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Michigan has some of the highest insurance rates in the country, but knowing who offers the most affordable rates can help you get the coverage you need.
Michigan Has the Most Expensive Car Insurance Rates
Michigan is the most expensive state in the U.S. when it comes to car insurance rates. This is due to a few factors, including:
- A lot of uninsured drivers: Michigan has one of the highest rates of uninsured drivers. Because insurance companies are left to pay for uninsured drivers, they charge higher rates.
- A higher number of accidents: Michigan also has a lot of car accidents. Many of these car accidents lead to expensive medical bills and damages.
- Insurance reform: Michigan recently changed its insurance laws. Drivers are now required to carry higher liability minimums, now referred to as personal liability and property damage (PLPD).
- No-fault state: Michigan is a no-fault car insurance state. This means that regardless of who is at fault when an accident occurs, the driver’s insurance pays for it. This leads to higher rates.
With Michigan charging the highest insurance rates, it is more important than ever to shop around. If you compare prices among providers, you can find one that fits within your price range.
Cheapest Insurance Companies in Michigan
Finding cheap insurance in Michigan is not always easy. Here are a few insurance providers who usually have the best rates, according to The Zebra:
- Progressive: Average annual rate of $79 (per month) or $947 (per year)
- Frankenmuth: Average annual rate of $81 (per month) or $972 (per year)
- Auto-Owners: Average annual rate of $81 (per month) or $977 (per year)
- State Farm: Average annual rate of $155 (per month) or $1864 (per year)
- Hanover: Average annual rate of $217 (per month) or $2604 (per year)
- AAA: Average annual rate of $274 (per month) or $3287 (per year)
- Allstate: Average annual rate of $595 (per month) or $7142 (per year)
- USAA: Average annual rate of $45 (per month) or $542 (per year)
While USAA may offer the best rates, it is important to note that it is only available to active military members and their families.
Other, smaller insurance companies to consider include:
- Travelers: Average annual rate of $101 (per month) or $1470 (per year)
- Secura: Average annual rate of $115 (per month) or $826 (per year)
- Westfield: Average annual rate of $115 (per month) or $2337 (per year)
- Wolverine Mutual: Average annual rate of $203 (per month) or $1082 (per year)
- Chubb: Average annual rate of $363 (per month) or $1639 (per year)
When evaluating insurance plans, be sure to compare the levels of insurance available.
Cheap Car Insurance for Younger Drivers in Michigan
Car insurance rates in Michigan can be expensive on their own. When you add in minimal driving experience or a younger driver, insurance rates can get even costlier. According to The Zebra, drivers can expect to pay the following:
- 16 years old: Average annual rate of $11442
- 17 years old: Average annual rate of $9226
- 18 years old: Average annual rate of $8234
- 19 years old: Average annual rate of $6379
- 20’s: Average annual rate of $3820
- 30’s: Average annual rate of $3125
- 40’s: Average annual rate of $3092
- 50’s: Average annual rate of $2900
- 60’s: Average annual rate of $2936
- 70’s: Average annual rate of $3386
These rates are based on full coverage. Drivers between the ages of 16-25 years will pay the highest rates, with the most expensive rates between the ages of 16-18 years. Younger drivers who live in Michigan with other negative factors, like a car accident, may find it difficult to buy affordable insurance. An at-fault car accident can increase your rates significantly. The cheapest rates for car insurance for younger drivers with an at-fault accident are usually with Auto-Owners and Progressive.
Cheap Car Insurance for Drivers in Their 50-60’s In Michigan
Insurance rates will usually decrease as a driver become more experienced, with the cheapest rates in the 50-60 year age range. The cheapest insurance providers for drivers in Michigan who are in their 50-60’s is usually with:
- Wolverine Mutual: Average annual rate of $815 per year
- Secura: Average annual rate of $928 per year
- Esurance: Average annual rate of $1166 per year
- Geico: Average annual rate of $1289 per year
These rates are based on full coverage. Insurance rates can begin to increase again in your 70s. It can be beneficial to begin shopping around in your mid-60s to find the best rates. Some insurance providers may offer senior discounts.
Progressive Is a Top Insurance Provider in Michigan
Many Michigan drivers choose insurance through Progressive. This is because they offer the cheapest rates for drivers with less than perfect driving records, including an accident, speeding tickets, and DUIs. Even with an at-fault accident, Progressive usually has the best rates. Whereas other insurance companies may increase rates by as much as 50 percent following an at-fault car accident, Progressive has the lowest increase.
Sufficient Insurance Coverage is Important in Michigan
In addition to finding a good insurance rate, it is also important to evaluate your coverage. With so many uninsured drivers and a high rate of car accidents, you want to ensure that you have sufficient coverage. Otherwise, if you are in an accident, you could be left to pay for the damages out-of-pocket. It can also be helpful to know the minimum insurance requirements in Michigan.
All Michigan drivers must carry a minimum of:
- $50000 bodily injury per person
- $100000 bodily injury liability per accident
- One million personal protection insurance for accidents in Michigan
- $10000 property damage liability for accidents outside of Michigan
- $250000 personal injury protection (PIP)
PPI is a new requirement in Michigan that covers any costs you cause to others. Drivers may also choose to add on other types of coverage, like comprehensive, collision, limited property damage, loan/lease payoff, rental car reimbursement, roadside assistance, and uninsured/underinsured coverage.
With car insurance in Michigan being the costliest in the U.S. it is important to consider your options and shop around. Compare rates between the top Michigan providers and ensure you have enough coverage.
Check this out if you need additional information, resources, or guidance on car insurance.
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