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Best Cheap Car Insurance in Michigan for 2018

Auto Insurance, Insurance

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 quotes.

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

Good drivers

Young drivers

Drivers with one at-fault crash

Drivers with poor credit

Retired drivers

Also in this article

Minimum car insurance requirements in Michigan

Alternative car insurance in Michigan

» FIND YOUR MATCH: Who’s the cheapest carrier for you?

Cheapest for good drivers

For drivers with no at-fault accidents, DUIs or moving violations.


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Price

  • $2,292/year

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Price

  • $2,353/year

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PRICE

  • $2,676/year

Even relatively safe drivers in Michigan could face steep prices for auto insurance. Among the three cheapest companies, the average cost was $2,440 per year. Auto-Owners Insurance returned the best deal in our research, $2,292 per year, or about $191 a month.

If you have a clean record, it’s wise to compare safe-driving discounts that companies may offer, such as those for not having claims or moving violations for a significant time period. Perks like these could provide much-needed savings and influence which insurer is cheapest for you.

Cheapest for young drivers

For drivers in their early 20s.


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PRICE

  • $1,621/year

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price

  • $1,634/year

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Price

  • $2,547/year

Drivers in their early 20s can often select relatively lean coverage amounts, given that they usually don’t have significant savings or assets to lose in a crash-related lawsuit. We looked at quotes for young drivers carrying the minimum required coverage limits.

The lowest average quote we found was $1,621 per year from Auto-Owners Insurance. This was $671 less than the cheapest deal we found for 30-year-old good drivers who carried higher coverage limits.

Cheapest for drivers with one at-fault crash


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Price

  • $2,677/year

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PRICE

  • $3,494/year

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PRICE

  • $3,514/year

Causing a crash almost always triggers a rate increase when you renew your policy, making it a good time to shop around.

Auto-Owners Insurance offered the lowest rate in our analysis at $2,677 per year. Rates spiked by more than $800 for the next-cheapest option, Frankenmuth. The priciest quote we retrieved for this group was over $9,700 per year, proving just how much drivers with blemished records stand to gain by comparing several companies.

Cheapest for drivers with poor credit

For drivers placed in the “poor credit” tier.


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PRICE

  • $3,689/year

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PRICE

  • $4,823/year

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Price

  • $5,840/year

Car insurers in Michigan can use your credit-based insurance score as a predictor of future claims. If you have poor credit, you could face higher car insurance rates in Michigan than most other motorists, even those who’ve caused a collision.

For instance, the cheapest deal we found for this group was $3,689 from Auto-Owners Insurance. This was $1,397 more than the most affordable rate for good drivers with no credit issues and $1,012 more than the lowest quote for drivers with one at-fault crash.

Cheapest for retired drivers

For drivers in their mid- to late 60s who no longer use their car for commuting.


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PRICE

  • $2,258/year

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PRICE

  • $2,260/year

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Price

  • $2,302/year

Retirees generally spend less time behind the wheel than other drivers and should be able to find relatively cheap car insurance in Michigan.

We looked at rates for drivers in their 60s who travel half as many miles annually as other groups. Progressive had the best deal in our analysis, at $2,258 per year, followed by Frankenmuth and Auto-Owners.

Minimum car insurance requirements in Michigan

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

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
Young driversAuto-Owners Insurance
Drivers with one at-fault crashAuto-Owners Insurance
Drivers with poor creditAuto-Owners Insurance
Retired driversProgressive

Methodology

For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with the following coverage limits:

  • $100,000 bodily injury liability coverage per person.
  • $300,000 bodily injury liability coverage per accident.
  • $50,000 property damage liability coverage per accident.
  • $100,000 uninsured motorist bodily injury coverage per person.
  • $300,000 uninsured motorist bodily injury coverage per accident.
  • $1 million personal injury protection.
  • Collision coverage with $1,000 deductible.
  • Comprehensive coverage with $1,000 deductible.
  • We used a 2014 Toyota Camry in all cases. Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.

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