The cheapest car insurance companies in Michigan are Secura, Chubb, and Travelers. Michigan drivers can save up to $4,856 per year on car insurance just by shopping around and comparing quotes.
Drivers looking for cheap car insurance in Michigan have their work cut out for them. Premiums are higher in Michigan than anywhere else in the country, in part because the state has a very high number of people driving without insurance. At least 20% of Michigan’s drivers are going without insurance, and in big cities like Detroit, as many as 60% of residents are uninsured. Insurance companies end up covering the costs associated with accidents caused by uninsured drivers, and they pass those costs on to customers in the form of higher premiums.
Drivers in Michigan who don’t shop around are likely to pay more than necessary for car insurance. The average difference between the highest and lowest quotes for the same full coverage policy is $13,873 per year in Michigan, for example, so drivers who shop around can potentially save a lot. To help Michigan drivers find the best cheap car insurance coverage for their needs, WalletHub analyzed quotes from all major insurance providers using multiple driver profiles and zip codes across the state. You can check out our recommendations below, as well as compare the cheapest options to the best overall car insurance companies in Michigan to make sure you find the right fit for your particular needs.
Cheapest Insurance Rates by Category
Cheap for Good Drivers
Cheap for Full Coverage
Cheap for Speeding Ticket
Cheap for One At-Fault Accident
Cheap for Young Drivers
Cheap for Old Drivers
Cheap for Drivers with a DUI
Cheap for Married Drivers
Cheapest Car Insurance in Michigan for Good Drivers
Travelers has the cheapest car insurance for most good drivers in Michigan. Drivers who have never had an accident or received a citation are considered good drivers by insurers and pay less for insurance than drivers with bad records. In addition to low rates, good drivers can often qualify for additional discounts from their insurance company.
Cheapest Car Insurance in Michigan for Full Coverage
Full coverage refers to a policy that goes beyond the minimum state requirements. Because full coverage protects you in more situations, it costs more than minimum coverage.
After a speeding ticket, most drivers will see their insurance rates go up for 3-5 years. It’s important to keep in mind that each insurance company calculates rates differently, so you should always get multiple quotes in order to make sure that you get the best deal.
Cheapest Car Insurance in Michigan for Drivers with One At-Fault Accident
One at-fault accident will usually affect your insurance negatively for 3-5 years as insurers will consider you high-risk. Because of your higher rates, it is even more important to comparison shop.
Cheapest Car Insurance in Michigan for Young Drivers
Since young drivers have less experience behind the wheel, insurers tend to charge them higher rates than more mature drivers. On average, most drivers will see their rates drop as they get older with a considerable decrease once they turn 25 years old.
Cheapest Car Insurance in Michigan for Older Drivers
Although mature drivers pay less for car insurance than teens, older drivers start to see their rates go up as they enter their senior years. Comparing car insurance rates can save older drivers hundreds of dollars a year.
Cheapest Car Insurance in Michigan for Drivers with a DUI
Drivers who have a DUI on their record typically experience much higher rates than drivers with a clean driving record or people with a history of less severe violations. A DUI usually affects your insurance rates for 3-10 years, but the violation itself may stay on your driving record for much longer than that.
To identify the cheapest post-DUI insurance companies, WalletHub compared rates for a 45-year-old, single man, with minimum coverage, one DUI, and good credit across major insurers.
Cheapest Car Insurance in Michigan for Married Drivers
Married drivers typically enjoy cheaper car insurance rates than drivers who are single. Auto insurance companies generally view drivers who are married as more responsible and less of a risk to insure. To help married drivers further reduce their insurance costs, WalletHub compared major insurance companies’ rates for a 45-year-old, married man with minimum coverage, a clean driving record, and good credit.
The table above reflects the average annual cost of car insurance in Michigan’s largest cities and towns.
Factors That Affect Car Insurance Premiums in Michigan
Recap: Cheapest Auto Insurance Companies in Michigan
The cheapest car insurance company in Michigan is Secura, which charges an average of $53 per month for state-minimum coverage. In addition to being the cheapest auto insurer for Michiganians overall, it is the cheapest option for a number of specific categories, such as good drivers and drivers with speeding tickets.
For your convenience, we’ve summarized the cheapest companies overall below.
7 Tips for How to Get Cheap Car Insurance in Michigan
1. Compare quotes from both national and regional insurers
Don’t forget to include local insurance companies in your search for cheap car insurance. In Michigan, regional insurers like Westfield, Indiana Farm Bureau and Erie Insurance might have lower rates than national companies like State Farm and GEICO and have comparable customer satisfaction ratings.
2. Know the factors affecting insurance in Michigan
Everyone knows that your driving habits and claims history affect how much you pay for car insurance. But in Michigan, companies can also consider your age, gender, credit history, marital status, and more when setting premiums. The car you drive, your annual mileage, and even some factors beyond your control all impact the price of insurance.
3. Choose the coverage that is right for you
You need liability insurance to pay for the other driver’s damages if you’re at fault in an accident in Michigan. Collision and comprehensive coverage, on the other hand, are optional and may be unnecessary if you own an older car. Usage-based insurance might be a better fit than a standard policy for low-mileage drivers, and going with a higher deductible or lower coverage limits costs less, too. Don’t skimp on the coverage you need, but do make informed choices. That way, you won’t end up paying for more car insurance than you need.
4. Search for discounts
Top car insurance companies in Michigan have a variety of discounts, so almost anyone can find ways to save. You may be able to get a discount if you’re a student, veteran, good driver, homeowner, willing to go paperless, and more.
5. Stay in less expensive zip codes
Car insurance prices can vary a lot based on zip code in Michigan. On average, drivers in the most expensive parts of Michigan spend over $3,800 more per year on car insurance than those living in the least expensive areas.
6. Lower your PIP coverage
Until 2020, Michigan was the only state that required unlimited personal injury protection (PIP). This meant that if someone got into a life-changing car accident that required expensive lifetime medical care, it was covered—even if that care cost millions of dollars. Effective July 1, 2020, drivers will be able to choose a level of medical coverage, so your premium and potential savings will depend on the PIP option you select.
7. Maintain coverage
You’ll see higher rates if you let your insurance lapse, even if you don’t own a car. Michigan drivers who don’t maintain continuous coverage pay an average of 48% more than those with five or more years of insurance history.
Video: Cheap Auto Insurance in Michigan
Methodology for Selecting the Cheapest Auto Insurance in MI
WalletHub’s analysis of cheap car insurance companies in Michigan is based on data from the Michigan DMV and Quadrant Information Services. Together with that data, WalletHub used the characteristics listed below to create 40 different driver profiles designed to identify the cheapest car insurance companies for Michigan drivers in a collection of key categories. For each profile, WalletHub compared quotes among top Michigan car insurance companies by averaging premiums from 34 zip codes that represent at least 20% of Michigan's population. Military-specific companies like USAA were only considered for the military-specific category, due to their eligibility restrictions. In some cases, they may still be the best option overall for eligible drivers.
In the table below, you can see all of the profile characteristics that were used in WalletHub’s analysis, in addition to the specific subset of characteristics that make up our Good Driver profile.
Clean, One Speeding Ticket, One At-Fault Accident, One DUI, Suspended License, Open Container, Red Light Infraction, Reckless Driving, One Not At-Fault Accident
Clean
Miles Driven Per Year
7,500 Miles, 15,000 Miles, 20,000 Miles
15,000 Miles
Coverage Level
Minimum, Standard, Full
Minimum
Discounts
None, Multi-Policy, Homeowner, Student
None
Credit Level
Poor, Good
Good
Filings
None, SR22, FR44
None
Car
Sedan, Minivan, SUV, Coupe, Truck
Sedan
Below are additional details regarding the terminology and specific characteristics of the variables in the above table:
Minimum Coverage: Coverage requirements of $20,000 in bodily injury liability per person, $40,000 in bodily injury liability per accident, and $10,000 in property damage liability per accident outside Michigan, as well as unlimited personal injury protection and $1 million in property protection within Michigan. Minimum coverage requirements are from before changes were made to Michigan's auto insurance requirements in 2020.
Standard Coverage: Coverage levels of 50k/100k/25k of liability coverage, 50k/100k/25k of uninsured motorist coverage, unlimited personal injury protection and $1 million in property protection within Michigan.
Full Coverage: Coverage levels of 100k/300k/50k of liability coverage, 100k/300k/50k of uninsured motorist coverage, collision and comprehensive coverage with a $500 deductible, unlimited personal injury protection and $1 million property protection within Michigan.
Sedan: 2018 Toyota Camry.
Minivan: 2018 Dodge Grand Caravan.
SUV: 2018 Toyota RAV4.
Coupe: 2018 Ford Mustang.
Truck: 2018 Ford F-150.
Where driver profiles are not specified, WalletHub averaged Michigan insurance quotes across 40 different driver profiles, using the above variables. Quote information is from Quadrant Information Services and is representative only. Individual rates will be different.
Questions & Answers
Finding the cheapest car insurance in Michigan can be tough. But you’ve got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines.
PLPD insurance in Michigan is personal liability and property damage insurance that contains the minimum types of coverage required by state law. Michigan no-fault mandatory auto insurance coverage includes liability (property damage and bodily injury), property protection and personal injury protection. Although personal liability and property damage insurance is available nationwide, the term “PLPD” is most commonly used in Michigan.
PLPD Minimum Coverage Limits in Michigan
Liability Coverage: up to $20,000 per person hurt or killed in an accident, up to $40,000 per accident if several people are hurt or killed, up to $10,000 for property damage in another state.
Property Protection Insurance (PPI): up to $1 million for damage your car does in Michigan to other people's property, such as buildings and fences, as well as to other people's properly parked vehicles.
Personal Injury Protection (PIP): covers all reasonably necessary medical expenses with no maximum limit if you are hurt in a car accident. It also covers wage loss – up to 85% of the income you would have earned had you not been injured, for up to 3 years.
State requirements tend to be modest, so it may be a good idea to purchase additional coverage. Whenever claims exceed a driver's insurance coverage in Michigan, a court may require the driver to reimburse the victims out of their personal assets.
Michigan's auto insurance reform law allows drivers to opt out of buying unlimited personal injury protection (PIP), but they need higher liability limits. Michigan's auto insurance reform law changed the state's car insurance requirements for policies issued or renewed after July 2020. Michigan's insurance reform also decreased the Michigan Catastrophic Claims Association (MCCA) fee, which drivers must pay if they purchase unlimited PIP insurance.
Michigan car insurance laws require $20,000 of bodily injury liability coverage per person, up to $40,000 per accident, as well as $10,000 of property damage liability coverage.
Bodily injury liability insurance pays for any injuries that you accidentally cause with your car, while property damage liability coverage helps pay for any material assets that you damage while driving, like another person's car or mailbox. Your insurance company pays up to the limit specified by...
Car insurance in Michigan is expensive because it's a no fault state with high insurance coverage requirements. But the biggest reason Michigan drivers pay more for car insurance than anyone else in the country is that it is the only state with unlimited lifetime coverage for catastrophic injuries. This means victims of life-changing crashes receive unlimited medical coverage for the rest of their lives. In Michigan, you can expect to pay approximately $6,310 per year for full...
Each driver pays their own deductible in Michigan's no-fault insurance. Under the state's no-fault rules, drivers must use their own personal injury protection (PIP) coverage to pay for basic medical expenses after an accident, regardless of fault.
Michigan's no-fault insurance system is only applicable to injuries, not property damage. If you file a property damage liability or uninsured motorist claim, you do not have to pay a deductible due to the nature of the coverage involved. However, your ability...
To get temporary car insurance in Michigan, you will have to purchase a six month policy and cancel mid-policy when you no longer need coverage. You may have to pay a cancellation fee, depending on your insurer, but you can usually get a refund for any unused coverage time you've prepaid for.
The most affordable temporary car insurance coverage in Michigan is from Travelers, which charges an average of $13 per month for state-minimum coverage. Meanwhile, the...
No-fault insurance in Michigan is automatically included in a minimum coverage policy, which costs an average of $108 per month ($1,300 per year). Personal injury protection (PIP) is often referred to as no-fault insurance and is a mandatory type of coverage for most Michigan drivers. PIP covers the policyholder's accident-related medical expenses regardless of fault, and the no-fault insurance system limits drivers' ability to sue for minor injuries after an accident.
Michigan is a no-fault state, which means drivers use their own PIP coverage for their injuries, regardless of fault. Drivers in Michigan are required to carry at least $50,000 in bodily injury liability insurance per person ($100,000 per accident) and $10,000 in property damage liability insurance. There are restrictions on the right to sue after an accident in no-fault states. In Michigan, you can only sue the at-fault driver if your injuries are permanent
The Michigan new-car insurance grace period is 7 to 30 days in most cases. The new-car grace period is how long insured drivers are allowed to drive a newly purchased vehicle before adding it to an existing car insurance policy. If you don't have a current policy, you'll need proof of personal injury protection, property protection insurance and liability coverage before you can legally drive or register your car in Michigan.
You cannot register a car without insurance in Michigan, as proof of insurance is required at the time of registration. In Michigan, you are required to have $50,000 in bodily injury liability coverage, up to $100,000 per accident, along with $10,000 in liability coverage for property damage. You also need personal injury protection and property protection insurance. You have 15 days from the date of purchase to register a vehicle in Michigan, but you can't drive...
Car Insurance is a necessary expense if you’re a driver, but trying to find the cheapest rates can be a time-consuming process. To gain more insight about getting cheap car insurance while still having quality coverage, WalletHub posed the following questions to a panel of experts in Michigan. Click on the experts below to view their bios and answers.
What does it say about car insurance companies that so many have celebrity endorsers?
Do you think it’s fair to say that car insurance companies try to mislead customers or is it just marketing?
Is it fair for car insurance companies to consider gender or age when setting premiums?
Is it fair for car insurance companies to consider a driver’s occupation when setting premiums?
Do you think car insurance companies are fair to college students?
What advice do you have for new drivers when it comes to car insurance?
How do you think increased adoption of electric vehicles will change the car insurance landscape?
To what extent has technology disrupted the car insurance industry relative to others?
Dr. Dan Holloway D.B.A., Adjunct Faculty, DeVos Graduate School - Northwood University Read More
Gregory Keoleian Co-Director of the Center for Sustainable Systems, University of Michigan and Peter M. Wege – Professor of Sustainable Systems, University of Michigan, School for Environment and Sustainability Read More
Bonnie J. Knutson Ph.D., Professor, School of Hospitality Business, Eli Broad College of Business, Michigan State University Read More
Andy Singer Chair and Professor of Business, Alma College Read More
Valerie Sweeney Prince Ph.D., Professor, College of Liberal Arts and Sciences, Wayne State University Read More
Susan K. Jones Professor of Marketing, College of Business, Ferris State University Read More
