Having bad credit could make it more difficult to get a good rate on car insurance in Michigan. Some states prohibit car insurance companies from taking your credit into account when setting rates. Unfortunately, Michigan is not one of them. Having bad credit likely won't prevent you from getting coverage. But you're probably going to have to pay more for it.
Fortunately, car insurance credit checks in Michigan are considered "soft inquiries" and won't affect your credit score.
Insurify's comparison tool will help you make sure you're getting the best possible quote even with a bad credit rating. You can have peace of mind you're not paying any more than need to, and customers save $48 per month on average.
Drivers with bad credit pay almost 15 percent more than average on car insurance in Michigan. Insurers will use factors like your payment history and total debt to determine your insurance credit score, which will help them assess your overall risk level and the likelihood of you filing a claim in the future. Your driving record and claims history will also help determine your rate.
It's possible to get car insurance without a credit check in Michigan. You just have to find a company that's willing to provide you coverage without checking your credit. These companies exist, but beware: they often charge more for a policy than a standard insurer. That's because the insurer needs to compensate for not fully knowing how much of a risk it's taking by insuring you and your vehicle.
Before you move forward with a car insurance company that doesn't run credit checks, get a quote from companies that do to get a side-by-side comparison.
Fortunately, there are a number of car insurance options in Michigan if you have bad credit. The downside is these options can be expensive. Arrowhead has one of the lowest average monthly car insurance costs for Michigan drivers with bad credit—$248. The costs only get higher: Everest National Insurance Company's average monthly cost is more than $800. There are plenty of reasons why you should maintain good credit; these car insurance costs are one of them.
|Carrier||Avg. Monthly Cost|
|American Family Insurance||$538|
|Midvale Home & Auto||$551|
|Everest National Insurance Company||$829|
There aren't many surprises when it comes to Michigan's insurance rates and the credit tiers. Drivers with excellent credit typically pay less per month on their car insurance than those with poor credit. In Michigan, drivers in the excellent credit tier pay almost $100 less per month on average than drivers in the poor credit tier. Surprisingly, only $3 separates the average monthly cost for Michigan drivers with good credit and those with average credit.
|Credit Tier||Avg. Monthly Cost|
The average monthly car insurance cost for drivers with bad credit varies among Michigan cities, but there's a common theme; the costs are high. Grand Rapids is on the lower end ($281), but Detroit, perhaps Michigan's most well-known city, has an average monthly car insurance cost of almost $550.
The higher you can keep your credit score, the better chances you'll have of keeping your car insurance premiums low.
|City||Credit Tier||Avg. Monthly Cost|
Insurance prices and policies can vary significantly between companies, and a state like Michigan draws a wide variety of choices when factoring insurance rates for drivers with bad credit.
Insurify's rate comparison tool will help you make sure you're getting the best possible quote based on your needs and location. You can have peace of mind you're not paying any more than you need to, and customers save $585 per year on average.