Car Insurance in Michigan

From Detroit to Grand Rapids, here's your guide to finding the most affordable coverage in Michigan. 

By Editorial Team, Car Insurance Land | Updated 2021

Here's the scoop on Michigan auto insurance

Michigan has over 10 million residents, spanning Detroit to Grand Rapids to Ann Arbor. Each individual is very different across many factors including your driving habits and geography (i.e. the drivers around you and risks). This means that getting multiple auto insurance quotes for your individual situation is the best approach to protect yourself and find the best auto insurance. Don’t rely just on our research, use it as a starting point to find the best car insurance company for you. 

 

Under Michigan's revised auto insurance laws in 2020, drivers with qualifying health insurance can opt out of unlimited Personal Injury Protection (PIP) and select lower levels of coverage. Most drivers will be able to select $250,000 of PIP which will provide you savings of 20-30% on average. 

 

We researched the marketplace comparing rates for a 30yr old male driving a 2019 Chevrolet, the most popular vehicle make/model in Michigan, living in Grand Rapids with the $250,000 PIP limit.

The largest and best insurance companies in Michigan

 

The largest car insurance companies in Michigan include the below. These companies sell through a variety of channels with some focusing on online auto quotes and call centers while others selling their insurance through agents. Finding the most affordable car insurance company for you will only require getting a few free online quotes and remember there are strong smaller regional car insurance companies to consider.

The Top 10 Largest Car Insurance Companies in Michigan

Rank
Insurer
Premiums Written (in $ mil.)

Progressive

State Farm

Automobile Club Michigan

Auto-Owners

Allstate

The Hanover Insurance

Michigan Farm Bureau

Liberty Mutual

USAA

Pioneer State Mutual

1
2
3
4
5
6
7
8
9
10

$1,777.0

$1,622.3

$1,520.5

$1,058.0

$768.9

$642.4

$498.4

$351.9

$302.0

$184.5

Full Coverage - Progressive offers the most affordable car insurance

 

Full coverage is the most popular coverage as it protects both you and your vehicle. We sampled top insurance companies both big and small with the most common liability limits of $50,000/$100,000/$50,000 and $1000 deductibles for both comprehensive and collision.

 

We found that Progressive offers the cheapest car insurance followed by Safeco. Given their competitive rates, it is no surprise that they are also the largest car insurance company in Michigan, many of your neighbors think they are the best insurance company for them.

Best Michigan Full Coverage Car Insurance

Rank
Insurer
6-Month Premium

Progressive

Safeco

Liberty Mutual

State Farm

Allstate

1
2
3
4
5

$474

$486

$942

$1,230

$1,752

Liability only coverage can save you 40% versus full coverage, Progressive is the cheapest.

 

Depending on your vehicle value, you may choose liability only coverage (meaning not electing comprehensive and collision insurance). The findings were similar with savings being about 40% for each company based on our research.

 

Progressive was the most affordable again. Safeco was also very affordable and we recommended getting a free auto insurance quote from them too.

Best Michigan Liability Only Car Insurance Coverage

Rank
Insurer
6-Month Premium

Progressive

Safeco

Liberty Mutual

State Farm

Allstate

1
2
3
4
5

$284

$306

$603

$726

$1,069

Safeco offers the cheapest insurance if you have an at fault accident. Progressive is also very affordable. 

 

Accidents happen, about 10% of drivers have an accident each year and your premium can be impacted. Our analysis shows an accident can raise your full coverage premium by several hundred dollars, making shopping for the cheapest insurance very important. The best insurance companies don’t overreact to your accident and overcharge you, many offer accident forgiveness.

 

We found a wide range of premiums with some being double or triple the most affordable, Safeco. Progressive came in second cheapest. We recommend getting a quote with them also, they are the largest insurer in Michigan and have the most affordable rates for many customers.

Best Michigan Full Coverage Car Insurance If You Have Accidents

Rank
Insurer
6-Month Premium

Safeco

Progressive

Liberty Mutual

State Farm

Allstate

1
2
3
4
5

$624

$942

$1,044

$1,440

$2,010

Safeco offers the cheapest insurance if you have a violation like a speeding ticket. 

 

Many of us have had a speeding ticket or another violation at one point. The increase to your premium likely won’t be as severe as an accident, but can still be costly so shopping to get the most affordable car insurance is important. 

 

Safeco offers the best rates if you have a violation. Progressive also very affordable one of the best insurance companies. It is important to shop around and then make sure to get a new quote once the violation is three years old. Note: Most states allow insurers to charge for violations if within 3 years.

Best Michigan Full Coverage Car Insurance If You Have Violations

Rank
Insurer
6-Month Premium

Safeco

Progressive

Liberty Mutual

State Farm

Allstate

1
2
3
4
5

$600

$894

$1,140

$1,320

$1,908

Progressive offers the cheapest insurance for teenagers.


Insurance for teenagers can be very expensive as they aren’t always the most responsible drivers. Like the other groups of customers we researched, Progressive provides the most affordable insurance. Several companies are not offering online quotes for teenagers, so you may need to call several insurers to make sure you find the best car insurer for you.

Best Michigan Full Coverage Car Insurance for Teenagers

Rank
Insurer
6-Month Premium

Progressive

Allstate

Liberty Mutual

1
2
3

$2,076

$2,352

$2,430

Michigan car insurance requirements

 

Michigan enacted auto insurance reform on July 1, 2020, allowing customers to opt out of unlimited PIP coverage and save over 20% on their auto insurance coverage. This change makes it a great time to get an online auto insurance quote and save. 

 

The reform makes two significant adjustments to the minimum coverage requirements:

 

  • You don't have to pay for unrestricted personal injury protection any longer (PIP). If you have Medicare, you can now buy coverage for up to $250,000 in medical expenses or even opt out completely (Parts A and B). If you are enrolled in Medicaid, you can also buy only $50,000 in coverage.

 

  • Residual bodily injury and property damage liability limits were increased to the numbers cited below.

Michigan minimum coverage policy limits:

Required Coverage
Required Limits

Personal injury protection

Property protection insurance

Residual bodily injury liability

Residual property damage liability

$250,000 or opt-out

$1 million per accident

$50,000 per person and $100,000 per accident

$10,000 per accident

In Michigan, a no-fault state, liability insurance is labeled as "residual" because it will only be used in special circumstances involving serious injuries or with out-of-state drivers.

What you'll need to get a car insurance quote and purchase a policy?

Before you start looking for vehicle insurance, you'll need a few pieces of information in order to receive an accurate quotation, such as the:
 

  •  Make, model, and year of your vehicle 

  • Your driving record: Giving an honest account of any fines or accidents you've had can improve the accuracy of your quotation.

  • The mileage of your vehicle: Some insurers will want information to obtain an idea of how frequently you drive.

How to Compare Automobile Insurance Rates

Getting a few quotes from different providers and comparing rates and coverages is the best method to shop for auto insurance. Keep these four things in mind as you go:

 

  • Deductible - The greater your deductible, the cheaper your rate. However, be sure your deductible isn't so high that you can't afford to pay for repairs before your insurance kicks in. For comprehensive, collision, and gap coverages, you'll usually have to pay a deductible.

 

  • Types of coverage - A liability-only insurance will save you money, but it may not meet your needs. Your lender will need comprehensive and collision coverage if you lease or loan your vehicle. Some lenders may even need more liability coverage than the state minimum. Even if your automobile is paid off, if it is new, you should consider comprehensive and collision coverage to avoid paying an exorbitant repair cost yourself. Learn more about popular vehicle insurance policies.

 

  • Coverage limitations - This is the maximum amount your insurance will pay for physical injury or property damage. Selecting your state's minimal liability coverage will lower your rate, but it may not be enough to pay the amount owed to the injured person. To obtain a sense of how high you should set your limits, use a coverage calculator.

 

  • Premium - This is your bottom line – the precise cost of your insurance each payment cycle (options for payment frequency will vary). If you already know the coverages and deductibles you want, make sure each quotation includes them so you can compare apples to apples. If not, you may alter each quotation to observe how your pricing changes as more coverage is added.