Cheap Car Insurance in Michigan

Consider these cost savings when obtaining auto insurance quotes:

• Military: Current military personnel and veterans should shop at USAA, where the lowest annual policies are available for $1,122.
• Coverage: Minimum coverage will be your cheapest option. Travelers offers it for only $101 a year. Consider Secura for full coverage, as the company offers policies for $826 annually.
• Driving record: Finding the cheapest insurance is easier when you have a driving history free of speeding tickets, DUIs, and at-fault accidents. Check out Travelers for policies as low as $264.
• Age: The cost of car insurance for 17-year-olds is as high as it gets in Michigan. Prices decrease until about age 70, when they increase again (although not as high as teenage levels).

Here are the top auto insurance companies in Michigan for you to compare quotes from:

• Allstate
• Auto-Owners
• Farmers
• GEICO
• Hanover
• Liberty Mutual
• Meemic
• Progressive
• State Farm
• Travelers
• USAA

Follow these recommendations to acquire the best coverage for your money in Michigan:

1. Opt out of PIP coverage. If the named insured has coverage under Medicare Parts A and B, which may apply to some seniors in Michigan, and everyone else on the policy has qualified health coverage or another policy with PIP, you can skip this coverage altogether.
2. Purchase just the minimum coverage. Aside from the PIP, which may or may not be required, the cheapest option is to get the state’s minimum required coverage, which is still substantial. The minimum coverage is a $50,000/$100,000/$10,000 bodily injury per person, per accident, and property damage per accident limit for accidents that occur outside of Michigan, and a $1 million limit for property protection, which applies to other people’s property in Michigan.¹ These requirements are the reason why car insurance is so expensive in Michigan.
3. Use discounts. Every insurance company offers discounts, so ask your agent which ones apply to you.
4. Bundle policies. Housing multiple insurance policies under the same provider — such as homeowners or renters, and auto — is a great way to save money across the board.
5. Contact the Michigan Automobile Insurance Placement Facility (MAIPF). If you are truly unable to find car insurance you can afford, Michigan has a last resort program; read further for more details.
6. Keep a clean driving record. Auto insurance rates are cheapest for drivers with a clean driving record. Drivers with a DUI conviction, on the other hand, will have trouble finding insurance companies in Michigan with a low premium.
7. Add teen drivers to your policy. Add your teen driver to your current insurance policy directly, rather than purchasing a separate one. This will raise the cost of your car insurance, but not as much as it would with a separate policy. Plus, you can easily adjust their coverage limits and liabilities.

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.

• Comprehensive coverage: Property damage coverage doesn’t cover damages from incidents other than collisions. These incidents include auto theft, vandalism, and weather damage like hail.
• Collision coverage: Collision coverage applies to your damages in accidents you cause, while property damage coverage only applies to the other party’s damages. We recommend making the limit for comprehensive and collision coverage your car’s actual market value (AMV), its value if you sold it today.
• Uninsured/underinsured motorist coverage (UM/UIM): If someone hits you and lacks insurance or insurance high enough to meet your losses, UM/UIM will pay for your injuries and property damages. Match your limit to your liability limit.

Self-Insurance

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.

Michigan Automobile Insurance Placement Facility

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:

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.

• Mailing address:
  • P.O. Box 53218
    Livonia, MI 48153
• Phone number: 734-464-1100
• Fax number: 734-464-0009
• Email address: info@maipf.org⁶

• URL: https://www.michigan.gov/sos
• Self-service station locator: https://miselfservicestation.com/
• Mailing address:
  • Michigan Department of State
    Renewal by Mail
    7064 Crowner Drive
    Lansing, MI 48980-0001
• Email: https://mdossupport.happyfox.com/new/

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!