Encompass vs. Michigan: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for car insurance, Encompass offers slightly more affordable premiums than Michigan
• Encompass offers more affordable prices for people who are single and purchasing auto insurance by yourself
• Michigan has less expensive premiums for residents of urban areas

Encompass vs. Michigan: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? After all, you've seen ads from all sorts of companies offering big discounts. But exactly how much can you save by switching?

You might be considering Encompass or Michigan as potential options, but between the two, which company will offer you cheaper prices?

Looking at nationwide averages, Encompass is about $14 per month less expensive than Michigan.

However, that doesn't necessarily mean Encompass will be the cheaper option for every single driver. After all, insurance companies can offer drastically different rates to each driver depending on rating factors like your age, your driving record, your credit score, or even where you call home (among other things). So, at the end of the day, rates from every company will differ quite a bit from person to person.

Wanting to know if Encompass or Michigan is really the right carrier for you? Keep on reading to see how average prices can change based on all of the factors we've mentioned above.

Encompass or Michigan: Average Car Insurance Rates by State

Encompass and Michigan only compete against each other in Michigan, where Michigan offers the cheaper average rates. For Michigan residents, Michigan offers car insurance for $480 per month on average. Encompass's average premiums come out to be more expensive, at $490 a month.

That being said, there are plenty of other factors that go into your insurance cost than just where you live. Keep reading to find out more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- generally pay a lot for car insurance compared to older drivers. It's usually because young, inexperienced drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

But that doesn't mean that teen drivers have to just accept sky-high auto insurance prices. Just look at the table above -- where 18-year-old drivers who have Encompass for their insurance pay more than $150 less than those who use Michigan. It's worth noting that Encompass offers auto insurance in 31 different states compared to Michigan's one, which can skew the average premiums a bit, but the difference here is still considerable.

Even so, both carriers will lower rates by the time you turn 25. For example, average premiums for Encompass policyholders drop over $500 and Michigan's prices reduce around $500 over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the most affordable car insurance rates you'll ever see. After all, they've likely been driving for quite some time, which typically reduces their chances of accidents and other infractions that can increase prices.

But who has the best rates for retired drivers between Encompass and Michigan? Michigan gets the slight edge here, with average premiums coming in at about $326 monthly compared to Encompass's $335. That being said, the difference is only around 5%, so other factors will likely come into play when determining which company has the cheapest prices for you.

Which is the Best Company for Married Drivers?

Single policyholders tend to get offered slightly more expensive insurance premiums than married couples. This usually boils down to married drivers having more than one car on their policy -- something lots of car insurance companies will reward with discounts.

If you're in the market for auto insurance, Encompass tends to have the lowest average rates regardless of if you're married or single, with prices about $20 more affordable for married policyholders and more than $10 less expensive for single drivers.

Encompass vs. Michigan: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to car insurance men will normally end up paying a little more.

On average, women see prices around 5% a month less with Encompass; women and men end up paying same monthly rates with Michigan.

Looking at the data for each carrier specifically, Encompass comes out as the cheapest option for both genders. On average, male drivers save about $3 per month and women save about $26 with Encompass compared to the average Michigan policyholder.

Encompass 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.

For most people, insurance can be pretty complicated. There are so many different limits and coverages that it can make it pretty confusing to find the right policy.

However, most policies end up falling into two different types of coverage -- liability only (which covers the other party's injuries and property damage if you cause an accident) and full coverage (which includes two additional coverages -- comprehensive and collision -- in addition to what you get with a liability policy).

If you're looking for state minimum liability insurance, Encompass usually offers slightly more affordable premiums of $302 compared to Michigan's $312. When it comes to full coverage policies with similar limits, Encompass again has the edge, with policies around $20 a month cheaper than Michigan, on average.

Is Encompass or Michigan Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance carriers offering great rates 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 collisions and tickets on your record, but which of these two companies offers the most affordable prices to drivers with less-than-perfect records?

Which Company is Best for Drivers with Speeding Tickets?

Encompass policyholders can expect their premiums to go up an average of $61 per month if they get a ticket, while Michigan generally raises prices about $205 a month, on average.

Even so, Encompass has less expensive premiums for drivers in both categories, offering rates that are 19% and 41% cheaper, respectively, compared to Michigan Insurance Company.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their insurance through Encompass can expect to see around an $101 -- or about 31% -- increase in their auto insurance premiums. Drivers who use Michigan for their car insurance will see a monthly bill around $150 (or 35%) more expensive after reporting a collision to their auto insurance company.

Overall, Encompass offers the cheapest prices for drivers with an at-fault accident on their records, with monthly rates averaging $328 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 collision or speeding ticket when it comes to your insurance bill. For example, Encompass increases average premiums by over $500 per month -- that's just under a 80% increase.

Michigan has the overall lowest rates for drivers with a DUI on their records at $723 a month, but it's worth noting that Encompass's average rates come from 31 states compared to just one for Michigan, so the data may be skewed slightly.

How does Credit Score Impact Encompass and Michigan Rates?

Did you know that many car insurance carriers take your credit score into account when calculating prices? This isn't always the case (for example, are two states that ban the practice entirely), but it might come into play for a lot of drivers.

The reasoning auto insurance companies use is that policyholders with good credit will be more likely to pay their bills on time; so they'll reward them with cheaper rates, while those with poor credit will typically be forced to pay more.

Looking at Encompass and Michigan specifically, which carrier has the most affordable premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Michigan is one of a just a few states that bans car 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 Encompass and other companies tend to raise prices 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 insurance. As you can see, poor credit can really cost Encompass drivers in other states, but no need to worry if you live in Michigan.

Is Encompass or Michigan Better for Drivers who Work from Home or Have Short Commutes?

Did you know that the amount of time you spend in your car have a sizable impact on your monthly rates? That's because the fewer miles you put on your vehicle, the less likely you are to get into an accident and cause an insurance claim.

Looking specifically at Encompass and Michigan, Michigan is the more affordable option for people who work from home, while Michigan has better prices for those with short commutes. Michigan's average rates for drivers with 6,000 annual miles come in 3% cheaper than Encompass. Those who drive 12,000 miles yearly can expect to pay nearly 10% less with Encompass over Michigan.

Encompass vs. Michigan: Compare Rates for Urban, Suburban, and Rural Drivers

We've already mentioned how your home state can play a role in how much you pay for car insurance, but the type of area you live in can have a large impact as well. Normally, policyholders who live in less densely populated rural areas will pay quite a bit less than urban drivers because there are a lot fewer cars on the road in those areas, which lowers the chances of an accident.

Looking at these carriers side-by-side, Encompass tends to offer the most affordable option for drivers in rural and suburban areas, while Michigan wins in urban areas.

In urban areas, Michigan's average prices are about $493 a month compared to Encompass's $560. Drivers in suburban ZIP codes pay a monthly price of around $434 with Encompass compared to $488 with Michigan. Those in rural areas can expect to pay about $404 monthly with Encompass and $460 with Michigan.

Encompass 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 insurance discounts as you can.

The challenging part is finding all of the discounts you qualify for, since it can feel sometimes like every company has different discounts and each one is advertised differently.

In the table below, we've compared all of the different discounts offered by Encompass and Michigan so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

Encompass blows Michigan away when it comes to the sheer amount of discounts available, offering 26 different discounts to Michigan's 17.

There are a couple discounts both companies offer, but Encompass also offers distant student discounts, driver training discounts, DRL discounts, and more that Michigan does not.

On the flip side, Michigan has a couple unique discounts of its own -- COVID-19 relief discount, family car discounts, family discounts, and more.

Final Thoughts: Is Encompass or Michigan Best for You?

You've seen the effect certain variables have on your auto insurance and the different discounts carriers offer. But, at the end of the day, which carrier is the best one for you and your specific needs?

Encompass might be best for you if....

• You're single and purchasing insurance by yourself.
• You have an at-fault accident on your record.
• You're buying car insurance for a teen and looking for a wallet-friendly option.

Michigan might be best for you if...

• You like the personalized touch of a small, local company.
• Your credit score is high.
• You are over 65 years old and want to save some money on your insurance.

We hope this guide helps you get a good idea of the differences between Encompass and Michigan and that you can now make a more informed decision when it comes to your car 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 several companies, not just Encompass and Michigan. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

Encompass vs. Michigan FAQs

Is Encompass or Michigan cheaper?

Looking just at the national average premiums, Encompass is the less expensive of the two companies, offering average rates of $466 per month compared to $480 for Michigan. But Encompass won't necessarily be the cheapest carrier for everyone, since there are lots of different factors that come into play when it comes to your auto insurance payment.

Who is better, Encompass or Michigan?

Unfortunately, the answer truly is "it depends.". No single company is "better" for each driver -- it all boils down to your unique car insurance profile. For example, Encompass offers more affordable rates for single policyholders, while Michigan is less expensive for drivers who have already retired.

Why do Encompass and Michigan offer me different rates?

Auto insurance carriers take a look at several different variables when determining the premiums they charge drivers. Factors like gender, your driving record, age, where you park your vehicle, and sometimes even things like your credit score can all come into play. Both Encompass and Michigan use different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the most affordable for you is by comparing personalized quotes from many different companies.

How do I know if Encompass or Michigan is right for me?

The only way to find the insurance company that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, Compare.com does all the hard work for you. Just enter your area information and you'll get free quotes from dozens of the best car insurance companies 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 Encompass 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.