The best car insurance in Michigan is easy to find, given thorough research of all your options.
It’s vital to shop comparatively when looking for insurance, taking time to investigate the policies, customer satisfaction ratings, and available discounts from each company that you’re considering.
While securing a low rate on your car insurance is fantastic, it’s just as important to select an insurance provider that offers a convenient claims process and positive customer experience.
By giving careful consideration to a number of different companies, you can find a policy that suits both your driving habits and your budget.
Insurance companies quote rates based upon several factors. Your age, gender, driving record, and the make and model of your vehicle are some of the factors they consider, as well as your place of residence.
Understanding exactly insurance companies analyze your geographic location to determine rates can then help you understand what questions you should ask so you can secure the best possible insurance price.
The information below is meant to answer more than just, “How much is car insurance in Michigan?” It explains precisely how rates are determined and offers tips to help you secure a policy with the best value.
Average Cost of Car Insurance in Michigan
Knowing what the average driver in Michigan pays for car insurance can help you verify that you’re receiving reasonable quotes.
According to the National Association of Insurance Commissioners (NAIC), the average price of insurance in Michigan increased more than $250 annually between 2011 and 2015.
Concretely, this means that in comparisons with nearby states, Michigan’s insurance rates are substantially higher. The price of insurance in Michigan is therefore considerably more expensive than the countrywide average.
|Average Cost of Car Insurance in Michigan||$1364.00|
|Average Cost of Car Insurance in Ohio||$788.56|
|Average Cost of Car Insurance in Indiana||$755.03|
|Average Cost of Car Insurance in Minnesota||$875.49|
|Countrywide Average Cost of Car Insurance||$1009.38|
Why are Michigan’s rates so high? It’s important to remember that insurance rates don’t just rely on an individual’s driving history.
Providers take into consideration many external factors, including the characteristics of your geographic region.
Traffic Conditions in Michigan
Insurance providers pay a great deal of attention to traffic density and fatal accident rates throughout a region.
Keep in mind that Michigan’s state averages don’t necessarily accurately reflect the conditions in larger cities such as Detroit, Ann Arbor, and Grand Rapids.
Traffic density and accident rates in cities are generally higher than in rural areas.
According to the NAIC report of traffic density, there were 796,376 registered vehicle miles driven per total highway miles throughout Michigan in 2014, which is considerably less than the countrywide average of 724,348.
Vehicle miles per registered vehicle were calculated at 12,377, which is just a bit higher than the countrywide average of 12,010. The fatal accident rate is lower than the countrywide average at 0.11 per 1,000 registered vehicles.
Throughout the United States, the average fatal accident rate in 2014 was 0.13 per 1,000 registered cars.
Vehicle Theft Rates in Michigan
According to the Insurance Information Institute (III), Michigan ranks 6th among the states with the most vehicle thefts in the country.
In 2016, an estimated 203 auto thefts occurred per 100,000 residents, mostly throughout the state’s metropolitan areas. This statistic is slightly lower than the national average of 236 motor vehicle thefts per 100,000 residents.
However, it’s worth noting that in Michigan’s metropolitan areas, primarily Detroit, an estimated total of 19,185 auto thefts occurred in 2016.
The National Insurance Crime Bureau’s Hot Wheels Report shows that throughout the state of Michigan, the Chevrolet Impala and Dodge Charger are the most commonly stolen vehicles.
764 Chevrolet Impalas and 536 Dodge Chargers were stolen throughout 2016. Other cars that are common theft targets in Michigan include the Toyota Corolla, Toyota Camry, and Dodge Caravan.
To find a lower rate on the best car insurance in Michigan, try to choose a vehicle with lower theft rates.
Population Density in Michigan
The NAIC states that although the population density of your geographic location doesn’t directly affect insurance premiums, it does have an indirect effect.
Areas with higher population densities have more vehicles and therefore, higher theft and accident rates. In Michigan, the population density was 175 persons per square mile in 2014.
This figure is nearly double the national rate of 90 persons per square mile. About 81 percent of Michigan’s population resides in the state’s metro areas.
If you live in smaller towns or rural areas with lower population densities, you may be able to negotiate a cheaper insurance rate.
Disposable Income in Michigan
Disposable income is another factor that has an indirect effect on average insurance rates in Michigan and the whole of the United States.
Typically, areas with a higher average salary generally include more vehicles with higher overall values, equating a more substantial risk to insurance providers and more expensive insurance premiums.
According to the NAIC, the per capita disposable income per person in 2014 was $36,419, which is below the countrywide average, of $40,859.
It’s important to remember that average income differs between metropolitan and rural areas throughout Michigan. Average salaries in metropolitan areas are generally higher than those in rural areas or towns.
Companies with the Best Car Insurance in Michigan
When you’re shopping for car insurance in Michigan, it’s best to request quotes from at least three insurance providers. It would help to also consider each company’s customer reviews, discounts, and financial strength.
Although some insurers may have much lower rates than others, buying the least expensive insurance policy doesn’t necessarily mean you’re buying the best car insurance in Michigan.
If a company has poor reviews or a low credit rating, you might find that you’re paying premiums to a company that can’t adequately serve your needs or won’t be able to pay your claim reliably if an accident occurs.
The best way to find a reliable insurance provider is to shop with top companies, such as:
Progressive Car Insurance: Progressive has been insuring automobiles since 1937. Initially, it was a drive-in claims service, but has since expanded to offer a wide range of insurance options and services such as 24/7 claims processing, competitor rate comparisons, and its well-known Name Your Price Tool.
Liberty Mutual Insurance: Liberty Mutual is one of the best-known insurance companies in the world. It offers personal auto, home, and life insurance, as well as commercial underwriting, on a global scale. Liberty Mutual’s auto insurance features include its New Car Replacement policy and 24/7 emergency service.
Allstate: Allstate is another top insurance company that has been around for the better part of a century. It now provides insurance for more than 16 million households worldwide. Its policies include a variety of discounts such as its Safe Driving Bonus and Prepaid Policy discount.
Esurance: Insurance giant Allstate backs Esurance. Its known for offering simple insurance packages and using technology to simplify the claims process.
MetLife Insurance: MetLife is a well-rounded insurance company that offers a broad scope of policies that include auto, home, dental, life, and health. It’s consistently rated high by customers for its friendly service and its simple claims process.
USAA: USAA offers insurance policies that are exclusive to military families. It’s been in the insurance industry since 1922 and provides coverage for all types of vehicles, including cars, boats, motorcycles, and RVs.
American Family: American Family, or AmFam, offers its policyholders competitive premiums and it receives high ratings for its customer service and variety of insurance features, which includes 24/7 roadside assistance and rental reimbursements.
What is Mandatory for Car Insurance in Michigan?
In most states, there are minimum auto insurance requirements.
The state of Michigan requires all drivers to purchase no-fault insurance, which includes the following:
- Personal injury protection
- Property protection
- Residual bodily injury/property damage liability
Each state sets specific limits regarding how much coverage drivers must carry. Michigan requires the following restrictions for residual bodily injury/property damage liability insurance:
- $20,000 for injuries or death to an individual
- $40,000 for injuries or death per accident to multiple people
- $10,000 for property damage in another state
Drivers in Michigan face hefty fines if they’re caught driving uninsured and may be held financially responsible for all damages in the event of an accident.
How to Reduce the Cost of Your Car Insurance in Michigan
Buying car insurance is necessary if you wish to protect yourself from expensive medical and repair bills in the event of an accident.
Remember though, buying an insurance policy doesn’t have to break the bank.
After you’ve found the best car insurance in Michigan for your specific needs, there are several ways to lower your rate.
Based on the recommendations of the III, here are a few suggestions on how to lower your costs:
- Request an increase to your deductible – though this will mean you may have to pay more out of pocket in case of an accident, it will reduce your monthly fees
- Reduce coverage on older vehicles – if the cost of insurance is more than 10 times the value of the car, it may not be worth getting full coverage for
- Bundle your policy with home/renter’s insurance or life insurance policies – many insurers offer discounts for bundled policies
- Maintain a high credit rating – insurers universally tend to favor consumers with good credit scores, as they are viewed as more reliable
- Reduce your mileage by using public transit or carpools whenever possible – this speaks for itself—the less usage a car has, the less it costs to insure
Most top insurance providers offer discounts to their policyholders based on things such as driving records, vehicle safety features, and teen drivers with good grades in school.
When shopping for insurance, make sure you’ve got the following information on hand so that you can receive an accurate quote that includes all possible discounts you may qualify for:
- Vehicle information including make, model, year, VIN, usage habits, safety features, and anti-theft devices for all vehicles on your policy
- Driver information including the age and driving history of everyone on your policy, including school grades for any teen drivers
- Household information such as address and details regarding parking location and daily commute
- An estimate of assets that require protection and your approximate budget
Three Things That Increase the Cost of Car Insurance in Michigan
Just as there are several ways to lower your insurance rates, there are also elements that contribute to higher premiums.
While some of these are out of your control, steps can be taken to minimize the effect of other factors.
Driver Age: While teen drivers and senior drivers are usually charged higher insurance rates due to the risk associated with their age groups, completing a defensive driving course can help this population segment qualify for lower rates.
Driving Record: Traffic violations such as speeding tickets and driving under the influence can result in increased insurance rates and, in extreme cases, can lead to insurance companies canceling your coverage altogether. Obeying traffic laws, enrolling in traffic courses, and contesting tickets when it’s warranted are some of the simplest ways to avoid rate increases due to traffic infractions.
Vehicle Safety Ratings and Potential to Cause Damage: If your vehicle’s make and model is known for having a high volume of claims made against it, or if it’s performed poorly in IIHS or NHSTA safety tests, there’s a good chance that your insurance rate will be above average. It’s best to shop for a vehicle with high safety ratings and lots of safety features to qualify for lower insurance prices.
After reading the above information, you should have a better answer to the question, “How much is car insurance in Michigan?”, and moreover, you should feel confident in your ability to compare top insurance providers and find the best car insurance in Michigan.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.