Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Michiganders pay an average of $1,990 annually for minimum-coverage liability insurance. Full-coverage policies cost more, averaging $2,835.
The good news is that many car insurance companies offer discounts that can help lower your premiums. And, like with Petoskey stones, discounts are often more abundant than you might expect once you know where to look. Below are some of the best car insurance discounts for Michigan drivers and how to save money on car insurance costs.
Quick Facts
Although Michigan’s car insurance reform laws are complicated, they offer money-saving opportunities.
Auto-Owners and USAA offer the cheapest liability-only rates, on average, in Michigan.
You may be able to save on your insurance through your employer or even through memberships related to recreational activities like camping.[1]
Car insurance discounts for Michigan drivers
Whether in the deep woods in the north or the industrial hubs in the south, Michigan residents work and play in many different ways. Depending on your lifestyle, that could unlock potential car insurance discounts.
Membership discounts
Check with organizations that support hobbies and activities you enjoy. Many advocacy organizations for popular Michigan pastimes offer members-only car insurance discounts:
If you’re a member of AAA, you can also receive a discount on car insurance offered through AAA.
Boat Owners Association of The United States members may qualify for a car insurance discount through GEICO.
Good Sam RV club offers members auto and RV coverage and extended service plan options.
Alumni discounts
If you graduated from a Michigan college or university, you might be eligible for car insurance discounts:
Michigan State University alumni can receive a car insurance discount through Liberty Mutual.
University of Michigan alumni also have access to Liberty Mutual auto insurance discounts.
Grand Valley State University alumni may qualify for discounts through Farm Bureau Insurance.
Occupational discounts
Michigan is a long-standing auto industry hub, and nearly 600,000 Michiganders work in manufacturing today. Even more work in the healthcare, education, hospitality, and trade industries.
Depending on your occupation and employer, you may qualify for an insurance discount:
Members of the United Auto Workers(UAW) union and other union members can get special pricing on auto policies through Farmers Insurance.
Healthcare workers, like those at Trinity Health, can get special discounts when paying their premiums via payroll deduction.
Higher education employees, like those at Michigan State University, are eligible for a car insurance discount through Farmers Insurance.
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Car insurance discounts available to all drivers
Aside from Michigan-specific discounts, you may be eligible for other insurance discounts. Although many of the best insurance companies advertise discounts on their websites, it’s a good idea to ask your agent if you’re getting all the discounts you qualify for.
Insurance companies often offer discounts if you’re a low-mileage driver, have completed a defensive driving course, or are in the military. Take a look at the table below to find out which discounts you qualify for:
Discount
Savings
Who’s Eligible?
Active-duty military or veteran
15%–25%
Current or former members of the military
Safe driver
22%
Drivers who haven’t received any citations or caused any accidents within a certain period of time
Good student
10%–15%
College or high school students who maintain a B average or higher
Defensive driving course
5%
People who take an approved defensive driving course
Student away from home
Varies
Students who leave their car at home while attending school a certain distance away from home
Low-mileage
Varies
People who drive less than a certain number of miles each year
Cars with certain features pose less risk for insurers, which may lead to savings for you.[2] When it’s time to replace your current vehicle, look for a car with the following features to save money:
Discount
Savings
Who’s Eligible?
Passive restraint
30%
Drivers whose vehicles have airbags and other safety devices
Anti-theft
23%
Owners of vehicles with theft-prevention features, whether factory or owner installed
New vehicle
10%–15%
Drivers of vehicles less than 3 years old
Anti-lock brakes
5%
Drivers whose cars have anti-lock brakes
EV/fuel-efficient discounts
Varies
Drivers with all-electric or hybrid vehicles
Some insurance companies offer discounts for demonstrating safe driving habits, bundling several types of insurance, or managing your policy online or paying in full. Take a look at some discounts you might qualify for:
Discount
Savings
Who’s Eligible?
Telematics
10%–30%
Drivers who use their insurer’s telematics program and demonstrate safe driving habits
Multi-vehicle
7%–25%
Drivers insuring more than one car with the same company
Bundling
7%–25%
People who buy two types of insurance with the same company, such as car and homeowners insurance
Loyalty
Varies
Drivers who renew their policy with the same company, sometimes after a set period of time
Pay-in-full
Varies
Drivers who pay their entire policy premium in one payment
Paperless
Varies
Drivers who sign up to receive digital-only billing notifications
Early shopper
Varies
Drivers who purchase coverage before their current policy expires
Cheapest insurers for Michigan drivers
After the state’s auto reform laws took effect in 2020, many Michigan drivers saw their car insurance rates drop.[3] Today, drivers in Michigan pay an average of $166 per month for liability-only coverage and $236 for a full-coverage policy.
Just as car insurance rates are increasing across the U.S., they’re also rising in Michigan. Insurify data shows that Michigan car insurance premiums could increase by 6% in 2025.
To ensure you get the best rate for your driving record and the type of coverage you need, it’s worth getting a quote from these insurers, which offer some of the lowest rates in Michigan:
The below rates are estimated rates current as of: Thursday, July 3 at 12:00 PM PDT.
Insurance Company
Average Quote: Liability Only
Average Quote: Full Coverage
Auto-Owners
$59
$105
USAA
$60
$106
Chubb
$65
$115
Safeco
$117
$202
Progressive
$119
$232
Nationwide
$121
$214
State Farm
$123
$218
Travelers
$143
$252
Direct Auto
$149
$292
National General
$160
$269
Bristol West
$165
$303
GEICO
$185
$232
Liberty Mutual
$196
$262
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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How to find cheap car insurance in Michigan
If your auto policy payment is draining your wallet, you can often find ways to get cheaper car insurance rates.[4] Aside from shopping around for car insurance quotes from other companies, here are a few ideas:
Build your credit
Insurers may use a credit-based insurance score as a rating factor.
Choose the highest deductible you can pay out of pocket if you need to file a claim.
Ask about discounts
Don’t assume you’re automatically getting the discounts you qualify for. Check your insurance company’s website or ask your agent to ensure you’re getting every available discount.
Practice safe driving
Maintaining a clean driving record and avoiding claims is one of the best ways to keep your insurance premiums low.
How much car insurance do you need in Michigan?
Michigan experienced a major legal overhaul in the no-fault car insurance market to help control skyrocketing costs for residents. As of 2020, all drivers must purchase the following types of coverage, at a minimum:
Personal injury protection (PIP) covers medical expenses up to the policy limits for you and your passengers after a car accident, regardless of who’s at fault.
Property protection insurance (PPI) covers up to $1 million in accidental property damage you cause.
Residual bodily injury and property damage liability (BI/PD) pays medical expenses if you cause an accident — up to $50,000 per person and $100,000 total per accident. It also pays up to $10,000 in property damage for an accident in another state.
Under the new law, you can choose from six PIP coverage options. You may be eligible for lower limits if you have health insurance covering car accidents, Medicare Parts A and B, or you’re enrolled in Medicaid.[5]
Car insurance discounts in Michigan FAQs
Figuring out the type of car insurance you need and how to get the lowest rate can be confusing, particularly in Michigan. These answers to some frequently asked questions might help.
Auto-Owners has the lowest average rates for liability-only insurance in Michigan, with minimum-coverage policies averaging $59 per month. Your exact rate will depend on factors like your age, driving record, and where you live.
Michigan requires all drivers to have car insurance with at least the following minimum coverage amounts:[6]
Liability insurance: $50,000 for bodily injury per person, $100,000 per accident, and $10,000 for property damage in another state
Property protection insurance (PPI): Up to $1 million in coverage for accidental property damage in Michigan
Personal injury protection (PIP): Limits range from unlimited coverage to opting out, which is available only if you have Medicare Parts A and B
Although you can choose the lowest PIP and residual BI/PD coverage allowed, most experts recommend buying more than the state minimum.[7] Other ways to save include getting quotes from at least three companies before choosing a policy, driving safely, choosing a car with safety features, and ensuring you get all the discounts you qualify for.
Yes. You can opt out of PIP coverage, but only if you have Medicare Parts A and B. Any other household members must have their own auto insurance policy or health insurance that covers auto accident injuries.
If you and other drivers in your household have health insurance that covers auto accident injuries, you can choose a lower PIP medical coverage limit of $250,000.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
Lindsay has been a contributor at Insurify since October 2022.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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