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Best Cheap Car Insurance in Michigan for 2019

March 20, 2019
Auto Insurance, Insurance
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Finding cheap car insurance in Michigan can be challenging. The state has the second-highest insurance rates in the nation, on average, according to NerdWallet analysis. Because costs vary depending on the company, however, shopping around can help you avoid the priciest rates.

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To help Michigan drivers save as much as possible, we collected quotes from the eight largest insurers in the state and found the three cheapest options for several driver types.

Cheapest for good drivers

Auto-Owners was the cheapest carrier we found for Michiganders with good credit and a clean driving record. It was priced at $203 per month, on average, with Frankenmuth and Esurance rounding out the cheapest three options.

InsurerAverage price
*Frankenmuth Mutual is not rated because there is not enough data to evaluate it against larger companies.


4.5 NerdWallet rating

$2,440/year

$203/month


NerdWallet rating: Not rated*

$2,576/year

$215/month
3.5 NerdWallet rating

$3,168/year

$264/month
For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. With the exception of age, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including state-required coverage.

Cheapest for drivers with poor credit

Auto-Owners was the cheapest carrier we found for Michigan drivers with poor credit, at $349 per month, on average. Frankenmuth and Esurance again fill in spots two and three, both at more than $100 over the monthly Auto-Owners rate.

InsurerAverage price
*Frankenmuth Mutual is not rated because there is not enough data to evaluate it against larger companies.


4.5 NerdWallet rating

$4,182/year

$349/month


NerdWallet rating: Not rated*

$5,577/year

$465/month
3.5 NerdWallet rating

$5,820/year

$485/month
Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent accident. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record, poor credit as reported to their insurer, and standard "full coverage" insurance.

Cheapest for drivers with one at-fault crash

Frankenmuth had this year’s lowest price for Michigan drivers with one recent at-fault accident, at roughly $277 per month. Auto-Owners was second-cheapest, on average, but Esurance wasn’t far behind in third place.

InsurerAverage price
*Frankenmuth Mutual is not rated because there is not enough data to evaluate it against larger companies.


NerdWallet rating: Not rated*

$3,321/year

$277/month


4.5 NerdWallet rating

$3,778/year

$315/month
3.5 NerdWallet rating

$3,807/year

$317/month
To get these figures, we averaged rates for 40-year-olds with one recent at-fault crash and the typical "full coverage" insurance. Your rates will remain high for three to five years after you cause an accident or have a moving violation. If you fall into this category, be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Cheapest for low-mileage drivers

Auto-Owners comes in cheapest for Michigan drivers who clock few miles, at an average price of $203 per month — the same price it had for higher-mileage drivers. It was the same story for second-place Frankenmuth, but State Farm makes third in this category by offering lower prices to its low-mileage drivers.

InsurerAverage price
*Frankenmuth Mutual is not rated because there is not enough data to evaluate it against larger companies.


4.5 NerdWallet rating

$2,440/year

$203/month


NerdWallet rating: Not rated*

$2,576/year

$215/month
4.0 NerdWallet rating

$3,065/year

$255/month
Whether you're retired, work at home or often use public transportation, you may be able to get cheaper car insurance simply because you drive less. The rates above are for 40-year-olds with typical "full coverage" insurance and a clean driving record who drive 5,000 miles per year instead of the standard 12,000.

Minimum coverage in Michigan

Auto-Owners is cheapest in the bare-bones insurance category, with Michigan’s only double-digit price this year at roughly $99 per month for the minimum required coverage. Frankenmuth comes in second, with Progressive following in a somewhat distant third place.

InsurerAverage price
*Frankenmuth Mutual is not rated because there is not enough data to evaluate it against larger companies.


4.5 NerdWallet rating

$1,191/year

$99/month


NerdWallet rating: Not rated*

$1,314/year

$109/month
3.5 NerdWallet rating

$2,036/year

$169/month
We calculated these numbers by averaging rates for 40-year-old good drivers who have only the minimum mandatory insurance in their state. Such light coverage isn't typically recommended, since it might not cover all the bills resulting from a car accident, but it's better than nothing — especially if you can't afford much more.

Minimum car insurance requirements in Michigan

Michigan residents must carry liability insurance, personal property protection (known as PPI) and personal injury protection (known as PIP).

PPI pays to fix damage you cause to others’ property, such as a fence or garage, while driving, or damage you cause to others’ parked cars. PIP primarily covers injuries that you and your passengers suffer in a crash, no matter who caused the incident.

PIP doesn’t have any minimum limit to choose; the coverage is unlimited in Michigan if needed. However, you must select at least the following amounts of liability insurance and personal property protection:

  • $20,000 bodily injury liability per person.
  • $40,000 bodily injury liability per incident.
  • $10,000 property damage liability per incident.
  • $1 million PPI.

Experts recommend buying more than the bare minimum liability insurance to avoid having to pay out of pocket for damage that exceeds your policy’s limits.

Check out NerdWallet’s guide to car insurance requirements by state to learn more about how the required and optional coverages of your Michigan auto policy work.

Alternative car insurance in Michigan

Drivers who are denied car insurance on the open market because of poor credit, DUIs or other factors may apply for coverage through the Michigan Automobile Insurance Placement Facility.

NerdWallet can also help drivers find cheap car insurance in Michigan. Try our car insurance comparison tool to view rates from leading companies in the Wolverine State.

Here’s a summary of where you’ll find the cheapest insurance, by category.

Cheapest car insurance in Michigan

CategoryCheapest option
Good driversAuto-Owners Insurance
Drivers with poor creditAuto-Owners Insurance
Drivers with one at-fault crashFrankenmuth
Low-mileage driversAuto-Owners Insurance
Minimum coverageAuto-Owners Insurance
For our base-profile driver with good credit and a clean driving history, NerdWallet averaged rates from the largest insurers for 40-year-old men and women in 20 ZIP codes. The policy includes:

  • $100,000 bodily injury liability coverage per person.
  • $300,000 bodily injury liability coverage per crash.
  • $50,000 property damage liability coverage per crash.
  • $100,000 uninsured motorist bodily injury coverage per person.
  • $300,000 uninsured motorist bodily injury coverage per crash.
  • $1 million personal injury protection.
  • Unlimited personal property protection.
  • Collision coverage with $1,000 deductible.
  • Comprehensive coverage with $1,000 deductible.

We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with poor credit, we adjusted the credit tier from “good” to “poor.”
  • For drivers with one at-fault crash, we added a single at-fault crash.
  • For low-mileage drivers, we adjusted the miles driven from 12,000 per year to 5,000.
  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.

We used a 2015 Toyota Camry in all cases. These are rates generated through Quadrant Information Services. Your own rates will be different.