According to the Insurance Information Institute, Michigan is the second-most expensive state for car insurance in the US with an average of $1,358.62 per year.
Michigan car insurance is expensive because of two factors: The state has no-fault laws, and also requires unlimited personal injury protection coverage. For those who have poor credit histories or driving records, getting car insurance in Michigan can be costly.
But, that doesn't mean you can't find a deal. It's worth shopping around and getting auto insurance quotes from several different companies. Then, compare those quotes to get the most insurance for your money. Your driving history, zip code, and even personal factors like your marriage status or gender could affect your rates.
The most popular car insurance companies in Michigan
The following are the most popular car insurance companies in Michigan, based on the percentage of insured Michigan drivers who use them:
| Company | Market Share % |
| Progressive | 17.89 |
| State Farm | 16.33 |
| Auto Club Insurance Association | 15.31 |
| Auto-Owners Insurance | 10.65 |
| Allstate | 7.74 |
| The Hanover Insurance Group | 6.47 |
| Michigan Farm Bureau | 5.02 |
| Liberty Mutual | 3.54 |
| USAA* | 3.04 |
| Pioneer State Mutual | 1.86 |
| Frankenmuth | 1.73 |
| Farmers | 1.66 |
| GEICO | 1.00 |
*USAA is only for active military, veterans, and their families.
Data from S&P Global Intelligence
The best car insurance in Michigan based on customer satisfaction
Customer satisfaction with car insurance providers may factor into your decision. According to J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the North Central region (which includes Michigan):
- GEICO
- Indiana Farm Bureau
- Erie Insurance
- Auto-Owners Insurance
- Country Financial
- Westfield
- Grange Insurance
- Farmers
- Allstate
- Region Average
- State Farm
- Nationwide
- Travelers
- American Family
- Progressive
The best cheap car insurance in Michigan based on credit score
Consumer Reports looked at which companies offer the best rates for those with three different tiers of credit, calculated based on each company's pricing formulas for each state. Here are the three companies that offered the most affordable rates for each credit level.
People with excellent credit, FICO scores 800-850, in Michigan can expect to see some of the lowest rates:
- USAA car insurance: $802 per year
- Progressive car insurance: $1,300 per year
- Citizens Insurance Company of the Midwest: $1,697 per year
Drivers with good credit, FICO scores 670-739, will find that their best options are USAA and Progressive:
- USAA car insurance: $1,083 per year
- Progressive car insurance: $1,584 per year
- Home-Owners car insurance: $1,952 per year
Those with poor credit, FICO scores 300-579, will pay the most for car insurance. Here are the three most affordable companies for this credit range:
- Citizens Insurance Company of the Midwest: $3,272 per year
- Progressive car insurance: $3,277 per year
- USAA car insurance: $3,302 per year
The best car insurance for drivers with a clean record
For a driver in Michigan age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:
| Company | Average monthly insurance premium |
| State Farm | $175 |
| Allstate | $176 |
| Progressive | $178 |
| Esurance | $192 |
| MetLife | $198 |
| Liberty Mutual | $215 |
| USAA* | $263 |
*USAA is only available to military, veterans, and their family members
Above data obtained from Savvy, based on 5,248 policyholders in the state of Michigan
Best car insurance for one or more accidents on record
For a driver in Michigan age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:
| Company | Average monthly insurance premium |
| Allstate | $199 |
| Progressive | $207 |
| Esurance | $227 |
| Bristol West | $230 |
Above data obtained from Savvy, based on 5,248 policyholders in the state of Michigan
Michigan car insurance rates by metro area
Below is the estimated average annual premium of auto insurance policies per household in Michigan's metro areas:
| Metro area | Average annual insurance premium |
| Detroit-Warren-Dearborn | $1,260 |
| Grand Rapids-Kentwood | $1,278 |
| Lansing-East Lansing | $1,229 |
| Flint | $1,175 |
| Ann Arbor | $1,302 |
| Kalamazoo-Portage | $1,235 |
| South Bend-Mishawaka | $1,215 |
| Saginaw | $1,182 |
| Muskegon | $1,175 |
| Jackson | $1,218 |
| Niles | $1,210 |
| Traverse City | $1,244 |
| Monroe | $1,292 |
| Battle Creek | $1,192 |
| Holland | $1,260 |
| Bay City | $1,203 |
| Adrian | $1,243 |
| Midland | $1,204 |
| Mount Pleasant | $1,160 |
| Marquette | $1,194 |
| Marinette | $1,150 |
| Sturgis | $1,193 |
| Cadillac | $1,131 |
| Hillsdale | $1,182 |
| Big Rapids | $1,145 |
| Coldwater | $1,193 |
| Alma | $1,159 |
| Houghton | $1,143 |
| Sault Ste. Marie | $1,152 |
| Escanaba | $1,165 |
| Iron Mountain | $1,163 |
| Ludington | $1,168 |
| Alpena | $1,138 |
Data from S&P Global Intelligence
Who gets the best car insurance rates in Michigan?
Drivers who get the best car insurance rates are going to be those who have the best credit scores and driving records.
But, there are lots of factors that go into how much your car insurance will cost. Your age, your gender, the type of car you're driving, and even where you live will have an impact on the costs of your car insurance.
Every insurance company prices their policies and looks at factors differently, so it's important to get quotes from multiple companies and compare them. Don't just look for the lowest premium — consider all the moving parts of the policy, including the deductible and the coverage limits for each type of liability. The best way to save on car insurance in Michigan is to shop around.
Why is Michigan car insurance so expensive?
No-fault laws are one of the main reasons Michigan residents see such high car insurance rates. In a no-fault state, each driver is reimbursed for damages by their own insurance company. Many of the states with the most expensive auto insurance policies are also no-fault states, including Florida, Massachusetts, New Jersey, and New York.
Additionally, personal injury protection (also called PIP) liability is required in Michigan, and it's expensive. Michigan law requires no maximum limit on the payout for personal injury protection, which drives up prices. While it's helpful to have if you're hurt in an accident, the price can make car insurance expensive up front.
- Read more about car insurance:
- The average cost of car insurance in the US
- The cheapest car insurance for teenagers
- The best affordable car insurance companies for 2020
- 5 reasons your car insurance rates may be rising
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