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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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John Leach is a licensed insurance agent who reviews and fact-checks articles for Compare.com. John has several years of experience reviewing and editing various insurance topics, and he also holds a valid personal lines producer license from the California Department of Insurance (NPN #20461358).
He’s also an alumnus of the University of California, Santa Barbara, where he earned a bachelor’s degree in linguistics.
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Ann Arbor drivers pay an average of $206 per month for car insurance, according to our data. Rates in Ann Arbor can be a bit higher than average because Michigan’s no-fault insurance system can push up premiums, and the city’s college-town traffic means more accidents and claims.
Even with these higher prices, many insurance companies offer rates well below the citywide average. We found that Auto-Owners, USAA, and Chubb stand out for their affordable options, with Auto-Owners offering the cheapest average liability rate.
In this guide, we’ll tell you the cheapest insurers for different drivers in Ann Arbor, how to pick the right company, and tips to help you save money.
Auto-Owners offers the lowest monthly rate in Ann Arbor, at $55.
Average liability-only coverage in Ann Arbor costs $148 per month, while full coverage averages $263.
Michigan law requires drivers to have liability, personal injury protection, and property protection insurance.
Even though auto insurance rates in Ann Arbor can be high, you still have plenty of ways to save. Many insurance companies offer prices well below the city average.
The table below highlights the cheapest insurers in Ann Arbor, based on Compare.com data.
Company  | Average Monthly Premium |
|---|---|
| Auto-Owners | $55 |
| USAA | $56 |
| Chubb | $60 |
| GEICO | $84 |
| Safeco | $94 |
| Nationwide | $113 |
| State Farm | $115 |
| Progressive | $117 |
| Travelers | $132 |
| Direct Auto | $133 |
| Bristol West | $160 |
Auto-Owners offers the lowest liability rate in the city, at $55 per month.
Next, let’s take a look at the cheapest companies for different drivers and coverage types.
The companies above are a great starting point, but your rates can vary depending on factors like your age, driving history, credit, and even your address. Comparing quotes from companies that specialize in drivers like you can help you find the lowest price.
Check out the table below for the cheapest companies for a variety of driver backgrounds and coverage options, according to our data.
Driver/Coverage Type | Cheapest Insurer | Insurer’s Average Monthly Premium |
|---|---|---|
| State-minimum coverage | Auto-Owners | $55 |
| Full coverage | Auto-Owners | $98 |
| Teens | Auto-Owners | $89 |
| Seniors | Auto-Owners | $43 |
| Drivers with a speeding ticket | Auto-Owners | $65 |
| Drivers with an at-fault accident | Auto-Owners | $74 |
| Drivers with a DUI | Auto-Owners | $85 |
| Drivers with excellent credit | Auto-Owners | $43 |
| Drivers with poor credit | USAA | $65 |
Let’s break down the rates for each driver and coverage type below.
Policies in Ann Arbor start as low as $55 per month.
Ann Arbor drivers pay an average of $148 per month for minimum-coverage car insurance, based on Compare.com data.
But most insurance experts recommend buying more coverage than Michigan requires because liability-only insurance often isn’t enough to cover the costs of major accidents or lawsuits.[1]
But if you need the most affordable policy that meets Michigan’s requirements, the chart below highlights the five cheapest companies, according to our research.
Most drivers can benefit from full-coverage car insurance because it includes more financial protection. In addition to the state’s minimum requirements, full-coverage policies typically include collision and comprehensive insurance.
Collision coverage helps pay for damage to your vehicle from an accident, regardless of fault. Comprehensive pays for damages from things like vandalism or severe weather. If you lease or finance your car, your lender or leasing company usually requires you to buy full coverage.[2]
Drivers in Ann Arbor pay an average of $263 per month for full-coverage car insurance. But some insurers offer full coverage for close to the price of liability-only policies.
Below, you’ll see the five cheapest insurers for full coverage in Ann Arbor, according to Compare.com data.
Teen drivers pay some of the highest car insurance rates of any age group. After all, they have less driving experience and are more likely to get into accidents.[3] Our data shows that nationwide, the average teen pays almost double what someone 20 or older pays.
Teen drivers in Ann Arbor pay an average of $315 per month for car insurance. Even so, you can still find a good deal by shopping around.
The chart below shows the five cheapest insurers for teens in Ann Arbor, according to Compare.com data.
Seniors usually enjoy the lowest car insurance rates of any age group. More years behind the wheel and safer driving habits help keep rates down for older drivers.[4]
In Ann Arbor, seniors pay an average of $168 per month for auto coverage, according to Compare.com data. That said, you might find an even better deal from one of the companies listed below.
Getting a speeding ticket or other moving violation can raise your rates when your policy renews. Insurers consider you riskier to insure after a ticket and charge more to offset that risk.[5] Our research shows that even a single speeding ticket causes average rates to go up by 28% nationwide.
Ann Arbor drivers with a recent ticket pay an average of $227 per month for car insurance, according to our data. Still, you may find lower rates with one of the insurers below.
Causing an accident can lead to a jump in your car insurance rates. At-fault accidents signal to insurers that you’re more likely to file a claim in the future. Our analysis shows that a single at-fault accident causes average rates to increase by 33% nationwide.
Drivers in Ann Arbor with a recent accident pay an average of $295 per month for auto coverage, according to our data. But you can often find a better deal with one of the five insurers highlighted in the chart below.
A driving under the influence (DUI) conviction causes the sharpest rate increase of any incident. Our research shows average rates go up by 59% nationwide after a DUI. Getting a DUI can also make it harder to find coverage at all.[6] But some insurers specialize in high-risk drivers, even people with DUIs.
In Ann Arbor, drivers with a DUI conviction pay an average of $332 per month for car insurance. But you’re not necessarily stuck with sky-high rates.
The chart below lists the five cheapest insurers for Ann Arbor drivers with a DUI conviction, according to our data.
Some insurance companies look at your credit history when setting your rates. They use a credit-based insurance score to predict your likelihood of paying your bill or filing claims.[7]
Fortunately, Michigan restricts insurers from using your credit to deny you coverage or cancel your policy, but it can still lead to higher-than-expected rates.[8] Our analysis revealed that drivers with poor credit pay about 40% more than those with excellent credit.
Ann Arbor drivers with poor credit pay a monthly average of $235 for auto insurance. But not all companies use credit, and some still offer great rates regardless of your credit history.
Here are Ann Arbor’s five cheapest insurers for drivers with bad credit, according to Compare.com data.
Compare personalized quotes from Ann Arbor’s top insurers.
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Michigan, like nearly every state, requires all drivers to buy car insurance. Here are the minimum requirements you need to legally drive in the state:[9]
Bodily injury liability: $250,000 per person and $500,000 per accident
Property damage liability: $10,000 per accident
Property protection insurance (PPI): $1 million
Most experts recommend buying more coverage than Michigan’s minimum limits. State minimums often won’t cover all expenses after a serious accident, and you’d need to pay out of pocket if damages go beyond your policy’s limits.
Plus, if you finance or lease your car, your lender typically requires you to have comprehensive and collision coverage.
We answered some of Ann Arbor drivers’ most common questions about car insurance. Check them out below.
Ann Arbor drivers pay a monthly average of $148 for liability-only insurance and $263 for full coverage, according to Compare.com data.
Yes. Car insurance in Ann Arbor tends to be a bit higher than the national average. Ann Arbor drivers pay an average of $206 per month for car insurance, according to Compare.com data. That’s compared to the national average of $150 per month. But how much you pay for insurance depends on factors like your address, driving history, and age.[10]
Auto-Owners offers the cheapest liability policies in Ann Arbor, with average rates as low as $55 per month, based on Compare.com data.
Our editorial team created this article with the help of highly trained generative AI tools. Additionally, multiple insurance experts - including at least one licensed agent - have rigorously reviewed, fact-checked, and edited every word and data point you see here.
We write, edit, and review all the content on Compare.com according to our strict editorial standards, regardless of how we created it. Learn more about our editorial process.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 the rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.
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