Cheap Car Insurance Michigan 2021

Last modified: September 30, 2021

Looking for cheap car insurance in Michigan? The prices in Michigan are high, but the new legislation passed in July 2020 focuses on auto insurance reform, making it more accessible for residents of the state. 

Our guide on how to save on auto insurance in Michigan will help you obtain affordable coverage to fit your needs. Take a look at our comparison tables to find out more about auto insurance in Michigan and the top providers for students, veterans, and young drivers. If you are looking for top providers outside of Michigan, make sure to check our list of the best car insurance providers in the USA

What Are Michigan Car Insurance Requirements?

If you are a resident, you must already have an idea about Michigan car insurance requirements. To ensure that you are meeting the Michigan full coverage auto insurance minimums, make sure that you know the state laws.

All drivers in Michigan must invest in a no-fault insurance policy. This includes a minimum of three must-have coverages, including personal injury protection, property protection, and residual liability. Even though Michigan drivers can choose other insurance options, they are not compulsory.

1.   Personal Injury Protection (PIP)

Commonly known as PIP, this is medical coverage that is part of the mandatory Michigan minimum car insurance. Insurance carriers are given the responsibility to pay any medical coverage based on what you select.

Before July 2020, drivers in Michigan had to have unlimited personal injury protection coverage. However, the recent law amendment allows them to choose from multiple options. In case an uninsured motorist hits you, you can still use the PIP insurance to make claims.

2.   Property Protection Insurance (PPI)

In Michigan, drivers must have $1 million in coverage in case of property damage. PPI is only responsible for covering any damage made on someone else’s property by your vehicle. It also covers any damage that your vehicle may cause to someone else’s parked vehicle.

3.   Residual Liability

Residual bodily injury and property damage liability coverages are required for Michigan residents. Since the law changed in July 2020, the lowest liability limits have been set. This insurance helps pay the legal defense expenses.

  • Bodily Injury

If one person is killed or injured, $50,000 is charged. This can go up to $100,000 per accident if more than one person gets injured or is killed.

  • Property Damage

In another state, the cost of property damage goes up to $10,000.

Average Costs

State Average Costs by Age and Gender

Age Group Average Price for Men Average Price for Women
20-30 $2,375 $2,139
30-40 $2,375 $2,375
40-50 $1,477 $1,486
50-60 $1,426 $1,428

 The above figures show the average car insurance full coverage costs. These numbers have been divided into gender and age. You’ll notice that auto insurance rates are the highest when both genders are in their 20s, 30s, and 40s. Since many new drivers get their own cars during these ages, they end up paying more for auto insurance.

This is mainly because of two reasons- young drivers do not have much experience, which is why auto insurance companies in Michigan set high premiums, and younger drivers are more likely to crash their car, according to research. 

A study conducted by the AAA Foundation for Traffic Safety discovered that drives between the ages of 16 to 17 were 4.5 times more likely to get into accidents as compared to drivers between the ages of 30 to 59.

 Cost of Insurance by Cities

City Average Rate
Detroit $5,706
Grand Rapids $2,379
Warren $3,356
Sterling Heights $3,135

 The table above shows the average car insurance quotes in Michigan. As you can see, Detroit is the most expensive city for insurance. Known as the Motor City, it is home to 700,000 people. 

Grand Rapids has the lowest average car insurance cost in Michigan. It is the 12th least-expensive city, meaning that auto insurance quotes are relatively cheaper here.

Cheapest Providers

Looking for the cheapest car insurance in Michigan? Even though insurance can be pricey, there are some companies offering below-average rates. In the table below, you will find the cheapest auto insurance in Michigan based on the average price for minimum and full coverage.

Cheapest Insurance Providers in Michigan

Insurance Provider Average Minimum Coverage Average Full Coverage
Travelers $100 $1,437
Secura $113 $798
Westfield $115 $2,228
Wolverine Mutual $199 $1,034

 

Travelers Auto Insurance

Travelers offers a number of coverage options to protect drivers, regardless of the situation on the road. You can find the standard comprehensive and collision coverage, along with other coverage options, including uninsured motorist and medical payments coverage.

Travelers is one of the cheapest auto insurance providers in Michigan based on the average minimum coverage rates. Moreover, they give plenty of discounts.

Secura Auto Insurance

Did you know that Secura has been a functioning provider since 1900? Widely known for its brilliant customer services, Secura provides its drivers with a wide list of options for coverage and discounts. 

It has the lowest average full coverage price in all of Michigan and gives its customers numerous additional features to choose from. 

 

Westfield Auto Insurance

If you are looking for cheap premiums, a personalized quote, and a large variety of coverage options, Westfield is the best auto insurance company for you in Michigan. At Westfield, you can choose your coverage, follow the state requirements, and personalize protections for yourself.

Based on location and personal details, Westfield offers loads of discounts. 

Wolverine Mutual Auto Insurance

This insurance provider offers a wide range of coverage options. Wolverine Mutual received first place in 2016 among other auto insurance companies in Michigan. This is mainly because of its affordable rates and brilliant customer service.

Cheapest Car Insurance in Michigan For Drivers With a DUI

Insurance Provider Rates
Pioneer State $1,596
Progressive $2,599
Esurance $3,010
Meemic $3,706

Cheapest Car Insurance in Michigan for Speeding or Distracted Driving Tickets

Insurance Provider Rates
Pioneer State $1,718
Meemic $2,309
GEICO $2,345

Cheapest Car Insurance Companies in Michigan for Drivers with Bad Credit and a Clean Driving Record

Insurance Provider Rates
GEICO $1,896
Pioneer State $2,319
Meemic $2,863
Auto-Owners $3,374

  Cheapest Car Insurance for Seniors in Michigan

Insurance Providers Rates
USAA $1,505
MetLife $2,924
Auto-Owners Insurance Co $3,110
Nationwide $3,174

 Cheapest Car Insurance for Young Drivers in Michigan

Insurance Providers Full Coverage Rates
Auto-Owners $4,833
Progressive $6,718
Frankenmuth $6,766
State Farm $8,133

 Cheap Insurance for Students in Michigan

Insurance Providers Rates
Progressive $5,004
GEICO $5,953
Nationwide $7,510
Allstate $11,147

 Cheap Car Insurance for Veterans

Active military, veterans, and those that have family members in the military are eligible for cheap car insurance options. 

USAA is one such company that provides cheap auto insurance in Michigan. It is not readily available to other citizens but provides cheaper rates to veterans and members of the military.

Penalties for Driving Without Insurance

Penalty Driving Without Proof of Insurance in Case of Random Checking Driving Without State Minimum Insurance
Driver responsibility penalty $200 for 2 years each $500 for 2 years each
Driving privileges License suspension for up to 30 days License suspension for up to 30 days

 

Reinstatement penalty $25 $125
Additional Up to 1 year of jail time Up to 1 year of jail time

 

Requirements for New Residents

All new residents must follow the Michigan car insurance laws. This means that they must always carry their car insurance and purchase coverage prior to registering their vehicle. 

According to the new Michigan auto insurance law, Michigan is a no-fault insurance state. This means that in case of an accident, all expenses will be paid for. According to the Michigan auto insurance reform, the minimum auto insurance coverage amount is $20,000/$40,000/$10,000.

Traffic Rules Violations and Punishments

Depending on which district you live in, the specifics of the Michigan auto insurance reform and traffic tickets will defer. The table below shows the standard fines you might have to incur if you are pulled over for a traffic violation:

Violations Costs
Speeding 1-5 MPH over the limit $90
Speeding 26+ MPH over the limit $155 + $4 per extra mile
Not signaling properly $95
Not stopping for a school bus $180
Not U-turning properly $100

Impact of Traffic Tickets on Insurance Rates in Michigan

Traffic Ticket Rise in Insurance Cost By %
DUI/ DWI first offense 79%
Reckless driving 73%
Highway racing 71%
Over speeding 30%
Careless driving 26%
Texting and driving 22%
Driving without insurance 10%

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Is Michigan a no-fault state?

In 2019, Michigan transitioned to a no-fault insurance state. This means that in case of an accident, no-fault insurance covers you for any kind of expenses, including hospital, medical, wage loss if you cannot work after the accident, as well as funeral costs. No-fault insurance helps cover these expenses despite whose fault it may be. However, it will not cover any damage done to your vehicle.

Why is car insurance in Michigan so expensive?

Since Michigan is a no-fault state, it has higher insurance rates as compared to other states. Auto insurance companies in Michigan compensate drivers in case of any damages. Moreover, everyone in Michigan must have personal injury protection (PIP). This also raises the insurance cost.
To find cheap car insurance in Michigan is not an easy task, but we hope the review equipped you with enough tips to make the first steps in your search.