Car insurance in Michigan is some of the most expensive in the country, which makes shopping around and comparing quotes essential to find the best rates.
To help Michigan drivers save as much as possible, we researched the lowest prices from the seven largest insurers in the state. Below you’ll find the three cheapest options for the following driver types:
Cheapest for good drivers
For drivers with no at-fault accidents, DUIs or moving violations; range of average prices: $3,040 to $13,746
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- $3,040/year
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- $3,301/year
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- $3,315/year
The average quote for good drivers among the three cheapest options was $3,219 year. As you can see, even incident-free drivers in Michigan have to pay a steep price for auto insurance. Based on our research, drivers can generally save money by going with regional insurance companies such as Frankenmuth Mutual or The Hanover Insurance Group, rather than national outfits. Keep in mind, however, that discount options may be greater at bigger insurers, which could be important for safe Michigan drivers looking to trim their premium.
Cheapest for young drivers
For drivers in their early 20s; range of average prices: $1,655 to $10,715
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- $1,655/year
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- $1,844/year
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- $1,908/year
Drivers in their early 20s can often select leaner coverage amounts, given that they usually don’t have families, expensive cars or pricey assets to protect. As a result, they can get relatively affordable car insurance in Michigan. The price range for this group was still fairly wide — nearly $10,000 between the lowest and highest estimates — proving that shopping around is vital for young drivers who want to avoid sky-high rates.
Cheapest for families with one teen driver
For middle-aged couples with one teen driver; range of average prices: $5,023 to $31,595
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- $5,023/year
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- $5,375/year
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- $5,424/year
Teen drivers run a high accident risk, which is why adding a first-time motorist to your policy means a sharp increase in car insurance rates. Even the cheapest option from our test, Hanover, returned average rates around $419 a month. (Clearly, “cheap” is a relative term here). To help ease the financial sting at least slightly, look for discounts your child can bring to the table, such as for getting good grades or completing a driver training course.
Cheapest for drivers with poor credit
For drivers placed in the lowest credit tier as determined by the industry; range of average prices: $3,533 to $13,179
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- $3,533/year
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- $3,914/year
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- $4,181/year
Car insurers use drivers’ credit ratings as a predictor of future claims and may charge higher rates for those with poor credit. The price increase, if any, varies by company, so comparing rates is the best way to steer clear of rates that are higher than you need to pay. For instance, Auto-Owners Insurance returned the lowest estimate from our study at $3,533 per year — about $18 a month more than their rate for good drivers with no credit issues. The next closest competitor, Hanover, quoted rates that were about $51 a month higher given the same circumstances.
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their cars for commuting; range of average prices: $3,040 to $11,097
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- $3,040/year
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- $3,301/year
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- $3,315/year
Drivers in their mid- to late 60s retrieved the same three cheapest average quotes as good drivers half their age, proving that hitting those golden years may not mean cheaper car insurance in Michigan. Older motorists can typically benefit from discount opportunities that other age groups might not have, such as perks for completing a defensive driving course, owning a home or simply reaching a certain age.
Minimum car insurance requirements in Michigan
Michigan has unique coverage requirements for its drivers. Customers must select liability insurance, personal property protection (PPI) and personal injury protection (PIP). The latter doesn’t have any minimum amount; drivers simply add PIP, and the coverage will be unlimited if needed.
Liability coverage and PPI come with the following mandatory minimums in Michigan:
- $20,000 bodily injury liability per person
- $40,000 bodily injury liability per incident
- $10,000 property damage liability per incident
- $1 million PPI
Experts generally recommend buying more than the bare minimum of liability insurance to avoid paying for damages out of pocket down the road.
Michiganders may also benefit from certain optional coverages. For instance, the state has one of the highest rates of uninsured motorists in the nation, about 1 out of every 5 drivers. Adding uninsured motorist coverage, which helps pay for your injury treatment if struck by a driver who lacks coverage, may bring some much-needed peace of mind.
Alternative car insurance in Michigan
Drivers who are denied coverage on the open market, due to poor credit, DUIs or other factors, may qualify for protection under the Michigan Automobile Insurance Placement Facility (MAIPF).
NerdWallet is also here to help drivers in the Wolverine State secure auto coverage at competitive prices. Our anonymous car insurance comparison tool is your go-to resource for viewing estimates from top companies and saving hundreds on your policy.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist coverage limits, $1 million personal property protection and unlimited personal injury protection. We used a 2012 Toyota Camry in all cases.
To test rates for families with teen drivers, we used a 46-year-old female and 47-year-old male with a 16-year-old son. Our sample retired driver was 67 and drove 50% fewer annual miles than other groups. Our sample young driver was 22 and carried the minimum required coverage levels. The range described includes quotes retrieved by NerdWallet from the seven largest insurers in the state. Your own rates will be different.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
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