670 |
| Amica | N/A | $714 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.
Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
Learn More: Best Car Insurance Companies
Minimum car insurance requirements in Michigan
Michigan requires insurance for all motor vehicles operated or parked on state Michigan roads. Michigan is a no-fault state, which means when an accident occurs, each party’s insurance is responsible for paying their own damages. The state’s complex minimum liability insurance requirements include three parts:[2]
Personal injury protection (PIP)
PIP pays medical expenses for you and your passengers in case of an accident, up to the policy’s coverage limit. In Michigan, you must purchase PIP with unlimited coverage. The coverage options for PIP are:
$500,000 per person, per accident
$250,000 per person, per accident
$250,000 per person, per accident with exclusions (but only if someone on the policy has health insurance that’s not Medicare)
$50,000 per person, per accident (only if everyone on the policy has health insurance or is covered by another policy with PIP, and the named insured is enrolled in Medicaid)
No medical PIP coverage (only if the named insured has Medicare Parts A and B, and all others on the policy are covered by health insurance or another auto policy that does have PIP medical coverage)
Property protection insurance (PPI)
PPI pays for damage your vehicle does to someone else’s property (like a fence or mailbox), or parked car, but it won’t pay for any other damage to vehicles.
Up to $1 million
Residual bodily injury and property damage liability
Because Michigan is a no-fault state, you largely can’t be sued because of a car accident, although there are exceptions. Instead, your bodily injury liability will pay the medical expenses of anyone else injured in your car. The trade-off for this security, though, are higher required amounts of minimum coverage:
$50,000 per person, per accident
$100,000 per accident
$10,000 for property damage in another state[3]
Driving in Michigan, you’ll need to carry proof of insurance with you in your car at all times and be ready to show it when necessary, such as at the request of law enforcement or when you register your vehicle.
Michigan DMV information
The Michigan Secretary of State (SOS) Office runs the DMV duties in the state. It allows you to renew your driver’s license, change your address, check personalized plate availability, and perform many other services online.[4]
If you need in-person service, there are many SOS offices in Michigan, and you don’t have to visit a specific one — you can simply locate the one closest to you. Most SOS branches are open on weekdays from 9 a.m. to 5 p.m., and some offices may be open on Saturdays.
Public transportation in Michigan
Several public transportation options exist in Michigan. MichiganFlyer offers motor coach connections between Lansing, Brighton, Ann Arbor, and the Detroit Metropolitan Airport. You can also find public transportation through Amtrak, Greyhound, Indian Trails, and Megabus.
In addition, 82 local public transit agencies operate throughout the state.[5] Some examples include the Detroit People Mover, Charlevoix County Public Transit, Huron Transit Corporation, St. Joseph County Transportation Authority, and The Rapid.
Tips for getting cheap car insurance in Michigan
For a fast, easy way to find cheap insurance in Michigan, compare quotes from multiple insurers online. Comparison shopping is a good idea because car insurance providers offer different rates based on driver history, vehicle type, age, and more. You can also lower your rates by taking advantage of discounts, bundling multiple policies, or increasing your deductible.
Liability-only vs. full-coverage insurance in Michigan
If you live in Michigan, you can opt to carry liability-only auto insurance, which can make sense if:
You have a low-value vehicle.
You can afford to repair or replace your car out of your own pocket.
Getting the cheapest insurance possible is your top priority.
For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, weather, and animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed.
If you have a high-value vehicle, or couldn’t afford to repair or replace your car out of pocket, full coverage might also be a good option for you. Here’s a look at the cheapest average monthly quote for auto insurance in Michigan by policy type.
| Car Insurance Company | Liability Only | Full Coverage |
|---|---|---|
| Erie | $124 | $172 |
| Safeco | $153 | $232 |
| State Auto | $159 | $311 |
| American Family | $165 | $228 |
| USAA | $179 | $248 |
| Progressive | $187 | $259 |
| Allstate | $208 | $287 |
| USA Underwriters | $219 | $550 |
| Bristol West | $234 | $358 |
| GEICO | $272 | $377 |
| Liberty Mutual | $289 | $444 |
| Everest National | $290 | $670 |
| Midvale Home & Auto | $333 | $585 |
| State Farm | $356 | $493 |
| Amica | $515 | $714 |
| American Family | $228 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
How your driving history affects your Michigan car insurance rates
Your driving history will play a major role in your car insurance costs. If you have a clean record, for example, you’re likely to lock in a cheaper auto insurance policy than someone with a history of traffic violations. Below, you’ll find the average quotes for Michigan drivers with clean records, speeding tickets, at-fault accidents, and DUIs.
The following table illustrates average monthly quotes for good drivers, and those with certain violations on their records. Note that some insurers may decline coverage to drivers with serious infractions like a DUI.
| Car Insurance Company | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost |
|---|---|---|---|---|
| Farmers | $162 | $164 | $209 | $233 |
| American Family | $214 | $218 | $278 | $310 |
| Safeco | $222 | $468 | $258 | $252 |
| Progressive | $243 | $247 | $315 | $351 |
| Allstate | $270 | $274 | $350 | $390 |
| State Auto | $311 | N/A | N/A | N/A |
| Bristol West | $346 | $394 | $388 | $409 |
| State Farm | $354 | $360 | $459 | $511 |
| Liberty Mutual | $447 | $342 | $434 | $419 |
| USAA | $462 | $470 | $599 | $668 |
| USA Underwriters | $553 | $421 | $579 | $553 |
| Midvale Home & Auto | $580 | N/A | $591 | $630 |
| Everest National | $632 | N/A | N/A | $798 |
| Amica | $669 | $680 | N/A | N/A |
| Erie | $681 | $692 | N/A | N/A |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
See More: SR-22 Car Insurance Michigan
SR-22 insurance in Michigan
An SR-22 is a special form that auto insurance companies complete on behalf of policyholders to prove financial responsibility. Michigan requires an SR-22 to reinstate a driver’s license after a suspension for a serious offense, like reckless driving or a DUI. Below is a list of the insurance companies that offer SR-22s in the Great Lakes state.
See More: High-Risk Car Insurance Michigan
How credit scores affect Michigan car insurance quotes
In Michigan, insurance companies are prohibited from using your credit history or credit-based insurance score to deny, cancel, or refuse to renew your car insurance policy. In addition, they can’t use your credit score to determine your premiums. That said, the table below shows our data on the average car insurance rates by credit tier in the state. Drivers with excellent and good credit tend to pay less than drivers with poor credit.
| Credit Tier | Average Monthly Quote |
|---|---|
| Excellent | $378 |
| Good | $447 |
| Average | $489 |
| Poor | $757 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
See More: Bad Credit Car Insurance Michigan
How your city affects Michigan car insurance quotes
The city you live in is another factor that will affect your auto insurance costs in Michigan. Busier cities, like Detroit and Southfield for example, tend to have more traffic and accident claims, so rates in those cities are often higher than rates in smaller cities. Here’s a look at the average monthly quotes in some of the most populated cities in Michigan.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
How your age affects Michigan car insurance rates
Since there is a strong correlation between age and driving experience, your age influences what you pay for your auto insurance premiums, along with other factors like driving history, credit history, and more. Teen drivers pay the most on average, and drivers in their 60s, 70s, and 80s benefit from the lowest premiums. The table below shows how age affects average monthly costs in Michigan.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Quotes for younger drivers
Young drivers often pay higher premiums for full-coverage auto insurance. Accidents, DUIs, and other driving violations can push their rates higher. The following table compares how different insurance factors can affect average monthly rates for drivers younger than 30.
| Car Insurance Company | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost |
|---|---|---|---|---|
| Safeco | $171 | $244 | $261 | $468 |
| Progressive | $216 | $275 | $271 | $515 |
| USA Underwriters | $262 | $662 | $690 | $1,319 |
| Bristol West | $269 | $404 | $423 | $784 |
| Liberty Mutual | $329 | $492 | $453 | $1,005 |
| Everest National | $395 | N/A | N/A | $1,586 |
| Midvale Home & Auto | $414 | $685 | $619 | $1,337 |
| State Auto | N/A | $331 | N/A | N/A |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Quotes for middle-aged drivers
As drivers gain experience and enter their late 20s and 30s, car insurance rates generally decline. Drivers who maintain a clean record free of speeding tickets, DUIs, and accidents stand to enjoy the biggest decrease.
The following table provides insight into how certain coverage types and violations can affect the car insurance rates of middle-aged drivers in Michigan.
| Car Insurance Company | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost |
|---|---|---|---|---|
| Safeco | $150 | $236 | $263 | $458 |
| State Auto | $153 | $292 | N/A | N/A |
| Progressive | $179 | $255 | N/A | $478 |
| USA Underwriters | $203 | $487 | $473 | $993 |
| Bristol West | $227 | $344 | $390 | $669 |
| Everest National | $228 | $575 | N/A | $1,132 |
| Liberty Mutual | $281 | $429 | $415 | $856 |
| Midvale Home & Auto | $298 | $543 | $499 | $1,096 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Quotes for senior drivers
Senior drivers generally have the lowest car insurance rates of any age group. Their years of experience count in their favor with insurers, as does their tendency to drive fewer miles than working-age motorists. But senior drivers who get into an accident may have trouble finding a company willing to insure them, or to offer them a lower rate.
The table below compares average car insurance rates for seniors, depending on the type of policy they purchase and their driving history.
| Car Insurance Company | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost | Average Monthly Cost |
|---|---|---|---|---|
| Bristol West | $194 | $269 | $304 | $517 |
| Everest National | $293 | |||
| Liberty Mutual | $245 | $339 | $301 | $689 |
| Midvale Home & Auto | $356 | $538 | $1,079 | |
| Progressive | $140 | $196 | $386 | |
| Safeco | $142 | $191 | $248 | $350 |
| USA Underwriters | $213 | $573 | $535 | $1,142 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Michigan car insurance FAQs
Here are answers to some commonly asked questions about car insurance in the state of Michigan.
American Family offers the cheapest car insurance in Michigan, with average quotes of $228 per month. Other auto insurers with affordable rates include USAA and Progressive, at $248 and $259 per month, respectively. Smaller insurers — like Erie, Safeco, and SafeAuto — also provide affordable rates.
By coverage level, American Family provides the cheapest quotes for minimum- and full-coverage insurance policies. Farmers offers the lowest average quotes by driver history for Michigan drivers with a clean record, speeding ticket, DUI, or at-fault accident. When factors like driving history and coverage level are broken down with age, Progressive and Bristol West have the most affordable premiums.
Even though Michigan is the safest state for driving in the country, according to our data, it is one of the most expensive states for car insurance. One reason for this includes the fact that the state requires a higher minimum car insurance than most states. In addition to bodily injury and property damage coverage, drivers must purchase personal injury protection and property protection insurance coverage.
Michigan has the second-highest percentage of uninsured motorists in the country, and this could affect how auto insurers calculate risk levels in the state. About 25% of Michigan drivers are uninsured, according to the Insurance Information Institute.[1] More uninsured drivers on the roads can lead to more claims for auto insurers to pay out.
According to our data, the average cost of car insurance in Michigan is $487 per month, which is much higher than the national average of $233 per month. Michigan is the second most-expensive state for purchasing car insurance. You’ll pay more for car insurance in Michigan than you will in the neighboring states of Ohio and Illinois.
Costs fluctuate in Michigan and other states, making it important to shop around and compare quotes often. For example, between July 2021 and July 2022, average rates in Michigan increased by 23%. As insurance companies continue to react to industry conditions and supply chain issues, some providers might implement changes.
The Michigan car insurers with the highest ICS rankings and lowest premiums include American Family, USAA, Progressive, and Allstate. Their average monthly quotes are $228, $248, $259, and $287, respectively. To find the right auto insurance company for your particular situation, it’s a good idea to shop around and compare all your options.
The auto insurance providers listed above have good financial strength ratings. American Family has an A rating, while USAA earned an A++ rating from A.M. Best. Progressive scored an A+ from A.M. Best and an AA from Moody’s. A.M. Best gave Allstate an A+.
In Michigan, personal injury protection (PIP) coverage is mandatory. Also known as no-fault insurance, PIP coverage is intended to pay for a driver’s medical bills, economic benefits, and death benefits after an accident, no matter who caused it. Since PIP protection in the Michigan is unlimited, it is expensive.
Michigan is also unique in that drivers must have personal property insurance (PPI). PPI will reimburse others for any damage your vehicle causes to a stationary car, fence, wall, or building. The required limit is $1 million for the entire policy.
In Michigan, the car owner’s insurance follows the car, as long as the owner permits the driver to operate it. If the owner doesn’t have liability insurance, it’s the driver’s legal responsibility to carry their own liability insurance when driving. Don’t let an unlicensed driver operate your vehicle, as this can lead to serious legal and financial consequences.
As long as the person borrowing your car is licensed, your auto insurance provider shouldn’t give you any issues filing claims for your applicable coverage.
Full-coverage insurance in Michigan is a policy that offers bodily injury liability, property damage liability, personal injury protection (PIP), property protection insurance (PPI), comprehensive coverage, and collision coverage.
Liability insurance pays for bodily injury and property damage costs of others involved in an accident you caused. Collision coverage applies to your vehicle and necessary repairs if it’s damaged in a car accident. Comprehensive coverage covers non-collision damages to your car from theft, vandalism, and natural disasters.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
Sources
- Insurance Information Institute. "Facts + Statistics: Uninsured motorists." Accessed December 14, 2022
- Michigan.gov. "Michigan Department of Insurance and Financial Services Quick Facts." Accessed December 14, 2022
- Michigan.gov. "Frequently Asked Questions." Accessed December 14, 2022
- Michigan Department of State. "Services." Accessed December 14, 2022
- Michigan Department of Transportation. "Public Transportation." Accessed December 14, 2022
