The Best Car Insurance Companies in Michigan

The best Michigan car insurance will vary from person to person but will hinge on coverage and cost. If you value good coverage over cost, the best auto insurance policy for you will be a full coverage policy. If you value cost over coverage, the best car insurance policy for you will be a policy with the legal minimum amount of coverage. Ultimately, the best car insurance in the state would be a full coverage policy with discounts applied.

Michigan is known for having costly premiums, and it can be tempting to lower your coverage limits to save a few bucks. As long as you carry the legal minimum amount of coverage in the state, you will be adequately covered in the law’s eyes, but you may not be adequately covered in the long run.

The minimum legal coverage in Michigan is $50,000 bodily injury per person, $100,000 bodily injury per person per accident, $10,000 of property damage liability (50/100/10 of liability coverage), around $250,000 of personal injury protection or PIP, and at most $1 million of property protection insurance or PPI.

The best car insurance policy for you is heavily dependent on your needs. If you value having a policy with robust coverage, the best car policy for you would be a full coverage policy that exceeds the legal minimums and includes optional coverage options like uninsured or underinsured motorist coverage, collision coverage, and comprehensive coverage.

While car insurance is costly in the Great Lakes State, the price difference between the average full coverage policy and the average minimum coverage policy is just over $300. Since the cost difference isn’t very vast, it may benefit policyholders to have a full coverage policy and get thrifty with possible discounts.

While the best insurer for you may not have the best auto insurance rates in Michigan, it’s important to remember that many people in the state pay high premiums on their policies. While most insurers consider your age, gender, ZIP code, credit score, and other factors while determining your premiums, laws in the state prevent insurers from using many personal details when calculating your premiums.

In Michigan, insurers aren’t permitted to use gender, ZIP code, credit score, or other factors in determining premiums. The only personal thing about you your insurer can use when determining your premium is your age. While this may be beneficial for some, this drives up the rates for others. 

For example, in states where ZIP codes are permitted to determine premiums, those who live in cities with low populations typically pay less than those who live in densely populated cities. This is due to the risk insurers take when insuring drivers who often travel on densely packed roadways with a higher risk of getting into a car accident and filing a claim with their auto insurance.

However, in states where using ZIP codes in premium calculation isn’t permitted, drivers in those lower populated cities end up paying more in car insurance because the drivers in populated cities drive up the base rates.

All this to say, if your insurer has high base rates, chances are they’re not the only one. Many car insurance companies in Michigan have high base rates, to no fault of their own. However, there are still a few insurers that stand out among the rest, and a few things you can do to lower the rates on your policy.

The best auto insurance company for you is entirely subjective and depends on your needs and values. The company with the best coverage options may have poor rates, and the company with the best rates may have only some of the coverage types you want or need. If you’re insuring a teenager or an older person, your needs may differ from someone who’s insuring a middle-aged driver.

You will want to consider what you value in an insurance policy before sifting through the many car insurance companies in Michigan. While it’s up to you to determine what company best suits your needs, let’s look at some of the best insurance companies the state offers.

When searching through Michigan car insurance companies, you will want to compare a few to see what company most closely fits your needs. Since the state has higher-than-average rates, the best car insurance companies in Michigan will be companies that offer great coverage options at low base rates with several opportunities for discounts to lower your premiums without sacrificing coverage.

Below we compiled a list of car insurance companies in Michigan that offer lower-than-average base rates and many discounts.

USAA is one of our top picks for car insurance in Michigan, as they offer low base rates and consistently great customer service to their policyholders. USAA offers a low base rate of $1,200 annually for a full coverage policy and several discounts for policyholders. The only caveat with USAA is it’s only available for current or past military members and their qualifying family members.

We chose Travelers for our list of top auto insurance companies in Michigan because they offer low base rates for full and minimal coverage policies and have many discount options. The average full coverage policy with Travelers costs about $1,800 annually in Michigan, which is nearly 20% lower than the state’s average full coverage policy, costing about $2,190 annually.

Travelers offers a variety of great discounts for which many policyholders may be eligible, such as a good student discount, bundling discount, and a hybrid/electric car discount.

Progressive ranks on our list because they offer low base rates and have a variety of unique discounts and programs in which policyholders can enroll to receive reimbursements or discounts on their premiums. The average annual premium for a full coverage policy with Progressive in Michigan costs about $2,300, which is just about $100 over the state’s average full coverage premium of $2,190 annually.

Progressive offers a unique program in which policyholders can enroll and receive a credit that can be applied to their premiums each time they go accident-free for six months. Progressive also offers a telematics program where policyholders can enroll to get a discount on their premiums for making safe driving choices. 

State Farm is just shy of our top pick for best insurance rates in Michigan, but it’s still an excellent option. State Farm is one of the car insurance agencies in Michigan with a great reputation for offering great coverage at a low cost. The average full coverage premium with State Farm costs about $2,100 annually, which is just under the average cost of a full coverage premium in Michigan, which is about $2,190

State Farm also offers a variety of discounts, for which many policyholders will find themselves eligible. State farm has a telematics program in which policyholders may enroll and see discounts on their premiums if they practice safe driving habits. State Farm also offers discounts for drivers with anti-theft systems on their vehicles, good students, and those who bundle multiple insurance policies with the insurer.

From our calculations, Geico is the best insurance company in Michigan. A full coverage policy with Geico costs about $1,500 annually, which is over 30% less than the average cost of a full coverage policy in the state, which is about $2,190 annually. Their low base rates aren’t the only reason we think they’re the best insurance company in Michigan; Geico also offers great customer service and various discounts you can apply to your policy to lower your premiums even further.

Geico offers discounts for drivers who practice safe driving habits and are accident-free, military and federal employees, those who have held a policy with them for a long time, and much more. 

If you’re interested in getting a quote for Michigan car insurance from one of these great insurance companies and many more, don’t look any further. The best way to find the auto insurance policy that is best for your needs is to shop around online to get and compare quotes from several insurance carriers. This way, you don’t miss out on any savings.

You can start by getting a quote right here at Clovered with our free quoting tool. Or, if you would rather chat with someone directly, you can call us at 833-255-4117 or email us at [email protected].