Make an informed choice in a state with unique insurance specifications.
State Farm is a national company that provides individualized, local service through its network of exclusive agents. It represents a safe bet for Michigan drivers, providing coverage options and discounts galore.
AAA auto insurance is available for AAA members only. Costs to join vary by ZIP code, but AAA offers a wide range of discounts geared toward safe drivers, including a safe driving discount of up to 20 percent and a driver training discount of 5 percent.
Unfortunately for those in the Wolverine State, Michigan auto insurance rates are the third-highest in the nation. A mixture of state laws, accident statistics, and other factors result in expensive auto insurance rates in this no-fault state. But don’t let Michigan’s unique circumstances prevent you from choosing the best auto insurance policy. Explore our top picks for auto insurance in this state.
Best Car Insurance in Michigan Overall: State Farm
Best Car Insurance in Michigan for Safe Drivers: AAA
Best Car Insurance in Michigan for Active Military and Veterans: USAA
Best Car Insurance in Michigan for Teens: Allstate
|Provider||What it’s best for||J.D. Power customer satisfaction rating (out of 1,000)1||Discounts available||Average annual cost of insurance||Review|
|State Farm||Overall||848||Bundling, multicar, safe driving, student, anti-theft, etc.||$1,419||State Farm review|
|AAA||Safe drivers||810||Safe driver, driver training, multicar, mileage, loyalty, student, professional, paperless, new car, etc.||$1,903||AAA review|
|USAA||Military and veterans||Not ranked||Safe driving, defensive driving, bundling, low mileage, vehicle storage, student, family, new car, autopay, etc.||$2,4482||USAA review|
|Allstate||Teens||847||Multipolicy, new car, student, safe driving, paperless, paid-in-full, etc.||$1,673||Allstate review|
State Farm’s network of 19,000 exclusive agents service Michigan cities, including Ann Arbor, Coldwater, Detroit, Grand Rapids, Jackson, Kalamazoo, Port Huron, Springfield, Traverse City, Utica, and many more.3 The company’s discounts, reasonable rates, mobile capabilities, and bundling options make State Farm our best choice for auto insurance in Michigan. Over 87 million people across the U.S. carry State Farm insurance; you could be one of them!
State Farm can take care of all your coverage needs in Michigan; it’s the rare state where minimum coverage is sufficient in some ways. Michigan law requires drivers to have at least $50,000 of bodily injury liability per person, $100,000 per accident, $10,000 of property damage liability coverage, $1 million in property protection insurance (PPI), and between $50,000 and unlimited personal injury protection (PIP).4 PIP covers medical expenses and lost wages for you and your passengers if injured in an accident, regardless of who is at fault.
In addition to the required liability and PIP, State Farm provides comprehensive, collision, rental car reimbursement, uninsured/underinsured motorist, and rideshare coverage, along with emergency road service.
Your agent is your advocate with your auto insurance provider. Ask an agent about how to lower the cost of auto insurance or how to achieve a fair insurance claim settlement after an accident.
Local agents who live in your area can be extremely beneficial because they understand the specific factors that affect auto insurance in your city and state. They can help you find the cheapest car insurance companies in Michigan based on where you live. For example, you’ll pay higher premiums living in a city like Detroit than you would in suburban or rural areas. However, there are still ways to save, as you’ll see below.
State Farm works with a large network of exclusive agents. The benefit of working with an exclusive agent is that they possess a depth of knowledge about State Farm policies and discounts. State Farm’s exclusive agents are one reason it ranks on our list of best provincial auto insurance providers.
Car insurance costs a lot in Michigan. According to the most recent Auto Insurance Database Report from the National Association of Insurance Commissioners (NAIC), the national annual average premium was $1,047, while Michigan’s was $1,419, or 35 percent higher.5
Fortunately, you can apply numerous State Farm discounts to your individualized plan:
AAA started as a roadside assistance service through its automobile club group. Over time, the company morphed into a leading insurance carrier. It’s not surprising, given the company’s history, that AAA’s car insurance offers great protection for the day-to-day risks you face while driving. With discounts geared toward safe driving practices and features, AAA is our pick for safe drivers in Michigan.
AAA’s roadside assistance is renowned for its reliability. AAA applies 24/7 roadside assistance to your baseline AAA membership automatically. It includes the following services:
Safety savings for AAA insurance customers include a 20 percent good driver discount. Defensive driver courses and driver’s education courses will net you up to a 10 percent discount off your policy. Drivers with the airbags save up to 40 percent on their premiums, and those with anti-theft devices installed receive 25 percent off comprehensive coverage.6
AM Best, the industry’s most trusted financial ratings company, has affirmed AAA with an A rating or above since 1979. An A, or Excellent, rating demonstrates AAA’s strong financial solvency.7 It confirms AAA has enough assets to handle catastrophic claims.
Michigan auto insurance rates are higher than in 47 other states, so make sure you’re paying for a quality auto insurance provider that won’t abandon you when you need it.
USAA caters to U.S. Armed Forces service members, families, and veterans with flexible and specialized coverage options. If you are a military member, you’ll find lower-than-average auto insurance rates and high customer satisfaction ratings.
USAA notes that members save an average of $725 on their annual premiums when they switch to USAA. You’ll be able to get savings with the following discounts.
USAA’s PIP covers the following:
Most seniors looking for car insurance in Michigan can stick to the state’s minimum coverage requirements in their policy. USAA is friendly to seniors, especially those who served in the military.
While available to drivers of any age, USAA offers low mileage and defensive driving discounts, which assist senior drivers. If you’re retired and don’t commute, a usage-based discount could lower your premium. Similarly, seniors can receive a discount if they complete an approved defensive driving or driver training course.
Allstate offers a range of auto policies in Michigan. The company’s numerous discounts make it a viable option if you’re trying to save money on your family’s auto insurance policy, especially if you have teen or student drivers. Discounts for new car owners, student performance, and safe driving are among the ways to save.
The average cost of auto insurance for teens is 258 percent higher than the national average, at $3,751 per year. Teens, who lack driving experience, get into accidents more often than any other age group. Luckily, Allstate has a smart student discount you can apply to reduce the cost of insurance for any teenagers, college students, or students under 25 listed on your policy.
Unmarried students under the age of 25 who meet the requirements (an average grade of B-, GPA of 2.7 or above, successful completion of the teenSMART driver education program, or attendance at school at least 100 miles away from car storage) receive discounts on their insurance policies.
Allstate is one of the largest insurance companies in the country. The pros of selecting a large insurance company include financial stability and excellent customer service. Allstate ranked at 847 out of 1,000 on J.D. Power’s North Central Overall Customer Satisfaction Index Rating, the fourth-highest in the region and above its region average of 838.
Allstate maintains an A+ rating for its financial strength from AM Best. The Superior rating affirms Allstate’s balance sheet strength and operating performance.
Allstate’s PIP coverage extends to the person named on the policy, their spouse, and relatives of either person who lives in the household. Children or relatives who no longer live with you, or partners of people who live together but are not married, don’t receive coverage under your PIP coverage automatically. However, your Allstate agent can provide options for nonrelative household members.
We chose the best auto insurance providers in Michigan based on state-specific factors and a three-pronged research methodology:
Michigan auto insurance rates are high due to the state’s no-fault insurance laws, which require drivers to have between $50,000 and unlimited personal injury protection (PIP), and a number of other factors, including a high percentage of uninsured or underinsured drivers and costly medical expenses.
Michigan’s no-fault personal injury protection options went into effect in 2020. As of July 2, 2020, Michigan law requires drivers to have at least $50,000 of coverage limits for bodily injury liability insurance per person, $100,000 per accident, $10,000 of property damage liability coverage, $1 million in property protection insurance (PPI) and between $50,000 and unlimited personal injury protection (PIP).
In 2020, people in Michigan spent an average of $1,419 per year on car insurance, which is 35 percent more than the national average of $1,047, according to the National Association of Insurance Commissioners. Only Louisiana and New York had higher insurance rates than Michigan.
Though this is the average, the actual range falls from $948 to over $10,000, depending on your situation. Compare quotes to find the insurance companies in Michigan with the lowest average rates for full-coverage car insurance.
There are many ways to save on car insurance in Michigan:
Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds. J.D. Power. (2022, Jun 13).
From Detroit to Grand Rapids, get the auto coverage you need in Michigan. USAA. (2023).
Michigan Cities with State Farm® Insurance Agents. State Farm. (2023).
Michigan’s Auto Insurance Law Has Changed. Department of Insurance and Financial Services. (2020).
2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
What Car Insurance Discounts Does AAA Provide? AutomoBlog. (2023, Apr 14).
AAA Life Insurance Company. AM Best. (2023).
One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).