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The Best Cheap Michigan Car Insurance for 2022

Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Shopping for car insurance may be one of the least exciting things you do. However, having enough coverage to protect your assets is a smart financial move and can make hitting the open road more pleasurable. Fortunately, it's some of the best car insurance companies that provide the lowest rates in Michigan.

  • Cheapest for a typical driver: Geico
  • Cheapest for a teen driver: Geico
  • Cheapest for members of the military: Geico
  • Cheapest for driver with one accident: Progressive
  • Cheapest for driver looking for minimum coverage: Geico

Cheapest for a typical driver

For a "typical" driver with a clean driving record, the cheapest car insurance in Michigan is available through Geico, which offers an average annual rate of $1,486.

Geico

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Best for Michigan drivers with a clean driving recordGeico
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Other Michigan auto insurance carriers worth considering are:

  • Progressive, with an average annual premium of $1,856
  • USAA, offering an average annual rate of $2,442

Cheapest for a teen driver

Geico is the Michigan auto insurance champion when it comes to covering teen drivers. With an average rate of $2,908, they blow much of the competition out of the water.

Following behind are:

  • Auto-Owners, with an average annual rate of $3,959
  • USAA, with an average rate of $4,691

Cheapest for members of the military

Current and former military members (and their families) enjoy relatively cheap auto insurance in Michigan through Geico, with an average annual rate of $1,486

Other competitive carriers include:

  • Progressive, offering an average annual rate of $1,856
  • USAA, with an average rate of $2,442

Cheapest for a driver with one accident

Drivers with accidents on their record can find it tough to find affordable car insurance in Michigan. Progressive makes it a little easier by offering an average rate of $2,416 to drivers with one accident on their record.

Progressive

Logo for Progressive
Best for Michigan drivers with an accident on their recordProgressive
Rating image, 4.00 out of 5 stars.
4.00 stars
Info Icon Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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= Fair
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Other options include:

  • Auto-Owners, with an average annual rate of $2,938
  • Pioneer State Mutual, offering an average annual premium of $3,345

Cheapest for a driver looking for minimum coverage

Geico is the big winner when it comes to Michigan minimum car insurance rates. For $854 a year ($71 per month) Michiganders can buy basic coverage.

Other companies offering competitive rates on Michigan auto insurance include:

  • American Select, with an average annual premium of $886
  • Auto-Owners, with an average rate of $1,005

Average car insurance cost in Michigan compared to the national average

The average cost of auto insurance in the state of Michigan is $5,377 annually, 46% higher than the national average of $2,875. The cost of your coverage depends on things like age, driving history, credit score, and where you live.

AVERAGE RATE CATEGORY MICHIGAN NATIONAL AVERAGE
Overall $5,377 $2,875
Young drivers $8,809 $6,087
1 accident on driving record $5,972 $3,226
1 speeding ticket on driving record $6,046 $2,840
Data source: Quadrant data.

Michigan auto insurance laws

Per Michigan car insurance laws, drivers caught driving without insurance can be hit with harsh consequences, including a fine of up to $500, a 30-day license suspension, a fee for reinstating their license, court cost, and a "driver responsibility" fee of $500 for two years.

Michigan minimum coverage requirements

If these minimum requirements seem higher than most states, that's because Michigan drivers are required to carry an above-average level of coverage.

  • $50,000 per person and $100,000 per accident in bodily injury liability
  • $10,000 property damage liability coverage outside Michigan and $1 million within the state
  • $250,000 in personal injury protection (although Medicaid and Medicare recipients may qualify for a lower limit)

How to get cheap auto insurance in Michigan

Landing cheap car insurance involves shopping around and gathering car insurance quotes in Michigan. It also requires you to investigate all potential discounts.

Hunting for discounts

The number of potential insurance discounts varies by the insurance company, but taking time to look through the options can save you money. Here are some of the ways you can save money:

  • Good student discount
  • Defensive driver discount
  • Pay-in-full discount
  • Away-at-school discount
  • Occupational discount
  • Alumni discount
  • Professional organization discount
  • Safety feature discount
  • Usage-based discount
  • Multi-car discount
  • Multi-policy discount
  • New car discount

You will also find that insurers base your rate quote, in part, on your credit score. If your credit score is low, taking steps to raise it can lower the rate you pay for auto insurance.

Other things to consider when looking for car insurance in Michigan

Last year, bipartisan legislation was passed to lower the cost of Michigan auto insurance. This legislation applies to auto policies issued or renewed after July 1, 2020.

Prior to the change, Michigan had the highest auto insurance benefits in the country. However, they also had the highest costs. Some drivers who could not cover the high cost of Michigan insurance drove uninsured. The new law makes it possible for drivers to reduce their premiums in exchange for giving up a portion of the previously required medical coverage. For Michiganders with their own health insurance policies, it can make sense to reduce personal injury protection (PIP) and save money. It's one way for the state to help people find cheap liability car insurance in Michigan so they can legally get behind the wheel of a car.

When you're wondering "how much is car insurance in Michigan?," it helps to remember that rates throughout the state are still higher than the national average, but it is possible to find low-cost car insurance if you look.

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