Best car insurance companies in Michigan
Fact-checked with HomeInsurance.com
Michigan is on the higher end for car insurance costs. The average Michigan driver pays $2,105 per year for insurance, which breaks down to about $175 each month for 12 months of coverage. In comparison, the national average car insurance rate in the United States is $1,555 per year for a 12 month policy—a difference of over $500. Car insurance in Michigan is expensive for a few key reasons:
- Michigan is a no-fault state, which means drivers have to carry PIP insurance.
- 20.3% of drivers in Michigan don’t have insurance, which increases risk.
However, Michigan’s average car insurance rate reflects drivers with a clean driving record; drivers who have been involved an accident or received a speeding ticket are subject to even higher rates:
|Clean record||1 speeding ticket||1 accident|
Top car insurance companies in Michigan
- GEICO – Best for affordable policies
- Auto-Owners – Best for endorsements
- Allstate – Best for tools and resources
- State Farm – Best for young drivers
- Progressive – Best for discounts
|Company||J.D. Power claims satisfaction Score||AM Best||Discounts offered||Average rate|
|Allstate||3/5||A+ (Superior)||Responsible payer, Safe Driving Club||$2,291|
|Auto-Owners||3/5||A++ (Superior)||Green discount, Life multi-policy||$2,065|
|GEICO||3/5||A++ (Superior)||Federal employee, emergency deployment||$1,486|
|Progressive||3/5||A+ (Superior)||Snapshot program||$2,126|
|State Farm||3/5||A++ (Superior)||Drive Safe & Save program||$2,462|
GEICO: Best for affordable policies
GEICO is known for offering affordable premiums, even for drivers who have a poor credit score or a history of accidents. The average premium from GEICO is $1,486, which is over $600 cheaper than the statewide average. In fact, GEICO was the only company we evaluated that offers policies averaging less than $2,000.
Auto-Owners: Best for endorsements
Auto-Owners Insurance sells a variety of endorsements which is ideal for the driver who wants to customize their policy from top-to-bottom. We were drawn to the Personal Automobile Plus Package, which includes more than 10 additional coverages and includes unique protections for things like identity theft restoration, locksmith services and cell phone replacement coverage.
Allstate: Best for tools and resources
Allstate offers tons of helpful online tools and resources which is great for first-time car insurance buyers. On Allstate’s website, you’ll find how-to guides about understanding your deductible, how to read your policy documents and even a free calculator that helps you figure out how much coverage to get.
State Farm: Best for young drivers
Young drivers typically pay a huge premium for car insurance, especially in Michigan. But with State Farm, young drivers can take advantage of discounts to get a lower rate, like the good student discount which can lower your premium by up to 25%. Drivers under 25 can also enroll in State Farm’s Steer Clear® program, which rewards safe drivers with a cheaper rate.
Progressive: Best for discounts
Progressive offers a long list of discounts that can help Michigan drivers save money on their car insurance. In addition to the basics, like multi-car and pay in full, Progressive also has the infamous Snapshot program, which helps safe drivers save money on their insurance. Drivers can also get a low rate with the Deductible Savings Bank and Name Your Price® Tool.
Car insurance in Michigan by city
Car insurance rates in Michigan vary by zip code significantly. The table below indicates the average cost of car insurance in several Michigan cities, for both full and minimum coverage insurance.
|City||Full coverage annual rate||Minimum coverage annual rate|
Detroit is the most expensive city in Michigan for car insurance for a few reasons. It’s the largest metropolitan area in Michigan, and the population density is very high. Detroit also has a high rate of vehicle theft, which impacts auto insurance rates. In 2018 alone, there were 12,398 reported vehicle thefts in Detroit.
Grand Rapids is the second-largest city in Michigan, but the cost of car insurance is significantly lower than it is in Detroit. Grand Rapids has a much lower crime rate than many other major cities, and is mostly residential. As a result, car insurance is much cheaper here than in other parts of Michigan.
Warren, Michigan has the second highest car insurance rate behind Detroit. For full coverage car insurance, the average driver in Warren will pay $2,501 per year. Although Warren’s crime rate is lower than Detroit’s, car thefts in Warren are fairly common, meaning car insurance is more expensive.
Full coverage car insurance in Sterling Heights, Michigan costs an average of $2,452 per year. Data shows that only 123 car thefts were reported in Sterling Heights in 2018, which has over 132,000 residents. Sterling Heights has a lower crime rate than the state of Michigan as a whole, and car insurance costs are lower as a result.
Michigan’s capital city of Lansing has comparatively-affordable car insurance. As of 2018, the city had a population of 118,427, which is lower than Detroit and Grand Rapids. Lansing has a relatively high crime rate, and a lower population density than Detroit, which is reflected in the car insurance rates being median for full and minimum coverage.
Michigan car insurance considerations
Michigan car insurance rates are mostly affected by the high number of uninsured drivers, and the state’s insurance requirements. According to the Insurance Information Institute (III), over 20% of drivers in Michigan are uninsured, which puts other drivers on the road at risk.
All drivers in Michigan are required to carry a minimum amount of car insurance. Because Michigan is one of 12 states that are considered no-fault, drivers have to carry Personal Injury Protection (PIP) coverage, which impacts the average rate for insurance.
Michigan minimum liability requirements
Michigan’s minimum car insurance requirements are represented as 20/40/10. Here’s what that means:
- $20,000 in bodily injury liability per person
- $40,000 in bodily injury liability per accident
- $10,000 in property damage liability per accident
Drivers are also required to carry PIP insurance. As of 2020, Michigan drivers can choose from six different PIP coverage options based on their needs and their budget.
How we chose the best car insurance providers in Michigan
To select the best car insurance providers in Michigan, we started by reviewing the largest companies in the state by market share. We then looked at coverage options, discounts, financial strength, average premiums and customer service ratings for each company. Our top five picks stood out in these categories and had stellar reviews across the board.
Other car insurance providers in Michigan to consider
AAA sells insurance through Auto Club Group in Michigan. You must be an AAA member to apply for auto insurance, but discounts mitigate membership fees, and you get access to AAA’s award-winning roadside assistance package.
Farmers insurance doesn’t always get the best customer reviews, but the company does offer good coverage options and discounts. Farmers also has comprehensive rideshare coverage for Uber and Lyft drivers.
Frankenmuth is a local insurance company that is based in Frankenmuth, Michigan. The company works primarily through agents, so it’s a good option for drivers who prefer to deal with a live person when managing their policy.
Pioneer State is another local insurance company that is headquartered in Flint, Michigan. Like Frankenmuth, Pioneer State works mostly through agents. However, you can use the mobile app to file a claim, make a payment and more.
The Hanover was, by far, the most expensive company we reviewed. However, one perk you’ll get with The Hanover is deductible dividends, which could save you $100 on your collision deductible for each year you don’t have an accident.
|Company||J.D. Power claims satisfaction Score||AM Best||Discounts offered||Average rate|
|AAA||3/5||A+ (Superior)||Occupational discounts||$2,265|
|Farmers||3/5||A (Excellent)||Hybrid car, mature driver||$2,330|
|Pioneer State||N/A||A+ (Superior)||Affinity group discounts||$2,005|
|The Hanover||N/A||A (Excellent)||Multi-policy||$3,524|
Coverage Utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30 year male with a clean driving record, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.