Michigan Auto Insurance Rates – Compare Free Quotes From Top Companies

Find cheap Michigan car insurance and possibly reduce your automobile policy premium by thousands of dollars. If you are not currently covered, view low-cost policies with small down-payments so you can quickly get back on the road. We compare and rank companies for preferred and high-risk coverage so you can instantly review online free quotes. Premiums have reduced since the no-fault insurance law has changed, and the mandatory unlimited medical coverage benefit is now optional.

PIP benefits are not required if you have Group or private medical benefits, or are Medicare-eligible. Other non-Senior family members that choose to opt out must be covered under another policy that provides benefits for injuries sustained from an auto accident. Last year, the state's catastrophic claims association also refunded $400 to each driver. The new no-fault insurance reform legislation created a $5 billion surplus.

Which Companies Have The Best Car Insurance Rates In Michigan?

Prices can vary, depending upon the make, model, and year of your vehicle along with several additional factors. However, in most areas of the state, the following companies offer the most competitive options:

Hastings Mutual
State Farm
Wolverine Mutual

Michigan Car Insurance Requirements

All residents in the Wolverine State that own a vehicle or have a current driver's license can choose their level of PIP medical benefits to pay for your expenses if involved in an auto accident. Different levels of bodily injury and property damage are also available. The risks and benefits of each level of coverage is available from brokers and agents. Coverage can be changed, but typically on the anniversary or renewal date.

Although rates can vary, generally, policies are available. However, you may be denied coverage if your current license is not active, you will be residing in the state for less than a month, there was a major violation within the last 36 months (DUI, reckless driving, etc), or your policy lapsed within the last two years. Multiple accidents and major violations may require the applicant to purchase a high-risk policy. High-risk drivers that no longer reside in the household will not be considered when determining the premium.

The new law allows drivers to choose their level of medical coverage, instead of mandatory unlimited coverage to pay for medical expenses in an accident. The cost of PIP benefits decreased, and although the cost of liability may increase, it's likely your overall premium has decreased. The new default liability limit is $250,000 (highest in the US) instead of $20,000. A six or 12-month policy must still be purchased. Driving without coverage can result in a fine as much as $500 and one year in jail. Multiple violations may result in more severe penalties.

The new law established a fee schedule between healthcare providers and car insurance carriers that reduces the cost that medical providers charge. The fee schedule provides more affordable PIP premiums to consumers, but does not impact future or present benefits. Specific non-driving factors are also no longer used to underwrite a policy, and a new fraud unit has been established to monitor criminal activity. The new cost-control measures have helped reduce the cost of PIP medical coverage.

If "limited benefits" are chosen, Medicaid, Medicare, Marketplace plans, or private medical coverage can be utilized. However, lost wages, vehicle and home modifications, and long-term custodial care will not be covered. The DIFS (Department Of Insurance And Financial Services provides email updates regarding any changes that impact consumers.

Consumer Protection For MI Drivers

Penalties And Fines -- Fines are higher for licensed brokers, insurance companies, and agencies for specific violations.

Fraud Investigation Unit -- Investigation of fraudulent and criminal financial and insurance activity.

Several Non-Driving Factors Are No Longer Used -- Zip code, occupation, marital status, home ownership, educational level, sex, and credit score may no longer be used when determining a car insurance premium.

Prior Approval -- Before policies are made available to consumers, the DIFS will approve the rates and contracts.

Michigan Catastrophic Claims Association Changes -- The MCCA can be audited by the Michigan DOI every three years, must provide an annual report to the Legislature, and must publish a yearly consumer statement on the website. The MCCA assesses car insurance carriers so catastrophic claims from accidents can be properly covered. The 2023 assessment amount is $86 per vehicle.

Underwriting Policies

Policies are underwritten to determine eligibility, and the cost of coverage. Coverage is offered through employers or organizations (Group), and privately through different carriers, When buying a policy yourself, it's important to shop multiple companies (through our website, for example), to ensure you are paying the lowest possible premium. Typically, it's most cost-effective to compare rates from three or more companies.

An applicant can be turned down for the following reasons:

Your driver's license has been suspended, lapsed, or revoked.
Your vehicle does not meet state safety standards and required guidelines.
Your driving privileges have been removed because of the total number of points accumulated.
You are not going to live or drive in Michigan for the next 30 days.
Within the last 36 months you have been convicted of a felony.
Within the last 60 months you have been convicted of defrauding an insurance carrier.
You refuse to become a member of a Group, when membership is required for coverage.

Insurance Eligibility Points

Auto carriers assign "eligibility points" for common moving violations. These points are not identical to the points that appear on your MVR. Typically, a driver can be denied if they have more than six accumulated eligibility points within the last 36 months. Examples of violations that result in points are listed below:

4 Points -- Driving more than 15 mph above the posted speed limit.
4 Points -- Accidents that you are more than 50% at fault (second and subsequent).
3 Points -- First accident that you are more than 50% at fault.
3 Points -- Driving 11-15 mph above the posted speed limit.
2 Points -- Other moving violations.

If no carrier will offer a policy, the Michigan Automobile Insurance Placement Facility (MAIPF) may be able to help. High-risk companies and broker/agents can apply for you. Often, if a high-risk policy is issued, the driver of the vehicle may be excluded from other policies in the household. Also, PIP benefits will not be extended. These regulations also apply to persons operating a motorcycle. Note: Seniors that drive less than 3,000 miles per year, are entitled to a policy discount. Retired drivers that do not have work income, are provided an option to waive work loss benefits under PIP.

Typically, a person can not be sued unless they cause an accident when someone is seriously injured, disfigured, or killed. You can also be sued if you have an accident in another state, if you or at fault (more than 50%) and the other driver had no coverage, or involved in an accident with a non-resident with a vehicle not registered in Michigan.

Bodily Injury And Property Damage

The minimum BI/PD limits in Michigan are $20,000 per person, $40,000 per accident, and an additional $10,000 of property damage (20/40/10). Often, these limits are insufficient to provide the appropriate protection. For example, if your negligence is the cause of another driver to die or become seriously injured, much higher limits will be needed. An accident in any other state may also leave you underinsured. We recommend increasing liability limits to 25/50/25, or 50/100/50. The Michigan DOI determines required limits.

Personal Injury Protection

Six levels of medical coverage are offered to Michigan drivers. The selected limit is the maximum the insurance company will pay for an injured person's expenses (per person and per accident). Different amounts can be chosen, based on your budget and other benefits you may have. Specific forms that compare the risks and benefits are required to be provided to customers. If no selection is made, the default choice is unlimited.The six offered levels are listed below:

1. Unlimited

2. Up to $500,000

3. Up to $250,000

4. Up to $250,000 with exclusion. Named insured can request an exclusion with non-Medicare medical benefits that cover car insurance accident injuries. Other members of the household must have medical benefits that cover car insurance accident injuries.

5. Up to $50,000 with exclusion. Named insured must be enrolled in Medicaid and other members of the household must have other benefits (medical coverage or car insurance) that covers injuries.

6. Opt out. Available if primary insured has Medicare Parts A and B. Other members of the household must have applicable coverage.


Uninsured Drivers In Michigan


Operating A Vehicle That Is Not Covered

When driving an uninsured vehicle in Michigan, if you are involved in an accident, you can be held liable for injuries and subsequent damages. The cost of hiring an attorney and potential out-of-pocket expenses you may be required to pay could be substantial. Also, any medical expenses you incur resulting from injuries, will not be covered by an auto policy.

The penalty for driving without no-fault insurance is a $500 fine, 12 months of jail, or both. This applies to situations where you knowingly drive another car that is not covered, or allow another person to drive your uninsured vehicle. Once convicted, you may be required to purchase a "high-risk" policy, which can cost significantly more than a standard policy. Also, if you move to a different state, having no prior coverage will increase your premium.

Note: Non-owner car insurance coverage is also offered through several companies.  Prices for coverage are fairly inexpensive, and policies can be customized to fit your situation and needs.

Non-Mandatory Coverage

Mini-Tort Benefits -- If you are involved in an accident that is mostly (50% or more) your fault, you may be sued for up to $1,000 in property damage. This coverage can be used when the other vehicle owner's policy does not full pay for all of the damages. The cost of the benefit is fairly used since it's not a common claim.

Higher Liability Limits -- As previously discussed, the mandatory Michigan limits of $20,000 per person, $40,000 per accident, and $10,000 of property damage are fairly low. 100/300/50 is the standard amount for leased and financed vehicles, and the protection provided is worth the higher premium you will pay. If there are no pending claims, typically you can change limits at the policy anniversary date of the policy.

Uninsured Motorists -- Protection is provided when another driver has no coverage, and causes serious injuries to yourself or another household member. Medical bills, vehicle repair expenses, and other items can be recovered from your own insurer. If awarded money from a lawsuit directly related to the accident, once again, you can recover damages up to your specific limits.

Underinsured Motorists -- Similar to uninsured motorists, although other driver has coverage, but it's not sufficient to reimburse you for your damages. Therefore, your carrier will pay the difference, up to your specified limits.

Collision Coverage -- Repairs and damage to your vehicle from an accident are paid for with this option. A deductible applies (typically ranges from $250-$1,000), and the benefit will never exceed the value of the car or truck. Financed or leased vehicles must purchase coverage. Three options are offered -- Limited, Standard, and Broad Form.

Comprehensive Coverage -- Common comprehensive claims are fire, theft, vandalism, glass-breakage, or animal collision. A no-deductible option is available by most companies, and like collision coverage, financed or leased vehicles must include this benefit. However, vehicles with no outstanding lien may choose a liability and comprehensive only option.

Rental Reimbursement -- Substitute transpiration expenses are paid when your vehicle is involved in a covered claim. Typically, the maximum reimbursement is $25-$40 per day, up to 30 days.

Towing And Roadside Assistance -- Towing, labor, and several other expenses (fixing a flat tire and opening a locked door) are covered, typically up to $50. Often, this benefit is included on all vehicles with collision coverage. Your credit cards or recently-purchased or leased vehicle may also include the benefit.


Overhaul Of MI Car Insurance Laws Reduce Rates

Governor Gretchen Whitmer and the State Legislature passed legislation that should substantially reduce prices for all drivers. Limits can be customized by the policyholders, instead of a requirement to purchase unlimited coverage. Drivers will be able to choose different levels of PIP benefits, which historically make up about 50% of a policy premium.

Policyholders will also be able to completely opt out of PIP, if qualified health insurance benefits are available and used. For eight years, Personal Injury Protection must be reduced. Also, specific underwriting factors must be eliminated, including occupation, zip code, credit score, level of education, and home ownership. Michigan is (was) the only state requiring unlimited PIP.

Healthcare providers now charge less for injuries to driver. This includes both inpatient and outpatient treatment, surgeries, therapy, and office visits. Total expected savings for state residents is about $500 per year. Detroit residents may save as much as $1,000 per year in 2021.

Note: The US Department of Veteran Affairs has stated that VA benefits are not considered "Qualified Health Coverage" under the new legislation. Thus, PIP coverage can not be excluded or opted out under that criteria.

The Michigan Catastrophic Claims Association fee has drastically reduced since unlimited lifetime medical benefits are not mandatory. However, drivers can choose to retain full benefits, but the policy premium will likely increase. Medical providers will provide fee schedule which will result in increased transparency. Fees have declined by about 60% in the last two years. Also, an annual $86 fee will only be accessed to customers that retain unlimited lifetime benefits.

How To Reduce Auto Insurance Rates Michigan

Michigan Teen Driving Laws And Requirements

All teen drivers under age 18 must complete two Segments. Segment 1 requires at least 24 hours of classroom instruction, and 6 hours of driving instruction. Four additional hours of observation time must also be completed. Parent or guardian permission is always required. Segment 2 education becomes available after a license has been active for three months and 30 hours of driving experience has been completed. A "Driver Education Curriculum Guide" describes standards and objectives that are needed to complete both Segments.

A driving skills test must also be passed. Approved private companies offer the test, and they are located throughput the state. A basic control skills test and an on-road driving exam must be successfully completed. A fee is required before taking the tests. After the tests are passed, a three-year probationary period begins so that driving can be monitored.

All traffic violations will result in a notification from the Secretary Of State. Initially, warning letters will be sent, although continued violations can result in restrictions and/or suspensions. 10 months of probationary driving may be required and no violations are allowed. Points will stay on the driving record for 24 months after the conviction date.

Is Michigan Still The Most Expensive State To Purchase Auto Insurance?

In several areas of the state, it is, although there are many cities where prices are very attractive. Drivers with less than three years of driving experience,  in combination with no-fault insurance, and no monetary caps is the perfect recipe for high rates.  The Department of Motor Vehicles provides additional information. Several  other reasons are listed below:

Too Many Lawsuits -- Insurance carriers are often sued by patients and other providers. Although they are not always victorious, the legal expenses are staggering.

No Price Controls -- Fee schedules are  utilized in other states, but not Michigan.  These government price controls for medical services in no-fault situations cost millions of dollars each year.

Too Many Attorneys -- Appropriate legal counsel is always needed, but increased involvement of lawyers in vehicle injury and death cases typically raises insurance prices.

Impact Of Supreme Court Decision -- McCormick Vs. Carrier decreased legal requirements when suing drivers involved in an accident.


Michigan Cities With The Lowest Car Insurance Rates

Prices can widely vary, depending on the type of vehicle, age of driver, liability limits and deductibles, zip code, available discounts, and of course, the insurer.  The 15 cities that are most likely to feature the cheapest non-commercial auto rates  are listed below:

Lake Orion
Ann Arbor
East Lansing
Bay City
Grand Rapids
Rochester Hills


Michigan Zip Codes With The Lowest Car Insurance Rates































Michigan Zip Codes With The Highest Car Insurance Rates
































Michigan Car Insurance Company Discounts

AIG -- Air Bags (20%-30%), Anti-Lock Brakes (3%), Anti-Theft (5%-15%), Credit Score (5%-10%), Good Driver (5%), Multi-Car (5%-29%), Multi-Policy (2%-15%), Student Away (16%).

Allied Property and Casualty -- Air Bags (20%-30%), Anti-Theft (5%-10%), Credit Score (5%-50%), Good Driver (10%-20%), Good Student (0%-35%), Multi-Car (10%-20%), Multi-Policy (5%-25%), Student Away (10%).

Allstate Fire and Casualty -- Air Bags (20%-30%), Anti-Lock Brakes (10%), Anti-Theft (5%), Credit Score (5%-70%), Good Driver (0%-38%), Good Student (10%), Multi-Policy (5%-25%), Student Away (10%).

Allstate Insurance -- Air Bags (20%-30%), Anti-Lock Brakes (10%), Anti-Theft (5%), Credit Score (5%-70%), Good Driver (10%-30%), Good Student (10%), Multi-Car (10%-30%), Multi-Policy (5%-15%), Student Away (10%).

Allstate Property And Casualty -- Air Bags (20%-30%), Anti-Lock Brakes (10%), Anti-Theft (5%), Credit Score (5%-70%), Good Driver (10%-35%), Good Student (10%), Multi-Policy (5%-20%), Student Away (10%).

Amica Mutual -- Air Bags (20%-40%), Anti-Theft (5%), Good Driver (3%), Good Student (10%), Multi-Car (10%-30%), Multi-Policy (4%-12%), Student Away (10%).

Auto Club -- Air Bags (10%-15%), Anti-Theft (3%-15%), Credit Score (15%-50%), Good Student (10%), Multi-Car (20%-25%), Multi-Policy (14%).

Essential Insurance Act

This legislation guarantees that auto and home insurance coverage will be offered to eligible Michigan residents. Applicants must own a vehicle and have a valid driver's license. Although most applicants are accepted, denials are possible. The most common reasons that applicants are denied are:

Within the last 24 months, your policy was canceled for not paying the premium.

You have been convicted of a DUI, hit and run, reckless operations,  or other vehicle-related felony within the last three years.

Your driver's license is not active or has been suspended.

The vehicle does not meet safety requirements for Michigan.

You will not be residing or driving in Michigan for 30 days.

You have been convicted of defrauding an insurer within the last 60 months.

The number of points on your driving record exceeds eligibility requirements.


Michigan Catastrophic Claims Association (MCCA)

The MCCA was created  in 1978 by Public Act 136 to help reimburse drivers for vehicle claims from the unlimited no-fault legislation. At the time, property and casualty carriers were paying extremely high premiums for the reinsurance of no-fault policies and the potential of unlimited lifetime medical treatment.

All insurers in the state must be a member of the organization if they sell motorcycle or vehicle auto insurance coverage.  A yearly premium is paid to help fund MCCA current catastrophic expenses, and shortfalls from previous years. The current yearly assessment per vehicle is $192. A person driving a motorcycle must be involved in an accident with a motor vehicle to collect damages. The purchase of no-fault coverage (operation of motorcycles) is not a requirement.

The Board of Directors are selected by the DOI Director. Additionally, several committees (investment, communications, audit, actuarial, personnel, and information technology) help manage all services. Prices of coverage are based on the number of vehicles in the household, and not the number of drivers. PIP is also based on the number of vehicles in the household.

Complaint Ratios Michigan Insurance Companies

Auto Insurance Complaint Ratios

Complaint ratios are provided by the Department of Insurance (DOI), and provide data regarding the volume and frequency of complaints that a carrier receives. Shown below are the most recent ratios. The insurers with the lowest percentage of consumer complaints are listed first.

.03 -- Citizens Insurance

.03 -- Home-Owners

.03 -- Frankenmuth Mutual

.03 -- MEEMIC

.05 -- State Farm Mutual

.05 -- Cincinnati Insurance

.05 -- Fremont

.06 -- Auto-Owners

.07 -- Pioneer State Mutual

.08 -- Allstate Fire & Casualty

.08 -- Farmers Insurance

.08 -- Member Select

.08 -- Westfield

.09 -- Farm Bureau

.10 -- USAA

.10 -- Allied

.10 -- Allstate Property & Casualty

.10 -- Hastings Mutual

.11 -- Auto Club Group

.11 -- Integon National

.13 -- Geico

.13 -- Metropolitan Group

.16 -- LM General

.23 -- Everest

.25 -- Esurance

.30 -- IDS Property And Casualty


Motorcycle Insurance In Michigan

Operators of motorcycles are required to purchase liability insurance. The no-fault law does not apply to these types of policies. A helmet is also required to be worn, unless $20,000 of medical payments coverage is in-force. Each rider must also be covered for the same amount. Optional benefits are available and should be strongly considered.

The no-fault law also impacts motorcycle owners. Operators and riders injured in a crash are limited by the no-fault medical benefits. If these benefits are not available to the injured motorcyclist, the recovery limit is $250,000 and is handled by the Michigan Assigned Claims Plan. The minimum required liability limits increased from $20,000/$40,000 to $50,000/$100,000.

Companies that offer motorcycle coverage in the Wolverine State include:

Aegis Security, Allstate, American Insurance, American Security, Amica, AAA, Auto-Owners, Bristol West, Central Mutual, Cincinnati, Dairyland, Empire, Farmers, Foremost, Frankenmuth, Geico, Grange, Great Northern, Hartford, Hastings mutual, Liberty Mutual, Markel American, Mid-Century, National General, Nationwide, Northland, Progressive, Safeco, Sentry, Safe Auto, State Farm, and Wolverine Mutual.


Michigan Assigned Claims Plan (MACP)

MACP was created in 1973 to assist victims injured in accidents involving vehicles when no auto insurance is available. Personal Injury Protection (PIP) benefits may be offered when a motor vehicle is involved. Passengers or drivers of a motorcycle may also be eligible for Coverage. Benefits may include medical treatment, rehabilitation, and rehabilitation.

Claims are reviewed to ensure that all requirements have been satisfied, and the driver and vehicle are eligible. Drivers without coverage must reimburse MACP for claim expenses. If reimbursement is not made, a suspension of a driver's license can occur.

The claims process begins by completing and signing an online application.  Incomplete applications will not be processed.  Copies that verify proof of loss must also be provided. Existing claim statuses can be viewed online. The main office of MACP is located in Livonia.


HEAT (Help Eliminate Auto Thefts) Program Discontinued Last Year

Vehicle theft and fraud in Michigan remains a major concern, despite some recent progress. Vandalism and theft raise everyone's rate, and your help is needed. The HEAT hotline (1-800-242-HEAT) makes it easy to contact your local police department if you witness vehicle theft or suspect it may take place.  Other suspicious activity includes chop shops, identity theft, and carjacking.

The program was started in 1985 to help increase consumer awareness and participation. The MAIPF (Michigan Automobile Insurance Placement Facility) provides financial backing and administrative assistance.  Free posters, garbage bags, and other items are provided without charge.

According to HEAT, the months with the most stolen vehicles are August, July, September, June, and October. The most stolen vehicles are Honda Accord, Honda Civic, Chevrolet Pick-Up, Dodge Caravan,  Toyota Camry, and Fort Pick-Up.

Rewards were provided for the following tips:

$1,000 for the arrest and warrant for persons involved in vehicle theft, identity theft, or fraudulent activities.

$2,000 for the successful arrest of carjacking suspect.

$10,000 for the arrest and trial of owners of chop shops or theft rings.

Abandoned Vehicles

Abandoned vehicles are unsightly, and create environmental and safety hazards for residents of the state. Property values are negatively impacted and higher incidences of theft and vandalism are often present in these areas. The cost to identify the vehicles and notify their owners is expensive and can be a drain on local jurisdictions. Boats, snowmobiles, and off-road vehicles are also often abandoned.

An "Abandoned Vehicle Search" is provided the Michigan Secretary Of State for law enforcement officials, owners, and impound and towing companies. Information is provided for claiming an abandoned vehicle, possible penalties or fines, how to identify the vehicle and finding the VIN, negotiating towing fees, and obtaining needed consent forms.