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 six of the 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 the provider 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 6 Best Auto Insurance Companies in Michigan
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 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.
In terms of discounts, Allstate offers just as many advertised discounts as Auto-Owners Insurance — there’s even a way for students away at school to save. On top of this, you can also get a discount for insuring a new car, a discount that Auto-Owners doesn’t offer.
Allstate does offer 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 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, 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 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 sometime 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.
Unlike Allstate and State Farm, Progressive received two out of five stars from J.D. Power for both overall satisfaction and claims satisfaction. That being said, Progressive still had a decent showing with Consumer Reports, earning a Very Good rating for the claims process and an Excellent for speedy claims payment. 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.
On the plus side, Progressive does advertise more discount options than Allstate, State Farm, or Auto-Owners Insurance. Unfortunately, rideshare coverage — which can be found with Allstate and State Farm — isn’t one of them. There are still things you can get through Progressive that you won’t find with many other providers, including pet injury coverage, which insures your pet if it is involved in a vehicle accident. If you often drive with pets in your car, it’s definitely worth getting a quote from Progressive.
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 the company isn’t forthcoming with its 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 a AAA Direct Repair Shop, where it guarantees repairs for the life of the vehicle.
USAA is the best of the best when it comes to J.D. Power, Consumer Reports, and A.M. Best. The company has five out of five ratings in every category from J.D. Power, along with flawless ratings in claims processing and timely payments from Consumer Reports. On top of that, it has the highest financial strength rating from A.M. Best that a company can get: A++. So why isn’t it higher up the list? Because it’s not for everyone.
In fact, USAA only serves active service members, veterans, and their families. If, however, you can count yourself among the 2,088 active duty members and 14,934 reservists living in the Wolverine State, USAA is definitely worth checking out.
While USAA may not offer as many discounts as Progressive, the ways to save are geared more toward the everyday needs of a service member. For example, say that you’re about to be deployed and you need your vehicle stored for the duration — USAA offers a discount up to 60% when you store an insured car. There’s also a 15% discount when members store their vehicles on base.
For coverage, all the things we praised in our previous picks are here, including comprehensive, collision, liability, and some other must-haves like roadside assistance, rental reimbursement, and accident forgiveness.
The Cheapest Auto Insurance Companies in Michigan
Quadrant car insurance rate data as of 07/01/2019.
These rates are a sample set meant only for general comparison. Your own premium will vary. Learn how we tested rates for the cheapest car insurance companies below.
Top 3 Cheapest Auto Insurance Companies in Michigan
• Metropolitan P&C: $628
• Hasting Mutual: $822
• Geico: $$1,040
Top 3 Most Expensive Auto Insurance Companies in Michigan
• Farmers: $4,388
• Allstate: $3,546
• Nationwide: $2,434
Michigan is unique in that it requires drivers to purchase unlimited personal injury protection (PIP) insurance. Though this bit of legislation is set to be rolled back in 2020, it has had an undeniable effect on the price of auto insurance in Michigan, the most expensive state for car insurance in the US. Metropolitan P&C is the cheapest car insurance company in Michigan with an average annual premium of $628. Michigan residents typically pay significantly more than the national average on their premiums. In addition to the unlimited PIP coverage requirement, Michigan is part of a small group of states with no-fault car insurance legislation. Essentially, this legislation allows drivers to file claims against their own insurance companies regardless of who was at fault in the accident. This leads to additional claims being filed as well as a higher-than average rate of insurance fraud. Insurance companies in Michigan protect themselves from this legislation by charging higher premiums, leading to a higher cost for customers.
Guide to Michigan Auto Insurance
Make sure you meet Michigan’s minimum liability requirements
Michigan’s mandatory Personal Injury Protection (PIP) coverage. 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 Comprehensive insurance 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.
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
Yes, having car insurance is a legal requirement in the Wolverine State. It’s also good common sense. As we’ve mentioned before, the bare minimum auto insurance coverage in the state of Michigan is 20/40/10, which involves:
- $20,000 bodily injury coverage per person
- $40,000 bodily injury coverage per accident
- $10,000 property damage coverage per accident
Driving without this minimum coverage (though, really, you should opt for more than minimum) can result in fines upward of $500, up to a year in jail or, if the judge is having a really bad day, both. Furthermore, your license could be suspended or revoked until you are able to show proof of insurance.
And just because Michigan is a no-fault state doesn’t mean there aren’t serious repercussions for an accident. If you don’t have insurance and your passenger is injured, they could hold you liable for their medical costs on top of your own.
In the end, it’s better to just do everyone (including yourself) a favor and not drive around Michigan without car insurance. Not only is it required by law, but it could save you from financial stress and heartache should you be involved in an accident.
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.
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.
In Michigan, no-fault insurance refers to how your “personal injury protection” or “PIP” coverage works when trouble strikes. In the event of a car accident, regardless of who caused the accident, your medical treatment costs and out-of-pocket expenses are covered by your insurance coverage.
PIP coverage includes:
- All necessary medical care costs resulting from the accident
- Any lost wages (for up to three years) due to injury
- A daily allowance of $20 to help hire assistance with any household chores you are unable to perform
- Your funeral or burial expenses (up to $5,000) should the worst occur
The benefits of PIP coverage also extend beyond the policyholder to include family members living under the same roof as the policyholder.
The Best Michigan Auto Insurance Companies: Summed Up
|Get a quote||Get a quote||Get a quote||Get a quote||Get a quote||Get a quote|
We worked with Quadrant Information Services to provide data on auto insurance rates by company and credit score. Quadrant makes this information available using rate data insurers are required to file with state Departments of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes.