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

Quick Facts

• Looking at the national averages for car insurance, State Farm offers significantly cheaper rates than Michigan
• State Farm offers less expensive average prices for policyholders who live in suburban areas
• State Farm offers more affordable rates for people who are single and purchasing insurance by yourself

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

Are you considering a new insurance policy? You've probably seen commercials and billboards from companies offering huge discounts, but exactly how much money can you save by switching?

You might be considering Michigan or State Farm for your next policy, but which company will offer you cheaper prices?

As you can see, State Farm is quite a bit cheaper than Michigan, with premiums averaging $158 per month compared to $480 with Michigan when looking at the national average rates for car insurance.

Even so, State Farm may not be the cheapest or best option for every driver out there. Auto insurance companies use a ton of complex algorithms to calculate rates, so depending on how old you are or where you live (among lots of other factors), you could see wildly different premiums from the ones above.

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

Michigan or State Farm: Average Car Insurance Rates by State

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There's a lot more that goes into your car insurance payment than just where you live. Keep reading to find out more.

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. That's because young, inexperienced drivers are statistically much more likely to get into an accident that results in an auto insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high rates, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of more than $500 less a month by choosing State Farm over Michigan.

That being said, with both carriers, you'll see your premiums lower significantly once you turn 25. For example, average prices for Michigan policyholders reduce over 70% and State Farm's rates drop nearly 60% 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 premiums out there.

So, which company offers the best prices to retired drivers? State Farm gets the edge, with rates for drivers 65 and older $215 more affordable than the national average for Michigan.

Which is the Best Company for Married Drivers?

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

When it comes to relationship status, State Farm is the clear winner for those who are single, with prices about $400 per month less expensive than Michigan, on average. The advantage for married policyholders with State Farm is also obvious, where drivers save almost 65% a month.

Michigan vs. State Farm: Average Rates by Gender

Men are statistically more likely than women to get into accidents and file an insurance claim, which means they'll normally end up paying more for auto insurance than women.

With Michigan, both genders end up paying the same monthly premium, and around $12 less with State Farm.

Looking at the data for each carrier specifically, State Farm comes out on top for both men and women, with average premiums 66% less for men and 68% cheaper for women.

Michigan or State Farm: 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.

Insurance can be a complicated subject for most people. There are so many different terms and coverages that it can make it pretty confusing to find the right policy.

But most policies that many drivers look at fall into two categories -- liability only (that covers bodily injury and property damage for other drivers if you cause an accident) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to liability coverage).

If you're looking for state minimum liability insurance, State Farm usually offers significantly cheaper prices of $99 compared to Michigan's $312. When it comes to full coverage policies with similar limits, State Farm again has the edge, with policies about $450 per month more affordable than Michigan, on average.

Is Michigan or State Farm Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from auto insurance companies 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 tickets and at-fault collisions on your record, but which of these two carriers offers the most affordable premiums to drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Michigan policyholders can expect their prices to go up an average of $205 a month if they get a ticket, while State Farm typically raises rates around $21 per month, on average.

However, State Farm tends to offer the best prices for drivers both with clean records and with a speeding ticket, offering premiums that are $147 and $331 less expensive, respectively, compared to Michigan Insurance Company.

Which Company is Best for Drivers After an Accident?

Both companies will increase prices pretty significantly if you get into an at-fault accident with Michigan increasing by $150. State Farm has a less extreme raise, but you can still expect to pay just under $30 more than you were prior to your first collision.

Overall, the cheaper rates come from State Farm, with monthly premiums averaging $163 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 insurance bill. Michigan drivers usually see a 61% increase in their car insurance rates after a DUI charge, while State Farm will generally climb prices by about 25%.

How does Credit Score Impact Michigan and State Farm Rates?

Often times, your credit score can be used as one of the factors to determine your monthly auto insurance rates. Certain states and carriers do not allow for credit score to be used as a rating factor, but it does affect many drivers out there.

Insurance companies argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

So, which company offers the best prices for drivers with poor, average, or good credit?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Michigan or State Farm 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 car insurance bill. Usually, those who drive less will end up with more affordable premiums since there's less of a chance of getting into a collision and causing an insurance claim.

State Farm tends to be the less expensive option for both drivers who put 6,000 miles on their vehicles annually, as well as those who average twice that figure. Michigan's average rates for drivers with 6,000 annual miles come in around 67% more expensive than State Farm. Those who drive 12,000 miles yearly can expect to pay about 68% more with Michigan over State Farm.

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

Where you park your car can play a sizable role in how much you pay for auto insurance. Typically, if you live in a rural area with fewer cars on the road, you'll pay a little less for insurance, while the opposite is true for people in urban areas.

When comparing these two carriers side-by-side, State Farm normally comes out as the cheapest option for drivers in every type of area, no matter if it's urban, suburban, or rural.

Policyholders in rural ZIP codes see the lowest premiums from both companies, but State Farm comes out on top with average prices around $127 monthly. State Farm also has more affordable average premiums for drivers in urban and suburban ZIP codes -- a $308 and $327 a month respective difference when compared to Michigan policyholders in similar areas.

Michigan vs. State Farm Discounts

Regardless of why you might be in the market for a new car 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 auto insurance discounts as you can.

But where do you even start? With what seems like a million different discounts out there, it may be hard to find all the ones you're eligible for.

In the table below, we've taken a look at all of the different discounts Michigan and State Farm offer their customers so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

State Farm knocks Michigan out of the park when it comes to the sheer number of discounts available, offering 23 different discounts to Michigan's 23.

Both carriers offer many of the same discounts -- like discounts for being a defensive driver, discounts for being a good driver, and passive restraint discounts -- but State Farm also offers annual mileage discounts, distant student discounts, drive safe & save discounts, and more that Michigan does not.

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

Final Thoughts: Is Michigan or State Farm Best for You?

So, we've broken down the average rates for many of the variables car insurance companies look at, and we've shown you all the discounts each carrier offers. That's all well and good, but when it comes down to it, which company is the best carrier for you and your specific needs?

State Farm might be best for you if....

• You have a clean record.
• Your credit is less-than-stellar.
• You are purchasing your insurance with a spouse.

Michigan might be best for you if...

• You have a more unique driver profile than those we mentioned above.

We hope this guide helps you get a good idea of the differences between Michigan and State Farm and that it aids in making a more informed decision about 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 multiple carriers, not just Michigan and State Farm. Luckily, sites like Compare.com make it easy for you to do just that. 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.

Michigan vs. State Farm FAQs

Is Michigan or State Farm cheaper?

Looking just at the national average prices, State Farm is the less expensive of the two carriers, offering average rates of $158 per month compared to $480 for Michigan. Even so, State Farm won't necessarily be the most affordable carrier for each driver, since there are lots of different factors (things like driving record, age, gender, etc.) that play a role in how much you pay.

Who is better, Michigan or State Farm?

Unfortunately, the only answer we can give you is "it depends.". No single company is "better" for every driver -- it all depends on the makeup of your unique car insurance profile.

Why do Michigan and State Farm offer me different rates?

Auto insurance companies take a look at a lot of different variables when calculating the rates they charge drivers. Factors such as where you call home, where you live, age, gender, and sometimes even things like your credit score can all be taken into consideration. Both Michigan and State Farm use different formulas, so each one will most likely offer different premiums. 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 Michigan or State Farm 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 makes it easy for you to do just that. Just enter your ZIP code and you'll get free quotes from dozens of the best auto insurance carriers in your area. That way, you can guarantee you're getting the best rate. And who knows, the best carrier for you might not be Michigan or State Farm 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.