Best Car Insurance in Michigan

The #1 car insurance company is State Farm because it is the largest auto insurer in the U.S., with a market share of 16%. State Farm insures over 80 million people and offers coverage in all 50 states.

Largest Auto Insurance Companies in America

Together, these 10 companies own more than 70% of the auto insurance market share in the U.S. As a result, it shouldn't come as a surprise that these companies tend to be the best options for most types of drivers.

Best Car Insurance Companies by Category

To learn more, check out WalletHub's guides to the best car insurance and the largest auto insurers.

In Michigan, drivers need $50,000 of bodily injury liability insurance per person (up to $100,000 per accident) and $10,000 of property damage liability insurance. Most Michigan drivers also need to carry personal injury protection (PIP), which pays for medical expenses for a driver and their passengers. Property protection insurance is required in Michigan, too, and it pays for damage to other people's property within the state of Michigan, such as buildings, fences, and parked cars.

How Much Car Insurance Drivers Need in Michigan

*Drivers in Michigan may be able to purchase less PIP coverage if they have Medicare or Medicaid.

Optional Car Insurance Coverage in Michigan

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Michigan law. For instance, lenders usually require comprehensive and collision insurance.

Collision insurance covers repairs to your car when you hit another car or object. Comprehensive insurance covers damage to your vehicle caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals.

You might also want to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.

Even if you're not required to carry these optional coverage types, you may still need them. To learn more, check out WalletHub's guides to dropping optional coverages and the penalties for driving without insurance in Michigan.

Car insurance in Michigan costs $159 monthly ($1,908 per year) for minimum coverage, on average, and around $319 per month ($3,833 annually) for a full-coverage policy. The cheapest insurance companies in Michigan are Travelers, Secura, and Wolverine Mutual, but insurers calculate premiums differently, so it's a good idea to get quotes from more companies to find the best deal.

Average Cost of Car Insurance in Michigan by Category 

• Clean driving record: $169 per month
• After an at-fault accident: $251 per month
• Teen driver: $444 per month
• After a DUI: $486 per month

The average cost of car insurance in Michigan is 165% higher than the national average auto insurance premium, and Michigan ranks 50 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you'll pay for car insurance in Michigan, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.

Finally, it's worth noting that car insurance premiums in Michigan are high, compared to the cost of coverage in neighboring states like Ohio and Illinois. You can find more details in the table below. 

Cost of Car Insurance in Michigan vs. Neighboring States

You need $50,000 in bodily injury liability insurance per person ($100,000 per accident) plus $10,000 in property damage liability insurance to drive legally in Michigan. The Michigan liability insurance requirements can also be written as 50/100/10. In addition, drivers in Michigan will need to purchase personal injury protection (PIP) and $1 million in property protection insurance (PPI) to satisfy the state's minimum car insurance requirements.

Even though Michigan only requires 50/100/10 in liability insurance, drivers should consider buying more coverage if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference. And no matter what, you should be sure to fulfill the minimum Michigan car insurance requirements to avoid facing consequences for driving without insurance.

Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder's own injuries or property. For instance, collision insurance covers damage to the policyholder's car regardless of fault. And comprehensive insurance pays if the policyholder's vehicle is damaged by something besides an accident, like a natural disaster or vandalism.

Full coverage insurance in Michigan costs an average of $319 per month ($3,833 annually). A full coverage policy usually includes collision and comprehensive insurance, plus the types of coverage required by Michigan law. In Michigan, liability insurance, personal injury protection, and property protection insurance are mandatory for all drivers.

Monthly Cost of Full Coverage Insurance in Michigan

Note: Premiums are for a 45-year-old good driver in Michigan; individual premiums will vary.

How to Get Cheaper Full Coverage Insurance in Michigan

1. Compare quotes from several companies to make sure you're getting the best deal.
2. Increase your deductible. Higher deductibles lead to lower premiums, but remember to only pick a deductible you'd be able to afford in an emergency.
3. Don't forget to make sure you're getting all the discounts you can.

To learn more, check out WalletHub's guide to full coverage car insurance.