Car insurance premiums in Michigan average $267 a month for full coverage, according to data from Bankrate. That's higher than the national average of $225 a month, in part because Michigan's no-fault rules require personal injury protection (PIP), which can add to your cost.
But you can still get the biggest bang for your buck in the Great Lake State. Here are CNBC Select's top picks for car insurance in Michigan. For more on how we made our picks, see our methodology.
The best car insurance companies in Michigan
Best for affordability: Geico
Who's this for? Geico has the lowest rates we've found in Michigan, along with dozens of discounts, including a multi-vehicle discount that can lower your bill by up to 25% if you insure more than one car.
Standout benefits: Geico's easy-to-use app lets you do everything from pay your bill to request roadside service.
- 16 discounts are available to lower premiums
- Easily purchase and manage policy online
- Policy add-ons can include roadside assistance and mechanical breakdown insurance
- No gap insurance
- Few branches for in-person services
- Ranks below average for customer service and claims on J.D. Power surveys
Best for bundling: Progressive
Who's this for? If you own a house, boat or other high-value items you need to insure, Progressive's generous bundling discounts can help you save. On average, customers who bundle auto and home policies save more than 20%.
Standout benefits: Progressive's small accident forgiveness benefit keeps your premiums from rising after your first claim of $500 or less. After five years as a Progressive customer with no accidents or violations, your rates won't increase after your first claim of more than $500. You can also purchase additional accident forgiveness at renewal, to be used for one claim per policy term.
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Best for families with teen drivers: State Farm
Who's this for? Teens are the most expensive demographic to insure, but State Farm's lower rates for younger drivers can ease that burden. The brand also has a discount of up to 25% for students with a B or better.
Standout benefits: State Farm's Steer Clear benefit can lower rates by up to 20% for a driver under 25 who completes an approved defensive driving course. The program also helps parents track their teen's driving and provides feedback for improved habits behind the wheel.
State Farm Auto Insurance
Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Best for new car owners: Auto-Owners
Who's this for? If your new car is totaled or stolen, Auto-Owners' gap coverage will pay the difference between the vehicle's depreciated value and the remaining balance on your auto loan. There's also diminished value coverage, which compensates you for the loss in your vehicle's market value after an accident, even if it's fully repaired.
Standout benefits: Auto-Owners also provides coverage for classic cars, as well as vehicles that have been modified for accessibility.
- Accident forgiveness is an add-on
- High customer satisfaction scores from J.D. Power
- Covers modified cars and vehicles converted for the disabled
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed with an agent
Best for seniors: Nationwide
Who's this for? Nationwide is a great fit for older drivers, with a discount for drivers over 55 who take a driving safety course. If you're a retiree driving less than you used to, the SmartMiles pay-per-mile program can save you hundreds a year.
Standout benefits: Nationwide's add-ons include car key replacement and pet injury protection, which pays up to $1,000 if your pet is hurt in an accident.
- Available in 46 states and Washington, D.C.
- Lowest average premiums for full coverage
- Quotes available online
- High average premium for minimum coverage
- Lower than average scores from J.D. Power's customer satisfaction survey
Car insurance requirements in Michigan
Michigan's state laws require drivers to have liability coverage as well as personal injury protection (PIP) and property protection insurance (PPI).
The minimum requirements for liability coverage are:
- $50,000 in bodily injury liability coverage per person
- $100,000 in bodily injury liability coverage per accident
- $10,000 in property damage liability per accident
This is sometimes written as 50/100/10.
For PIP coverage, which pays for medical expenses and things like lost wages, you can choose a limit that ranges from $50,000 to an unlimited amount, though some amounts below $250,000 require drivers to have access to certain eligible healthcare plans.
On top of PIP coverage, the state requires drivers to carry $1 million of PPI coverage, which can pay for damages to non-vehicle property in an accident.
How to save on car insurance in Michigan
Regardless of your driving history and situation, it's possible to save on car insurance in Michigan. Here are a few ways to lower what you'll pay:
1. Shop around
Get quotes from several different insurers and compare them. Not all consider your driving history and situation the same, so you'll want to see which one offers you the best price.
2. Pay in full
Many insurers offer discounts for those who pay their premium upfront. This could be as much as 12%, according to car insurance comparison site The Zebra.
3. Consider a pay-per-mile policy
If you don't drive much, work from home or are retired, a pay-per-mile policy could be a good fit. These policies charge a base rate and then a few cents per mile driven. Nationwide's SmartMiles program is available in Michigan.
4. Raise your deductible
Your deductible is the amount you'll pay before your insurance kicks in. According to the Insurance Information Institute, bumping your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by as much as 30%.
Michigan car insurance FAQs
How much is car insurance in Michigan?
The average car insurance policy in Michigan costs $3,100 per year for full coverage and $883 per year for state minimum coverage
Why is Michigan auto insurance so expensive?
Michigan's no-fault car insurance laws and a high percentage of uninsured drivers make car insurance in this state expensive.
What is no-fault insurance?
States with no-fault insurance require drivers to buy personal injury protection, which pays for your medical expenses and lost wages after an accident, regardless of who is found liable. If a collision results in serious injury or death, however, drivers can still sue for pain and suffering.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select analyzed a dozen insurance companies offering car insurance coverage in Michigan based on cost, coverage, discounts and standout benefits.
We reviewed customer satisfaction ratings from J.D. Power and the National Association of Insurance Commissioners' complaint index, as well as financial strength ratings from A.M. Best. We also incorporated cost data from MarketWatch and Bankrate.
We considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our selections for the best auto insurance in Michigan are:
- Best for affordability: Geico
- Best for bundling: Progressive
- Best for families with teen drivers: State Farm
- Best for new car owners: Auto-Owners
- Best for seniors: Nationwide
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