Low-cost car insurance in Michigan

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Drivers in Michigan can find the cheapest average premium with GEICO, at $1,827 per year. By comparison, the statewide average monthly cost is $262. Keep in mind that rates vary for each driver depending on factors like driving record, ZIP code, and vehicle type.

Since auto insurance laws differ by state, Michigan requires drivers to carry at least $50,000 in bodily injury coverage per person, $100,000 in bodily injury per accident, and $10,000 for property damage liability.

For broader protection, full coverage may be a smart option. It combines liability, collision, and comprehensive insurance, giving you coverage not only for other drivers but also for your own vehicle if it’s damaged in a crash, stolen, or affected by severe weather.

Here’s how different insurers stack up for drivers in Michigan, depending on your situation.

Key Takeaways

GEICO has the cheapest average premium in Michigan, coming in at $1,827 per year – about $1,319 compared to the state average.
For drivers with an at-fault accident on their record, Auto-Owners offers the lowest rates, with annual costs averaging $3,347.
The 48710 ZIP code is the least expensive area in Michigan for car insurance, with an average yearly premium of $2,435.

Low-cost car insurance companies in Michigan

Among all insurers in Michigan, GEICO comes in lowest at $1,827 per year – $1,319 less than the statewide average. Keep in mind that your actual premium depends on factors like age, driving history, ZIP code, and the type of car you drive.

Comparing quotes from multiple companies is the best way to make sure you’re getting a competitive rate.

Below are the annual premiums from the cheapest car insurance companies in Michigan.

Company	Average annual rates
GEICO	$1,827
Travelers	$2,182
Auto-Owners	$2,877
Auto Club Group – ACG (AAA)	$2,935
Progressive	$3,165
Michigan Farm Bureau	$3,870
Pioneer State Mutual	$3,996
Frankenmuth Insurance	$4,312
State Farm	$4,477
USAA*	$1,811

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

How we choose low-cost car insurance companies in Michigan

170+

Carriers reviewed

78M+

Quotes analysed

34K+

ZIP codes examined

ZIP codes with the cheapest car insurance in Michigan

Drivers in 48710 benefit from the lowest average premium in the state, at $2,435 per year. See the table below to find other ZIP codes in Michigan where insurance tends to be cheaper.

ZIP code	City	Average annual rates
48710	University Center	$2,435
49085	St. Joseph	$2,439
49417	Grand Haven	$2,443
49456	Spring Lake	$2,466
49464	Zeeland	$2,483
48177	Samaria	$2,524
49267	Ottawa Lake	$2,542
49024	Portage	$2,543
49101	Baroda	$2,556
48611	Williams	$2,556

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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

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Low-cost car insurance in Michigan by age

Teen drivers in Michigan pay higher insurance rates than adult drivers because they are more likely to get into accidents and file claims. For example, our data shows that a 16-year-old driver pays $7,040 more than a 40-year-old driver in Michigan.

The table below shows low-cost car insurance rates for drivers of different ages.

Age group	Full coverage annual premiums
Teens (16-19)	$8,749
Young Adults (20-24)	$5,194
Adults (25-60)	$3,114
Seniors (65-75)	$3,009

Low-cost car insurance in Michigan by driver history

Your driving record is one of the biggest factors in your insurance price. Tickets or accidents will raise your premium, while drivers with clean records are considered lower risk and typically receive more affordable coverage.

Low-cost car insurance after a speeding ticket in Michigan

A single speeding ticket in Michigan can push your rates up by 47%, or about $1,493. Along with the fine, that makes speeding a costly mistake. Here are a few insurers that still provide lower-priced coverage after a ticket.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
GEICO	$1,827	$3,392	86%	$1,566
Progressive	$3,165	$3,897	23%	$732
Auto-Owners	$2,877	$4,009	39%	$1,131
Travelers	$2,182	$4,192	92%	$2,010
Auto Club Group – ACG (AAA)	$2,935	$5,690	94%	$2,755
State Farm	$4,477	$6,803	52%	$2,326
USAA*	$1,811	$2,484	37%	$673

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

Low-cost car insurance after an accident in Michigan

After an at-fault accident, premiums increase significantly, but some insurers still offer cheaper options. Auto-Owners has the lowest average rate at $3,347 per year.

If you’ve been in an accident, shopping around can help reduce costs. The table below highlights companies in Michigan with the most affordable rates for drivers with an accident on their record.

Company	Average annual premium	New rate after accident	% Increase	$ Increase
Auto-Owners	$2,877	$3,347	16%	$470
Auto Club Group – ACG (AAA)	$2,935	$4,290	46%	$1,355
Progressive	$3,165	$4,373	38%	$1,208
GEICO	$1,827	$4,836	165%	$3,009
Travelers	$2,182	$5,198	138%	$3,016
State Farm	$4,477	$5,298	18%	$821
USAA*	$1,811	$2,640	46%	$829

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

Low-cost car insurance after a DUI in Michigan

A DUI often places drivers in the high-risk driver category, resulting in much higher rates. Still, some companies in Michigan keep their premiums lower than others. The table below shows the most affordable options available after a DUI.

Company	Average annual premium	New rate after accident	$ Increase	% Increase
Progressive	$3,165	$3,690	$525	17%
Auto-Owners	$2,877	$6,448	$3,570	124%
Auto Club Group – ACG (AAA)	$2,935	$7,492	$4,557	155%
Travelers	$2,182	$8,572	$6,390	293%
State Farm	$4,477	$11,045	$6,568	147%
GEICO	$1,827	$12,742	$10,915	597%
USAA*	$1,811	$3,255	$1,444	80%

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

Average cost of car insurance Michigan

Full coverage insurance costs more than minimum liability insurance, but the extra cost is worth it for most drivers. That’s because minimum liability only pays for injuries or damage you cause to others, leaving you to cover repairs or replacement of your own car out of pocket. Full coverage, on the other hand, includes collision and comprehensive insurance, so your vehicle is protected in situations like accidents, theft, storms, or vandalism.

The average cost of full coverage car insurance in Michigan is $633 more than the national average car insurance rates in the U.S.

We recommend that you carry at least coverage limits of 100/300/100 – that’s $100,000 in bodily injury coverage per person, $300,000 per accident, and $100,000 in property damage coverage. These limits provide a better safety net if you’re involved in a serious accident where costs could quickly exceed minimum requirements.

What is full coverage car insurance?

Full coverage includes liability, collision, and comprehensive coverage. Collision covers your car if it’s damaged in an accident, while comprehensive applies to damage from non-collision events such as theft, fire, or hail.

If you finance or lease your vehicle in Michigan, your lender may require both collision and comprehensive coverage in addition to state-mandated liability insurance.

The bottom line on saving and staying protected

Everyone wants to save on car insurance, but skimping on coverage can leave you with big bills after an accident.

The best approach is to balance affordability with protection. Always compare quotes from at least three companies to find the cheapest car insurance in Michigan.

Methodology

Insure.com gathered data from Quadrant Information Services to get car insurance rates in Michigan. The rates are based on a sample profile of a 40-year-old male and female driving a Honda Accord LX with a good insurance score and no violation on record for a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles.

We analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes nationwide.

To determine car insurance rates for high-risk drivers with a history of traffic violations, we used a sample profile of a 40-year-old male and female driver who own a Honda Accord LX.

We also used sample profiles of drivers from different age groups: Teen drivers (Age 16-19), young drivers (Age 20-24), adult drivers (Age 25-60) and senior drivers (Age 65-75)

We determined the premiums for a high-risk driver with the following incidents applied

1 At-fault property damage accident over $2K
1 At-fault property damage accident under $2K
At-fault bodily injury accident
Poor credit
DUI/DWI first offense
Speeding 30+ over limit
Speeding ticket 1-10 MPH over limit
Speeding ticket 11-29 MPH over the limit

These are sample rates, and your exact rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.