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

Quick Facts

• Based on national averages for insurance, GEICO offers significantly cheaper premiums than Michigan
• GEICO tends to be a much less expensive option for drivers with a DUI charge on their record
• Michigan offers more affordable prices for residents in Michigan

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

Are you considering a new insurance policy? With so many ads from all sorts of companies offering large discounts, you're probably wondering exactly how much you might be able to save.

You've maybe even narrowed your search down to GEICO or Michigan as your top options, but which one has more affordable rates for car insurance?

Looking at the national average rates for both companies, GEICO has average rates that are about 60% per month less expensive than those from Michigan.

That being said, that doesn't mean GEICO will necessarily be more affordable than Michigan for every driver. Insurance carriers vary their prices depending on things like how old you are, how clean your driving record is, how good your credit score is, where you live, and a variety of other factors, so premiums will vary quite a bit from person to person.

So, if you want to find out which of GEICO or Michigan is really the best for you, keep reading to see average rates for each carrier broken down by lots of different rate factors.

GEICO or Michigan: Average Car Insurance Rates by State

GEICO and Michigan only compete against each other in Michigan, where GEICO offers the cheaper average premiums. For Michigan residents, GEICO offers auto insurance for $377 monthly on average. Michigan's average prices come out to be over 20% more expensive, at $480 per month.

But there's more to calculating car insurance rates than just where you call home. Continue reading to see how other factors will affect your rates.

Which is the Best Company For Young Drivers?

Teen drivers will almost always have the most expensive auto insurance prices of any other group of drivers. Normally, that's because young, inexperienced drivers are statistically much more likely to cause collisions and other accidents that will result in an insurance claim.

But still, even with seemingly sky-high premiums, teen drivers can still find ways to save money. As you can see above, teens who use GEICO save more than $500 a month compared to those who use Michigan. It's worth noting that GEICO offers insurance in 50 different states compared to Michigan's one, which can skew the average prices a bit, but the difference here is still considerable.

But both companies will drop premiums by the time drivers turn 25. Michigan offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. That being said, GEICO still has the most affordable rates at $163 a month.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll typically enjoy the cheapest car insurance prices you can find. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for insurance.

So, which company offers the best premiums to retired drivers? GEICO gets the edge, with prices for drivers 65 and older nearly 55% cheaper than the national average for Michigan.

Which is the Best Company for Married Drivers?

Did you know that auto insurance rates are generally more expensive for single drivers than they are for married drivers? This usually boils down to married couples having more than one car on their policy -- something several insurance carriers will reward with discounts.

When it comes to relationship status, GEICO is the clear winner for those who are single, with premiums around $375 per month less expensive than Michigan, on average. The advantage for married policyholders with GEICO is also obvious, where drivers save almost $200 a month.

GEICO vs. Michigan: Average Rates by Gender

Men are statistically more likely than women to get into an accident or get pulled over for speeding, which means they'll usually end up paying more for auto insurance than women.

With GEICO, women normally pay about $10 per month less than men; everyone gets the same monthly prices regardless of gender with Michigan.

Looking at overall affordability, GEICO comes out as the lowest option for both genders, with average rates $291 less for men and $299 cheaper for women.

GEICO 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 car insurance can be pretty complicated. Everyone needs insurance, but there are so many different terms and limits that it can be hard to find the right policy.

However, most policies end up falling into two different types of coverage -- liability only (that covers bodily injury and property damage for other drivers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability).

If you're looking for state minimum liability limits, GEICO typically offers significantly cheaper premiums of $101 compared to Michigan's $312. When it comes to full coverage policies with similar limits, GEICO again has the edge, with policies around $400 a month more affordable than Michigan, on average.

Is GEICO or Michigan Better for Drivers with Spotty Records?

It's no big secret that drivers who are accident-free get better deals on their car insurance. But even if you have a spotty record, you can still find plenty of ways to save some cash on your monthly bill.

You'll probably end up paying more with accidents 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?

GEICO policyholders can expect their rates to go up an average of $35 per month if they get a ticket, while Michigan usually raises premiums about $205 a month, on average.

Even so, GEICO has less expensive rates for drivers in both categories, offering prices that are 59% and 69% cheaper, respectively, compared to Michigan Insurance Company.

Which Company is Best for Drivers After an Accident?

GEICO drivers who get in an accident can expect to see their premiums increase by just under 45%, while those who have insurance through Michigan will see around a 35% increase.

Overall, GEICO offers the cheapest rates for drivers with an at-fault accident on their records, with monthly prices averaging $200 compared to Michigan Insurance Company's $431.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge, you can expect some pretty significant increases in your monthly auto insurance bill -- generally a lot more than a collision or speeding ticket. On average, Michigan will climb your premiums about 61% after a DUI, while GEICO's average rates rise by just under 60%.

GEICO has the overall lowest premiums for drivers with a DUI on their records at $275 monthly, but it's worth noting that GEICO's average rates come from 50 states compared to just one for Michigan, so the data may be skewed slightly.

How does Credit Score Impact GEICO and Michigan Rates?

Did you know that many insurance carriers take your credit score into account when calculating prices? Certain states and companies do not allow for credit score to be used as a rating factor, but it might come into play for lots of policyholders.

Car insurance carriers argue that someone with good credit is more likely to pay their bills on time, which makes them less risky to insure. Because of that, drivers with good credit will often be rewarded with more affordable rates.

So, which carrier offers the best prices for policyholders with good, average, or poor credit?

Which Company is Best for Drivers with Good Credit?

Michigan is one of a handful of states that does not allow auto insurance companies from using credit scores to calculate premiums. And since Michigan is only available in Michigan, there is no data available on how credit score impacts rates because it's not a factor at all. This may be a good thing, since GEICO and other carriers tend to increase premiums 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 less-than-stellar 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 GEICO drivers in other states, but no need to worry if you live in Michigan.

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

How much you drive can have a sizable impact on your monthly prices. Typically, the more miles you drive, the more you can expect to pay for coverage.

GEICO tends to be the less expensive option for both drivers who put 6,000 miles on their vehicles yearly, as well as those who average twice that figure. GEICO's average rates for drivers with 6,000 annual miles come in around $270 cheaper than Michigan. Those who drive 12,000 miles annually can expect to pay about $321 less with GEICO over Michigan.

GEICO 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. Generally, if you live in an urban area with more cars on the road, you'll pay a little more for auto insurance, while the opposite is true for people in rural areas.

GEICO tends to offer the most affordable prices for drivers in every type of area, no matter if it's urban, suburban, or rural.

Drivers in rural ZIP codes see the cheapest premiums from both companies, but GEICO comes out on top with average prices around $159 per month. GEICO also has more affordable average premiums for policyholders in urban and suburban ZIP codes -- a $282 and $303 per month respective difference when compared to Michigan drivers in similar areas.

GEICO vs. Michigan Discounts

You want to save as much money as possible, right? The best way to do that is by utilizing as many insurance discounts as you can.

But where do you even start? With what seems like a million different discounts out there, it may be challenging to find all the ones you can take advantage of.

In the section below, we've taken a look at all of the different discounts GEICO and Michigan offer their customers so that you can find the company that has the most discounts and, therefore, the biggest savings.

GEICO blows Michigan away when it comes to the sheer amount of discounts available, offering 28 different discounts to Michigan's 17.

A couple of those are overlapping for things like anti-theft discounts, discounts for being a defensive driver, discounts for being a good driver, and paid in full discounts. GEICO also offers commercial drivers license discounts, deployed driver discounts, distant student discounts, and more that Michigan does not.

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

Final Thoughts: Is GEICO or Michigan Best for You?

So, you've seen how different variables can affect your car insurance rates. We've shown you all the discounts each company offers, too. But, when it comes down to it, which carrier is the right carrier for you and your specific profile and needs?

GEICO might be best for you if....

• You have a speeding ticket on your driving record.
• You want basic auto insurance coverage at the state minimum limits.
• You live in an suburban area.

Michigan might be best for you if...

• You live in one of the following states: Michigan.

We hope this guide has ben a valuable resource as you compare GEICO and Michigan. We also hope we've given you the information you need to make the best 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 insurance policy is to compare quotes from several carriers, not just GEICO and Michigan. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get multiple free quotes from some of the best auto insurance companies in your area, all in just a few minutes.

GEICO vs. Michigan FAQs

Is GEICO or Michigan cheaper?

Looking just at the national average prices, GEICO is the less expensive of the two carriers, offering average rates of $185 a month compared to $480 for Michigan. That being said, GEICO won't necessarily be the lowest company for everyone, since there are a variety of different factors (things like age, gender, driving record, etc.) that play a role in how much you pay.

Who is better, GEICO or Michigan?

Unfortunately, the answer truly is "it depends.". Neither carrier is "better" for each driver -- it all boils down to your unique car insurance profile.

Why do GEICO and Michigan offer me different rates?

Insurance companies take a look at quite a few different variables when determining the rates they charge policyholders. Things like gender, age, where you live, your driving record, and sometimes even things like your credit score can all come into play. Both GEICO and Michigan use different formulas, so each one will most likely offer different premiums. The only real way to see which company is the cheapest for you is by comparing personalized quotes from multiple different carriers.

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

The only way to find the auto insurance carrier that's right for you is by getting quotes from multiple companies 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 carriers in your area. That way, you can guarantee you're getting the best rate. And who knows, the best company for you might not be GEICO 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.