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Last updated: May 13, 2026The Best Auto Insurance in Ann Arbor, Michigan
For non-military drivers, GEICO offers the cheapest minimum coverage car insurance in Ann Arbor at $538 per year.
Cheapest
Editor's Rating:
4.2/5
4.2/5
Average Cost in Ann Arbor
- Full Coverage Monthly: $162
- Minimum Coverage Monthly: $45
Best for Military/Veterans
Editor's Rating:5/5
5/5
Average Cost in Ann Arbor
- Full Coverage Monthly: $117
- Minimum Coverage Monthly: $44
Best with a DUI
Editor's Rating:4.7/5
4.7/5
Average Cost in Ann Arbor (Clean Record)
- Full Coverage Monthly: $155
- Minimum Coverage Monthly: $104
Key Takeaways
- Car insurance in Ann Arbor costs an average of $2,474 for full coverage and $976 for minimum coverage, both of which are below the Michigan state average.
- GEICO offers the lowest average minimum coverage rates in Ann Arbor (after USAA), while Auto-Owners has the lowest full coverage rates. Farm Bureau offers the best customer service.
- These rates reflect averages and are useful for comparing insurers, but your own costs will depend on factors such as your age, location, vehicle type, and more.
Our Top Picks for the Best Cheap Auto Insurance in Ann Arbor
- Cheapest: GEICO
- Best for Military: USAA
- Best for Drivers with a DUI: Progressive
- Best for Financed Vehicles: Auto-Owners
- Best for Local Service: Farm Bureau
Compare the Best Cheap Auto Insurance in Ann Arbor
| Company | Full Coverage Annual Avg. | Minimum Coverage Annual Avg. | North Central Customer Satisfaction (J.D. Power) |
|---|---|---|---|
| GEICO | $1,459 | $435 | Above average |
| USAA | $1,517 | $545 | Above average |
| Progressive | $2,052 | $703 | Above average |
| Auto-Owners | $1,607 | $632 | Above average |
| Farm Bureau | $1,834 | $672 | Above average |
| Ann Arbor | $2,059 | $743 | – |
Breaking Down the Best Cheap Auto Insurance in Ann Arbor
1. GEICO - Cheapest
4.2
Editor's Rating:
- Average Rate for Minimum Coverage
- $28 mo.
- Average Rate for Full Coverage
- $87 mo.
- Cheapest minimum coverage rates
- Convenient online quotes and purchasing
- Long list of discounts
Limited agent presence- Doesn't underwrite home insurance
Why we chose it
GEICO offers the cheapest minimum coverage rates in Ann Arbor at $538 per year, which is a whopping 45 percent cheaper than the city average. It also has below-average full coverage rates, making it a great choice for those looking for affordable coverage.
It has a wide variety of discounts available to help drivers save more, including for military members and federal employees. It also ranked above average in J.D. Power’s customer satisfaction survey for the North Central region.
Who it’s best for
Drivers looking for minimum coverage, people who want to buy a policy online
GEICO Ann Arbor Pricing
| GEICO | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $162 | $45 |
| Annually | $1,943 | $538 |
| Difference from Ann Arbor average | -21% | -45% |
2. USAA - Best for Military
5
Editor's Rating:
- Average Rate for Minimum Coverage
- $29 mo.
- Average Rate for Full Coverage
- $106 mo.
- Cheapest rates in Ann Arbor
- Strong customer service record
- Low-mileage telematics program
- Military eligibility required
- Limited to members
- Fewer branch locations
Why we chose it
USAA is our pick for car insurance for military-affiliated drivers in Michigan. It 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.
The company 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 served, your children are also eligible to join for auto, pet, and other insurance products.
Who it’s best for
Military families eligible for USAA membership
USAA Ann Arbor Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $117 | $44 |
| Annually | $1,405 | $532 |
| Difference from Ann Arbor average | -43% | -45% |
3. Progressive - Best for Drivers with a DUI
4.7
Editor's Rating:
- Average Rate for Minimum Coverage
- $56mo.
- Average Rate for Full Coverage
- $136 mo.
- Affordable rates for high-risk drivers
- Offers rideshare coverage
- Highly-rated digital tools
- Mixed reviews for customer service
- Gap insurance won’t necessarily cover full amount owed
Why we chose it
Progressive is known for its affordable rates for drivers with a DUI conviction, and Michigan is no exception — it has the cheapest average rates in the state for drivers in this situation at 39 percent below the state average. Progressive also offers below-average full coverage rates in Ann Arbor.
For those who prefer to manage their policies digitally, Progressive is a solid choice as it ranked above average in both the shopping and service categories in J.D. Power’s most recent Digital Experience Study.1
Who it’s best for
Drivers with a DUI on their record, those who want to manage their policy digitally, rideshare drivers
DID YOU KNOW?
Having a DUI on your record can increase your rates by an average of 57 percent in Michigan, so finding an affordable provider is key.
Progressive Ann Arbor Pricing
| Progressive | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $155 | $104 |
| Annually | $1,862 | $1,248 |
| Difference from Ann Arbor average | -25% | +28% |
4. Auto-Owners - Best for Financed Vehicles
4.4
Editor's Rating:
- Average Rate for Minimum Coverage
- $43 mo.
- Average Rate for Full Coverage
- $156 mo.
- Affordable rates
- Offers gap coverage
- Local agents
- Agent-only sales
- Slower digital adoption
Why we chose it
Auto-Owners offers below-average rates for both minimum and full coverage car insurance in Ann Arbor. It sells policies via local agents, providing a more personalized buying experience. It has a variety of coverage options available beyond the standard coverages, including gap coverage and diminished value coverage. If you lease or finance your car, your lender will generally require gap coverage, which helps pay for the difference between your car’s value and how much you still owe if it’s stolen or totaled.
Who it’s best for
Drivers with leased or financed vehicles who need gap coverage, those who prefer to work with a local agent
Auto-Owners Ann Arbor Pricing
| Auto-Owners | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $122 | $50 |
| Annually | $1,464 | $602 |
| Difference from Ann Arbor average | -41% | -38% |
5. Farm Bureau - Best for Local Service
- Excellent customer service record
- Local community-oriented agents
- Additional perks for members
Why we chose it
Michigan Farm Bureau is the Michigan-specific affiliate of the American Farm Bureau Federation. You must be a Farm Bureau member to access its insurance products, and membership costs $50 annually. Michigan Farm Bureau has a very strong customer service record, ranking fourth on the CRASH Network Report Card with an A- rating and above average on J.D. Power’s North Central customer satisfaction ratings. Members also get benefits and perks, such as discounts on travel and attractions.
Who it’s best for
Those looking for the best customer service, existing Farm Bureau members
Farm Bureau Ann Arbor Pricing
| Farm Bureau | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $162 | $55 |
| Annually | $1,943 | $660 |
| Difference from Ann Arbor average | -21% | -32% |
Ann Arbor Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – North Central2 | CRASH Network Report Card3 | J.D. Power Claims Satisfaction4 | NAIC Complaint Index5 |
|---|---|---|---|---|
| GEICO | 651 | C- | 697 | 1.45 |
| USAA | 728 | C- | 741 | 1.62 |
| Progressive | 634 | C- | 673 | 1.45 |
| Auto-Owners | 631 | B | 711 | 0.71 |
| Michigan Farm Bureau | 644 | A- | – | 0.55 |
| Average | 643 (out of 1,000) | C+ | 700 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
Cheapest Full Coverage Car Insurance in Ann Arbor
USAA has the cheapest full coverage auto insurance in Ann Arbor, but it is only available to military members and their families. Auto-Owners offers the next-cheapest rates at $1,464 annually, which is 41 percent lower than the citywide average.
| Company | Annual Ann Arbor Average | Monthly Ann Arbor Average |
|---|---|---|
| USAA | $1,405 | $117 |
| Auto-Owners | $1,464 | $122 |
| Hastings Mutual | $1,520 | $127 |
| Progressive | $1,862 | $155 |
| GEICO | $1,943 | $162 |
| Farm Bureau | $1,943 | $162 |
| AAA | $1,985 | $165 |
| State Farm | $2,223 | $185 |
| Allstate | $4,213 | $351 |
| Ann Arbor average | $2,474 | $206 |
| Michigan average | $3,013 | $251 |
| U.S. average | $2,356 | $196 |
Cheapest Minimum Coverage Car Insurance in Ann Arbor
USAA also offers the best minimum coverage rates in Ann Arbor at $532 annually on average. Non-military drivers will find the best average rates from GEICO and AAA at $538 per year and $600 per year, respectively.
| Company | Annual Ann Arbor Average | Monthly Ann Arbor Average |
|---|---|---|
| USAA | $532 | $44 |
| GEICO | $538 | $45 |
| AAA | $600 | $50 |
| Auto-Owners | $602 | $50 |
| Farm Bureau | $660 | $55 |
| Hastings Mutual | $740 | $62 |
| Farmers | $890 | $74 |
| Allstate | $1,200 | $100 |
| State Farm | $1,236 | $103 |
| Progressive | $1,248 | $104 |
| Ann Arbor average | $976 | $81 |
| Michigan average | $1,085 | $90 |
| U.S. average | $722 | $60 |
How Many Car Accidents Happen in Ann Arbor?
There were over 2,000 accidents in Ann Arbor in 2024, including four fatal accidents and 28 resulting in serious injuries.6 Around 1,900 accidents involved only property damage. Sixty-three accidents involved bicyclists, while 54 involved pedestrians.
Minimum Auto Insurance Requirements in Michigan
Michigan has high minimum coverage limits — they are as follows:
- Bodily injury liability: $50,000 per person/$100,000 per accident
- Property damage liability: $10,000 per accident outside Michigan, $1 million per accident within Michigan
- Personal injury protection (PIP): $250,000
Michigan is a no-fault state, meaning that each driver pays for their medical expenses in an accident, regardless of who was at fault. The required PIP coverage helps pay for this. Michigan’s minimum coverage limits are some of the highest in the country and provide a decent amount of coverage, but you may still want to increase your limits if you can afford to. It’s also a good idea to add full coverage to help pay for damage to your own vehicle.
Frequently Asked Questions
The cheapest car insurance rates in Michigan are from USAA, GEICO, Auto-Owners, and Westfield Insurance.
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.
The average annual cost of full coverage auto insurance in Michigan is $3,013, which is 28 percent higher than the national average. Minimum coverage in Michigan is around $1,085 per year, which is 50 percent more expensive than the national average.
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.
Methodology
We researched the best auto insurance providers for drivers in Ann Arbor across the following categories:
- Pricing (40%): We looked at average annual rates for full and minimum coverage in Michigan for safe drivers and those with DUIs. We also looked at discount availability. We base our minimum coverage limits on state laws, and use the following limits for full coverage:
-
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $100,000 per accident
- PIP: State-required limits
- Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): Claims handling is the core role of an insurance company, and customers expect claims to be processed quickly and fairly. To assess claims practices, we considered third-party ratings like J.D. Power’s Claims Satisfaction Report.
- Customer Experience (25%): We evaluated the customer experience of Ann Arbor insurers, including the process of getting a quote and buying and managing a policy, through various regional customer satisfaction ratings. These include J.D. Power’s U.S. Auto Insurance Study and Digital Experience Study, as well as complaint data from the National Association of Insurance Commissioners (NAIC).
- Coverage Options (10%): We prioritize insurers that offer additional coverage beyond Michigan’s minimum coverage requirements, such as accident forgiveness, rental reimbursement, and rideshare insurance.
Learn more about our ratings and methodology sources.
Sources
Auto Insurer Websites and Apps Become Battleground for New Customers as Policy Shopping Activity Skyrockets, JD Power Finds. JD Power. (2025, May 14).
https://www.jdpower.com/business/press-releases/2025-us-insurance-digital-experience-studyIt’s Now a Buyer’s Market for Auto Insurance, JD Power Finds. JD Power. (2025, Jun 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2026. Crash Network. (2026).
https://www.crashnetwork.com/irc/Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, JD Power Finds. JD Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2026).
https://content.naic.org/cis_refined_results.htmTraffic Crash Data Explorer. Analytics. (2026).
https://analytics.a2gov.org/superset/dashboard/traffic-crashes/?standalone=2
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