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Last updated: March 19, 2025
Compare Cheap Auto Insurance in Michigan
Most nonmilitary drivers in Michigan can find the cheapest rates from GEICO and Auto-Owners. USAA offers cheap rates to the military community.
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Car insurance in Michigan is expensive compared to the national average. The average cost of full coverage in the state is $2,688 per year, which is 12 percent higher than the national average of $2,399. Minimum coverage costs an average of $1,088 annually — 71 percent over the national average.
Michigan is a no-fault state, meaning that each driver’s insurance pays for their own medical expenses following an accident, regardless of fault. Insurance rates tend to be higher in no-fault states since even safe drivers have a higher risk of having to file a claim.
Overview
- Full coverage auto insurance in Michigan costs $2,688 per year on average, while minimum coverage costs an average of $1,088 per year.
- GEICO and USAA offer the cheapest rates for various driver profiles, but USAA eligibility is limited to military members, veterans, and their families.
- Auto-Owners and Progressive also have below-average rates for most categories of drivers.
Jump to:
- Cheapest full coverage auto insurance in Michigan: GEICO ($1,348 annually) and USAA ($1,595 annually)
- Cheapest minimum coverage: USAA ($518 annually) and GEICO ($622 annually)
- Cheapest with a speeding ticket: USAA ($2,116 annually) and Auto-Owners ($2,511 annually)
- Cheapest with a teen driver: GEICO ($3,399 annually) and Auto-Owners ($3,758 annually)
- Cheapest with a DUI: Progressive ($2,815 annually) and USAA ($2,829 annually)
- Cheapest with an at-fault accident: USAA ($2,256 annually) and Auto-Owners ($2,688 annually)
Cheapest Car Insurance in Michigan for Full Coverage: GEICO
In Michigan, GEICO offers the cheapest rates for full coverage auto insurance, with an average annual rate of $1,348. That’s about half the state average. USAA, which is only available to military-affiliated drivers, has the second cheapest average rates at $1,595, followed by Progressive at $2,023.
| Provider | Annual Full Coverage | Monthly Full Coverage |
|---|---|---|
| GEICO | $1,348 | $112 |
| USAA | $1,595 | $133 |
| Progressive | $2,023 | $169 |
| AAA | $2,144 | $179 |
| Auto-Owners | $2,186 | $182 |
| Farm Bureau | $2,387 | $199 |
| State Farm | $3,181 | $265 |
| Allstate | $3,403 | $284 |
| Michigan average | $2,688 | $224 |
| National average | $2,399 | $200 |
Cheapest Car Insurance in Michigan for Minimum Coverage: USAA
USAA and GEICO also have the lowest rates for minimum coverage in Michigan. USAA is cheapest at $518 per year, followed closely by GEICO at $622 per year. Both companies have average rates far below the state average of $1,088.
| Provider | Annual Minimum Coverage | Monthly Minimum Coverage |
|---|---|---|
| USAA | $518 | $43 |
| GEICO | $622 | $52 |
| Auto-Owners | $678 | $56 |
| Progressive | $967 | $81 |
| Farm Bureau | $1,021 | $85 |
| Farmers | $1,724 | $144 |
| State Farm | $1,812 | $151 |
| Michigan average | $1,088 | $91 |
| National average | $635 | $53 |
Cheapest Car Insurance in Michigan for Teen Drivers: GEICO
The cheapest auto insurance rates for Michigan households with teen drivers are from GEICO, with an average annual premium of $3,399. Auto-Owners and USAA also offer competitive rates at $3,759 annually and $3,998 annually, respectively. Teen auto insurance is expensive, but families can save money by adding teens to family auto policy and asking about teen-specific discounts.
| Provider | Annual with Teen Driver | Monthly with Teen Driver |
|---|---|---|
| GEICO | $3,399 | $283 |
| Auto-Owners | $3,759 | $313 |
| USAA | $3,998 | $333 |
| Farm Bureau | $4,525 | $377 |
| AAA | $5,234 | $436 |
| Allstate | $7,561 | $630 |
| State Farm | $8,763 | $730 |
| Progressive | $9,406 | $784 |
| Farmers | $17,549 | $1,462 |
| Michigan average | $6,018 | $501 |
| National average | $5,327 | $444 |
FYI:
Michigan law prohibits auto insurers from using gender as a rating factor, so although male teens pay more on average for auto insurance in most states (due to a statistically higher rate of accidents), that is not the case in Michigan. Credit history is not allowed to be taken into account, either.
Cheapest Car Insurance in Michigan With a Speeding Ticket: USAA
USAA has the cheapest average rates for drivers with a speeding ticket in Michigan with an average annual premium of $2,116 — that’s 38 percent lower than the state average of $3,395. Auto-Owners also offers affordable rates at $2,511 per year, which is 26 percent lower than the state average.
| Provider | Annual With Speeding Ticket | Monthly With Speeding Ticket |
|---|---|---|
| USAA | $2,116 | $176 |
| Auto-Owners | $2,511 | $209 |
| Farm Bureau | $2,700 | $225 |
| Travelers | $2,714 | $226 |
| Progressive | $2,782 | $232 |
| GEICO | $2,834 | $236 |
| AAA | $3,118 | $260 |
| State Farm | $3,970 | $331 |
| Allstate | $4,186 | $349 |
| Farmers | $5,738 | $478 |
| Michigan average | $3,395 | $283 |
| National average | $2,511 | $209 |
Cheapest Car Insurance in Michigan With an At-Fault Accident: USAA
USAA also has the lowest rates for drivers with an at-fault accident in Michigan at $2,256 annually, which is 37 percent below the state average. Auto-Owners and Michigan Farm Bureau offer competitive rates for nonmilitary drivers at $2,688 per year and $2,856 per year, respectively, both also below the state average.
| Provider | Annual With At-Fault Accident | Monthly With At-Fault Accident |
|---|---|---|
| USAA | $2,256 | $188 |
| Auto-Owners | $2,688 | $224 |
| Farm Bureau | $2,856 | $238 |
| Progressive | $2,975 | $248 |
| AAA | $3,161 | $263 |
| GEICO | $3,225 | $269 |
| State Farm | $3,693 | $308 |
| Allstate | $5,228 | $436 |
| Farmers | $6,651 | $554 |
| Statewide average | $3,566 | $297 |
| National average | $2,812 | $234 |
Cheapest Car Insurance in Michigan With a DUI: Progressive
Progressive is known for their low rates for high-risk drivers, particularly those with a DUI on their records. They offer the cheapest rates in Michigan for drivers convicted of a DUI at $2,815 per year on average, which is 42 percent lower than the state average of $4,869. USAA also has affordable rates at $2,829 annually.
| Provider | Annual With DUI | Monthly With DUI |
|---|---|---|
| Progressive | $2,815 | $235 |
| USAA | $2,829 | $236 |
| Auto-Owners | $4,780 | $398 |
| AAA | $5,318 | $443 |
| Farm Bureau | $5,988 | $499 |
| Farmers | $6,976 | $581 |
| GEICO | $7,653 | $638 |
| State Farm | $7,922 | $660 |
| Allstate | $17,440 | $1,453 |
| Statewide average | $4,869 | $406 |
| National average | $3,305 | $275 |
RELATED:
Learn more about DUI laws in Michigan.
Best Claims and Customer Satisfaction in Michigan: State Farm
State Farm and Michigan Farm Bureau have the highest customer satisfaction scores in Michigan for nonmilitary drivers. State Farm tends to have higher-than-average rates in Michigan, but Michigan Farm Bureau — while not the cheapest — remains affordable. Always get quotes from several companies, as your rates may differ from the averages. Also keep in mind that paying a little more may make sense for a company with better customer service. Military-affiliated drivers can rest assured that USAA received top marks in customer satisfaction.
| Provider | Mid-Atlantic Customer Satisfaction (J.D. Power)1 | Claims Satisfaction (J.D. Power)2 | CRASH Network Insurer Report Card Grade3 |
|---|---|---|---|
| USAA | 726 | 726 | D+ |
| State Farm | 665 | 710 | C- |
| Michigan Farm Bureau | 656 | N/A | A- (Honor Roll) |
| Allstate | 652 | 691 | D |
| Progressive | 648 | 672 | C |
| Auto-Owners | 646 | 692 | B |
| GEICO | 641 | 692 | C- |
| AAA | 630 | 692 | C+ |
| Farmers | 588 | 706 | C |
| Average | 652 | 697 | C+ |
How to Find the Cheapest Car Insurance Rates in Michigan
- Bundle policies: You can usually save money on your car insurance if you bundle your auto insurance with other insurance products. For example, if you get home and auto insurance from the same insurer, most companies provide a discount on your premium.
- Look for discounts: Whenever you get a quote, make sure you check for discounts and ask about any you may be eligible for. Insurers offer a wide variety of discounts, including discounts for teens who get good grades, safe driving, and bundling your insurance policies.
- Compare rates: It’s always a good idea to shop around. Don’t just go with the first quote you get. Instead, get quotes from at least three different insurance providers so you can compare.
- Lower your liability limits: Lowering your liability limits is one way of reducing your insurance coverage, which also lowers your premium. But be careful about doing this: lowering your liability limits means you could have to pay more out of pocket if you get into an accident. You also need to make sure you maintain at least minimum coverage.
Average Auto Insurance Cost in Michigan by City
Unsurprisingly, Detroit has the highest auto insurance rates in Michigan, with an annual average of $6,461 — 140 percent above the state average of $2,688. Meanwhile, Grand Rapids has significantly lower rates, on average, at $2,120 per year.
| City | Annual Full Coverage | Monthly Full Coverage |
|---|---|---|
| Detroit | $6,461 | $538 |
| Warren | $3,529 | $294 |
| Sterling Heights | $3,177 | $265 |
| Lansing | $2,207 | $184 |
| Grand Rapids | $2,120 | $177 |
| Michigan average | $2,688 | $224 |
Minimum Car Insurance Requirements in Michigan
Michigan has high minimum coverage requirements compared to most other states. Given that it is a no-fault state, it requires personal injury protection (PIP), and the minimum required limits are quite high:
- Bodily injury liability: $50,000 per person/$100,000 per accident
- Property damage liability: $1 million per accident within Michigan/$10,000 per accident outside Michigan
- Personal injury protection: $250,000*
*Lower limits may be possible for certain Medicaid and Medicare recipients.
Minimum coverage in Michigan is quite robust, but it’s still a good idea to get higher limits for added financial protection if you can afford it. In addition, minimum coverage doesn’t cover damage to your own vehicle, so it’s usually worth adding comprehensive and collision coverage as well.
Frequently Asked Questions
Who has the cheapest car insurance in Michigan?
GEICO offers the cheapest car insurance in Michigan for full coverage, with an average annual rate of $1,348. For minimum coverage, USAA is technically the cheapest at $518 annually, but it’s only available to the military community. GEICO has the lowest rates for nonmilitary drivers at $622 annually.
Why is my auto insurance so high in Michigan?
On average, auto insurance rates are so high in Michigan for several reasons. First, it is a no-fault state, meaning that each driver is responsible for their medical expenses in the event of an accident, regardless of fault. This drives up insurance premiums for everyone, since even safe drivers may need to file a claim if they are injured due to someone else hitting them.
Similarly, Michigan does not allow insurers to use credit history as a rating factor, which means that everyone pays higher average rates since drivers with poor credit are essentially being subsidized. If this wasn’t the case, drivers with poor credit would likely pay higher rates.
Finally, Michigan has relatively high minimum coverage requirements, which means that everyone with auto insurance pays more for a higher level of coverage compared to most other states.
If you have a violation on your record, you can also expect to pay higher rates for car insurance.
How do rates for car insurance in Michigan compare to other states?
Car insurance rates in Michigan are some of the highest in the country, especially for minimum coverage. The average rate for minimum coverage in Michigan is 71 percent over the national average, in large part due to the state’s high minimum coverage limits.
How does the cost of car insurance in Michigan vary by age?
The cost of car insurance in Michigan varies a lot by age. Teens pay the highest rates at $6,018 annually on average. Auto insurance rates decrease as teens reach young adulthood and gain more experience. Adults in their 30s pay around $2,688, which is significantly less. Rates tend to go down even more for seniors — seniors in Michigan pay $2,251 per year on average.
Methodology
We analyze average auto insurance premiums in Michigan for full and minimum coverage for good drivers with good credit as well as other driver profiles. That includes drivers with DUIs, accidents, and teenagers. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $1 million per accident within Michigan/$10,000 per accident outside Michigan
- Personal injury protection: $250,000*
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
2024 U.S. Auto Insurance Study. J.D. Power. (2024, June 11).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-study2024 U.S. Auto Claims Satisfaction Study. J.D. Power. (2024, October 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-studyInsurer Report Card. CRASH Network. (2025).
https://www.crashnetwork.com/irc/
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