INSURANCE - CAR INSURANCE

Best Car Insurance in Michigan for 2024

Updated Nov. 6, 2023
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Residents of the Great Lakes State pay an average of $3,817 a year for car insurance.

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Michigan is known for its beautiful lakes and scenery and has more than 122,000 miles of roadway for drivers to explore. Michigan has a relatively low cost of living, so it may be surprising to learn that car insurance in the Great Lake state can be costly.

In this article

Key takeaways

  • The best car insurance in Michigan is USAA, which generally costs $1,303 a year for comprehensive coverage.
  • In Michigan, drivers with a clean driving record pay an average of $318 per month.
  • Michigan’s minimum coverage is one of the highest in the country, with an annual average of $2,610.

Best car insurance companies in Michigan

In Michigan, annual full coverage insurance costs an average of $3,817 a year, but those who qualify for USAA’s coverage may pay significantly less. Michiganders who use State Farm insurance may pay a staggering $4,081 annually for full coverage.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 878/1,000 $1,303/year $592/year
Progressive 844/1,000 $2,058/year $1,397/year
State Farm 837/1,000 $4,081/year $2,978/year
GEICO 831/1,000 $1,735/year $1,488/year
Allstate 822/1,000 $3,392/year $2,834/year
AAA 786/1,000 $3,478/year $2,681/year

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USAA: Highest customer satisfaction

USAA earned 878 out of 1,000 in customer satisfaction in Michigan and is also the most affordable provider. Its policies are only available to current and former military members and their families, but it does offer most standard coverage options and some specialty policies, too.

Pros
  •  USAA has the lowest car insurance rates in Michigan
  •  Its SafePilot program can earn you a 30% discount for being a safe driver
Cons
  •  You may be able to find more policy options with another carrier
  •  Only offers policies to current and former military members and their families

Get a quote now | USAA review

Progressive: Best for high-risk drivers

High-risk drivers in Michigan are likely to pay an average of $5,456 for full coverage. While your rates will likely increase if you are caught driving without insurance or have a DUI or DWI conviction, Progressive may be a good option because it can file SR22 forms with the required state office.

Pros
  •  Reasonable rates on minimum coverage insurance
  •  Its customer satisfaction score was 844, the second highest in Michigan
Cons
  •  Your rate may increase if you use Progressive’s Snapshot tool to monitor high-risk driving
  •  Progressive does not offer gap insurance

Get a quote now | Progressive review

State Farm: Best for new drivers

Young drivers in Michigan pay an average of $6,553 a year for car insurance. State Farm was not the cheapest option on our list of best car insurance companies, but it offers policies and discounts that reduce costs by up to 25% for new drivers.

Pros
  •  Offers standard and specialty policies, including rental and rideshare options
  •  Multiple agents and offices throughout Michigan
Cons
  •  Lower customer satisfaction score in Michigan compared to some competitors
  •  Doesn’t have some options like accident forgiveness

Get a quote now | State Farm review

GEICO: Most affordable coverage

Michigan drivers pay an average of $1,735 a year for full coverage and $1,488 annually for the Great Lake state’s minimum liability coverage through GEICO, the second-lowest full coverage option. However, it does not have local agents available in most of the state and only average customer satisfaction scores.

Pros
  •  GEICO’s prices in Michigan are significantly lower than some competitors
  •  Multiple discount options, including new vehicles and multi-policy
Cons
  •  GEICO had just average customer satisfaction scores in Michigan
  •  It only has one local agent in Michigan

Get a quote now | GEICO review

Allstate: Best for lowest deductible

Allstate’s average full coverage is $3,392 and $2,834 for minimum coverage in Michigan, but it offers a vanishing deductible program that may help you save money. If you select Deductible Rewards from Allstate, you may see your deductible reduced by $100 a year every year you don’t have an accident, up to $500.

Pros
  •  Multiple policy and discount options
  •  Extensive list of local agents across Michigan
Cons
  •  Prices are above the state average for full and minimum car insurance
  •  It was the second lowest-rated carrier for customer satisfaction

Get a quote now | Allstate review

Michigan auto insurance requirements

Michigan requires that all car insurance policies issued or renewed after July 2, 2020, include:

  • Personal Injury Protection (PIP): $250,000 per person per accident, with some exceptions.
  • Property Protection (PPI): $1 million in coverage.
  • Residual Bodily Injury and Property Damage Liability (BI/PD): Limits must include $50,000 to $250,000 per person hurt or killed in an accident and $100,000 to $500,000 if several people are injured or killed. Drivers must also carry up to $10,000 for property damage in another state.

How to choose a car insurance provider in Michigan

If you’re searching for a new auto insurance provider in Michigan, use the following tips:

  • Check licensing and financial stability: Visit the Michigan Department of Insurance and Financial Services (DFIS) to confirm the insurance company is licensed to do business in Michigan and to check the number of customer complaints.
  • Compare pricing: Insurance policies and premiums can vary from one company to another, so it pays to shop around. Compare quotes from at least three companies to help you ensure you’re getting the best deal.
  • Look for good service: Read online reviews and ask friends and family for recommendations to help you find a company that is easy to work with, handles claims quickly, and is good at answering questions.

How much does car insurance cost in Michigan?

Drivers in the Great Lakes State pay a lot for their car insurance. The average cost of car insurance in Michigan is $3,817 for full coverage, which includes comprehensive and collision policies, and $2,610 for the state’s minimum coverage.

Detroit residents are likely to pay the most for full coverage car insurance, an average of $8,124 annually, while Grand Rapids drivers generally pay the least ($2,633). Comparatively, the national average cost for full coverage car insurance is $1,582.

Michigan car insurance rates by city

The crime rate of the city you live in impacts your car insurance rates. In 2022, 9,761 vehicles were reported stolen in Detroit, according to the Detroit Police Department’s crime statistics. Given the high auto theft rate, it’s no wonder residents pay an average of $8,124 annually for full coverage insurance.

In college towns Ann Arbor (University of Michigan) and Lansing (Michigan State University), where the crime rates are lower, drivers pay much less, averaging an annual rate of $2,681 and $2,749, respectively.

City Avg. annual full-coverage premium
Detroit $8,124/year
Warren $4,959/year
Sterling Heights $4,489/year
Livonia $3,713/year
Lansing $2,749/year
Ann Arbor $2,681/year
Grand Rapids $2,633/year

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in Michigan

What are the minimum car insurance coverage requirements in Michigan?

Michigan requires that all policies issued or renewed after July 2, 2020, include at least Personal Injury Protection (PIP) in the amount of $250,000 per person per accident and $1 million in Property Protection (PPI). 

 Drivers must also maintain Residual Bodily Injury and Property Damage Liability (BI/PD) between $50,000 and $250,000 per person, $100,00 and $500,000 per accident, and $10,000 for property damage in another state.

How much does car insurance cost in Michigan?

Car insurance in Michigan costs an average of $3,817 annually for full coverage and $2,610 for the state’s minimum coverage requirements. 

Which car insurance companies cover Michigan?

Several large insurance companies provide policies in Michigan, including Allstate, GEICO, Progressive, State Farm, and USAA.

What is the cheapest car insurance company in Michigan?

USAA has the cheapest car insurance in Michigan, averaging $1,303 a year for military members and veterans. GEICO is the next cheapest, averaging $1,735 annually for full coverage.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.