Auto-owners vs. Michigan: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for car insurance, Auto-owners offers significantly cheaper prices than Michigan
• Auto-owners tends to be a much less expensive option for people who are single and purchasing auto insurance by yourself
• Michigan offers more affordable rates for residents in Michigan

Auto-owners vs. Michigan: Which Company has the Cheapest Car Insurance?

So, you're thinking about switching your auto insurance. After all, you've seen ads from all sorts of companies offering hefty discounts. But exactly how much can you save by switching?

You might have narrowed it down to Auto-owners or Michigan for your next policy, but which carrier has more affordable prices for insurance?

Looking at the national average rates for both companies, Auto-owners has average rates that are about 65% per month less expensive than those from Michigan.

But that doesn't necessarily mean Auto-owners will be the cheaper option for each driver. Car insurance carriers use a ton of complex algorithms to calculate premiums, so depending on how good your credit score is or how old you are (among a bunch of other factors), you could see wildly different rates from the ones above.

Luckily, we've broken down average premiums from both Auto-owners and Michigan by several different rate factors, so read on to find out which company is the best for you.

Auto-owners or Michigan: Average Car Insurance Rates by State

Auto-owners and Michigan only compete against each other in Michigan, where Auto-owners offers the cheaper average rates. For Michigan residents, Auto-owners offers auto insurance for $244 a month on average. Michigan's average prices come out to be over 70% more expensive, at $480 monthly.

There are plenty of other factors that go into your car insurance payment than just your home state. Continue reading to learn more about how other factors will affect your rates.

Which is the Best Company For Young Drivers?

You might already know that teen drivers typically pay a lot more for auto insurance than any other group of drivers out there on the road. That's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

That being said, that doesn't mean that teen drivers have to just accept sky-high insurance premiums. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing Auto-owners over Michigan. It's worth noting that Auto-owners offers car insurance in 23 different states compared to Michigan's one, which can skew the average rates a bit, but the difference here is still considerable.

Even so, with both companies, you'll see your prices decrease significantly by the time drivers turn 25. For example, average premiums for Auto-owners policyholders drop nearly 60% and Michigan's prices reduce over 70% over that time.

Which is the Best Company for Retired Drivers?

When it comes to insurance, patience and experience pay off, with drivers around retirement age paying some of the lowest rates out there.

So, which carrier offers the best prices to retired drivers? Auto-owners gets the edge, with rates for drivers 65 and older $193 less expensive than the national average for Michigan.

Which is the Best Company for Married Drivers?

You may not be aware, but auto insurance premiums tend to be cheaper for married couples than they are for single drivers. That's generally because married policyholders tend to own and insure several cars, which can often earn you a discount.

When it comes to relationship status, Auto-owners is the clear winner for those who are single, with prices around $372 per month more affordable than Michigan, on average. The advantage is also clear for married drivers - Auto-owners offers the most affordable average rates.

Auto-owners vs. Michigan: Average Rates by Gender

Women usually to pay less for car insurance than men. This is because men are statistically more likely than women to get speeding tickets and get into collisions, which leads to increased risk for insurers and, therefore, higher premiums.

Typically, men see rates about 6% a month higher with Auto-owners; men and women get the same monthly premiums with Michigan.

Looking at overall affordability, Auto-owners comes out on top for both men and women, with average prices $295 less for men and $306 cheaper for women.

Auto-owners or Michigan: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

It's no secret that auto insurance can be pretty complicated. Everyone needs insurance, but there are so many different coverages and limits that it can be hard to find the right policy.

However, the most common policies that many drivers look at fall into two categories -- liability only (that covers property damage and bodily injury for other drivers if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with liability coverage).

If you're looking for state minimum limits for liability insurance, Auto-owners normally offers significantly less expensive rates of $99 compared to Michigan's $312. When it comes to full coverage policies with similar limits, Auto-owners again has the edge, with policies around $400 per month cheaper than Michigan, on average.

Is Auto-owners or Michigan Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance carriers offering great prices for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

You'll probably end up paying more with accidents and tickets on your record, but which of these two companies offers the cheapest premiums to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Auto-owners policyholders can expect their rates to go up an average of $44 a month if they get a ticket, while Michigan typically raises premiums about $205 per month, on average.

That being said, Auto-owners tends to offer the best prices for both drivers who have a recent speeding ticket and those with clean records -- their rates are around 57% more affordable for drivers with clean records and 66% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

Auto-owners drivers who get in a collision can expect to see their prices rise by just under 30%, while those who have insurance through Michigan will see around a 35% increase.

Overall, drivers who use Auto-owners end up with the cheaper prices after an accident, with monthly premiums averaging $168 compared to Michigan Insurance Company's $431.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your car insurance bill. For example, Michigan increases average rates by just under $450 a month -- that's over a 60% increase.

Auto-owners has the overall most affordable prices for drivers with a DUI on their records at $264 per month, but it's worth noting that Auto-owners's average rates come from 23 states compared to just one for Michigan, so the data may be skewed slightly.

How does Credit Score Impact Auto-owners and Michigan Rates?

Often times, your credit score can be used as one of the variables to determine your monthly insurance premiums. Certain states and carriers do not allow for credit score to be used as a rating factor, but it might come into play for a lot of policyholders.

The reasoning auto insurance companies use is that drivers with bad credit will be less likely to pay their bills on time; so generally, they'll be asked to pay more, while those with good credit will be rewarded with more affordable prices.

Looking at Auto-owners and Michigan specifically, which company has the lowest rates for policyholders at different credit levels?

Which Company is Best for Drivers with Good Credit?

Michigan is one of a small number of states that prohibits insurance carriers from using credit scores to calculate prices. And since Michigan is only available in Michigan, there is no data available on how credit score impacts premiums because it's not a factor at all. This may be a good thing, since Auto-owners and other companies tend to increase rates quite a bit in other states if you don't have excellent credit.

Which Company is Best for Drivers with Bad Credit?

If you have bad credit and live in Michigan, the good news is it won't cost you extra when it comes to car insurance. As you can see, poor credit can really cost Auto-owners drivers in other states, but no need to worry if you live in Michigan.

Is Auto-owners or Michigan Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in your monthly premiums. Normally, those who drive less will end up with less expensive rates since there's less of a chance of getting into an accident and causing an insurance claim.

For both drivers who put 6,000 miles on their vehicles each year, as well as those who average twice that figure, Auto-owners offers cheaper prices than Michigan. Michigan's average premiums for drivers with 6,000 annual miles come in more than 60% more expensive than Auto-owners. Those who drive 12,000 miles yearly can expect to pay just under 65% more with Michigan over Auto-owners.

Auto-owners vs. Michigan: Compare Rates for Urban, Suburban, and Rural Drivers

Where you live can have a big impact on your monthly insurance bill. Usually, those who live in urban areas will pay more than drivers in rural areas due to the number of vehicles that are on the roads in those areas.

When comparing these two carriers side-by-side, Auto-owners generally comes out as the lowest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

Policyholders in rural ZIP codes see the most affordable premiums from both companies, but Auto-owners comes out on top with average prices about $164 monthly. Auto-owners also has less expensive average rates for drivers in urban and suburban ZIP codes -- a 58% and 65% per month respective difference when compared to Michigan policyholders in similar areas.

Auto-owners vs. Michigan Discounts

Regardless of why you might be in the market for a new auto insurance policy, you're always going to want to save as much money as possible, and the best way to do that is by taking advantage of as many car insurance discounts as you can.

But with what seems like a million different discounts out there, it can be difficult to find all the ones you qualify for or to nail down the carrier that has the most discounts for your unique driver profile.

In the table below, we've compared all of the different discounts offered by Auto-owners and Michigan so that you can see which one offers the most discounts and see which ones you might be able to take advantage of.

Auto-owners knocks Michigan out of the park when it comes to the sheer number of discounts available, offering 24 different discounts to Michigan's 17.

Both carriers offer a lot of the same discounts -- like advance quote discounts, COVID-19 relief discount, discounts for being a defensive driver, and multi-policy discounts -- but Auto-owners also offers company car discounts, distant student discounts, driver training discounts, and more that Michigan does not.

On the flip side, Michigan has a couple unique discounts of its own -- family car discounts, family discounts, hybrid vehicle discounts, and more.

Final Thoughts: Is Auto-owners or Michigan Best for You?

You've seen the effect certain factors have on your auto insurance and the different discounts companies offer. But, when it comes down to it, is Auto-owners or Michigan the right carrier for you and your specific driver profile?

Auto-owners might be best for you if....

• You have a clean record.
• You're looking for more protection with "full coverage" car insurance.
• You live in an suburban area.

Michigan might be best for you if...

• You like the personalized touch of a small, local company.

We hope this guide helps you get a good idea of the differences between Auto-owners and Michigan. We also hope we've given you the information you need to make the best decision about your insurance.

At the end of the day, the best way to make sure you're getting the best deal on your auto insurance policy is to compare quotes from multiple carriers, not just Auto-owners and Michigan. Luckily, sites like Compare.com make it easy for you to do just that. Simply enter your ZIP codes below and get free quotes from dozens of top car insurance companies in your area, all in just a few minutes.

Auto-owners vs. Michigan FAQs

Is Auto-owners or Michigan cheaper?

Looking just at the national average prices, Auto-owners is the more affordable of the two carriers, offering average rates of $179 a month compared to $480 for Michigan. Even so, Auto-owners won't necessarily be the lowest carrier for every driver, since there are lots of different variables (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Auto-owners or Michigan?

Unfortunately, the real answer is "it depends.". No single company is necessarily "better" for each driver -- it all boils down to your unique insurance profile.

Why do Auto-owners and Michigan offer me different rates?

Auto insurance companies take a look at lots of different factors when calculating the rates they charge drivers. Variables such as where you park your car, age, where you call home, gender, and sometimes even things like your credit score can all be used. Both Auto-owners and Michigan calculate premiums differently, so each one will most likely offer different prices. The only real way to see which carrier is the cheapest for you is by comparing personalized quotes from a range of different carriers.

How do I know if Auto-owners or Michigan is right for me?

The only way to find the insurance company that's right for you is by getting quotes from several companies and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your ZIP code and you'll get free quotes from dozens of the best car insurance carriers in your area. That way, you can guarantee you're getting the best premium. And who knows, the best carrier for you might not be Auto-owners or Michigan at all!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.