Michigan is the most expensive state for car insurance in the nation. On average, drivers pay $948 per annum for minimum coverage and $2309 per for full coverage. These rates are much higher than the national average cost of insurance . High insurance costs could be caused by the fact that more than 25% Michigan drivers are uninsured. Michigan also has a high rate of car accidents. In 2019, Michigan had more than 300,000.
It is expensive so finding Michigan’s cheapest car insurance may be a priority. Quadrant Information Services, Bankrate’s insurance team, partnered with Quadrant Insurance Services to get current premium information from the biggest insurance companies. This information could help you locate cheap Michigan car insurance.
Michigan’s cheapest car insurance company
It may take some research to find the lowest auto insurance in Michigan. However, it is possible. Bankrate has analyzed the average premiums for the top Michigan insurance companies and determined their market share. While price is a primary concern for many Michigan drivers we also reviewed the available coverages, discounts, and third-party scores of each company.
USAA
USAA’s minimum and full coverage premiums, on average, are significantly lower than Michigan’s. USAA coverage is only available to current and former military personnel or immediate family members. The company does not qualify for an official J.D. These eligibility restrictions limit USAA’s power rankings, but USAA continues to receive high scores.
USAA claims that switching to coverage can save drivers an average of more than $700 if you are eligible for coverage. USAA offers discounts that may be able to help you save more, in addition to the low average premiums. There are many ways to save money: you can insure a vehicle new, garaging it on a military base, or you can store your vehicle while deployed.
Progressive
If you’re looking for lower premiums and strong digital tools, Progressive might be the right choice. The company’s website and mobile app allow you to pay your bills, file claims, make modifications, access ID cards, and obtain quotes.
Progressive allows you to compare quotes from multiple companies right from your website. This could help you save time when searching for insurance. You may be able to get optional coverages such as loan/lease payment, ridesharing, and custom parts coverage if you purchase a Progressive policy.
Auto-Owners
Auto-Owners, a regional carrier, is based in Lansing (Michigan). Although the carrier sells insurance only in 26 states, its Michigan headquarters may make it uniquely qualified to serve Michigan drivers’ insurance needs.
Auto-Owners is a top choice for coverage and discounts. Consider adding coverages such as road trouble service or diminished value to your policy. You could be eligible for discounts such as paid-in-full and claims-free. The 2020 J.D. also ranked Auto-Owners highly. The Power U.S. Auto Insurance Study reveals that customers are generally satisfied with the company’s services. Auto-Owners insurance can’t be purchased online. To get coverage, you must contact a local agent.
AAA
When you think about AAA, the first thing that pops into your mind is likely to be emergency roadside assistance. However, the company also offers insurance products. AAA’s full coverage premium may be the most expensive on our list. However, it is worth looking into AAA for a quote.
There are a number of coverage options available to the company, including an enhanced total replacement cost that will replace your damaged vehicle with one to two years old; ridesharing coverage, which may be necessary if you work for Uber or Lyft; as well as OEM coverage which covers original manufacturer parts for your vehicle after a claim.
Pioneer State
Pioneer State is a Michigan-based company, so it may have a greater understanding of Michigan drivers’ unique needs than Auto-Owners. Pioneer State is a good option for insurance if you prefer to interact face-to-face. Pioneer State sells its products through independent agents.
Pioneer State offers auto insurance that can be customized to meet your specific needs. Personal Auto Pioneer Advantage includes trip interruption and new car replacement coverage. You might also be eligible to add options such as pet injury coverage and preferred location towing.
Minimum coverage requirements for Michigan drivers
Michigan drivers must have minimum car insurance just like drivers in other states. You must prove that your vehicle has the minimum coverage required by the state department of motor vehicles. This is 50/100/10
- $50K bodily injury liability coverage per individual
- Accidental $100,000 bodily injury coverage
- Ten Thousand Dollars per accident property damage coverage
Michigan is also a no fault state. This means that drivers must have personal injuries protection (PIP). PIP covers your medical expenses, lost wages, and any expenses incurred by passengers in an accident. It does not matter who caused it. Michigan drivers now have the option to choose from six types of PIP insurance. The driver must also purchase property insurance (PPI) to cover damage to property of others within Michigan. This covers fences and buildings up to $1,000,000 in value.
You may feel tempted to buy minimum coverage if you are looking to save money on your car insurance. Although minimum coverage may be cheaper, insurance professionals recommend that you buy higher liability limits if possible. You will not be covered for any damage to your vehicle if you have minimum coverage. Full coverage is required for that. If you have a vehicle loan or lease, you may be required to buy full coverage.
How to Get Michigan Car Insurance at a Cheap Price
Michigan car insurance can be costly, but there are many ways to save. You might want to look into Michigan car insurance rates if you’re looking for cheap.
- Increase your deductible. Your deductible refers to the amount you will have to fork out if you make a claim for comprehensive or collision damage to your vehicle. Your monthly premium will generally be lower if your deductible is higher than your comprehensive or collision deductible. Your collision deductible will usually have a greater impact on your monthly premium than your comprehensive. In the event of a claim, you should choose a level you are comfortable with paying.
- Search for discounts: Nearly all insurance companies offer discounts. You may be interested in the discounts offered by each insurance company when you shop for insurance. You could save money on your premium if you are eligible for one or more discounts.
- Compare Quotes from multiple companies can help you get the coverage that you want at a lower cost. You can compare the premiums, coverage options, and third-party rankings of several companies by reviewing them all.
- Consider your car. Although it may not be the best way to save money on insurance but some cars are more affordable to insure than other. You may be able to lower your premiums if you have an expensive car.
Each company has its own underwriting and discounts, so it is important to get quotes from multiple companies in order to find cheaper coverage.
Questions frequently asked
Which Michigan insurance policy is best?
Michigan has many car insurance companies that are not the best for everyone. Different drivers have different insurance needs so different companies can best suit their needs. You may need to research several providers before you choose the best auto insurance company.
Why is Michigan car insurance so expensive?
Michigan drivers pay more for their insurance than drivers from other states. This could be due to several factors. Insurance companies will be more likely to pay uninsured motorists’ claims, which may explain why premiums are higher. Michigan also has high minimum coverage requirements, high numbers of licensed drivers, and high accident rates.
Is Michigan a state of no-fault?
Michigan is one 12 state that is ” No-Fault“. This means that your insurance company will pay for medical bills, lost wages, and other expenses resulting from an accident.
What is the cost of Michigan car insurance?
The average cost for car insurance in Michigan is $2,309 per annum for full coverage. Minimum coverage is $948 per annum. Each driver will pay a different rate depending on which factors are taken into account. It is worth noting, however, that Michigan’s new law does not allow non-driving factors in insurance rates.
This means that although your driving record will still be relevant, premiums will not be affected by other information like your marital status and credit score.
