Car Insurance in Michigan: Top Picks for Affordable Coverage
Michigan drivers face some of the highest car insurance premiums in the country, with average costs reaching $3,100 per year for full coverage and $883 for state-required minimum coverage. However, there are ways to save on car insurance in the Great Lakes State. CNBC Select has analyzed top insurance companies to provide the best options for Michigan drivers.
Best Car Insurance Companies in Michigan
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Best for Affordability: Geico Geico offers low average rates and is available nationwide. Their auto coverage includes 16 discounts and various optional add-ons, such as emergency roadside assistance and rental car reimbursement. Geico’s easy-to-use app allows customers to manage policies and request roadside service.
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Best for Bundling: Progressive Progressive offers generous bundling discounts, with customers saving over 20% on average when combining auto and home policies. Their array of riders includes rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period without a claim.
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Best for Families with Teen Drivers: State Farm State Farm is the largest auto insurer in the U.S. and offers affordable rates for teen drivers. Their Steer Clear program can lower rates by up to 20% for drivers under 25 who complete an approved defensive driving course.
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Best for New Car Owners: Auto-Owners Auto-Owners offers gap coverage, which pays the difference between a vehicle’s depreciated value and the remaining auto loan balance if the car is totaled or stolen. They also provide diminished value coverage, compensating for the loss in market value after an accident.
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Best for Seniors: Nationwide Nationwide offers a discount for drivers over 55 who take a driving safety course. Their SmartMiles pay-per-mile program can save retirees hundreds per year. Additional benefits include car key replacement and pet injury protection.
Michigan Car Insurance Requirements
Michigan law requires drivers to have liability coverage, personal injury protection (PIP), and property protection insurance (PPI). Minimum liability coverage requirements are $50,000 bodily injury per person, $100,000 bodily injury per accident, and $10,000 property damage per accident.
How to Save on Car Insurance in Michigan
- Shop around and compare quotes from multiple insurers.
- Pay your premium in full to receive discounts.
- Consider pay-per-mile policies if you drive infrequently.
- Raise your deductible to lower your premium.
By choosing the right insurance company and taking advantage of available discounts, Michigan drivers can reduce their car insurance costs.
