6 Best Car Insurance Companies in Michigan of 2023
Michigan is a heavily populated state with busy roads, which means that it’s essential for all drivers in the Great Lakes State to have adequate car insurance to protect them.
Whether you live in a major city like Detroit Grand Rapids or one of Michigan’s many small towns such as Muskegon or Saginaw, auto insurance is required under state law.
Michigan is a no-fault state, which means that each driver must carry coverage that will protect them if they’re in an accident–regardless of who is at fault.
The changes will relieve drivers because Michigan has one of the highest average costs in the country, coming in at $2,239 per year, or nearly $200 per month.
Here are the requirements for purchasing car insurance in Michigan:
- Personal Injury Protection (PIP) insurance minimum of $250,000–there is a $50,000 minimum for Michigan residents on Medicaid.
- Bodily Injury Coverage of $250,000 per person and $500,000 per accident–here again, buying only $50,000/$100,000 of coverage is an option. Still, you will need to sign a waiver since the decision is financially risky.
While there is no requirement for uninsured/underinsured motorist coverage, we do recommend purchasing this coverage since it will provide payments for long-term care related to an accident.
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The Best Car Insurance Companies in Michigan
- Progressive: Best for Safe Drivers
- Nationwide: Best for Vanishing Deductible
- GEICO: Best for Affordable Coverage
- Travelers: Best for Customizable Coverage
- Auto-Owners: Best for Personalized Service
- USAA: Best for Military Families
Progressive: Best for Safe Drivers
Progressive Insurance is a large and stable company that has proven itself by providing affordable rates on car insurance.
We selected them for our list because of Progressive Snapshot, their safe driving program that tracks driving behavior and awards safe drivers with discounts.
We also appreciate that Progressive makes affordable coverage available even to drivers without perfect records and offers a wide array of discounts.
The average cost for full coverage car insurance in Michigan is just $1,665 per year, making Progressive one of the most affordable companies on our list.
What Car Insurance Discounts Does Progressive Offer?
Progressive has a solid choice of discounts, many of which are easy for Michigan drivers.
- Driving - Drivers can use Progressive Snapshot to track good driving behavior and safety; plus, there are discounts for teen drivers, students who maintain a good GPA, and student drivers who live more than 100 miles from home; there’s also a discount for homeowners.
- Loyalty - There are loyalty discounts in three forms: bundling, continuous coverage, and multi-vehicle coverage.
- Other - Additional discounts can be earned by getting your quote or buying your policy online, signing up to make automatic payments, or for paperless billing.
| J.D. Power (out of 1,000) | 803 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| NAIC Complaint Index | 2.24 |
Nationwide: Best for Vanishing Deductible
Nationwide is one of the most recognized and reliable insurance companies in the United States.
We understand that paying a deductible can be stressful when you file a claim, so we chose Nationwide because they offer a vanishing deductible rider that automatically reduces your deductible by $100 for each year you are claims-free, capping out at $500.
We also appreciate the superior service offered by Nationwide’s network of agents, who periodically review coverage to ensure that policyholders have the protection they need.
The average annual cost of Nationwide car insurance in Michigan is $2,560, slightly higher than the state average; most drivers can save if they qualify for discounts.
What Car Insurance Discounts Does Nationwide Offer?
Nationwide offers multiple car insurance discounts in these three categories.
- Bundling and policy. Discounts in this category include up to $646 in savings to bundle car and homeowners insurance, as well as discounts for paperless billing and signing up for autopay.
- Driving habits. Nationwide provides discounts for safe driving for 5+ years, using a SmartRide device to track driving habits, and for drivers 55 and over who complete a defensive driving course; they also offer a discount for students who maintain a B average.
- Vehicle features. You can get a discount if your car has an installed anti-theft device.
| J.D. Power (out of 1,000) | 787 |
|---|---|
| A.M. Best - Financial Strength Rating | A+ |
| BBB | A+ |
| NAIC Complaint Index | 2.37 |
GEICO: Best for Affordable Coverage
GEICO is the second-largest auto insurance company in the United States and has been in business since 1936.
We selected GEICO for this list because they have the most affordable coverage for most people in Michigan.
We also like GEICO’s long list of discounts and comprehensive full coverage, which we think offers considerable protection to drivers who buy it.
The average annual cost of full coverage insurance with GEICO in Michigan is just $1,230, putting it well below the state average.
Read a full GEICO car insurance review.
What Car Insurance Discounts Does GEICO Offer?
GEICO offers a generous number of discounts in the following categories.
- Loyalty. GEICO offers a multi-policy discount plus a multi-vehicle discount that allows policyholders to save up to 25%.
- Driving history. Drivers who have gone 5+ years without an accident can get a discount of up to 22%, plus there’s a discount for drivers who consistently use seat belts.
- Driver education. Discounts include a good student discount of as much as 15%, plus a discount for completing a Driver’s Education or defensive driving course.
- Driver affiliation. GEICO offers discounts for federal employees, military service members, first responders, and other groups who can save 10% or more.
- Vehicle safety. You can get a 15% discount for insuring a new vehicle, plus additional discounts for cars with anti-lock brakes, airbags, daytime running lights, or an installed anti-theft system.
| J.D. Power (out of 1,000) | 824 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A+ |
Travelers: Best for Customizable Coverage
Travelers has earned a spot as the second-largest property and casualty insurer in the US and has also earned a place in the Fortune 500.
We chose them for our list of the best car insurance companies in Michigan because they offer the most options to customize your coverage to get the protection you need.
We also like Travelers’ new car replacement coverage and its streamlined and stress-free claims process.
Travelers’ average premium for total coverage is $1,560 per year, well below the Michigan state average.
What Car Insurance Discounts Does Travelers Offer?
Travelers Insurance offers many potential discounts for Michigan drivers in these three categories.
- Car and driver. Discounts are available if you buy a hybrid/electric or new car, complete a driver safety course, maintain a good driving record, or insure a young driver who maintains a good GPA and/or is away at college and not driving.
- Bundling. You can get discounts if you insure multiple vehicles, bundle your car insurance with property insurance (up to 13% savings), or own a home.
- Pay and policy. Discounts are available if you pay your annual premium in advance, enroll in auto pay, buy your new policy before your existing policy expires, or maintain continuous coverage.
| J.D. Power (out of 1,000) | 824 |
|---|---|
| A.M. Best - Financial Strength Rating | A++ |
| BBB | A |
| NAIC Complaint Index | 3.88 |
Auto-Owners: Best for Personalized Service
Auto-Owners Insurance was founded in 1916 and has since expanded to provide car insurance coverage in 26 states via its network of more than 48,000 licensed agents.
We chose Auto-Owners for our list because of those agents in Michigan’s cities and towns who provide direct, personalized service when needed.
We also like Auto-Owners for its wide array of car insurance discounts and affordable rates for drivers with a DUI or an accident.
The average cost of Michigan car insurance with Auto-Owners is $1,925 for full coverage, below the state average.
What Car Insurance Discounts Does Auto-Owners Offer?
Auto-Owners, headquartered in Lansing, offers a generous selection of car insurance discounts in these categories.
- Loyalty. Get discounts for bundling two or more policies with Auto-Owners, buying life insurance with Auto-Owners, insuring multiple vehicles, paying your premium in full and in advance, making on-time payments for 3+ years, or requesting your renewal quote before your existing policy expires.
- Green. Get a discount for enrolling in paperless billing or receiving your policies electronically.
- Safety and safe driving. Get discounts if you have not had an accident or ticket and if your vehicle has installed safety features such as anti-lock brakes, airbags, or an anti-theft device.
- Students. Get discounts if your student driver signs up for driver monitoring, maintains a B average or above, or is away at school in another state.
USAA: Best for Military Families
USAA is an insurance company that caters exclusively to military service members. It has been doing so since 1922 when service members often paid high prices because they were considered high-risk.
We chose USAA for our list because they offer coverage for US military service members, including unique travel and car care discounts.
We also appreciate that USAA has the lowest rates in Michigan–the only reason we didn’t name them the most affordable company because their coverage is unavailable to everyone.
The average annual cost for USAA full coverage car insurance in Michigan is just $1,120, making it an excellent value for service members who qualify.
What Car Insurance Discounts Does USAA Offer?
USAA provides a solid selection of discounts for car insurance, including some that address specific issues related to service members.
- Safety. You’ll get discounts if your car is less than three years old or has installed safety features.
- Loyalty. You can get discounts if you bundle car insurance with another policy, insure multiple vehicles, or if your parents are USAA members.
- Driving habits. There are discounts for military members who place their vehicles in storage, have low annual mileage, go five or more years without a claim, or insure a teen driver with good grades.
- Policy. Get a discount if you sign up to make automatic payments.
- Military. You can get a special discount if you garage your vehicle on a military base.
Is Car Insurance Mandatory in Michigan?
Car insurance is mandatory in the state of Michigan. It is required by law that all drivers carry minimum liability insurance coverage.
Michigan's minimum requirements are 20/40/10, which means $20,000 in bodily injury liability per person, $40,000 in total bodily injury liability per accident, and $10,000 in property damage liability per accident.
Additionally, uninsured motorist protection must be purchased with limits of at least 20/40/10. Drivers should also consider purchasing additional types of coverage, such as comprehensive and collision, for better financial protection in case of an accident.
What Types and Amounts of Car Insurance Are Required in Michigan?
Michigan is a no-fault state requiring all drivers to purchase minimal coverage.
- Personal Injury Protection (PIP) insurance minimum of $250,000–there is a $50,000 minimum for Michigan residents on Medicaid.
- Bodily Injury Coverage of $250,000 per person and $500,000 per accident–here again, there’s an option to buy only $50,000/$100,000 of coverage, but you will need to sign a waiver since the decision is financially risky.
Many Michigan drivers elect to purchase full-coverage insurance, which is what we recommend to maximize your protection.
What Does Car Insurance Cover?
Each of the companies on our list has a unique policy, which means you’ll need to read the fine print to make sure you understand what you’re buying; basic coverage required in Michigan includes two types of protection.
- Personal Injury Protection covers injuries to you and other passengers in your car.
- Bodily Injury Coverage covers injuries to parties in any other car involved in an accident you are in.
We heavily recommend opting for full-coverage insurance, which protects you from paying for damage to your vehicle as well as adding theft and other protection.
Should You Buy Additional Coverage?
As noted above, you are not required to purchase coverage beyond what’s required under Michigan law, but you should consider buying additional coverage for your protection.
Full coverage or comprehensive insurance includes collision protection plus damage for other events, including theft, vandalism, weather, and even accidents with animals.
Is Michigan a No-Fault State?
Michigan is a no-fault state, which means that each driver in an accident files a claim with their own insurance company, which will pay for injuries or damages regardless of who was at fault for the accident.
What Does Car Insurance Typically Cover?
Basic car insurance in Michigan will pay for personal injuries to you, your passengers, or drivers and passengers in other vehicles.
If you pay for full coverage, you’ll also have protection to pay for damage to your vehicle and may be eligible for rental car reimbursement or roadside assistance.
Here are the things that are not typically covered by car insurance.
- Routine wear and tear.
- Intentional damage.
- Contents in your car–these are covered by your homeowners or renters insurance.
- Mechanical failure is unrelated to a covered event.
What Factors Impact the Cost of Car Insurance?
Six factors will impact how much you pay for car insurance.
- Your driving record
- The driving record of other insured drivers
- Your gender
- Your age
- The area where you live
- The type and replacement value of your car
Tips to Reduce the Cost of Car Insurance in Michigan
Here are some tips to help you decrease the cost of car insurance in Michigan.
- Practice safe driving habits.
- Install safety features in your car.
- Take a safe driving or defensive driving course.
- Take advantage of all available discounts.
- Bundle your car insurance with one or more additional policies.
The potential exists to save hundreds of dollars per year if you layer multiple discounts; for example, you might bundle your policies, sign up for paperless billing, or pay your annual premium in advance to save.
Synopsis
Every driver in Michigan is required to buy basic car insurance, and at PropertyNest, we recommend upgrading to full coverage to protect yourself completely.
Adding coverage for theft, collisions, and your personal liability will ensure that you have all the protection you need, and thanks to Michigan’s new law, you can expect to see lower premiums for full coverage than have been available in recent years.
Our Methodology
How We Chose the Best Car Insurance Companies in Michigan
We researched dozens of insurance companies before selecting the six we included on our list using these criteria.
Affordability
We know that the cost of car insurance is the top priority for many Michiganders, so we prioritized companies with low rates compared to the state average.
Discounts
Car insurance discounts offer an easy way to save money, so we selected companies that provide a broad array of discounts in several categories, with special attention to companies with discounts that most drivers can take advantage of, such as policy bundling.
Coverage Options
Many of Michigan’s drivers want to customize their car insurance with add-ons and riders, so we paid attention to the companies with useful riders, including the following options.
- Accident forgiveness
- Gap coverage
- New car replacement
- Rental reimbursement
- Ride-share coverage
- Roadside assistance
Technology
Technology translates to convenience, so we prioritized insurance companies with well-designed websites, useful resources, free mobile apps, and discounts linked to driving.
