The Cheapest Auto Insurance in Michigan in 2023

Michigan drivers face some of the steepest car insurance rates in the nation. One of the primary reasons is that Michigan is known as a “no-fault” state, which means drivers are responsible for paying for damage to their vehicle, regardless of who caused it. Michigan’s new auto insurance law — which went into effect July 1, 2020 — requires drivers to purchase additional coverage, further increasing costs for many drivers.

But all is not lost. Knowing which companies offer the most competitive rates can help you get the coverage you need within your budget.

We analyzed dozens of Michigan car insurance companies to find the cheapest quotes for different driving profiles. We’ll also provide tips to save on Michigan auto insurance. Keep reading to learn more.

Key Takeaways:

• Michigan drivers pay an average of $174 per month for liability coverage and $400 for full-coverage car insurance.
• SECURA Insurance is one of the cheapest car insurance companies in Michigan, according to Compare.com data.
• Bundling your insurance policies, increasing your deductibles, comparing quotes regularly, and being selective when filing claims can help you save on Michigan auto insurance.

Michigan’s Cheapest Car Insurance Companies

Although the average Michigan car insurance rates are $174 per month for liability and $400 per month for full coverage, several companies still offer affordable policies in the Wolverine State. Let’s take a look at which ones have the cheapest average rates across the state.

We found that Progressive offers the cheapest car insurance in Michigan, costing an average of $190 monthly. But with so many companies and factors that go into insurance rates, Progressive might not be the cheapest for all Michigan drivers.

We analyzed dozens of insurance companies to find the cheapest options for the top rating factors and various driver demographics to help you find affordable auto insurance. Check out the sections below to learn more.

The Average Cost of Michigan Car Insurance

The average monthly cost for car insurance in Michigan is $174 for liability-only and $400 for full coverage. These rates are more than 40% higher than the national average, as well as prices in neighboring states like Indiana, Ohio, and Wisconsin. Michigan’s no-fault system and uninsured motorist numbers are the main reasons for high rates.

An analysis by the Insurance Information Institute of the state’s 2020 no-fault reform law shows an 18% decrease in Michigan auto insurance premiums as of 2022. Still, Michigan has the second-highest rate of uninsured motorists in the country, according to the Insurance Research Council. Different factors — such as coverage level, age, and driving record — affect your Michigan auto insurance rate, as shown below.

Cheapest Car Insurance Rates for State-Minimum Insurance: MetLife

In almost all states, you must carry minimum coverage requirements to legally drive. Michigan is no different.

We’ll take a deeper dive into the state’s specific insurance requirements a bit further down, but Michigan requires all drivers to purchase bodily injury liability (BI), property damage liability (PD), personal injury protection (PIP), and property protection insurance (PPI).

Let’s take a look at which companies offer the cheapest rates in Michigan for these bare-bones, state-minimum policies.

State-minimum insurance is cheaper than a full-coverage policy because it only provides coverage for other parties if you cause a collision — it doesn’t cover your own vehicle repair.

For this basic coverage, you might find affordable policies from MetLife, Fremont Mutual, or Farm Bureau Insurance of Michigan. MetLife has the cheapest average rates of any company here, with policies coming in at just $108 per month on average — 37% cheaper than the statewide average.

Cheapest Car Insurance Rates for Full-Coverage Insurance: SECURA

Full coverage is an insurance term that includes at least state minimum liability and a combination of other coverages like comprehensive, collision, and uninsured motorist coverage.

While the extra coverages mean it costs more than basic state-minimum policies, full coverage provides the financial protection drivers might need when involved in an auto accident.

SECURA Insurance is the cheapest for full coverage in Michigan, at $66 monthly. It’s less than half the cost of the next most affordable insurer, Chubb, which averages $144 monthly.

Depending on your driver profile, Wolverine Mutual, Auto-Owners, and Pioneer State Mutual Insurance Company may also be affordable options.

Cheapest Auto Insurance Rates by Age

Age is one rating factor that affects auto insurance pricing the most. The more driving experience you have and the safety measures you take when behind the wheel, the cheaper your insurance can be. We compared average costs across different age ranges to find the cheapest car insurance companies in Michigan.

Cheapest car insurance company for Michigan teens: SECURA

Teens pay the most for car insurance since they lack driving experience and are more likely to make risky decisions behind the wheel. These factors increase their chances of being involved in an automobile accident, which is the No. 1 cause of adolescent death in Michigan, according to the Michigan State Police.

The table below shows the cheapest car insurance companies — sorted by liability-only rates — for 18-year-old drivers in Michigan.

Michigan teens and young drivers may find SECURA, Travelers, and Auto-Owners have the cheapest liability-only insurance coverage. And SECURA, Auto-Owners, and Chubb might be companies to consider for full coverage.

At the end of the day, comparing quotes from several companies can help you find the most affordable option for your coverage needs.

Cheapest car insurance company for Michiganians in their 40s: SECURA

Drivers in their 40s usually see rates stabilize, as they’ve gained experience and safe driving habits. The table below shows average car insurance quotes for 40-year-old drivers.

SECURA offers 40-year-old drivers the cheapest liability-only and full-coverage rates in Michigan. Its home and auto bundle includes multiple discounts — plus a single policy and premium — for homeowners, renters, or condo owners.

Travelers and Wolverine Mutual have affordable liability-only pricing, and Chubb and Wolverine Mutual are two cheap car insurance companies for full coverage.

Cheapest car insurance company for Michigan seniors: SECURA

Michigan retirees often get the cheapest car insurance rates of all age groups. If you drive less than you did when you were working, you could see a further reduction in your auto insurance costs.

The average rates featured in the table below are based on 65-year-old drivers, sorted by liability-only prices.

SECURA is the cheapest option for Michigan retirees for both full-coverage and liability-only car insurance. Although Chubb’s liability-only rates are among the most expensive on this list, it offers the second-cheapest full-coverage price.

Wolverine Mutual and Travelers may be affordable options for liability-only coverage, but Travelers is the most expensive for full coverage of the companies listed here.

Compare Michigan Auto Insurance Rates by Driving Record

When it comes to rating factors, your driving record might be the most impactful on your auto insurance costs. At-fault accidents, moving violations, and DUIs will raise your car insurance rates, though the increase can vary by company.

We analyzed Michigan car insurance companies to find the cheapest rates for different driving records.

Cheapest car insurance company for good drivers in Michigan: SECURA

Good drivers have no tickets or at-fault accidents on their driving records, and they tend to get the best rates for car insurance because of it. Let’s take a look at which companies offer the cheapest average rates for Michigan drivers with clean records.

Good drivers may get the most affordable car insurance rates in Michigan from SECURA. A clean driving record makes you eligible for SECURA’s accident forgiveness program, which can prevent a premium increase if you cause an accident.

Although American Select Insurance Company and Wolverine Mutual offer cheap liability-only rates, their full-coverage prices are among the most expensive of the companies listed here.

Cheapest car insurance company for Michigan drivers after a ticket: SECURA

Michigan drivers should expect higher premiums if they get a ticket or moving violation. Compare.com data shows the national average premium increases by around 23% after a speeding ticket, though the amount varies by company.

The five cheapest companies for Michigan drivers with a ticket can be found in the table below.

Though SECURA may offer the cheapest liability-only rates, our analysis shows MetLife is the most affordable option for full coverage. Wolverine Mutual is the next cheapest choice for both full coverage and liability insurance.

Cheapest car insurance company for Michigan drivers after an accident: SECURA

Causing an accident will typically increase your car insurance rate more than a speeding ticket. The national average increase after an at-fault accident is 43%, according to Compare.com data.

The data in the table below is for a driver with one at-fault accident, sorted by liability-only rates.

SECURA is the most affordable of all Michigan car insurance companies after an at-fault accident. With a long list of discounts, SECURA Insurance could help soften the blow of rate hikes after an at-fault claim.

American Select Insurance Company and Wolverine Mutual also offer cheap average rates. However, Auto-Owners may be cheaper if you need full coverage.

Cheapest car insurance company after a DUI in Michigan: SECURA

With a national average rate increase of 92%, a DUI can cause some of the most significant premium hikes of all. Plus, your license could be suspended, causing your insurance company to potentially cancel your policy. An SR-22 might also be required to prove you comply with Michigan’s minimum coverage requirements.

But that doesn’t mean you’re forced to accept your rates nearly doubling if you’ve recently been convicted of a DUI. Let’s take a look at which companies offer the cheapest car insurance rates for Michigan drivers with a DUI on their record.

SECURA, MetLife, and Progressive might be your cheapest liability-only options for Michigan car insurance if you have a DUI. Meanwhile, Progressive and American Select Insurance Company are the cheapest for full coverage, with SECURA rounding out the top three.

The Cheapest Cities for Car Insurance in Michigan

Rates vary not only by your state but also by the city you live in. According to the National Association of Insurance Commissioners, multiple factors can affect car insurance pricing, including:

• Driving laws
• Required coverages and limits
• Legal and medical costs
• Weather conditions
• Traffic density
• Accident rates
• Vehicle theft rates

The table below shows the Michigan cities with the cheapest average liability-only rates.

Drivers living in Grand Rapids, Ann Arbor, Lansing, Troy, and Livonia may get the cheapest car insurance in Michigan, according to Compare.com data. Warren, Dearborn, and Detroit are among the most expensive.

Factors That Determine the Cost of Car Insurance in Michigan

Car insurance companies use various methods to determine your premiums, which means each weighs factors differently. This is why insurance costs sometimes vary for the same coverage choices and driving profiles.

The main factors that determine the cost of car insurance in Michigan include:

• Age: Older drivers have more experience driving and tend to practice safer driving behavior, which can reduce insurance costs.
• Gender: Male drivers tend to drive more riskily than female drivers, making them more likely to get a ticket or cause an accident. This can cause higher insurance premiums for them.
• Location: Your ZIP code factors into your insurance rates since accident statistics, population, and repair and medical costs differ from city to city.
• Driving record: Drivers who avoid tickets and at-fault accidents will get the lowest auto insurance premiums.
• Insurance history: Having a lapse in your insurance coverage can make you seem risky to insure, which can drive up insurance premiums. You could also pay additional costs, such as fines and license or vehicle registration reinstatement fees.

5 Ways to Get Cheap Car Insurance in Michigan

Michigan is the fifth most expensive state in the country for auto insurance according to NAIC data, so finding affordable coverage is more important than ever. If you’re looking for ways to get cheap car insurance, check out these five expert tips:

• Consider usage-based insurance. Letting an insurance company track how you drive could lower your rate. Pay-per-mile insurance might also be cheaper if you drive less than 12,000 miles per year.
• Bundle your insurance. “If you have other insurance policies, such as homeowners or renters insurance, you may be able to save money by bundling them with your car insurance,” says John Espenchied, owner of Insurance Brokers Group.
• Consider a higher deductible. You’ll lower your premium by choosing higher comprehensive and collision coverage deductibles. But remember that you’ll be on the hook for larger out-of-pocket costs if you need to file a claim.
• Only make claims when necessary. Any claim could raise your rates, so be mindful and only file claims for severe damage or injuries — and avoid claims for minor damage that you can afford to cover yourself.
• Shop regularly and compare quotes. “Get quotes from multiple insurers before you buy a policy and at renewals,” Espenchied advises. “You may be surprised at how much your rates can vary from company to company.”

The best car insurance discounts in Michigan

Adding discounts to your car insurance can sometimes be the best way to keep rates low. There are a lot of auto insurance discounts out there, but most aren’t advertised, meaning you might miss out on savings you’re eligible for.

Some of the best car insurance discounts in Michigan include:

• Multi-policy: “If you bundle your car insurance with other policies, such as homeowners or renters insurance, you may be able to save money,” says Espenchied.
• Accident-free: Being a safe driver helps you get cheaper rates and makes you eligible for safe driving discounts.
• Safety features: “If your car has safety features like airbags, antilock brakes, or a rearview camera, you may be eligible for a discount,” Espenchied says.
• Good student: Having a young driver on your policy can be expensive, but you could lower your premium if they maintain a B or above GPA.
• Defensive driver: Completing a state-approved defensive driver course could net you this discount.
• Anti-theft devices: Making locating your car easier with a car alarm, GPS locator, or other anti-theft devices could lower your car insurance costs.

Michigan Auto Insurance Requirements

Michigan is unique when it comes to its auto insurance requirements, with more coverage types and higher coverage limits than most other states. You can learn more about Michigan’s New Auto Insurance Law on the state website’s Frequently Asked Questions section. We also explain Michigan’s unique car insurance requirements in detail below.

Bodily injury and property damage liability (BI/PD) requirements in Michigan

Auto liability insurance covers the other driver and their passengers if you cause injuries or property damage in an accident.

The default liability limits for Michigan car insurance are commonly described as 20/40/10, or:

• $50,000 per person in bodily injury liability (BI) coverage
• $100,000 per accident in BI coverage
• $10,000 for property damage you cause in another state (more on this below)

No-fault insurance in Michigan and what it means for you

Insurance rates are high in Michigan because it’s considered a “no-fault” state. No-fault insurance means your insurer pays for your injuries and medical costs, no matter who’s at fault in the accident.

But suppose you severely injure or kill someone. In that case, you can be financially liable for their treatment costs and pain and suffering.

Higher liability limits can protect you since your assets could be seized, wages garnished, or your driver’s license suspended if you don’t have enough insurance coverage.

Besides Michigan, 11 other states (plus Puerto Rico) have no-fault laws.

Personal injury protection (PIP) insurance in Michigan

It’s essential to have enough personal injury protection (PIP) coverage in a no-fault state since you must pay for your own injuries after an accident. PIP can cover your medical expenses, lost wages, funeral, and replacement services.

If you don’t have qualifying health coverage, you can choose either $250,000, $500,000, or unlimited PIP per person per accident. But if you have qualifying health coverage, you can select $50,000 or no PIP coverage.

Property protection insurance (PPI) in Michigan

Michigan also has a property protection insurance (PPI) requirement. You must carry $1 million in PPI, which will pay for damage your vehicle causes to:

• Another person’s or business’s property, such as fences, buildings, utility poles, and guard rails
• Someone else’s properly parked car

Your property damage liability coverage — which we discussed above — only applies outside Michigan. While you’re only required to carry $10,000, carrying a higher limit might be a good idea to protect yourself better financially — especially if you frequently travel to other states.

Penalties for driving without auto insurance in Michigan

If you’re caught driving without auto insurance in Michigan, you could face the following penalties:

• Misdemeanor charge
• Fines up to $500
• Up to one year of jail time
• License suspension of up to 30 days

It costs $125 to reinstate your driver’s license in Michigan. Your vehicle registration can also be suspended until you provide proof of car insurance that meets or exceeds Michigan’s auto insurance requirements.

SR-22 Auto Insurance in Michigan

An SR-22 form is proof of insurance your insurance company provides to the Michigan Department of Insurance and Financial Services (DIFS). It confirms you’re complying with the state’s minimum coverage requirements.

You might need an SR-22 form if you “have been convicted of certain driving offenses, such as driving under the influence (DUI) or reckless driving,” says Espenchied. “If you’re required to have SR-22 insurance, you must keep the policy in force for a certain period of time — typically two years.”

Michigan Auto Insurance FAQs

Understanding your responsibilities and knowing how to shop can help you both financially protect yourself and get cheap car insurance in Michigan. Here are answers to the most commonly asked questions about Michigan auto insurance.

Who is the cheapest auto insurance company in Michigan?

The cheapest auto insurance company in Michigan depends on your unique driving profile, rating factors, and coverage needs. Our analysis found that some of Michigan’s cheapest car insurance companies include Progressive, GEICO, AAA, MetLife, and Donegal Mutual.

How much is car insurance in Michigan per month?

The average monthly cost of car insurance in Michigan is $174 for liability-only and $400 for full coverage. Your rates might be higher or lower, as personal rating factors, like age, driving record, and claims history affect your auto insurance premium.

What does no-fault mean for Michigan drivers?

No-fault insurance means you cover your own injuries in an auto accident. Having enough personal injury protection (PIP) or health insurance coverage can ensure your medical expenses are paid if you get hurt in a car accident.

Which city has the cheapest car insurance in Michigan?

Compare.com data shows Grand Rapids has the cheapest car insurance in Michigan, averaging $152 per month. Ann Arbor, Lansing, Troy, and Livonia are other cheap Michigan cities for auto insurance.

How much car insurance is required in Michigan?

Michigan requires liability insurance, personal injury protection (PIP), and property protection insurance (PPI). You must carry at least 50/100/10 liability limits and $1 million in PPI. If you have qualifying health insurance coverage, you can waive PIP. If not, you must carry at least $50,000 in PIP.

Who pays for damage to your vehicle if you’re in a collision and not at fault?

Michigan has unique regulations when it comes to paying for damages. Michigan PPI insurance doesn’t cover the other vehicle unless it’s parked, so the at-fault driver isn’t responsible for paying damages. Your collision coverage would pay to repair damages to your vehicle in cases like these.

What happens if you get caught driving without insurance in Michigan?

You could face a misdemeanor charge of up to $500 in fines and one year of jail time if you get caught driving without insurance in Michigan. A judge could also suspend your license for up to 30 days. Your vehicle registration may be suspended unless you provide proof of insurance.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. Insurance Information Institute. “No-Fault Auto Insurance Reform in Michigan: An Initial Assessment.” Accessed June 29, 2023.
2. Insurance Research Council. “One in Eight Drivers Uninsured.” Accessed June 29, 2023.
3. Michigan Department of Insurance and Financial Services. “Michigan’s New Auto Insurance Law: Frequently Asked Questions.” Accessed June 29, 2023.
4. Michigan Legislature. “MICHIGAN VEHICLE CODE (EXCERPT) Act 300 of 1949.” Accessed June 30, 2023.
5. Michigan State Police. “Teen Drivers.” Accessed June 29, 2023.
6. National Association of Insurance Commissioners. “2019/2020 Auto Insurance Database Report.” Accessed June 29, 2023.