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Best Car Insurance in Michigan for 2024

Updated
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If you're a resident of Michigan, you undoubtedly know that auto insurance premiums are steep. Still, Michiganders cannot legally drive without insurance. As you shop, the goal is to find the most comprehensive coverage you can afford. We've taken a dive into Michigan auto insurance companies to find which are best across categories. Here's what we found.

Best auto insurance companies in Michigan:

  • Best car insurance in Michigan overall: USAA
  • Best budget pick: USAA
  • Best for typical drivers: Progressive
  • Best for customer satisfaction: USAA
  • Best for minimum coverage: USAA
  • Best for military veterans: Geico
  • Best for teen drivers: Geico
  • Best for drivers with one speeding ticket: Progressive

Best auto insurance in Michigan overall: USAA

Back in 1922, 25 Army officers decided to insure each other's vehicles. No matter how you look at it, it was a clever idea. Since that time, the small organization formed by those 25 officers has grown to serve millions of military members and their families. Whether the company is insuring an automobile or a home, USAA is now one of the most respected names in insurance.

However, we've chosen a backup -- since non-military members are ineligible for coverage. If you're looking for another company with great customer ratings and super competitive rates, Progressive is the one to beat.

In a nutshell, the best overall insurer in Michigan for military members and their families is USAA. For non-military members, it's Progressive.

Best budget pick: USAA

Our investigation found that USAA is also the best choice for budget-minded drivers (and who's not budget-minded these days?). Simply put, insuring a vehicle in Michigan is expensive. In fact, the average rate in the state is $5,766. USAA can insure a vehicle for $2,157.

Again, not everyone is eligible for USAA coverage. And once again, Progressive is an excellent alternative, with an average annual rate of $2,619.

Best for typical drivers: Progressive

To identify the best coverage for typical drivers, we wanted to find a company that makes it easy for the "average" driver to snag a policy that meets their needs and fits into their budget. Thanks to its unique pricing tool, Progressive was our winner.

If you don't know about the "Name Your Price Tool," here's the gist: You name the price you can afford to pay for car insurance, and Progressive works with you to find a plan to meet your budget. There may be some give and take as you determine what's important to you, but it's a great way to nail down a policy.

In addition, Progressive's "Snapshot Program" gives you a discount if you're willing to add an app to your car that tracks your driving habits for a few months. If you're found to be a safe driver after that time, the discount is all yours.

These are both innovative programs that put you in the driver's seat.

Best for customer satisfaction: USAA

USAA received an impressive customer satisfaction score of 877 out of 1,000 possible points in the J.D. Power 2023 U.S. Auto Insurance Customer Satisfaction Study. The next closest competitor received a satisfaction score of 844.

When it comes to something as important as auto insurance, there are few things more important than knowing that your insurance company will be there to help when you need it.

Best for minimum coverage: USAA

Like other states, Michigan requires drivers to carry a specific minimum level of coverage. And in a state with overall rates as expensive as Michigan's, it's important to know which company carries the best rate for that coverage. The lowest rate we found ($408) was with Wolverine Mutual. However, we have a few concerns about Wolverine Mutual's financial strength.

According to AM Best, the insurer's financial strength rating has been downgraded from a B++ (Good) to a B- (Fair). The downgrade was attributed to the company's capitalization deterioration throughout the first half of 2023. In a nutshell, a combination of weather-related losses and inflationary pressures makes the company slightly less financially sound than it was.

For that reason, we moved on to No. 2 on our list for minimum coverage: USAA. Once again, USAA offers both low rates ($582) and an AM Best rating of A++ (Superior). Another insurer worth checking out is Geico, offering an average annual premium of $710.

Best for military veterans: Geico

Geico is certainly one of the most recognized names in insurance, but did you know the company regularly thanks military members for their service by offering a 15% discount off their already low rates?

If you're a USAA member, you may score a lower rate by bundling your auto policy with other types of coverage, like homeowners.

Best for teen drivers: Geico

No matter where in the U.S. you live, insuring a young driver is expensive, but that's especially true in Michigan. While many of the companies (and policies) we investigated cost a small fortune, Geico did not disappoint. With an average annual premium of $2,797, Geico provides teen drivers with the insurance they need at a price that is somewhat affordable.

Best for drivers with one speeding ticket: Progressive

If you've ever had a speeding ticket, you know how expensive it can be. And once you're done paying penalties and fees, you're hit with higher insurance rates for two years (when the infraction drops off your driving record). At $1,829, Progressive's average annual rates are among the best in Michigan.

How much does car insurance cost in Michigan?

The exact cost of auto insurance in Michigan depends on several factors, including your age, driving record, and where you live.

Average car insurance cost

Here, we break down the average monthly and annual premiums for a variety of common driver personas in Michigan:

Persona Average Monthly Premium Average Annual Premium
Overall $481 $5,766
Drivers with Clean Records $389 $4,664
Drivers with One Accident $513 $6,156
Drivers with One Speeding Ticket $549 $6,593
Drivers with One DUI $930 $11,163
Teen Drivers $799 $9,583
Senior Drivers $318 $3,817
Military Veterans $355 $4,259
Drivers Seeking Minimum Coverage $151 $1,807
Source: Motley Fool Money's analysis of standardized personas.

Michigan auto insurance laws

If you're caught driving in Michigan without auto insurance, the fines can be hair-raising. For example, the first time you're found guilty of the misdemeanor infraction, you'll be hit with a fine ranging from $200 to $500 and/or sent to jail for up to one year. But that's not all. Here's what else could happen if you drive without auto insurance:

  • Your driver's license will be suspended until you can show that you've obtained insurance.
  • Your license plates will not be renewed until you show you have auto insurance and pay a $50 fee.
  • If you're injured in a car accident while driving an uninsured vehicle, you cannot sue the at-fault driver for pain and suffering.
  • If you're injured, you are disqualified from recovering no-fault medical benefits.
  • If you're injured, you will not be reimbursed for lost wages through no-fault wage loss benefits.
  • If your vehicle is damaged in a car accident, you cannot use the Michigan mini tort law to recover up to $3,000 from the at-fault driver to cover damage to your vehicle.
  • If you cause an auto accident, you could be held personally liable for injuries or death.
  • If you're in an accident, you could be legally required to pay the medical bills of anyone who was injured -- including the other driver, even if that person was 100% at fault.
  • You could be on the hook to pay lost wages to others involved in the accident.
  • You may end up paying for vehicle repairs for the other driver(s).

What is the minimum car insurance required in Michigan?

The minimum liability insurance requirements in Michigan are as follows:

  • $50,000 for bodily injury, per person
  • $100,000 for bodily injury, per incident
  • $10,000 for personal property damage

Other things to consider when looking for car insurance in Michigan

If you're a Michigan resident, it's important to remember that the state's car insurance laws are some of the most comprehensive in the nation. In theory, these tough laws should mean that Michiganders are well protected on the road. However, there are gaps in coverage. Rather than looking for the cheapest price you can find on auto insurance, take time to shop around. The goal is to find the highest level of coverage that you can reasonably afford.

How to find the best car insurance in Michigan

These tips can help you land the best coverage at a price you can afford:

  • Shop around: As you shop around, you may be surprised to learn how much rates vary by company. That's because no two auto insurance companies measure risks in precisely the same way. If the first company you contact scares you off with its high rates, don't assume they will all be the same. Keep looking until you find the most comprehensive coverage your budget can handle.
  • Take advantage of discounts: Often overlooked car insurance discounts can save you big each year. For example, you may score discounts for the safety features on your car, driving with a clean record, or taking a driver's education course.
  • Choose a higher deductible: Your deductible is the amount you must pay toward a claim before your insurance company pays the remainder. The higher the deductible you pay, the lower your premium. If you take the time to build an emergency fund, you'll have a source to pull from in case of an accident or other claim.

FAQs

  • How much a driver pays for car insurance in Michigan depends on several factors, including:

    • Driving record
    • Age
    • Credit score
    • The type of vehicle they drive
    • Where in the state they live
    • Any discounts they score

  • Overall, USAA ranks as the best in the state. For non-military members, Progressive and Geico are excellent options.

  • Anyone who drives in Michigan is legally required to be covered by auto insurance. Failure to do so can result in fines and jail time.

  • You take a potentially expensive risk if you drive in Michigan without auto insurance. At a minimum, you'll face a fine of $200 if you're found guilty of the infraction, but the bill could reach far more.