Looking for Cheap Car Insurance in Michigan?
Car insurance rates in Michigan can be much higher than the national average, mainly because of its no-fault status, which requires policyholders to purchase more coverage, a high percentage of uninsured drivers, and dangerous road conditions during the winter. Whether you live in Grand Rapids, Rochester Hills, or Motor City itself, Carlay can help you find competitive rates and personalized service.
Carlay is an insurance comparison shopping app that offers licensed brokers to help you find great coverage. Signing up with Carlay is easy. Answer a few questions, and Carlay finds you competitive quotes from more than 50 insurance companies. After all the information has been gathered and verified, Carlay will finalize your new policy.
Carlay customers in Michigan can attest to the effectiveness of our quotes:
How Much Does Car Insurance Cost in Michigan?
In Michigan, you can buy liability-only car insurance for an average cost of $2,112 per year, whereas the average cost for full coverage car insurance is $2,249 annually.
Matched against the national average, liability-only car insurance will cost $1,783 per year, while full coverage costs $2,485.
What contributes to the insurance rates in Michigan?
Here are some things that might help you determine how much car insurance will cost in Michigan:
- Highest minimum insurance requirements
Michigan has the highest minimum insurance requirements in the country, and drivers pay some of the highest premiums in the nation. You'll need to buy a bunch of different coverages and coverage limits to comply with Michigan's laws.
- No-fault state
Michigan is a no-fault state that requires personal injury protection and property damage liability insurance coverage as basic insurance required by law. It also requires drivers to carry additional personal injury protection with higher limits than most other states because residents of Michigan experience some of the most expensive automobile accidents in the country.
- Uninsured drivers
Michigan drivers are statistically more likely to be involved in an accident with an uninsured driver. Most car insurance plans include liability coverage, which pays for the cost of damage to others.
These are Michigan's average car insurance rates compared to the national average:
|All Coverage BeforeCarlay||All Coverage AfterCarlay||Minimum Coverage BeforeCarlay||Minimum Coverage AfterCarlay||Full Coverage BeforeCarlay||Full Coverage AfterCarlay|
|All Coverage BeforeCarlay||$2,728||$2,489|
|All Coverage AfterCarlay||$1,741||$1,671|
|Minimum Coverage BeforeCarlay||$2,689||$2,360|
|Minimum Coverage AfterCarlay||$1,676||$1,390|
|Full Coverage BeforeCarlay||$2,822||$2,761|
|Full Coverage AfterCarlay||$2,265||$1,963|
Top auto insurance providers in Michigan
There's no shortage of auto insurance companies in Michigan to choose from, including some of the biggest names in the country like State Farm, Allstate, and Progressive. But if the price seems right, it might be worth switching to a different provider.
Every driver's car insurance premium is different. This is because Michigan providers take into account your age, credit score, location, and more when determining your premiums. Also, insurance companies each have a different formula for figuring out how much to charge their customers, which means that every company will likely charge you a different rate even if you're getting the same coverage.
Insurance companies also consider the car you drive to decide what you pay as your insurance premium. When insuring your Mercedes, you will pay considerably more for full-coverage insurance than you would for a Honda Civic.
No matter what type of car insurance you're looking for, Carlay has got you covered. Here are some discounts Carlay customers have found at popular stores in Michigan:
What Car Insurance Do You Need in Michigan?
Drivers in Michigan are required by law to purchase automobile insurance to cover damages in the case of an accident. You must carry at least the following types of insurance:
|Bodily injury liability||$50,000 per person / $100,000 per accident||Coverage is designed to pay for the costs of injuries you cause to other people.|
|Property damage liability||$15,000 per accident||Covers your liability for damage to other people's vehicles or property.|
|[Property protection]||$1,000,000||Covers the cost of damage to tangible property that results from a car accident|
|Personal injury protection||Varies ($50,000 min. If not enrolled in Medicare Parts A & B)||Coverage pays for covered medical expenses, lost wages, and rehabilitation costs after an accident.|
Having inadequate car insurance can lead to a misdemeanor, with consequences that include:
- Fine of $200 to $500
- Up to one year in jail
- Driver's license suspension + reinstatement fee of $125
- Restriction of car registration privileges
- Financial liability in the event of an accident
Generally, you should purchase as much insurance as you can afford. Consider additional coverage options such as these:
|Collision insurance||Covers damages that result from collisions with vehicles or stationary objects.|
|Comprehensive insurance||Covers damages not resulting from a collision, such as vandalism, theft, or a natural disaster.|
|Uninsured motorist coverage||Pays you money from an accident caused by an uninsured driver.|
Once you're ready to purchase your insurance, Carlay can assist you in finding the right coverage.
Carlay Insurance is a free app that helps you save on car insurance. It finds quotes from name-brand companies and takes away the hassle of switching to a new policy. It does all the heavy lifting by finding and comparing quotes from top-rated insurance companies. Carlay even helps you cancel your old insurance company!
Now that we have talked about the basics let's talk about some tips to keep in mind for insurance in Michigan.
How is Your Cost of Car Insurance Determined in Michigan?
Car insurance rates vary depending on your age, driving record, location, zip code, and vehicle. There are lots of factors involved here, which is why you should always get several car insurance quotes from top providers before choosing a company to work with.
- Cost to insure your car in Michigan by age
There are many factors that insurance companies consider when deciding whether to insure an individual for car coverage. One of the most prominent considerations is a person's age, because younger drivers have less experience with driving and are more likely to engage in risky behaviors like speeding and texting while driving, which can lead to automobile accidents involving injury or death.
What young drivers in Michigan need to know
Young drivers in Michigan need to know that the state's graduated licensing system helps teach them how to drive by gradually increasing their driving privileges through three licensing levels. State-approved defensive driving courses can be a boon for inexperienced drivers who want to secure low auto insurance rates. As part of their driving course, many schools require students to maintain a good average so that they can qualify for a good student discount.
Regardless of your age, you'll save money on insurance with a quote from Carlay. Current prices for different ages are:
|Age Group||Average Cost||Annual Savings withCarlay|
- Cost to insure your car in Michigan with a poor driving record
Having a clean driving record will help you get Michigan car insurance at the best rates. If you've been involved in an accident, received a citation for speeding, or committed a serious traffic offense like reckless driving, expect to pay higher auto insurance premiums. Because insurance companies judge you to be a high-risk customer, your insurance premiums will be higher for several years.
But with Carlay, you can save money on your car insurance even if you have a violation on your record. Here are some of the deals we found for drivers with less-than-perfect records:
|Driving Violation||Average Cost||Annual Savings withCarlay|
|Driving on Sus. License||$4,893||$2,566|
|Speeding over 15||$4,130||$2,217|
|Speeding under 15||$3,360||$1,034|
|Failure to Obey Traffic Sign||$3,388||$831|
|Leaving scene of an Accident/Hit and Run||$2,820||$480|
- Cost to insure your car in Michigan based on where you live
This is just a fun fact—not meant to scare anyone! Michigan has 7.2 million licensed drivers, but 20 percent of them don't carry even the minimum required insurance coverage. This can mean higher auto insurance rates for everyone in the state!
That being said, premiums vary from place to place in Michigan. If you live in a city and drive, you'll find your rates are generally higher because there's more car damage, theft and accidents. The fact that Detroit and Grand Rapids are larger cities than other towns in the state will probably mean they have higher accident rates, leading to more premiums.
Carlay offers low rates for drivers in some of Michigan's biggest cities. Here's the scoop:
|City||Average Cost||Annual Savings withCarlay|
- Cost to insure your car in Michigan based on the type of car you drive
Another factor that influences your insurance rates is the car you drive. Getting insurance on a popular,
medium-sized vehicle like the best-selling Ford F-150 light-duty pickup truck should
be relatively easy. The cost of repairing or replacing a relatively inexpensive car is less, so the owner pays lower
And if you drive a suped-up Porsche 911, Carrera or Range Rover, you'll be paying more for your insurance. Here's the cost breakdown for insuring some popular makes and models with and without Carlay:
How to Save Money On Car Insurance in Michigan?
Michigan has some of the highest auto insurance rates in the nation. That's no surprise considering how much you pay for car repairs and medical bills after a crash. But there are ways to bring them down a bit.
- Shop around for quotes
If you're considering buying a new car, then you should shop around for car insurance quotes. Compare rates and coverage offered by various insurance companies to find the best policy for you. While this can be very tedious, Carlay makes it easy to examine multiple insurance companies side by side and quickly find the best rates.
Moreover, Carlay automatically sends you new quotes whenever your policy is up for renewal, so you're always getting the coverage you want at the lowest rate. This level of service is why Carlay has become the most popular insurance app in the country.
- Look for discounts
In Michigan, if you want to get a cheap quote on car insurance, you may want to look for a provider that offers state specific discounts. By taking advantage of car insurance discounts, you can lower your monthly premiums.
Check out these discounts you might want to take advantage of:
|Discount||Who is eligible?|
|Good driver discounts||Good driver discounts are for the individuals who have had a valid driver's license for the past three consecutive years, have no more than one point on their driving record, and have no serious driving-related convictions. This discount is mandated by state law and saves drivers 20% on their car insurance premium.|
|Bundling discounts||Insuring multiple products (like auto and home) with the same company is an easy way to get a bundling discount, which can result in savings of around 18%.|
|Billing discounts||Opting to pay in full upfront or set up automatic monthly payments can result in a discount of up to 25% on the annual premium.|
|Anti-theft discount||Vehicles in Michigan that are equipped with an anti-theft device may be eligible for a discount on comprehensive coverage.|
|Continuous coverage discounts||Many insurance companies offer discounted rates—often 5% to 25%—to policyholders who have been continuously insured for 6 months or more.|
- Increase your deductible
One way you can lower your premium is to raise your deductible. This means the amount you pay out of pocket when you make a claim will be higher, but the amount you pay in premiums will be lower. It might be a good move if you're confident you can pay more upfront. But make sure you set aside money for the deductible in case of an accident or other unexpected events.
Registering Your Car in Michigan
When you have to register your vehicle, take the necessary steps to properly obtain a Michigan license plate. Be sure to bring the following items:
- Valid driver's license or ID card
- Proof of insurance
- Proof of sales tax payment
- Car title or signed lease agreement
Once you have the documents, you can schedule an appointment with the DMV. Be sure to bring your vehicle registration documentation to the DMV when you go there in person. It's best that you take care of this when there are fewer people waiting in line.
Michigan drivers must renew their vehicle registrations annually.