The Best Michigan Auto Insurance Companies
Michigan’s auto insurance rates are on the higher side — on average $1364 per year, compared to the nationwide average of $1,009. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. Use our tool to find your best rates:
It pays to shop around.
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What Does Auto Insurance Cost in Michigan
Average annual rate in Michigan: $1,364
Michigan’s insurance premiums are the highest in the nation, with Detroit residents paying more than anyone else in the state. Why do Michigan residents pay $1364, compared to the nationwide average of $1,009? 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. When you can’t rely on another driver’s insurance to cover your costs, it’s essential that you have adequate coverage from a reliable provider.
The best Michigan auto insurance companies will do more than just protect you, though. Comprehensive insurance coverage can protect your car from winter weather and bad roads; Michigan regularly gets severe winter storms, and in 2018, AAA reported a 32 percent increase in tire damage related to Detroit potholes.
It’s important to get multiple quotes before choosing your insurer. A recent study revealed that some Michigan auto insurers quoted higher rates to people with blue-collar jobs, so you’ll want to compare packages and make sure you’re getting the best coverage at a fair price.
Michigan Minimum Liability
Here’s the minimum insurance coverage required to drive in Michigan:
- $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.
Michigan also requires drivers to have two additional coverages: Personal Injury Protection or PIP coverage, and Property Protection Insurance or PPI. These coverages pay for damage you do to yourself or to other people’s property.
Get multiple quotes before choosing an insurer, and compare all aspects of each package carefully: How much coverage is provided? How high is your deductible? How many discounts are you eligible for? Use our review of top auto insurance providers in Michigan to start your search and help you understand your options.
How We Found the Best Auto Insurance in Michigan
We evaluated the five largest providers in Michigan using the same methodology we developed for our nationwide review of auto insurance providers. We looked at each company’s financial stability to determine whether they had the financial resources to pay your insurance claims. We also reviewed customer satisfaction ratings to determine how easy the average consumer found the claim filing process, and how quickly you’re likely to get your money. 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? We also 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.
Michigan Auto Insurance Reviews
Auto-Owners Insurance was an award winner in JD Power’s 2017 U.S. Auto Insurance Study, receiving the highest customer service ratings for insurers in the North Central area. JD Power gave Auto-Owners Insurance a 5 out of 5 in overall satisfaction and a 4 out of 5 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.
If you drive a vehicle that has been modified to include wheelchair lifts, driver control modifications, or other accessibility features, Auto-Owners Insurance even has special coverage options designed to protect your investment. Most auto insurance policies don’t cover nonstandard or user-installed equipment (such as custom stereos), so we were impressed with Auto-Owners willingness to cover accessible vehicles.
Auto-Owners Insurance also offers a variety of discounts. You can get a discount for paying in full, paying on time, and paying online; you can also get discounts if your car has various safety features such as airbags — and even a discount if you request a premium quote prior to the date you want your policy to start. Young drivers have the option to earn additional discounts: Students can receive a discount if they maintain a B average, students who attend schools more than 100 miles from home can receive an additional discount, and teens who let Auto-Owners Insurance track their driving via GPS are eligible for even more discounts — as long as they drive safely.
For all of these reasons, we recommend that you start your quote process with Auto-Owners Insurance, though you’ll want to get at least one additional quote so you can compare coverages, rates, and options.
Allstate earned an honorable mention in our nationwide review of auto insurance. It garnered an A+ financial stability rating from A.M. Best, and 3 out of 5 points in both overall satisfaction and claims satisfaction from JD 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 does — 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.
Allstate offers two apps to help you stay safe on the road. 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.)
Should you become an Allstate customer? It all depends on the quote — so take the time to see if Allstate is right for you.
Like Allstate, State Farm earned an honorable mention in our nationwide auto insurance review. State Farm also earned the same customer service rankings as Allstate: JD Power gave State Farm 3 out of 5 points in overall satisfaction and claims satisfaction, and Consumer Reports gave State Farm a Very Good rating for claims process and an Excellent rating for speedy claims payment.
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 third on our list because it’s in a period of financial contraction. After a $7 billion underwriting loss on auto policies in 2016, State Farm has started to shut down offices around the country. Their Kalamazoo, Michigan office is scheduled to close in 2019. Despite these office closures, State Farm is still the largest insurer in Michigan — though it isn’t yet clear whether State Farm will cut back on new policies or offer fewer discounts as a way of shedding expenses.
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 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.
Since State Farm is such a popular insurer, it’s worth seeing what kind of quote you can get from them — but make sure you compare it against a few other quotes to be sure you’re getting the best deal.
Progressive also earned an honorable mention in our review of nationwide auto insurance providers — and, like Allstate and State Farm, received 3 out of 5 rankings from JD 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 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 signing up 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. If you often drive with pets in your car, it’s definitely worth getting a quote and seeing how Progressive compares to your other options.
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, JD Power only gave it 2 out of 5 points for overall satisfaction and 3 out of 5 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 was 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 they’re 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, such as 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.
Plenty of people swear by their AAA membership, so if you’re interested in exploring your options, we’d suggest getting a quote and seeing how costs and coverage stack up against the other providers on our list.
Other Things to Know Before Buying Michigan Auto Insurance
You might get quoted a higher insurance rate because of your job, your education level, or your gender.
A group of researchers 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; 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.
Some lawmakers think Michigan shouldn’t require drivers to have auto insurance.
Believe it or not, a bipartisan group of lawmakers are proposing that the state eliminate the requirement for drivers to have auto insurance. The “Macomb Solution,” named after Macomb County, would let drivers choose whether to purchase insurance. Since Michigan is a no-fault state and drivers are responsible for their own medical bills regardless of who caused the accident, these lawmakers argue that people have the right to handle the financial risk of driving on their own, instead of paying high premiums to an insurance company in anticipation of an accident that may never happen. Political commentators don’t have high hopes that the bill will pass, since similar measures have failed to gain traction in the past, but the situation is worth keeping an eye on.