Michigan is third in the nation when it comes to expensive car insurance.
Get car insurance in your new state.
Let our Perfect Policy Connectors shop the market for you!(855) 939-3117Request a Callback.
Michigan is one of the most progressive states in the nation when it comes to automobile insurance. Car insurance companies in the state are banned from taking gender and credit scores into account when determining car insurance prices — great news for men and applicants with low credit scores. However, Michigan’s car insurance costs are higher than average by a 35 percent margin. How can you keep your premiums affordable?
Consider these cost savings when obtaining auto insurance quotes:
|Age||Company||Lowest annual cost|
Here are the top auto insurance companies in Michigan for you to compare quotes from:
Follow these recommendations to acquire the best coverage for your money in Michigan:
The minimum property damage limit for accidents you cause outside of Michigan is only $10,000, as opposed to $1 million for accidents within the state.
Michigan is one of the rare states with minimum coverage that’s sufficient in some ways. The requirement of $100,000 for all of the injuries in an accident is a fair limit, while $1 million for property damages that occur in the state is more than enough. Plus, the state will cover all medical expenses and lost wages for all parties involved in an accident, regardless of fault. Residents wonder: Is minimum coverage enough?
The answer is not a simple one. While the property damages and bodily injury limits may be sufficient — along with PIP — the plan lacks some necessary coverages.
Michigan has the second-highest rate of uninsured motorists in the U.S. at 26 percent. Perhaps the state’s high car insurance costs are to blame for this rate, which is more than 50 percent higher than the national average.2
You can try to self-insure in Michigan if you have more than 25 vehicles. However, whether you actually obtain a certificate of self-insurance is at the discretion of the insurance commissioner3.
The cost of car insurance in Michigan is the second highest in the country, following Louisiana. According to the latest data from the National Association of Insurance Commissioners, the cost in 2019 was an average of $1,495.94 — 28 percent higher than the national average.4 So, although the state requires car insurance, many people can’t afford it through traditional means.
That’s why Michigan created the MAIPF as a last resort for people who can’t afford car insurance in the free market. These carriers are involved in the program:
1 Auto Club Drive
Dearborn, MI 48126-2694
6101 Anacapri Blvd.
P.O. Box 30660
Lansing, MI 48909-8160
|State Farm||State Farm Insurance
P.O. Box 2159
Bloomington, IL 61702-9805
Contact the companies directly or find a licensed agent near you at https://difs.state.mi.us/locators?searchtype=InsAgent.5
For more information about the program, you can contact the MAIPF by mail, phone, fax, or email.
To learn more about car insurance in Michigan, read our FAQs below. While you can’t do anything about the state’s no-fault system, which drives up costs, a little information may help you save hundreds or even thousands on car insurance. We hope we’ve guided you to find the cheapest car insurance companies in the Great Lake State!
GEICO may or may not be cheaper in Michigan. While it’s a good option for those who want full coverage car insurance, other companies may have lower prices for minimum coverage, such as State Farm and Progressive. Car insurance rates differ greatly based on the applicant and their driving history, so contact the company directly for a quote.
The cheapest cities for car insurance in Michigan are Kalamazoo and Grand Rapids. Annual costs in Kalamazoo range from $1,679 to $1,973 (at the low end), while costs in Grand Rapids range from $1,724 to $2,021.
Car insurance in Michigan for an 18-year-old costs an average of $8,564, ranging from $7,029 to $9,417.
Car insurance does not affect credit in Michigan as of July 1, 2020, because the state banned car insurance companies from taking credit scores into account when determining pricing.
Under Michigan’s new auto insurance law, companies also can’t use these characteristics to set rates:
Information on Purchasing Auto Insurance. Michigan.gov. (2022). https://www.michigan.gov/autoinsurance/frequently-asked-questions
One in Eight Drivers Uninsured. Insurance Research Council. (2021, Mar 22).
THE INSURANCE CODE OF 1956 (EXCERPT). (2012). Michigan Legislature. http://www.legislature.mi.gov/(S(oyxshtwz10fvlpz0ctcju1g1))/mileg.aspx?page=getObject&objectName=mcl-500-3101d
2018/2019 Auto Insurance Database Report. NAIC. (2022). https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf
DIFS Insurance and Financial Services Search. DIFS. (2022). https://difs.state.mi.us/locators?searchtype=InsAgent
Servicing Carriers. MAIPF.org. https://www.maipf.org/servicing-carriers