Best Car Insurance in Michigan

Last Updated on November 23, 2020

Drivers in Michigan pay some of the highest prices in the country for car insurance. In fact, Michigan routinely ranks among the top three most expensive states in America for car insurance.

The average driver in Michigan pays approximately $2,300 per year for car insurance. However, rates vary widely across the state, with drivers in Detroit paying significantly higher rates than drivers in smaller towns and rural areas.

Today, we’re explaining everything you need to know about car insurance in Michigan, including insurance requirements, the best insurers in Michigan, and how to save money on Michigan car insurance.best car insurance in michigan

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Top 10 Auto Insurance Companies in Michigan

Some car insurance companies offer cheap prices throughout Michigan, while others are known for higher prices and worse customer service. Here are the best car insurance companies across the state:

1) USAA

If you or a family member qualifies for membership in USAA, then you could obtain some of the best car insurance in Michigan. USAA is the top-rated insurance provider in Michigan for both price and claims satisfaction. The average driver in Michigan pays roughly $1,452 per year for car insurance with USAA.

USAA
Company Address9800 Fredericksburg Road
San Antonio, TX 78288
Phone Number1-210-531-USAA
Website URLhttp://www.usaa.com/

2) Safeco

Safeco is not one of America’s largest or best-known insurance companies, but Safeco has a strong presence in some states – including Michigan, where Safeco offers competitive rates and strong customer service ratings. The average Michigan drivers pays around $1,465 per year for car insurance with Safeco.

Safeco Insurance
Company Address175 Berkeley Street,
Boston, MA 02116
Phone Number1-800-332-3226
Website URLhttps://www.safeco.com/

3) MetLife

MetLife has good ratings and pricing throughout Michigan, with drivers paying roughly $1,471 per year for full coverage car insurance across the state. MetLife is a multinational insurance conglomerate, although they tend to appear at the top of most Michigan car insurance rankings.

MetLife
Company Address200 Park Avenue
New York City, NY 10166
Phone Number1-800-638-5433
Website URLhttps://www.metlife.com/

4) Chubb

Chubb is the world’s largest publicly traded property and casualty insurance company, but it is relatively unknown in the United States. Chubb offers good pricing and quality throughout Michigan, charging drivers approximately $1,541 per year for full coverage car insurance.

Chubb Insurance
Company Address15 Mountain View Rd.
Warren, NJ 07059
Phone Number1-800-252-4670
Website URLhttps://www.chubb.com/us-en/

5) Meemic

Meemic is an Auburn Hills, Michigan-based company founded in 1950 to provide insurance to teachers and educators throughout the state. The company is smaller than most competitors listed here, although they insure thousands of drivers across Michigan, offering good pricing and claims satisfaction. Meemic charges drivers approximately $2,021 per year for car insurance, on average, across the state.

Meemic Insurance
Company Address1685 N. Opdyke Rd.
Auburn Hills, MI 48326
Phone Number1-888-463-3642
Website URLhttps://www.meemic.com/

6) Pioneer State Mutual

Pioneer State Mutual was founded in Flint, Michigan in 1908. The Michigan-based company has over 100 years of experience insuring drivers across the state. Today, drivers across Michigan pay roughly $2,026 per year for full coverage car insurance with Pioneer State Mutual.

Pioneer State Mutual Insurance Company
Company Address1510 N. Elms Road
Flint, Michigan 48532
Phone Number1-810-733-2300
Website URLhttps://www.psmic.com/

7) Progressive

Progressive is available across the United States, and the company offers reasonable pricing and big brand recognition to drivers in Michigan. Expect to pay approximately $2,101 per year for full coverage car insurance in Michigan with Progressive.

Progressive
Company Address6300 Wilson Mills Road
Mayfield Village, OH 44143
Phone Number1-800-776-4737
Website URLhttps://www.progressive.com/

8) State Farm

State Farm is one of America’s largest and best-known insurance companies. In Michigan, State Farm charges approximately $2,137 per year for full coverage car insurance, making it one of the top-rated and best-value options in the state – although not as cheap as other providers further up this list.

State Farm
Company Address1 State Farm Plaza
Bloomington, IL 61701
Phone Number1-309-766-2311
Website URLhttps://www.statefarm.com/

9) The Hanover

The Hanover sells good-value car insurance with strong customer service across the state of Michigan. It’s not nearly as cheap as other insurance companies further up this list, but The Hanover charges drivers approximately $3,009 per year for full coverage car insurance across Michigan, which could make them the best option in certain ZIP codes.

The Hanover
Company Address440 Lincoln St
Worcester, MA 01653
Phone Number1 (800) 922-8427
Website URLhttps://www.hanover.com/

10) Farmers

Farmers is a well-rated car insurance company available across the United States, including Michigan. As the name suggests, Farmers originally catered to drivers in more rural areas of states like Michigan. Over the years, however, Farmers has branched out its offerings to insure drivers across urban and rural areas, and they continue to offer well-rated car insurance in all corners of Michigan, with drivers paying roughly $3,021 per year for full coverage car insurance.

Farmers
Company Address4680 Wilshire Blvd
Los Angeles, CA 90010
Phone Number1-888-327-6335
Website URLhttps://www.farmers.com/

Michigan Insurance Requirements

Michigan has unique insurance requirements compared to other states, which is one reason why Michigan drivers pay higher rates for car insurance than drivers in other states.

First, Michigan is a no-fault insurance state – one of 13 states in America that uses a no-fault insurance system. That means drivers file a claim with their own insurance company even if they’re at-fault for an accident. It also means Michigan has extensive requirements for personal injury protection (PIP) insurance.

Michigan’s PIP insurance pays for “reasonable and necessary” medical expenses for your entire lifetime, no matter who caused the accident that caused those injuries. PIP can also cover lost wages resulting from an accident.

The Michigan Department of Insurance and Financial Services (DIFS) changed its auto insurance requirements in July 2020.

Prior to July 2, 2020, all drivers in Michigan required unlimited PIP coverage. Today, Michigan allows drivers to choose multiple insurance options, including:

  • Unlimited Coverage: This is the same coverage as before the July 1 rule change. Drivers who choose this system have unlimited coverage per person per accident.
  • Up to $250,000 in Coverage: Drivers who choose this option have up to $250,000 of coverage per person per accident.
  • Up to $500,000 in Coverage: Drivers who choose this option have up to $50,000 of coverage per person per accident.
  • Up to $250,000 in Coverage with Exclusions: Drivers who choose this option have $250,000 of coverage per person per accident with some exclusions. If you choose this policy option, you can exclude some or all drivers on your policy from PIP medical coverage if they already have qualifying health insurance. If you already have a health insurance policy that does not exclude auto accident injuries and has a deductible under $6,000, for example, then you qualify for this “coverage with exclusions” option.
  • Up to $50,000 in Coverage: Drivers who choose this option have $50,000 in coverage per person per accident. You must be enrolled in Medicaid and meet other low-income eligibility requirements to qualify for this option.
  • PIP Opt-Out: Some drivers in Michigan can opt-out of coverage. To qualify for this option, drivers need to have Medicare Parts A and B and meet other eligibility requirements.

Overall, Michigan’s unique no-fault insurance system is one reason why the state has the highest auto insurance premiums in the nation. Drivers in Michigan receive added protection under this system, although drivers also pay higher insurance premiums.

The July 2020 insurance reforms aim to maintain the benefits of this system while reducing costs – and it remains to be seen if these reforms will work.

Driving without Insurance in Michigan

It is illegal to drive without insurance in Michigan. If caught driving without insurance in Michigan, drivers will be charged with a misdemeanor and face various penalties.

If convicted of driving without insurance, you may need to pay a driver responsibility fee for the next two years. You could also face up to one year in prison, a 30-day license suspension and a $125 service fee to reinstate your license, among other penalties.

Car Insurance in Michigan with DUI

Michigan, like most states, has strict penalties for operating a vehicle while intoxicated (OWI). Drivers could face up to 93 days in jail, fines from $100 to $1,000, driver responsibility fees, community service, license suspension, and vehicle impoundment, among other penalties.

Making things worse for drivers convicted of DUI, however, is that your car insurance premiums will skyrocket. Some drivers pay 200% higher insurance premiums after being convicted of a DUI. In a state like Michigan that already has high insurance premiums, that means you could pay $7,000 or more per year for car insurance after a DUI.

Fortunately, some car insurance companies treat DUIs less severely than others:

  • Auto-Owners Insurance: $3,561 per year
  • Frankenmuth Insurance: $3,602 per year
  • The Hanover Insurance Group: $3,615 per year
  • Progressive: $3,712 per year
  • Michigan Farm Bureau: $4,043 per year

All prices above assume full coverage car insurance. Prices vary widely between providers in Michigan after a DUI, so be sure to compare rates – or pick a minimum liability insurance policy to maximize savings.

Car Insurance in Michigan with At-Fault Accidents

Although Michigan uses a no-fault insurance system, fault still impacts car insurance premiums in Michigan. If you cause an accident in Michigan, your insurance premiums will rise significantly. Michigan car insurance premiums are already costly, and at-fault accidents spike premiums even higher.

Fortunately, not all car insurance companies treat at-fault accidents equally in Michigan:

  • Auto-Owners: $3,476 per year
  • Frankenmuth: $3,671 per year
  • Progressive: $3,712 per year
  • State Farm: $4,067 per year
  • Allstate: $4,132 per year

Car Insurance in Michigan with Speeding Tickets

Some Michigan car insurance companies raise premiums immediately after a speeding ticket, while other car insurance companies ignore your first speeding ticket or minor offenses:

  • Auto-Owners: $3,423 per year
  • Frankenmuth: $3,456 per year
  • Progressive: $3,612 per year
  • State Farm: $4,012 per year
  • Allstate: $4,015 per year

Car Insurance in Michigan for Young Drivers

Drivers in Michigan pay some of the highest car insurance premiums in the United States, and young drivers in Michigan pay particularly high rates for car insurance. Fortunately, some car insurance companies in Michigan welcome young drivers, charging them relatively low rates compared to other providers:

  • Auto-Owners: $4,513 per year
  • Progressive: $4,673 per year
  • State Farm: $5,021 per year
  • Frankenmuth: $5,613 per year
  • GEICO: $5,653 per year

As a young driver in Michigan, you could pay anywhere from $4,000 to $12,000 per year for car insurance – even as a safe driver with no accident history. Michigan has high insurance premiums, and young drivers are punished particularly heavily.

Car Insurance in Michigan with Poor Credit

Car insurance companies in Michigan are permitted to use credit scores to calculate risk. Drivers with low credit scores tend to be riskier to insure than drivers with good credit scores.

However, not all car insurance companies treat credit equally. Some car insurance companies place a lower emphasis on credit score than others:

  • Auto-Owners: $3,768 per year
  • USAA: $3,841 per year
  • GEICO: $3,904 per year
  • State Farm: $4,025 per year
  • Progressive: $4,101 per year

SR-22 Insurance in Michigan

Michigan requires certain drivers to obtain an SR-22 certificate of financial responsibility in certain situations. If you are convicted of a DUI, driving without insurance, or a similar offense, then you could be barred from driving until you obtain SR-22 insurance.

Technically, SR-22 insurance is not insurance. It’s a certificate of insurance. Drivers obtain an SR-22 certificate through most ordinary insurance providers.

After obtaining an SR-22 certificate, you are typically required to apply for license and registration reinstatement, then pay a $125 fee.

Conclusion: How to Find the Best Auto Insurance in Michigan

Michigan has the most expensive car insurance in the United States. The average driver in Michigan pays over $2,000 per year for full coverage car insurance. Drivers in Michigan receive added protection through the state’s personal injury protection (PIP) coverage system in exchange for those higher costs.

Fortunately, drivers in Michigan don’t have to pay higher costs with all insurers. By shopping around for car insurance and picking the right provider, drivers in Michigan can obtain the best car insurance at a reasonable rate.