Although Michigan has some of the highest average auto insurance premiums in the country, many companies still offer competitive rates. Discounts can help to offset these costs further. Finding the best car insurance company in Michigan isn’t an exact science. However, average rates, customer satisfaction ratings, and financial strength ratings can help pinpoint which company might be best for you. Keep in mind that auto insurance rates are highly individualized, and what’s suitable for one driver may not be for another.
The 6 Best Auto Insurance Companies in Michigan
- Geico: Best for Low Prices
- Allstate: Best for Online Resources
- State Farm: Best for Discounts
- Progressive: Best for Driving Incidents
- USAA: Best for Military-Focused Coverage
- Auto-Owners Insurance: Best for Coverage Options
Comparing the Best Car Insurance Companies in Michigan
| Average Price for State Minimum* | Average Price for Full Coverage* | A.M. Best Financial Strength Rating AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. Power Overall Customer Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin Geico | $724 | $1,467 | A++ | 881 | |
| Pin Allstate | $1,301 | $2,726 | A+ | 870 | |
| Pin State Farm | $2,103 | $3,856 | A++ | 892 | |
| Pin Progressive | $683 | $1,394 | A+ | 862 | |
| Pin USAA** | $482 | $1,255 | A++ | 909 | |
| Pin Auto-Owners Insurance | $827 | $1,982 | A++ | 878 |
*Data from Bankrate.com
**Not officially ranked by J.D. Power due to eligibility restrictions
Geico
Best for Low Prices
Why we chose it
Why we chose it
Pros
- Low annual premiums
- Many discount options available
Cons
- Lower-than-average customer service from J.D. Power in the North Central region
- No discounts for hybrid/electric cars
- No gap coverage available
Types of Coverage Offered
- Collision
- Comprehensive
- Emergency road service
- Liability
- Medical
- Mechanical breakdown
- Rental reimbursement
- Uninsured motorist
Discounts Available
- Defensive driving
- Driver’s education
- Emergency deployment
- Good driver
- Membership & Employee
- Military
- Multi-policy
- Multi-vehicle
- Seat belt use
- Vehicle equipment
Geico Insurance Review
Allstate
Best for Online Resources
Why we chose it
Why we chose it
Pros
- Lots of coverage options
- Offers a free app to help improve driving habits
Cons
- Average customer satisfaction scores
- High annual premiums
Types of Coverage Offered
- Collision
- Comprehensive
- Liability
- Medical
- Personal injury
- Rental reimbursement
- Roadside assistance
- Sound system
- Uninsured/underinsured motorist
Discounts Available
- Automatic payment
- Early signing
- Fullpay
- Multiple policy
- New car
- Paperless billing
- Responsible payer
- Safe driving
- Smart student
- Vehicle safety features
Allstate Insurance Review
State Farm
Best for Discounts
Why we chose it
Why we chose it
Pros
- Coverage for rideshare drivers
- Numerous discounts
- Highly rated mobile app
Cons
- No accident forgiveness
- Premiums are on the higher than average
- Recent financial losses have led to some Michigan office closures
Types of Coverage Offered
- Car rental and travel
- Collision
- Comprehensive
- Emergency road service
- Liability
- Medical
- Rideshare driver
- Uninsured motorist
Discounts Available
- Accident free
- Defensive driving course
- Driver training
- Drive Safe and Save
- Good driving
- Good student
- Multiple auto
- Multiple line
- Steer Clear
- Student away at school
- Vehicle safety features
State Farm Insurance Review
Progressive
Best for Driving Incidents
Why we chose it
Why we chose it
Pros
- Great digital tools
- Lots of discount options
- Low average premiums
Cons
- Below average customer and claims satisfaction
- Some discounts not offered in certain states
Types of Coverage Offered
- Collision
- Comprehensive
- Customer parts and equipment value
- Deductible savings bank
- Liability
- loan/lease payoff
- Medical payments
- Rental car reimbursement
- Rideshare coverage
- Roadside assistance
- Uninsured/underinsured motorist
Discounts available
- Automatic payment
- Continuous insurance
- Distant student
- Good student
- Homeowner
- Multi-car
- Multi-policy
- Paperless billing
- Pay in full
- Quote and sign online
- Safe driver
- Teen driver
Progressive Insurance Review
USAA
Best for Military-Focused Coverage
Why we chose it
Why we chose it
Pros
- Highly competitive prices
- Lots of discounts
- Superior customer service ratings
Cons
- Comparatively few physical locations
- Only available to military families
Types of Coverage Offered
- Accident forgiveness
- Bodily injury
- Collision
- Comprehensive
- Extended benefits
- Liability
- Personal injury protection
- Rental reimbursement
- Roadside assistance
- Uninsured/underinsured motorist
Discounts Available
- Annual mileage
- Defensive driver
- Driver training
- Family discount
- Good student
- Length of membership
- Military installation
- Multi-vehicle
- New vehicle
- No payment plan
- Safe driver
- Vehicle storage
Auto-Owners Insurance
Best for Coverage Options
Why we chose it
Why we chose it
Pros
- Above-average customer satisfaction
- Comparatively low prices
- Lots of coverage options
Cons
- No online quote tool
- Only available in 26 states
Types of Coverage Offered
- Additional expense
- Collision
- Collision coverage advantage
- Common loss deductible
- Comprehensive
- Diminished value
- Liability
- Loan/lease gap
- Medical
- Personal automobile plus
- Rental cars
- Road trouble service
- Uninsured/underinsured motorist
Discounts Available
- Advance quote
- Favorable loss history
- Life multi-policy
- Multi-car
- Multi-policy
- Paid-in-full
- Paperless billing
- Payment history
- Safety features
- Student discounts
Auto-Owners Insurance Review
*Data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Satisfaction Study rating for the North Central region. Based on a 1,000-point scale.
The Average Cost of Car Insurance in Michigan
Michigan is one of the more expensive states in the nation for car insurance. Because it’s a no-fault state, all drivers must carry at least the state’s minimum required level of personal injury protection (PIP). A new Michigan law aims to lower these costs by offering reduced PIP coverage and requiring insurers to lower PIP premiums.
According to 2021 data from Bankrate.com, the price of minimum liability coverage, as required by Michigan state law, averages $948. To purchase full coverage insurance, you could pay an average of $2,309. Overall, prices can vary significantly because insurance rates are dependent on numerous points of personal data. It’s not just your car insurance company that can make a difference in the price: the driver’s age, vehicle make and model, driving record, and more impact individual rates.
Top 3 Cheapest Car Insurance Companies in Michigan
| Company | Average Annual Minimum Coverage Premium* |
| Travelers | $101 |
| Secura | $115 |
| Westfield | $115 |
* Data provided by Bankrate.com, price based on the minimum coverage required policy.
Top 3 Most Expensive Car Insurance Companies in Michigan
| Company | Average Annual Minimum Coverage Premium* |
| Farmers | $2,237 |
| State Farm | $2,103 |
| Grange | $1,749 |
* Data provided by Bankrate.com, price based on the minimum coverage required policy.
Top 3 Cheapest Cities for Car Insurance in Michigan
| City | Average Annual Minimum Coverage Premium* |
| Petoskey | $721 |
| Pellston | $724 |
| Boyne Falls | $726 |
* Data provided by Bankrate.com, price based on the minimum coverage required policy.
Top 3 Most Expensive Cities for Car Insurance in Michigan
| City | Average Annual Minimum Coverage Premium* |
| Hamtramck | $2,153 |
| Detroit | $2,100 |
| Highland Park | $2,092 |
* Data provided by Bankrate.com, price based on the minimum coverage required policy.
Guide to Michigan Car Insurance
Michigan car insurance laws have undergone recent changes, including that less PIP coverage is required than before. Companies are also required to reduce PIP premiums. Still, driving in Michigan requires more minimum coverage than in many other states. It’s important to note that while a poor driving record may not prevent you from getting insurance in Michigan, it will still likely result in higher rates.
Car Insurance Add-Ons That May Further Protect You
- Uninsured/Underinsured Motorist: Though required in some states, this coverage is an optional add-on in others. It protects drivers when they get into a car accident with someone who doesn’t have car insurance or doesn’t have enough.
- Gap Insurance: If you get into an accident and total your new vehicle, you run the risk of your car insurance paying you out for less than you owe on the vehicle. Gap insurance covers the difference between what you owe on the car and its current actual value.
- Rideshare Coverage: Those who drive for a rideshare company may need extra insurance to protect themselves. Many insurers offer this as an add-on to their standard policies.
- Roadside Assistance: Many insurance carriers offer roadside assistance, which you can request for flat tires, dead batteries, towing services, and more.
Michigan Minimum Insurance Requirements
Michigan has some unique minimum insurance requirements. Because of its no-fault law, the state requires each driver to carry insurance that would cover their own medical expenses and up to $1 million for damage their car does to any other property. Additionally, the state requires minimum liability insurance similar to most states.
Minimum liability required in the state of Michigan is divided as follows:
- Personal injury protection (various options exist)
- $1,000,000 property protection insurance (PPI)
- Liability insurance with the following coverage limits:
- $50,000 for a person hurt or killed in an accident
- $100,000 for each accident where multiple people are hurt or killed
- $10,000 for property damage in another state
Michigan policies default to higher limits, so if you want to purchase state minimum coverage, you will need to specifically request it.
Michigan’s No-Fault Law
Michigan is a no-fault state, which means that in the event of an accident, the person who was at-fault isn’t responsible for paying the medical bills and lost wages of anyone injured in the accident. Instead, your own insurance company will have to cover your expenses up to your policy limits. This law is one of the reasons for the increased rates of minimum insurance coverage in the state.
Michigan Car Insurance FAQ
Methodology
Reviews.com reviews products, services and companies based on five criteria to help readers understand how companies compare based on similar metrics. For the best car insurance companies, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company to determine top providers.
As for average pricing, we used Bankrate.com’s data of car insurance in Michigan, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
About the Authors
Joshua Cox-Steib is a home security writer for Reviews.com. Over the last year, he has covered home security equipment, home internet providers, and more. He has been featured in bankrate.com, coverage.com, thesimpledollar.com, among others. He holds a bachelor’s degree in Sociology from the University of Tulsa. The Best Internet Providers in 2020 is Joshua’s favorite review on Reviews.com.
