5 Best Car Insurance Companies in Michigan for 2022
Big changes have come to Michigan’s car insurance policies. For six years, Michigan had the highest car insurance rates in the U.S., beating out other expensive states like Florida and Louisiana. The reason, in part, is because Michigan is a “no-fault state” that offers unlimited lifetime medical benefits to Michigan drivers who are injured in accidents.
However, in May 2019, Michigan Gov. Gretchen Whitmer signed a law that reformed car insurance in this high-cost state. The new law gives Michigan residents more choices and, by extension, more opportunities to save on car insurance premiums. The new law took effect July 2, 2020, so the impact it will have on the car insurance industry in Michigan is still being determined.
If you’re looking to save on Michigan car insurance by switching carriers, use the quick comparison tool below to compare rates or read the in-depth reviews of the five best companies for car insurance in Michigan.
The Best Car Insurance Companies in Michigan
- Best All-Around Car Insurance in Michigan: Progressive
- Best for Extras: Allstate
- Best for Customizing Car Insurance: Liberty Mutual
- Best Online Marketplace: The Zebra
- Best for Affordable Coverage and Customer Service: GEICO
Compare Auto Insurance Companies in Michigan
Best All-Around Car Insurance in Michigan: Progressive
There are many reasons Michigan residents should consider Progressive Insurance. Trusted by millions of customers, Progressive is one of the largest insurance companies in America with a 10% market share.
Progressive is the best all-around car insurance company in Michigan for a variety of reasons. Though its average statewide premium isn’t the lowest in Michigan, it offers a combination of unique programs and discounts that may get you the most affordable policy possible.
Name Your Price Tool: This tool is especially useful in a state like Michigan with high premiums. With this tool, you share the price you want to pay for car insurance and Progressive works with you to find a plan that meets your budget needs.
Snapshot Program: If you don’t mind having this app track your whereabouts and driving habits for a few months, Progressive will give you discounts on your premiums if you prove to be a safe driver.
Customer and Claims Satisfaction: 824 (No. 14 on the J.D. Power Michigan Survey)
Financial Strength Rating: A+ (superior)
Statewide Average Premium in Michigan: $3,228
Coverage Options:
- Gap coverage (loan/lease payoff if you owe more than the car is worth)
- Rental car reimbursement (typically $40 to $60 per day)
- Custom parts and equipment value
- Ride-hailing coverage
- Roadside assistance
Discounts:
- Name Your Price Tool (enter your desired premium and Progressive will design a policy)
- Snapshot app ($145 average discount)
- Bundle auto and property (12% average discount)
- Multi-policy (5% average discount)
- Multicar (12% average discount)
- Small accident forgiveness (your premium won’t be raised on a claim of less than $500)
- Large accident forgiveness (no premium increase in an accident if you have been a customer for a least five years with no accidents for the past three years)
- Continuous coverage (discount varies)
- Teen driver (18 or younger)
- Good student (discount varies)
- Distant students (more than 100 miles from home — discount varies)
- Homeowner (average discount nearly 10%)
- Online quote (7% average discount)
- Sign online (9% average discount)
- Paperless (discount varies)
- Pay in full (discount varies)
- Automatic payment (discount varies)
Best for Extras: Allstate Insurance
Don’t confuse the “best extras” with the “best bonuses.” There’s a difference, and Allstate knows it. While it offers numerous bonuses and discounts to their customers, it also offers several perks that make Allstate stand out.
For example, it has an Allstate Rewards program where you can collect points to redeem for gift cards, travel and more. It also has a preferred repair service benefit that lists several trustworthy repair sites in your area (great if you just moved somewhere).
Allstate also offers new-car replacement along with roadside assistance, car-buying services and more.
Customer and Claims Satisfaction: 851 (No. 9 on the J.D. Power Michigan Survey)
Financial Strength Rating: A+ (superior)
Statewide Average Premium in Michigan: $4,261
Coverage Options:
- Accident forgiveness
- Sound system insurance
- Roadside coverage
- Personal injury protection
- Personal umbrella (covers liability in excess of standard auto policies)
- Rental reimbursement
- Classic cars
- Car insurance for travel to Mexico
- Ride-hailing coverage
Discounts:
- New car
- Multi-policy
- Smart student
- Vehicle safety equipment
- Early signing
- Responsible payer
- Smart Student (minimum GPA 2.7)
- EZ pay plan
- Paperless (Allstate ePolicy)
- Pay by automatic withdrawal and/or full payment
- Drivewise monitoring app
- Deductible Rewards ($100 reduction in your deductible for each year you’re accident free, up to $500)
Best for Customizing Car Insurance: Liberty Mutual
Liberty Mutual doesn’t have the lowest premiums in Michigan, and its customer and claims satisfaction rating is low. But one thing the company is good at is allowing you to create your own policy from the ground up.
It offers a wide selection of both policy options and discounts that will enable you to create the most affordable policy possible based on the coverage types you need and any discounts that apply. As the company’s advertising motto goes: “Only pay for what you need.”
Customer and Claims Satisfaction Rating: 816 (No. 17 on the J.D. Power Michigan Survey)
Financial Strength Rating: A (excellent)
Statewide Average Premium in Michigan: $4,200
Coverage Options:
- Medical payments (extends to legal fees, bereavement costs, and pain and suffering)
- Personal injury protection
- Disappearing deductible ($100 annual reduction)
- Lifetime mechanical repair guarantee
- New car replacement
- Better car replacement
- Rental car reimbursement
- 24-hour roadside coverage
- Loan/lease gap coverage
- Original replacement parts
- Teachers car insurance (covers vandalism, collision and stolen school supplies from your car)
- Driving in Mexico
Discounts:
- Homeowner
- Military
- Early shopper (get a quote before your current policy expires)
- Good student (B average or better)
- Student away at school
- Vehicle safety and anti-theft devices
- Alternative energy vehicle
- Accident- and violation-free
- Right Track (save up to 30% with driver monitoring)
- Bundling
- Multicar
- Automatic payments
- Pay-in-full discount
- Online purchase
- Paperless documents
Best Online Marketplace: The Zebra
If you can’t decide between the car insurance companies listed above, check out The Zebra, which we’ve named the best online marketplace.
The reason The Zebra stands out is because it actually provides real-time quotes and allows you to compare car insurance companies side by side. It also has extensive resources, blog posts and informational articles to help you truly understand the different types of auto insurance coverage.
Best for Affordable Coverage and Customer Service: GEICO
GEICO tops our list in two very important categories: It offers the lowest statewide average premiums in Michigan and has high customer satisfaction rankings.
But GEICO also has perhaps the deepest discounts available in the industry. For example, you can get a 25% discount for having more than one car on the same policy, and up to 23% for vehicle safety and anti-theft equipment. It also offers generous discounts for federal employees, members of the military, and participation with certain affinity groups and employers. That may explain why it has the lowest car insurance premiums.
Customer and Claims Satisfaction: 851 (No. 1 on the J.D. Power Michigan Survey)
Financial Strength Rating: A+ (superior)
Statewide Average Premium in Michigan: $1,823
Coverage Options:
- Roadside assistance coverage
- Ride-hailing
- Mechanical breakdown
- Collector vehicles
- Medical coverage
- Personal injury protection
Discounts:
- Multivehicle (25%)
- Bundling
- New vehicle (15%)
- Vehicle safety and anti-theft equipment (up to 23%)
- Good driver (accident-free for at least five years, up to 22%)
- Good student (15%)
- Driver education
- Federal employees (12%)
- Members of the U.S. military (15%)
- Membership in — or employee of — hundreds of groups and employers
- Customer loyalty
Best for Affordable Coverage and Customer Service: Get Fast, Free Quotes Today
How We Chose the Best Car Insurance Options in Michigan
You have many options when it comes to choosing a car insurance company in Michigan. This list is not comprehensive, so it’s important to do your own research and get at least five quotes from car insurance companies before deciding where to take your business.
To arrive at this list, we considered numerous factors. We considered premium prices, technological advancements, the financial health of each company, discount offerings and more. To help with this process, we used the following websites and price comparison tools.
Customer and Claims Satisfaction
We poured through data found in J.D. Power’s 2020 U.S. Auto Insurance Study, not only for 2020, but for the years 2012-19, as well. This revealed several companies that consistently ranked high as well as smaller, lesser-known car insurance companies that deserve a top spot alongside some of the big names in the industry.
Financial Strength
Financial strength is a major factor with car insurance companies. It indicates the ability of an insurance company to pay claims. A poor or fair rating may indicate either a reluctance or a financial inability to pay claims.
We researched which car insurance companies in Michigan had the best financial strength. All five car insurance companies on this list had either an excellent or superior financial rating, indicating the financial health of the company.
Premium Considerations
We took full advantage of ConsumersAdvocate.org. This tool allows you to get auto insurance quotes in Michigan after filling out certain information like your age, estimated credit score, accident history, moving violations history and more.
Using ZIP codes from several different cities in Michigan, we tested numerous driver profiles including teenage drivers, drivers with poor credit history, drivers who are renters and drivers with subpar driving histories. Progressive consistently ranked No. 1 for all types of drivers in numerous different Michigan ZIP codes.
We compared the annual premiums of car insurance companies in Michigan. We did not assume the best car insurance company offered the cheapest prices. Instead, we considered each company holistically, researching their financial strength, ease of applying, customer satisfaction and more.
We also took the time to comb through dozens of discount options and unique program offerings from each car insurance company to find the ones that would help not only the best drivers but all drivers.
Other Factors
We compared several different online insurance marketplaces and independent agencies to find the ones that had consumers’ best interests in mind.
What You Need to Know About Michigan Coverages
Michigan adopted no-fault insurance in 1973 and is one of only 12 states in the U.S. to have it. This is one of the primary reasons why Michigan auto insurance is so expensive. Because Michigan offers unlimited medical benefits to Michigan drivers who are injured in accidents, the price for insurance is high.
The con to this level of coverage is that Michigan is susceptible to insurance fraud. The car insurance reform law signed in May 2019 is intended to reduce premiums and set limits on medical care costs.
What Is No-Fault Insurance?
In Michigan, having no-fault insurance means your insurance company will pay for your medical care in the event of an accident whether or not you’re at fault. WalletHub shows the threshold for filing a lawsuit in Michigan after an accident includes “serious injury, permanent disfigurement or death.”
What Are Michigan’s Car Insurance Minimums?
If you own a vehicle in Michigan, you are required by law to have car insurance. You are also required to pay a $100 per vehicle assessment (for 2021) to the Michigan Catastrophic Claims Association. This fee exists to reimburse auto insurance companies for any medical claims in excess of $580,000 resulting from an accident.
The minimum amount of car insurance coverage in Michigan for bodily injury and personal damage are:
- Up to $20,000 for a person who is hurt or killed in an accident
- Up to $40,000 for each accident if several people are hurt or killed
- Up to $10,000 for property damage in another state
Keep in mind, many Michigan residents purchase additional liability insurance. You can also add on comprehensive insurance, collision insurance and uninsured motorist insurance if you choose.
What Are Michigan’s Laws Regarding Non-Insurance?
According to Michigan.gov, if you get into an accident and don’t have insurance:
- You can be sued.
- You might be responsible for your own lawyer fees and court fees.
- You will be responsible for your own medical expenses.
- You could be fined or put in jail if convicted of knowingly driving without insurance.
Final Thoughts
Michigan is the most expensive state in the U.S. to purchase car insurance — that includes California, Pennsylvania, Florida or any other more populated state. Michigan is also the only state to provide unlimited medical care for life for injuries sustained in an accident. This medical care coverage is the reason why Michigan insurance is so expensive and also why it’s important to carefully consider which car insurance company is best for you.
When choosing a car insurance company in Michigan, we recommend that you get multiple quotes from several different companies. Also, don’t be afraid to switch car insurance companies after a few years if your premiums continue to rise with no noticeable change in coverage or service.
