The best, cheapest car insurance in Michigan for 2025

Why you can trust Insure.com

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

Best car insurance company in Michigan

Drivers in Michigan pay an average of $2,266 a year, or $189 per month, which is the 6^th highest in the country, according to our research.

Actual car insurance rates vary by company, and GEICO, Auto-Owners, and others continue to offer some of the most competitive premiums in Michigan.

When it comes to the best cheap car insurance in Michigan, GEICO is our No. 1 choice followed by Auto-Owners and Travelers.

GEICO scores well with third-party rating organizations and it has an average premium in Michigan of $1,553 a year, or $129 a month, which is roughly $713 less than the Michigan average.

The best car insurance companies in Michigan

Company Group	NAIC	J.D. Power	AM Best Rating	Score (out of 5)
GEICO	0.69	641	A++	4.21
Auto-Owners	0.54	646	A+	4.10
Travelers	0.52	606	A++	4.02
Progressive	0.71	648	A+	3.96
Michigan Farm Bureau	0.29	656	A-	3.94
State Farm	0.79	665	A++	3.50
USAA*	1.18	726	A++	4.43

*USAA is only available to military community members and their families.

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights, to arrive at an overall star rating.

Premiums: 25%
JD Power: 30%
AM Best: 25%
NAIC: 20%

You might find interesting

Explore related topics

Cheapest car insurance in Michigan

Travelers has the lowest average rate in Michigan at $1,355 a year or $113 a month.

GEICO is the next most affordable at $1,553 annually and Progressive at $2,069. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Michigan, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While Travelers had the lowest average rate at $1,355, State Farm was the most expensive at $3,601.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Michigan

Company	Average annual premium	Average monthly premium
Travelers	$1,355	$113
GEICO	$1,553	$129
Progressive	$2,069	$172
Auto-Owners	$2,080	$173
Automobile Club MI (AAA)	$2,526	$211
State Farm	$3,601	$300

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Car insurance rates in Michigan by city

See rates in your city

Our agents make it hassle-free to get the right quote.

Call (844) 814-8854

Ethan Available Now

Jack Available Now

Robbie Available Now

Ellie Available Now

Full coverage car insurance in Michigan

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

Shopping for car insurance in Michigan

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Michigan by age

Car insurance rates will vary by age as reams of statistics show that teen and young adult drivers, because they are inexperienced on the road, take bigger risks and are more likely to get in anaccident and file a claim, which is why they pay more for coverage than older more experienced drivers.

Travelers turned out to be the best insurer in Michigan for drivers of all ages. The numbers show the difference between young and old drivers with the lowest premium for a teen coming in at 91% more than the lowest premium for a senior driver.

Once a driver hits 25, rates will start to drop, assuming they keep their driving record clean, and will stay stable until their 70s when they will start climbing a bit.

Cheapest car insurance for senior drivers in Michigan

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In Michigan, the cheapest insurance company for senior drivers is Travelers at $1,376 a year or $115 a month. Progressive grabbed the second-place spot with premiums running $1,968 annually or $164 a month, Auto-Owners was third at $2,001.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Michigan

Company	Average annual premium	Average monthly premium
Travelers	$1,376	$115
Progressive	$1,968	$164
Auto-Owners	$2,001	$167
GEICO	$2,303	$192
Automobile Club MI (AAA)	$2,307	$192
State Farm	$3,420	$285

Car insurance for young drivers in Michigan

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, GEICO is the cheapest insurer for drivers in their early 20s with an average premium of $2,199 a year or $183 per month.

Auto-Owners was the second cheapest insurer at $2,765 and Progressive will insure a young driver in Michigan for $3,254 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s.

The chart below shows the average premiums for young drivers.

Average rates for young drivers in Michigan

Company	Average annual premium	Average monthly premium
GEICO	$2,199	$183
Auto-Owners	$2,765	$230
Progressive	$3,254	$271
Travelers	$3,263	$272
Automobile Club MI (AAA)	$4,322	$360
State Farm	$5,880	$490

Car insurance for teen drivers in Michigan

Insuring a teen is always expensive; statistics show that inexperienced teen drivers get into more accidents and file more claims than more experienced drivers. In Michigan, the best insurer for teen drivers is Auto-Owners with an annual premium of $3,749 or $312 a month. GEICO was second most affordable at $3,891 a year or $324 monthly while Automobile Club MI (AAA) was number three at $6,172.

While teens are expensive to insure, there are a few ways to save some money. Most insurers offer a good student discount so if your teen is carrying a B average or above you should ask for a discount. Putting them in an older vehicle will also lower your insurance costs.

The chart below shows average premiums for teens.

Average rates for teens in Michigan

Company	Average annual premium	Average monthly premium
Auto-Owners	$3,749	$312
GEICO	$3,891	$324
Automobile Club MI (AAA)	$6,172	$514
Travelers	$7,271	$606
Progressive	$7,797	$650
State Farm	$10,095	$841

Average cost of car insurance in Michigan

Michigan is the 6^th most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $2,266.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Michigan

Average annual premium	Average monthly premium
$2,266	$189

Which Michigan ZIP codes are the most expensive for car insurance?

Insurers consider the ZIP code where your car is parked when setting a premium. High crime rates or frequent severe weather will result in a higher premium.

According to our analysis, the following ZIP codes are the most expensive in Michigan for car insurance. Hamtramck tops the charts at $3,114 a year.

Here are the most expensive ZIP codes in Michigan for car insurance:

Most expensive ZIP codes in Michigan

City	Average annual Premium
Hamtramck	$3,114
Melvindale	$3,018
Dearborn	$2,997
Van Buren	$2,995
Detroit	$2,987
Redford	$2,853
Dearborn Heights	$2,847
Beverly Hills	$2,785
Allen Park	$2,784
Taylor	$2,773

Which Michigan ZIP codes are the cheapest for car insurance?

The cheapest ZIP codes for car insurance in Michigan tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Grand Haven has the most affordable ZIP code in Michigan with an annual premium of $1,868.

Least expensive ZIP codes in Michigan

City	Average annual Premium
Grand Haven	$1,868
St. Joseph	$1,874
Spring Lake	$1,894
Samaria	$1,927
Zeeland	$1,929
Saugatuck	$1,950
Macatawa	$1,950
West Olive	$1,951
Holland	$1,957
Ottawa Lake	$1,968

Cheapest car insurance for high-risk drivers in Michigan

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 47% increase, pushing the average rate to $5,898. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 72% to an average of $6,918. A DUI will result in the biggest increase, sending your premium up 254% to an average of $14,223.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Michigan after a traffic incident

Profile Groups	Average annual premium	Rates after Incident	Rates increase after incident ($)	Rates increase after incident (%)
At-Fault Accident	$4,013	$6,918	$2,905	72%
Bad Credit	$4,013	$8,600	$4,587	114%
DUI	$4,013	$14,223	$10,210	254%
Speeding	$4,013	$5,898	$1,885	47%

Minimum car insurance requirements in Michigan

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. Michigan requires drivers to carry 50/100/10 in liability coverage, which translates into:

$50k for bodily injury and $50,000 for death for a person involved in an accident
$100k for bodily injury and $100,000 for death for two or more people in an accident
$10k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Michigan.”

Mark Vallet

Contributing Researcher

Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.