The Best Auto Insurance in Ann Arbor, Michigan

State Farm is one of the largest insurance providers in the country, so it’s a great choice for a wide variety of consumers. Local agents make it easy to find the right policy for your circumstance. One group we found most benefited from working with State Farm in Ann Arbor is college students. Nearly half of the population in Ann Arbor are students at the University of Michigan. Auto insurance for teen and young drivers is expensive, so it helps that State Farm offers many incentives for students and drivers under age 25 — including all four of the most popular auto insurance discounts for young drivers.

Savings for College Students From State Farm

State Farm offers multiple discounts for good driving habits. The Steer Clear program offers a maximum discount of 15 percent if you are under age 25 and have had no at-fault accidents or moving violations over the past three years. State Farm also offers a 30 percent discount if you participate in its Drive Safe & Safe driving behavior program and agree to monitor your driving habits through an app. Drivers under age 25 with a GPA of 3.0 or higher receive a 25 percent discount — even if they are homeschooled.

Adding Your College Student to an Existing Auto Insurance Policy

Adding your teen to your existing auto insurance policy and bundling insurance policies are two ways to save money on car insurance for young drivers. If you add your teenager or college student to your existing State Farm policy, they will benefit from your driving and credit history since the company considers the primary driver’s history more than the teen driver’s record. You can update the policy for both of you, and your teen will be able to drive all the vehicles in your household. They are covered even if you want to send them off to school in a different vehicle from the one they drive at home.

Best Auto Insurance for College Students on an Individual Auto Insurance Policy

State Farm is the best insurance for teens on their own policy because of its safe driving discounts and local agents. If you purchase a vehicle for college solely in your name, or if you are responsible for 100 percent of your auto insurance costs, you likely will not be on your parents’ auto insurance policy. State Farm can step in to help with the transition from a family policy to your own. A local agent can help you find all the discounts that apply and instruct you on the auto insurance requirements in your locality.

USAA is our pick for car insurance for seniors in Michigan. It provides auto insurance, banking, and investment products to U.S. Armed Forces service members, veterans, and their families. USAA offers low rates, stellar customer service, and multigenerational policy benefits. If you’re a senior and a former Armed Forces serviceperson looking to reduce your auto insurance spend, we suggest giving USAA a call.

Low Rates for Seniors

Seniors typically spend more on auto insurance, so it’s important to shop around. The average annual cost of car insurance in Michigan for seniors is $2,060, about 45 percent higher than the state average across all age groups. USAA has the lowest rates on our list of top picks for Ann Arbor for minimum coverage and full coverage, which we recommend if you drive a fairly new car.

Multigenerational Savings

How do you know if you qualify for USAA? If you or anyone in your immediate family ever served in the United States armed services, you are eligible. That means that if you served, your children are also eligible to receive savings. USAA provides multiple generations the opportunity to join for auto, pet, and other insurance products.

Low-Mileage Discount

If you no longer commute to work or are retired, you can utilize USAA’s usage-based mileage program to save you money. Pay as you drive rewards low mileage and good driving habits. An app on your smartphone tracks the miles you drive and scores your driving behavior so you pay only for the miles you drive. The behaviors USAA tracks include braking, accelerating, texting while driving, safe route selection, and what time of day or night you drive.

Auto insurance from the American Automobile Association (AAA) is available through regional clubs. There are 100 AAA offices in Ann Arbor and the surrounding region, so AAA is a great option if you want to do business with a local agent who understands the laws and trends in your city. Membership in AAA offers extras like travel discounts and DMV services, but each branch is independent. Ask other members about their experience with your local branch to determine whether it has the customer service and coverage options you need.

Local Customer Service

While AAA does not have a fully online quote service, you can speak with a local agent via a virtual video appointment or go in person to a local branch to set up your policy. Local agents know your town, and they know the policy options in depth — which means they can help you score all the benefits through AAA.

Teacher Discount

Teachers and professors in Ann Arbor receive a 7 percent discount on their auto insurance policies through AAA’s professional benefit — a huge plus in a college town as big as Ann Arbor.

Member Benefits

AAA is not the cheapest option for auto insurance in Michigan, but it offers plenty of benefits, including homeowners, renters, travel, and life insurance. AAA Ann Arbor, located at 1100 S. Main St., provides full-service travel agents, vacation deals, car rentals through Hertz, and passport photo and expedited passport service.