The Best Michigan Auto Insurance Companies

Michigan’s auto insurance premiums are the highest in the nation, with Detroit residents paying more than anyone else in the state. That’s primarily due to the unlimited medical benefit in Michigan’s mandatory Personal Injury Protection (PIP) coverage. The best Michigan auto insurance companies will do more than just protect you, though. Comprehensive insurance coverage can protect your car from Michigan’s severe winter weather and bad roads.

How We Found the Best Michigan Auto Insurance Companies

We evaluated the five largest auto insurance providers in Michigan using the same methodology we developed for our review of nationwide auto insurance providers. First, we looked at each company’s financial stability through ratings from A.M. Best, Moody’s, and S&P Global to determine whether they had the financial resources to pay your insurance claims. We also reviewed customer satisfaction ratings from J.D. Power and Consumer Reports to determine the ease of the claim filing process and how quickly you’re likely to get your money. Then we compared the different coverages and discounts offered by each provider — can you get a lower insurance rate if your car has an anti-theft device? Are there special discounts for teen drivers? Finally, we looked at the tools each insurer offered to help you become a safer driver, including apps that you can use to track your driving and earn additional discounts on your premium.

The 5 Best Auto Insurance Companies in Michigan

Auto-Owners Insurance

Auto-Owners Insurance was an award winner in J.D. Power’s 2018 U.S. Auto Insurance Study, receiving the highest customer service ratings for insurers in the North Central area. J.D. Power gave Auto-Owners Insurance a five out of five in overall satisfaction and a four out of five in claims satisfaction; Consumer Reports echoed these high rankings with an Excellent rating in both simplicity of the claims process and speedy claims payment. Auto-Owners Insurance also received the highest possible ranking from A.M. Best, earning an A++ in financial stability.

We were also impressed with the company’s range of coverages. Auto-Owners Insurance’s supplemental coverage options include rental reimbursement coverage and roadside assistance coverage, as well as coverage to compensate you for the reduction in your car’s value after an accident. If you’re looking to maximize your coverage options, sign up for the Personal Automobile Plus package, which combines over 10 supplemental coverages into a competitive rate and protects you from expenses incurred due to identity theft, re-keying locks, and more.

Auto-Owners Insurance also offers a variety of discounts. You can get a discount for paying in full, paying on time, and paying online, or for owning a car with safety features such as airbags. Young drivers have the option to earn additional discounts. Students can receive a discount if they maintain a B average or if they attend schools more than 100 miles from home, and teens who let Auto-Owners Insurance track their driving via GPS are eligible for even more discounts — as long as they drive safely.

Allstate

Allstate earned an honorable mention in our review of nationwide auto insurance. It garnered an A+ financial stability rating from A.M. Best and three out of five points in both overall satisfaction and claims satisfaction from J.D. Power. Consumer Reports ranked Allstate’s claims process as Very Good and gave it an Excellent in claims payment speed.

Allstate doesn’t offer quite as many discounts as Auto-Owners Insurance — there’s no discount for students away at school, for example — but you can get a discount for insuring a new car, which Auto-Owners doesn’t offer.

Allstate also offers fewer supplemental coverage options than Auto-Owners, though it includes one important coverage that Auto-Owners does not: rideshare coverage. Michigan requires Lyft and Uber drivers to carry additional insurance coverage beyond the 20/40/10 minimum; although the state does not require drivers to specifically carry rideshare insurance, it’s worth talking to your agent about how the coverage might benefit you. Allstate also just announced that it was partnering with Uber to provide commercial auto insurance for Uber drivers, which will likely include even more coverage options.

To help you stay safe on the road, Allstate provides the option of two apps. Drivewise is a free app that tracks your driving and offers feedback — a great feature for adults and an excellent one for teen drivers and their parents — and lets you earn discounts for your safe driving habits. You can also purchase Cellcontrol, which lets drivers (or the parents of teen drivers) disable texting and phone calls while driving. (We should also mention that you don’t even have to be an Allstate customer to use Drivewise or Cellcontrol; the apps are available to everybody.)

State Farm

State Farm earned an A++ financial stability rating from A.M. Best, putting it above Allstate and on par with Auto-Owners Insurance in this single area — but we’re ranking State Farm below those two companies because it’s in a period of financial contraction. After a $7 billion underwriting loss on auto policies in 2016, State Farm has increased rates and shut down offices around the country. Its Kalamazoo, Michigan office is scheduled to close in 2019. Since 2016, State Farm has lost 3.8% of its Michigan policyholders, spurring it to drop rates by 2.1%.

Currently, State Farm offers a thorough list of discounts, including discounts for multi-line policies, anti-theft devices, and good students. You can get additional discounts if you register with State Farm’s Drive Safe & Save service, which uses OnStar or your mobile device to track safe driving habits. You’ll also get a discount just for signing up, but you can save even more by (you guessed it) driving safely.

If you’re looking for specific coverage options, State Farm doesn’t offer as many supplemental coverages as the other providers on our list. You can get rental reimbursement coverage and roadside assistance coverage, however, as well as rideshare coverage if you drive for Uber or Lyft.

Progressive

Like Allstate and State Farm, Progressive received three out of five stars from J.D. Power for both overall satisfaction and claims satisfaction, as well as a Very Good for claims process and an Excellent for speedy claims payment from Consumer Reports. Progressive also earned an A+ financial stability rating from A.M. Best, putting it on par with Allstate.

However, Progressive’s Snapshot app is not on the same level as Allstate’s Drivewise or State Farm’s Drive Safe & Save apps. When you sign up for Snapshot, you are agreeing to have your driving monitored for a limited period of time — generally about six months. After that period, Progressive considers your Snapshot program “completed” and assigns you a discount. Drivewise and Drive Safe & Save, by contrast, give you the option to continue to improve your driving and potentially increase your discount.

Progressive also doesn’t offer as many discount options as Allstate, State Farm, or Auto-Owners Insurance; it does offer a decent range of coverages, however, and while you can’t get rideshare coverage with Progressive, you can get pet injury coverage, which insures your pet if they are involved in a vehicle accident. If you often drive with pets in your car, it’s definitely worth getting a quote from Progressive.

AAA (Auto Club Insurance Association)

The Auto Club Insurance Association, also known as AAA, received Excellent ratings from Consumer Reports in both claims process and claims payment speed. However, J.D. Power only gave it two out of five points for overall satisfaction and three out of five for claims satisfaction, and it received the lowest financial stability rating of our finalists: an A- from A.M. Best.

Unlike Allstate, State Farm, and Progressive, AAA has no app to help you become a safer driver. AAA’s website is also the least clear in terms of coverage and discount options: When you visit its discount page, it lists a handful of the usual discounts (multi-policy, good student, safe driver) followed by “And More!” We know that AAA is trying to entice you into signing up for a quote, but it’s hard to compare insurers when they aren’t forthcoming with their information.

AAA doesn’t offer rideshare coverage, but you can get pet injury coverage and extended exterior repair option (OEM) coverage, which is designed to help you repair your car’s exterior (although the coverage excludes all glass and mechanical parts).

AAA’s one standout area is, of course, its roadside assistance package. If your insurance includes comprehensive and collision coverage, you can contact AAA after an accident and start the claims process right away; after any immediate needs like vehicle towing are addressed, AAA will work with you to schedule repairs at an AAA Direct Repair Shop, where it guarantees repairs for the life of the vehicle.

Guide to Michigan Auto Insurance

Make sure you meet Michigan’s minimum liability requirements

The minimum insurance coverage required to drive in Michigan is about average. Here’s what you’ll need.

  • $20,000 bodily injury coverage per person
  • $40,000 bodily injury coverage per accident
  • $10,000 property damage coverage per accident

You might see these numbers written as 20/40/10. You’ll probably want to purchase additional coverage beyond this minimum, however. The State of Michigan has an auto insurance guide that explains why additional coverage is important and what types of additional coverages to consider. For example: If you cause an accident in which someone is killed or severely injured, liability coverage could protect your personal assets in the case of a lawsuit. You’ll probably also want collision and comprehensive coverage to pay for repairs to your car if it hits a pothole or is struck by a deer.

Purchase PIP and PPI coverage

In addition to the minimum liability requirements, Michigan also requires drivers to have two additional coverages: Personal Injury Protection (PIP) coverage and Property Protection Insurance (PPI). These coverages pay for damage you do to yourself or to other people’s property.

Compare quotes

It’s essential to get multiple quotes before choosing your insurer. A group of researchers recently investigated Michigan auto insurance premiums and discovered that some people may be quoted higher rates because of factors unrelated to their driving history. Factory workers get quoted higher rates than investment bankers by some providers, for example. Gender, education level, and employment status can all affect your insurance rates, although the study notes that not all insurers consider every factor; for instance, State Farm and Allstate don’t include your job or your educational level when determining your premium. If you don’t have a college degree, we’d suggest getting quotes from those two providers before purchasing a policy.

Michigan Auto Insurance FAQ

What are average auto insurance rates in Michigan?

Michigan’s auto insurance rates are among the highest in the country — on average, Michigan drivers pay $1,364 per year, compared to the nationwide average of $1,009. However, how much you’ll pay can vary depending on your car, the coverage you opt for, and your address. Use our tool at the top of the page to find your best rates.

Why is Michigan car insurance so expensive?

Michigan is a no-fault insurance state, which means that people are responsible for paying their own medical bills regardless of which driver caused the car accident. Because that medical benefit is unlimited, doctors and hospitals can essentially charge insurance providers as much as they want.

The Best Michigan Auto Insurance Companies: Summed Up

Auto-Owners Insurance
Allstate
State Farm
Progressive
AAA (Auto Club Insurance Association)
A.M. Best financial strength rating
A++
A+
A++
A+
A-
J.D. Power 2018 Auto Insurance Study customer satisfaction score (North Central Region)
5/5
3/5
3/5
3/5
2/5
Consumer Reports reader score
93/100
88/100
89/100
87/100
94/100