Searching for car insurance options in Michigan can be complicated, especially when you’re looking for affordable and reliable plans.
In this blog, we’ll give you information about Michigan’s no-fault insurance system, the factors that affect insurance rates, and the best companies to get affordable coverage.
Additionally, we will also discuss low cost insurance plans after DUI, teen drivers, and accidents. Read this article to the end for an in-depth look at Michigan’s insurance trends and city-specific options.
Understanding Car Insurance in Michigan
The process of car insurance in Michigan is different from other states as it follows a no-fault insurance system. This means that insurance companies cover their customers’ medical and property losses after an accident, regardless of who is at fault. This system reduces legal disputes but leads to higher premiums.
Insurance rates in Michigan depend on several factors, such as your driving record, vehicle type, location, and coverage options. Rates are higher in larger cities like Detroit.
Under the no-fault system, the main coverages include personal injury protection (PIP), property protection insurance (PPI), and bodily injury coverage.
Compare quotes from different companies to get affordable insurance, and consider bundling your policies. Choosing the right insurance plan in Michigan ensures your financial security.
Is Michigan a No-Fault State?
Michigan is a no-fault state, which means your insurance company pays for your injuries and property damage after an accident, no matter who is at fault. The no-fault system aims to reduce legal disputes after accidents.
Main coverages under no-fault insurance in Michigan:
- Personal Injury Protection (PIP): This covers your and your passengers’ medical costs.
- Property Protection Insurance (PPI): This compensates for damage caused to another person’s property.
- Bodily Injury Coverage: This coverage is useful if you are involved in an accident outside of Michigan.
What Impacts Car Insurance Rates in Michigan?
Car insurance rates in Michigan depend on a variety of factors, some of which are the following:
- Location: Where you live affects your insurance rates. Rates may be higher in larger cities (like Detroit) because accidents and theft are more likely.
- Driving Record: Events like accidents, tickets, or DUIs can increase your premium rates. Drivers with clean driving records receive lower rates.
- Vehicle Type: The model, make and safety features of your vehicle affect the cost of insurance. New and expensive cars can be expensive to insure.
- Coverage Type: Full coverage (liability, comprehensive and collision) costs more than just liability coverage.
- Credit Score: Insurance companies in Michigan consider your credit score when setting premiums. Better credit scores mean cheaper rates.
- Driver’s Age and Experience: Insurance can be expensive for young and new drivers. Rates may decrease as experience increases.
Affordable Car Insurance Options in Michigan
Finding affordable car insurance in Michigan can be easy if you look at the right options and discounts. There are options for full coverage, liability, post-DUI insurance, and affordable plans for young drivers.
Companies like State Farm, Progressive and GEICO provide great services with competitive rates. You can lower your insurance costs by taking advantage of discounts and driver improvement programs.
Cheap Full Coverage Insurance in Michigan
Full coverage insurance in Michigan can be expensive, but you can control your costs by choosing the right insurance company and comparing options. Full coverage insurance includes liability, collision, and comprehensive coverage, keeping you safe from accidents and other damages.
Average Cost of Full Coverage Insurance
The table below shows the average 6-month and monthly premium rates from Michigan’s major insurance companies.
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| GEICO | $613 | $102 |
| USAA | $767 | $128 |
| Auto-Owners | $954 | $159 |
| Progressive | $1,165 | $194 |
| Westfield | $1,546 | $258 |
| State Farm | $1,844 | $307 |
| Bristol West | $2,369 | $395 |
Tips for Affordable Full Coverage
- GEICO and USAA: These companies offer the cheapest full coverage plans in Michigan.
- Increase the Deductible: Choosing a higher deductible can lower premiums.
- Avail Discounts: Enjoy discounts on safe driving record, multi-policy, and paperless billing.
- Compare Companies: Insurance rates may differ between companies, so compare quotes to plan better.
Cheap Liability Insurance in Michigan
Car insurance in Michigan requires minimum liability coverage. This coverage covers the damages you suffer during an accident, including the other person’s medical costs and property repairs. Choosing the right insurance company can ensure proper protection while keeping your budget balanced.
Affordable Liability Insurance Companies
The table below includes the average 6-month and monthly premium rates from Michigan’s major insurance companies.
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| Westfield | $230 | $38 |
| USAA | $252 | $42 |
| Auto-Owners | $299 | $50 |
| GEICO | $315 | $53 |
| Progressive | $451 | $75 |
| State Farm | $939 | $156 |
| Bristol West | $988 | $165 |
Tips for Affordable Insurance
- Westfield and USAA: These companies offer the cheapest rates in Michigan, especially for drivers with good driving records.
- Multi-Policy Discounts: If you take out auto and home insurance from the same company, you may get additional discounts.
- Driver Improvement Programs: Insurance companies offer discounts for completing driving courses.
Low-Cost Car Insurance After a DUI in Michigan
Getting insurance after a DUI in Michigan can be challenging, as premium rates increase. However, some companies offer affordable options with competitive rates. Choosing the right plan is important to control your expenses and get appropriate coverage.
Average Cost of Insurance After a DUI
The table below shows the average 6-month and monthly premium rates from Michigan’s major insurance companies.
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| USAA | $1,330 | $222 |
| Progressive | $1,423 | $237 |
| Auto-Owners | $2,090 | $348 |
| Bristol West | $2,808 | $468 |
| Westfield | $3,312 | $552 |
| GEICO | $4,111 | $685 |
| State Farm | $4,329 | $722 |
Tips for Affordable Insurance
- USAA and Progressive: These companies offer coverage at relatively affordable rates, even after a DUI.
- SR-22 Filing: An SR-22 certificate is required after a DUI. Complete it at the right time.
- Driver Improvement Program: Taking a remedial driving course may lead to a waiver.
- Compare Companies: Get quotes from multiple insurance providers and choose the most affordable option.
Cheap Auto Insurance for Teens and Young Drivers in Michigan
Car insurance in Michigan can be expensive for teen and young drivers, as insurance companies consider them high-risk drivers. However, some companies offer affordable options with competitive rates. The details below will help reduce your costs.
Average cost of insurance for young drivers
The table below shows the average 6-month and monthly premium rates from Michigan’s major insurance companies.
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| GEICO | $1,565 | $261 |
| Auto-Owners | $1,638 | $273 |
| USAA | $1,795 | $299 |
| Westfield | $3,821 | $637 |
| Progressive | $4,602 | $767 |
| State Farm | $5,156 | $859 |
| Bristol West | $5,857 | $976 |
Tips for Affordable Insurance
- GEICO and Auto-Owners: These companies offer the most affordable options for young drivers.
- Good Student Discount: Insurance companies may offer a discount if you have a high GPA.
- Join a Family Policy: Joining a family policy instead of an individual policy can reduce costs.
- Telematics Programs: Providers like Progressive and State Farm offer discounts based on driving habits.
Top Car Insurance Companies in Michigan
What Are the Best Car Insurance Companies in Michigan?
Finding affordable and reliable car insurance in Michigan can be challenging. The average premium rates of some of the top insurance companies are mentioned in the table below, so that you can choose the right plan as per your needs and budget.
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| USAA | $767 | $128 |
| Auto-Owners | $954 | $159 |
| Grange | $1,555 | $259 |
Summary and Tips
- USA:
- Advantage: Affordable rates and excellent customer service.
- Who is Suitable For: Best choice for military families.
- Auto-Owners:
- Advantage: Personal services and help from local agents.
- Who is Suitable For: Those seeking personal contact and balanced premiums.
- Grange:
- Benefit: Comprehensive coverage and better claim process.
- Suitable For: Customers looking for long-term security.
Car Insurance Rates and Trends in Michigan
Car insurance rates in Michigan have fluctuated from year to year. The average annual premium in 2024 was $2,312, $515 less than in 2023. 2020 saw a significant drop in premiums to $571 following changes to no-fault insurance laws. However, there was an increase of $1,088 in 2018, due to higher claims and medical costs.
Premium rates depend on several factors, such as driving record, location, and insurance company. Compare companies and use options like multi-policy and telematics programs.
It is possible to reduce the cost of insurance by maintaining a clean driving record and taking advantage of available discounts. Select the right plan and increase your savings.
| Year | Avg. Annual Premium — Michigan | Yearly Change — Michigan |
|---|---|---|
| 2024 | $2,312 | -$515 |
| 2023 | $2,827 | $651 |
| 2022 | $2,176 | -$463 |
| 2021 | $2,639 | $104 |
| 2020 | $2,535 | -$571 |
| 2019 | $3,106 | $222 |
| 2018 | $2,884 | $1,088 |
| 2017 | $1,796 | $234 |
| 2016 | $1,562 | -$323 |
| 2015 | $1,885 | $216 |
Michigan Auto Insurance Quotes After an Accident or Ticket
The cost of insurance increases after an accident or traffic ticket in Michigan because insurance companies consider it a risk factor. USAA ($1,052/6 months) and Auto-Owners ($1,114/6 months) are better options for cheaper rates.
GEICO ($1,586/6 months) and Progressive ($1,346/6 months) offer options with moderate rates. On the other hand, companies like Bristol West ($3,247/6 months) may be an expensive option for high-risk drivers.
Compare companies, take driver improvement courses and use telematics programs to get cheaper insurance rates. This will help you reduce your insurance costs and find affordable plans. Financial pressure can be reduced by choosing the right plan.
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| USAA | $1,052 | $175 |
| Auto-Owners | $1,114 | $186 |
| Progressive | $1,346 | $224 |
| GEICO | $1,586 | $264 |
| Westfield | $1,990 | $332 |
| State Farm | $2,080 | $347 |
| Bristol West | $3,247 | $541 |
Michigan Auto Insurance Rates by Violation
Car insurance rates in Michigan depend on traffic violations and accidents. As the severity level of the violation increases, so does the insurance premium. Below are details of the violations and their associated premium rates.
| Accident/Violation | Avg. 6 Mo. Premium | $ Rate Increase |
|---|---|---|
| One Med/PIP claim | $1,239 | $0 |
| None | $1,239 | $0 |
| Not-at-fault accident | $1,323 | $84 |
| Two Med/PIP claims | $1,336 | $97 |
| One comp claim | $1,338 | $99 |
| Two comp claims | $1,392 | $153 |
| Driving without lights | $1,474 | $235 |
| Failure to wear a seat belt | $1,480 | $241 |
| Child safety restraint | $1,502 | $263 |
| At-fault accident – less than $1000 | $1,563 | $324 |
| Wrong way/wrong lane | $1,570 | $332 |
| Following too closely | $1,578 | $339 |
| Driving too slowly | $1,579 | $340 |
| Speeding 6 – 10 MPH over limit | $1,582 | $344 |
| Illegal turn | $1,584 | $346 |
| Texting while driving | $1,586 | $347 |
| Cell phone violation | $1,586 | $347 |
| Failure to show documents | $1,590 | $351 |
| Speeding in school zone | $1,594 | $355 |
| Failure to yield | $1,607 | $368 |
| Improper passing | $1,616 | $377 |
| Driving with expired registration | $1,622 | $383 |
| Failure to stop at a red light | $1,643 | $404 |
| Speeding 11 – 15 MPH over limit | $1,661 | $422 |
| Passing school bus | $1,708 | $469 |
| At-fault accident – $1000-$2000 | $1,746 | $507 |
| Operating a vehicle without permission | $1,799 | $560 |
| Speeding 16 – 20 MPH over limit | $1,799 | $561 |
| At-fault accident – greater than $2000 | $1,806 | $567 |
| Speeding 21 – 25 MPH over limit | $1,837 | $598 |
| In 65 MPH zone | $1,865 | $626 |
| Open container | $2,234 | $995 |
| Driving with a suspended license | $2,525 | $1,286 |
| Racing | $3,110 | $1,872 |
| Reckless driving | $3,349 | $2,110 |
| Leaving scene of an accident/hit and run | $3,433 | $2,195 |
| Refusal to submit to a chemical test | $3,545 | $2,306 |
| DUI | $3,545 | $2,306 |
Key Points:
- Minor Violations: such as not wearing a seat belt or speeding in a school zone, lead to modest increases in premiums.
- Serious Violations: Serious violations like DUI, racing, and hit-and-run can increase premiums by more than $2,000.
- How to Avoid:
- Drive safely.
- Use a telematics program.
- Attend driver improvement courses.
City-Specific Car Insurance Insights
Car insurance rates vary in different cities in Michigan. These rates depend on factors such as location, population density, accident rates, and incidence of theft. Here, a breakdown of insurance costs and factors in some of Michigan’s major cities.
Car Insurance in Popular Michigan Cities
Car insurance rates in different cities of Michigan vary by location. This difference depends on population density, traffic conditions, and regional risk factors. The table below gives the average 6-month and monthly premium rates of insurance in some major cities.
| City | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| Grand Rapids | $1,127 | $188 |
| Lansing | $1,197 | $199 |
| Sterling Heights | $1,587 | $264 |
| Warren | $1,858 | $310 |
| Detroit | $2,619 | $437 |
Key Points:
- Grand Rapids and Lansing: Insurance premiums are lower in these cities because there is less traffic and lower accident rates.
- Sterling Heights and Warren: Rates are moderate in suburban areas, but premiums may be slightly higher due to higher population density and traffic.
- Detroit: Insurance premiums are the highest in Detroit because of the high rates of theft and accidents.
Conclusion
Finding affordable car insurance in Michigan can be challenging, but with the right information and strategies you can choose the right plan according to your needs and budget.
In this blog we take an in-depth look at Michigan’s no-fault system, the factors that affect insurance rates, the major insurance companies, and insurance rates in different cities.