Cheapest Car Insurance In Michigan For 2022


WRITTEN BY: Julia Matseikovich

UPDATED: SEPTEMBER 14, 2022 | 2 MIN READ

Michigan car insurance quotes are given based on many different things. They take your driving record, age, the vehicle you’re driving, and sometimes even your credit score into account. There are many things to know about auto insurance in Michigan, and we’re here to help you through the process.

Best Michigan Car Insurance Companies

There are many great options for auto insurance in Michigan. There are great options for you if you are looking for excellent customer service or great rates.

Cheapest Michigan Car Insurance Company

Auto Owners Insurance Logo

Auto-Owners offer the cheapest minimum-coverage insurance in Michigan. It’s only $107 a month or $1,282 yearly. That’s 71% less than the state average.

Company With the Best Customer Service

USAA Insurance Logo

USAA has the best customer service in Michigan, according to J.D. Powers’ 2021 U.S Auto Insurance Study. They received a score of 895 out of 1,000, but they are only available for military families. Second in line is State  Farm, with a score of 851 out of 1,000 according to J.D. Powers’ 2021 auto study.

Michigan Car Insurance With the Best Premium-Reducing Programs

GEICO Insurance Logo

GEICO has the lowest annual premium for car insurance in Michigan. On average, you pay $1,467 with many discount options available. However, according to J.D. Power, they do have lower than average customer service.

Michigan Car Insurance Company With the Discounts

Progressive Auto Insurance

Progressive offers cheap car insurance in Michigan that also provides many discounts. There are many discounts, such as signing online, safe driver, multi-car, and pay-in-full. You also have the option to bundle your car, health, or home insurance to receive even more discounts. Progressive offers a monthly rate of $170.

Michigan Insurance Demographics

Insurers use demographics to determine car insurance rates in Michigan. Below are some of the demographics used when offering quotes:

  • Crime Rates: Michigan has a higher-than-average violent crime rate overall. Generally, its safest cities, such as Spring Arbor Township and Gaines Township, have a low violent crime rate. Michigan’s property crime falls below the national average.
  • Average Household Income: The average household income is $80,803. The median household income is $59,234.
  • Median Age Range: The median age in Michigan is 40.4 years of age. 
  • Education: In 2019, 91% of residents had a high school diploma, and 30% were college graduates.

Common Risk Factors In Michigan

Common risk factors that increase car insurance rates in Michigan are:

  • Racing
  • At-fault accidents
  • Speeding
  • Reckless driving
  • Property damage
  • Distracted driving

Auto Insurance Laws In Michigan

There are auto insurance laws in Michigan that guide us in how we have to behave while operating a motor vehicle. If laws aren’t followed on the road, you face penalties, fines,s and even jail time.  

What are the minimum car insurance requirements in Michigan?

​​Michigan car insurance is required for every car owner. You must have at least minimum coverage to comply with state laws. The minimum coverage you need to have in Michigan is:

  • $20,000 per person bodily injury coverage
  • $10,000 for property damage
  • $40,000 per accident bodily injury coverage
  • No-limit personal injury protection
  • $1 million per accident for property protection insurance

Am I required to carry uninsured motorist coverage in Michigan?

No, you’re not required to have uninsured motorist insurance. It does protect you, however, if you’re in an accident with someone without insurance. It is optional coverage if you want it.

Michigan SR-22 and FR-44 policies

If you’ve had a DUI or any other serious convictions, you must get an SR-22. Your insurer issues the form to ensure you have insurance. Unfortunately, it’s not always possible to find cheap SR-22 insurance.

Is Michigan a no-fault state?

Yes, Michigan is a no-fault state. If you’re in an accident, your insurer pays the medical expenses incurred, whether it’s your fault or not. You also receive compensation for lost wages and direct expenses from the accident.

What happens if my vehicle isn’t properly insured in Michigan?

You must carry a minimum amount of car insurance in Michigan. Driving without it is illegal, and there are consequences. You face penalties, fines, and even jail time if it’s your second offense.

Does Michigan accept digital insurance cards?

Michigan now allows you to show a digital insurance card if you are pulled over at a traffic stop. 

How Much Does Car Insurance In Michigan Cost?

The average cost of auto insurance in Michigan is $4,386 yearly or $366 monthly. Full coverage costs $7,191 annually or $596 monthly. It all depends on the insurer you choose and your driving record.

Average Cost By City

The cost differs depending on your city. Below are great examples of the differences in cost based on the city you live in. 

CityAverage CostDifference From Average
Ann Arbor$1,884-20%
Dearborn$3,50533%
Detroit$4,40147%
Grand Rapids$1,878-25%
Kalamazoo$1,845-27%

Average Cost of By Company

The cost differs depending on the insurer you choose. Not all insurance companies are created equal, and many have different policies that change insurance costs. 

CompanyAverage CostDifference Form Average
AAA$501$1,832
Geico$552$1,230
MetLife$460$1,829
Progressive$818$1,664

Average Cost By Age

Age is another factor that affects your rates. Younger drivers often pay more for auto insurance in Michigan than older drivers. 

AgeAverage Full-Coverage Premium
(Annually)
Age 16$3,403
Age 17$3,122
Age 20$5,746
Age 22$4,106
Age 25$3,031
Age 30$2,771
Age 35$2,725
Age 40$2,309
Age 60$2,342

Average Cost By Gender

Gender sometimes affects the cost of your auto insurance in Michigan. In this case, women in Michigan are paying a little more for insurance than men. 

GenderAverage Full-Coverage Premium
(Annually)
Male$2,495
Female$2,550

Average Cost By Credit Score

Surprisingly, your credit score does affect your car insurance in Michigan. Statistically, insurers believe that people with excellent credit scores are better drivers. 

Credit ScoreAverage Annual Rates
Poor$6,300
Fair$4,575
Good$3,575
Very Good$2,715
Great$2,100

Average Cost By Driving Record

Your credit score is a big factor when determining your car insurance in Michigan. If you have a terrible driving record, you’re likely to pay a lot more for Michigan auto insurance. 

Driving IncidentAverage Full-Coverage Premium
(Annually)
% Increase In Average Full-Coverage Premium
Speeding Ticket$2,80016%
Accident$3,43532%
DUI/DWI$6,245166%

What Optional Michigan Auto Insurance Coverages Should You Consider?

These are a few of the optional coverages available to you in Michigan:

What Auto Insurance Discounts To Look For In Michigan

There are many discounts for auto insurance in Michigan based on the car you own, how you drive, and the insurer you choose. There are safe driver discounts, new driver discounts, multi-car discounts, and bundling discounts, just to name a few.

FAQs

How much is car insurance monthly in Michigan?

The average cost of auto insurance in Michigan is $4,386 yearly or $366 monthly.

What do I need to get car insurance in Michigan?

You’re eligible for car insurance if you have a car registered in Michigan or have a valid Michigan driver’s license.

How can I lower my car insurance in Michigan?

The best way that you’re able to lower your car insurance is to be a good driver. There are also many discounts available depending on your insurer that lowers your premium. 

What city has the cheapest car insurance in Michigan?

Kalamazoo is the city with the least expensive car insurance in Michigan. On average, it costs $1,182 yearly.

How much is insurance for a new driver in Michigan?

On average, a new driver pays $3,403 yearly for car insurance in Michigan. 

How To Purchase Michigan Car Insurance?

Shopping for car insurance doesn’t have to be a hassle. You can compare rates and find the best policy in minutes by picking up the phone or completing our rate comparison form. So what are you waiting for? Get started today and see how much you could save on your premium.