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The Best Auto Insurance in Ann Arbor, Michigan

Car insurance for college students and more

Best Auto Insurance for College Students in Ann Arbor, Michigan
State Farm Logo

We ranked State Farm as one of our best auto insurance providers for college students because it has several discount programs geared toward drivers under age 25. If you or your college student need car insurance, talk to one of State Farm’s local agents in Ann Arbor.

Best Auto Insurance for Local Service in Ann Arbor, Michigan
AAA Logo

Speaking of local service, we selected AAA as one of our top picks in Ann Arbor. The local branch of this membership-based program offers auto insurance and travel benefits.

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Located just a 45-minute drive from Detroit, Ann Arbor is home to the University of Michigan and its 55,000-plus students and faculty. The state is known to have a high cost for car insurance — 45 percent above the national average — and Ann Arbor is an expensive city. Add in Michigan’s no-fault insurance system, and you have a complex equation to solve when choosing the best auto insurance. That’s where we step in with our top auto insurance providers in Ann Arbor.

The Best Auto Insurance in Ann Arbor, Michigan

  1. 1.

    Best Auto Insurance for College Students in Ann Arbor, Michigan: State Farm

  2. 2.

    Best Auto Insurance for Seniors in Ann Arbor, Michigan: USAA

  3. 3.

    Best Auto Insurance for Local Service in Ann Arbor, Michigan: AAA

Comparison of the Best Auto Insurance in Ann Arbor, Michigan

Annual cost of full coverage auto insurance Annual cost of minimum coverage auto insurance Teen and student discounts Number of local agents Review
State Farm $2,258 $1,522 Yes 25 State Farm review
USAA $961 $328 Yes N/A USAA review
AAA $2,739 $1,596 Yes 100 AAA review


We have a comprehensive guide to car insurance in Michigan for you to check out if you want more information on vehicle insurance requirements and providers in the state.

Detailed List of the Best Auto Insurance in Ann Arbor, Michigan

1. Best Auto Insurance for College Students in Ann Arbor, Michigan - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

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.

ProsWho It's Best For
  • pro
    College students and their parents
  • pro
    Teen drivers
  • pro
    People who prefer to work with a local agent
ConsWho It's Not Best For
  • con
    Part-time students
  • con
    Military and federal employees
  • con
    People who lease or finance their vehicle

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.


If your college student doesn’t need a vehicle at school, you may qualify for State Farm’s student-away-from-home discount. Drivers under age 25 who attend an institution more than 100 miles away from home and use a vehicle only while at home during school vacations and holidays qualify.

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.

2. Best Auto Insurance for Seniors in Ann Arbor, Michigan - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

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.

ProsWho It's Best For
  • pro
  • pro
    Military families
ConsWho It's Not Best For
  • con
    Non-USAA members
  • con
    Drivers with a bad driving record

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.

3. Best Auto Insurance for Local Service in Ann Arbor, Michigan - AAA

What We Like Most:

  • Roadside assistance available
  • Bundling can save you money
  • Low rates for good driving records

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.

ProsWho It's Best For
  • pro
    AAA members
  • pro
    Engineers, lawyers, medical professionals, accountants, and educators
  • pro
    New-car owners
ConsWho It's Not Best For
  • con
    Drivers with a bad driving record
  • con
    People looking for online service

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.


We researched the best auto insurance providers for drivers in Ann Arbor through three complementary research techniques:

  • Company information: We dive into data about each car insurance provider, including relevant coverages and discounts. This research includes third-party customer satisfaction and financial strength ratings from AM Best, J.D. Power, and more.
  • Proprietary data: We utilize 20-plus years of data points surrounding auto insurance transactions to find out which customers had success with which companies. This helps us narrow down options into lists like this one for hyper-specific recommendations.
  • Institutional knowledge: We know our stuff. To save you time, we combine the above research and data analysis with decades of institutional knowledge from team members like Paul Ford, the president of insurance at Centerfield,’s parent company. Paul has spent nearly three decades working in the insurance industry at Canadian Access, Inslogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot. We leverage Paul’s extensive knowledge of car insurance to help customers find their perfect policies.

Ann Arbor, Michigan Auto Insurance FAQ

Which company has the cheapest car insurance rates in Michigan?

The cheapest car insurance rates in Michigan come from MetLife, Progressive, GEICO, Travelers, and USAA.

Why is Michigan auto insurance so high?

Auto insurance in Michigan is high because it’s a no-fault state with high insurance coverage requirements. Michigan is also the only state with unlimited lifetime coverage for catastrophic injuries.

What is the average cost of auto insurance in Michigan?

The average annual cost of auto insurance in Michigan is $1,419, according to the NAIC report from 2019-2020, the most recent year national data was collected. Only Louisiana and New York had higher insurance rates. Michigan drivers pay 36 percent more than the national average.

What is the minimum auto insurance coverage required in Michigan?

The minimum auto insurance coverage required in Michigan’s no-fault system includes personal injury protection (PIP), property protection (PPI), and bodily injury and property damage liability (BI/PD) with minimum limits of 20/40/10.