Cheapest Car Insurance in Michigan

cheap car insurance michigan

When you’re looking for the cheapest car insurance in Michigan, take a little time to search for a cost-effective policy from a carrier that meets your needs.

Check out the provider’s reputation and financial strength, so you have confidence in its ability to pay out claims in a timely fashion.

How Much Is Car Insurance In Michigan?

In 2015, the most recent year for which statistics are available, the National Association of Insurance Commissioners reported the car insurance combined average premium in Michigan as $1,364.00.

That is nearly $355 more expensive than the nationwide average of $1,009.38. Only Louisiana and New Jersey had higher reported amounts. Michigan’s average rose over $253 from 2011 to 2015.

Look further at how much car insurance costs in Michigan as compared to its four neighboring states.

Countrywide Average Cost of Car Insurance $1,009.38
Average Cost of Car Insurance in Michigan $1,364.00
Average Cost of Car Insurance in Ohio $788.56
Average Cost of Car Insurance in Indiana $755.03
Average Cost of Car Insurance in Illinois $884.56
Average Cost of Car Insurance in Wisconsin $737.18

Although Michigan auto insurance may be more expensive than other states, there are still ways to save money. Look at the following contributing factors to see what influences your state’s costs.

Population Density in Michigan

Car insurers care about population density because insurance is fundamentally about risk evaluation.

High population density brings benefits and challenges. More people in an area frequently means more cars on the road, with more opportunities for situations that lead to car accidents, including miscommunication, mistakes in judgment, road rage, and traffic violations that can cause accidents (like running red lights or improper passing).

Michigan has 81.3 percent of its population living in metropolitan areas, according to the National Association of Insurance Commissioners (NAIC). As of 2014, the state reports a population density of 175 persons per square mile, almost double the national average of 90. Michigan’s relatively high population density may contribute to higher insurance costs.

Traffic Conditions in Michigan

cheap car insurance michiganMichigan’s high population density correlates to its high traffic density.

Increased traffic provides increased chances for accidents to happen and for their severity to be worse, which in turn increases car insurance prices. The NAIC reports that Michigan recorded 796,376 vehicle miles per highway mile, higher than the 724,348 countrywide average. Michigan’s 12,377 vehicle miles per registered vehicle is also above the countrywide average of 12,010.

However, regarding fatal accidents, Michigan rates slightly below the countrywide average of 1.08 with 0.93 fatal crashes per 100 million vehicle miles. Similarly, Michigan has 0.11 fatal accidents per 1,000 registered vehicles, just under the 0.13 countrywide average.

Road Conditions in Michigan

Michigan roads rank 32nd in the nation overall, according to the Reason Foundation’s 2017 Annual Highway Report. A closer look reveals ranks of 41st for Rural Interstate Pavement Condition and 45th for Urban Interstate Pavement Condition.

The American Society of Civil Engineers gave Michigan a grade of D- in a 2018 infrastructure evaluation report, down from a D in 2009. ASCE declared that of the 120,000 miles of paved roads throughout all of Michigan, 39 percent of the roads scored in poor condition. Another 43 percent of Michigan roads are only in fair condition. A mere 18 percent managed to rate as good condition.

Road conditions are an incredibly relevant issue for car insurance costs since poorly maintained roads create more risk for drivers and insurance companies. Because of dangers from poor road quality, Michigan car insurance rates are high. Bad roads cause many problems including flat tires, bent rims, axle misalignment, bumping into other lanes, misreading faded paint lines, and broken signs leading to accidents in some cases.

Vehicle Theft Rates in Michigan

Another factor that negatively impacts car insurance rates is auto theft. Your comprehensive coverage includes protection from theft. When cars are stolen, insurance companies bear the costs to replace these vehicles. In general, places with higher rates of auto theft have higher rates of insurance.

Fortunately for Michigan drivers, the FBI’s 2016 Crime in the United States report shows a 203.2 motor vehicle theft rate per 100,000 people, which is below the national average of 236.9. The National Insurance Crime Bureau’s Hot Wheels report shows that the five vehicles most likely to be stolen in Michigan include the 2008 Chevrolet Impala, 2016 Dodge Charger, 2002 Chevrolet full-size pickups, 2013 Chevrolet Malibu, and 2015 Chrysler 300/300M.

Companies With The Cheapest Car Insurance In Michigan

If you want to find affordable car insurance, make sure to shop around for the best deal, and get at least three quotes from competing companies. It helps to do a little research, so you understand what coverage you need, regarding legal minimums as well as any additional coverage that makes sense in your situation.

Every insurer has its strengths, and this handy reference from the Insurance Information Institute can help you get started. The following are a few well-known providers that you might want to include in your research.

Progressive

progressive auto insurance

Founded in 1937, Progressive has grown into one of America’s largest auto insurers. It insures both private and commercial vehicles. Progressive scores consistently well in comprehensive reviews from both consumers and independent organizations.

The company puts a priority on providing comprehensive coverage plans to suit a variety of needs and customer service.

Liberty Mutual

liberty mutual auto insurance in NC

Liberty Mutual was established in 1912. According to the Insurance Information Institute, it now holds 5.3 percent of the U.S. market share (the third highest).

The company focuses on broad customization options, including pay-per-mile and new car replacement coverage.

Esurance

esurance auto insurance

Esurance has a suite of online tools for customers to control and edit their accounts easily and quickly.

As a subsidiary of Allstate, it also includes its parent company’s signature promise of accident forgiveness and benefits from Allstate’s high financial stability.

MetLife

metlife auto insurance

MetLife hails from New York but does business in over 50 countries.

The company provides discounts for bundling policies and offers a variety of insurance options including homeowners, life insurance, and worldwide liability.

MetLife also provides group discounts for its policyholders through organizations and employers.

What Is Mandatory For Car Insurance In Michigan?

Carrying auto insurance is an important responsibility that provides legal and financial protection for you, the drivers around you, and any property that could become damaged or destroyed. Michigan has established several requirements for car insurance.

Michigan has distinctive no-fault insurance legislation. No-fault insurance means that regardless who’s responsible for a car accident, no driver is assigned the fault, and thus each driver must contribute toward the costs of an accident through their insurance company.

All valid car insurance coverage plans for Michigan drivers must include:

  • Bodily Injury
  • Property Damage
  • Personal Injury Protection
  • Property Protection Insurance

Michigan does not cap the dollar amount of medical benefits that insurance companies are legally obligated to pay. Thus insurers must charge consumers enough to handle the potential financial burdens of unlimited potential medical costs.

Michigan’s no-fault policy mandate requires particular coverage levels for other categories as well, such as:

  • 85 percent of lost income, maximum $5,700 per month
  • $20,000 minimum for an accident resulting in injury or death
  • $40,000 minimum for an accident resulting in injury or death to multiple people
  • $10,000 minimum for damage to property for an accident in another state

No-fault minimum insurance coverage does not pay to repair damage to your car. Collision coverage for damage and comprehensive coverage for theft are optional, as well as extra lawsuit protection.

Before registering your vehicle in Michigan, the state requires you buy no-fault insurance.

You must carry and provide proof of insurance to law enforcement when requested, or your license may be suspended. An electronic copy counts if you use your phone to show proof of insurance.

For every vehicle, your insurance company must provide two copies of the proof of insurance certificate. One is for the Michigan Secretary of State, and the other is for you to keep. The penalty for providing false insurance information can be up to a year in prison and a $1,000 fine.

How To Reduce Your Car Insurance Premiums In Michigan

Car insurers are businesses with incentives to earn and keep your relationship as a customer.

There are several things you can do to reduce your car insurance premiums in Michigan, including:

  • Pay a higher deductible
  • Reduce optional add-ons such as comprehensive or collision coverage
  • Bundle your car insurance policy with other insurance products like life, home, fire, and flood into a unified package
  • Use special discount offers like driver education, safe driving, association membership, etc

When you search for cheaper car insurance, have the following information handy to simplify the process and score an extra discount or two:

  • Desired coverage amounts
  • Desired premium amounts
  • Desired deductible amounts
  • Year, make, and model of your vehicle
  • Annual mileage estimate
  • Driving safety record
  • Driver education courses
  • Student driver GPAs

What Can Increase The Cost Of Your Car Insurance In Michigan?

The core focus of the insurance industry is risk evaluation and risk management. Some risk factors are environmental. Others are inherent characteristics which you cannot change, such as age and gender.

However, beyond those factors, your choices significantly influence your insurance costs. Some of these factors include:

Your driving history is arguably the most crucial factor. While good drivers are rewarded with lower insurance rates, drivers with a complicated driving history (traffic violations and at-fault accidents) are significantly more likely to find themselves charged higher rates for even the cheapest car insurance in Michigan.

A credit score is also a factor you have a great deal of control over. Providers look at credit scores in two ways: as a reflection of your ability to meet financial obligations and as an indicator of your history of making responsible decisions.

The make, model, and year of your car heavily influence your rates because of variations like purchase costs, repair costs, and the probability of theft. More expensive cars cost more to replace, and sometimes repair, and may be more likely to fall victim to theft.

In Conclusion

After reading this guide, you should have a good idea of how insurers calculate risk and what factors they look at to determine rates.

With a little comparison shopping and background research, you should be well on your way to finding the cheapest 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.