The Best Auto Insurance in Michigan

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!

Extensive Coverage Options

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.

Local and Exclusive Agents

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.

Savings on Safety and More

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:

• Accident-free: State Farm offers a discount after three years without a chargeable accident. This discount could increase over time the longer you go accident-free.
• Anti-theft device
• Automobile safety belt
• Drive Safe & Save: When you enroll in this program, you receive a discount of 5 percent. After enrollment, you will share information about your driving habits. Good driving habits equal a higher discount of up to 30 percent off your premium.
• Good driving: If each driver on the policy has zero moving violations and at-fault accidents during the past three years, you will receive a discount. State Farm may replace this discount with the accident-free discount after three years as a State Farm customer.
• Good student discount: Drivers under 25 who are full-time students qualify for the good student discount if they rank in the upper 20 percent of their class, have a grade average of B or higher or a GPA of 3.0 or higher, or made the Dean’s List or Honor Roll. Other eligible drivers include those who are earning Associate’s or Bachelor’s degrees, and home students who rank in the upper 20 percent of students in national standardized tests.
• Multiple automobiles
• Multiple lines
• Passive restraint
• Safe driver
• Student away at school
• Vehicle safety discount: 1994 and newer vehicles receive a discount based on the loss experience of the make and model of the insured vehicle.

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.

Roadside Assistance

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:

• Car battery jumps
• Flat tire changes
• Fuel delivery
• Locksmith services
• Mechanical first aid
• Towing
• Winching

AAA Safety Savings

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

Financial Stability

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.

Savings With USAA

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.

• Garage: Parking your car in a garage on a military installation will reduce your comprehensive coverage premium by 15 percent.
• Multivehicle: This discount applies when you extend coverage to two or more vehicles.
• Bundling: Bundling auto and property policies saves you up to 10 percent of your total premium.

PIP Coverage and Medicare

USAA’s PIP covers the following:

• Ambulance rides
• Emergency room visits
• Follow-up medical visits
• Funeral expenses
• Household services like childcare and cleaning
• Lost wages
• Prescriptions
• Rehab services

Benefits for Senior Drivers

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.

Smart Student Discount for Teen Drivers

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.

Benefits of a Large Insurance Company

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.

PIP Coverage for the Whole Family

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.