Cheapest Car Insurance in Michigan

GEICO is the cheapest car insurance in Michigan although as far as the rates of car insurance are concerned Michigan is considered as the second most expensive state of the US. But since it is mandatory, there some companies which may come under the list of cheap car insurance in Michigan.

Car insurance necessary to have

What is Car Insurance?

Car insurance or auto insurance basically covers all the road vehicles. It is purchased to get protection from any damage to the car or bodily injury due to some traffic collision. This insurance also protects you against liability which may occur due to any auto incident.

Therefore, if you know that what is the insurance? then it is quite clear that auto insurance is also a contractual agreement between the vehicle owner and the insurers about how they will financially protect the policy holders in return of a regularly paid premium.

Is Car Insurance Worth it?

Having an insurance is always worth it. Car insurance, for example, can provide you following advantages which may conclude the worthy of having this insurance:

  • Security of your car’s life from an accident.

  • Protection from any bodily injury caused by you or in result of collision.

  • Provide you their services in case of flat tire, or fuel delivery, etc.

  • Provide a huge savings on your credit.

Therefore, as long as your premium does not exceeds the value of your car, it is best to keep the car insurance policy. It surely depends on your wheels.

Car Insurance Policy

Before getting the insurance for your treasured asset, you should know about the type of car insurances available to be choose from. There are six types of car insurance policy:

  1. Liability Coverage: This type of coverage is responsible to cover the physical damage done to someone’s car or their body because of your fault, Thus, liability coverage is to cover for your responsibilities.

  2. Uninsured and Under-insured Motorist Coverage: At times, you are at no fault but the driver causing the damage maybe sometimes not have appropriate amount of coverage to cover your damage or maybe he won’t even have the car insurance. During such times this type of coverage will be there to cover all your expenses.

  3. Collision Coverage: Whenever you’re in an accident with any other vehicle or any object such as fence, the coverage will help you to pay the cost of repairing or replacing your car’s damage. This type is mandatory if you are leasing your car.

  4. Medical Payment Coverage: This coverage helps in paying the medical bills and treatments for you, your family or your passengers at the time of accident. It also covers you or your family when you are passengers in some other car or walking alongside of the road or riding a bicycle.

  5. Comprehensive Coverage: Having a car is also a great risk of being theft, or vandalized. Comprehensive coverage helps you to repair or replace your car in cases other than collisions.

  6. Personal Injury Protection: It is almost similar to medical payment coverage. Also covering the bodily injuries of the policy holder and their passengers too. In some states medical payment is replace by this coverage.

The above mentioned types of car insurance coverage are available in almost all companies and that’s just not it there are other benefits and coverage accessible too.

Insure your valuable asset

Benefits of Car Insurance

There are seven benefits also available by getting the car insurance:

  1. Rental reimbursement
  2. Gap coverage
  3. Car replacement
  4. Roadside assistance
  5. Ride-sharing
  6. Classic car coverage
  7. Sound system

How Car Insurance Works?

Owning a car means you would already be aware of the fact that you have to get the car insurance. But prior to that you should understand that how car insurance works?

  • First rule is to know about the type of coverage you want.
  • Next is to understand your state’s law about what is required and what not. Such as liability coverage is necessary in 47 states of US. And also you should know about the other options you may have regarding the policy.
  • Third is to check your assets how much you have and how much you can afford to lose in any accident. Also know that whether your car is worth to have high rate insurance or not.
  • The price of insurance is the most important step since it depends on the factors such as your age, driving history, location of your house, gender, etc.
  • Lastly deductibles available in an insurance should be known. This is precisely the amount which only you have to pay. Let’s say if your deductible is $250 and the accident you encounter is worth $1000, then you have to pay the deductible while rest will be paid by the company. Normal deductible values are $100, $250, $500, or $1,000.

Car Insurance Companies

Following are the world’s top car insurance companies:

  • State Farm
  • Progressive
  • Allstate
  • USAA
  • Liberty Mutual
  • Farmers Insurance
  • Nationwide

These may not be the cheap car insurance companies but they are the best to go to.

Having a car insurance is though expensive but it is always worthy. Car is among the most valuable assets you have and protecting it should be your first priority.

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Cheapest Car Insurance in Michigan

Drivers in this state are required to have car insurance by law. Michigan is also called as ‘No-Fault State’ as it has a no-fault law passed in this state for the car insurances.

No-Fault Law:
According to this law, every citizen owning a car in Michigan must have no-fault car insurance which include three basic coverage:

  • Personal Injury Protection
  • Personal Property Injury
  • Residual Liability coverage including bodily injury and property damage

There are several factors affecting the cost of car insurance. Dividing all of them into two vast categories i.e. Adult drivers and Young drivers, you can get the following annual rates of the affordable companies. So let’s take a look at the fact that Who has the cheapest Auto insurance?

Young Drivers

Here the age of the drivers are considered to be around 25-years which is an average young age. Young drivers having a minimum coverage will have to face the following rate ranges of top three cheap companies:

Conditions GEICO Pioneer State Meemic Auto-Mobile Progressive
Good drivers with good credit $681 $782 $885 :x: :x:
Good drivers with poor credit $1,003 $1,053 :x: $1,349 :x:
After a DUI (Driving under influence) :x: $782 $1,825 :x: $1,402
After a crash $978 $840 $1,169 :x: :x:
With recent speed violation ticket $831 $811 $1,275 :x: :x:
Besides having minimum coverage, some drivers with good credit and their clean history may also get a full coverage with the rates:
  • GEICO: $1,220
  • Meemic: $1,795
  • Pioneer State: $1,847

A young boy driving a car

Adult Drivers

As for the adult drivers the average age selected for the analysis is 40-year-old. The rates of first three cheap companies would be:

Conditions GEICO Pioneer State Meemic Esurance Franken-munth Progressive
Good drivers with good credit $1,206 $1,596 $1,708 :x: :x: :x:
Good drivers with poor credit $1,896 $2,319 $2,863 :x: :x: :x:
Minimum Coverage $677 $739 :x: :x: $887 :x:
After a DUI (Driving under influence) :x: $1,596 :x: $3,101 :x: $2,599
After at-fault crash $2,345 $2,309 $1,718 :x: :x: :x:
With recent speed violation ticket $1,786 $1,657 $2,523 :x: :x: :x:
Aside from the age, there is another group which rather depends on the marriage than on the age factor.

For Couples and Families

The rates for the families having two or three drivers is much different and expensive than those for singles:

Conditions GEICO Meemic Pioneer State Esurance
Married couples $2,189 $2,453 :x: $2,929
Families with Teens $3,319 $3,976 $4,161 :x:

Therefore, to know about the cheapest car insurance is very difficult because of all the factors involved in it. But to be very discreet and precise GEICO can be considered as the cheapest insurance company in Michigan.

Cheap Car Insurance Rates for Different Cities in Michigan

According to the city the insurance rate also differentiate. Following are the top 10 cheap Michigan cities:

Sr.No. Cities Average rate
1 Midland $2,166
2 Ann Arbor $2,172
3 Meridian $2,194
4 Holland $2,209
5 Wyoming $2,216
6 Portage $2,233
7 East Lansing $2,240
8 Pittsfield $2,245
9 Kenwood $2,296
10 Battle Creek $2,326

Cheap Insurance Rates for Different Cars in Michigan

Type of car you have may also affect the insurance rate because your prices may go higher if you own a SUV or maybe lower if you have a Truck. These prices also vary according to the county you live in because of the population of that specific county. Following are the cheapest rate available for different types of cars in the few counties of Michigan:

Name of the County Sedan SUV Coupe Truck Hybrid
Wayne $2,332 $1,695 $2,060 $1,671 $2,240 :oncoming_automobile:
Oakland $2,039 $1,496 $1,819 $1,540 $2,095 :oncoming_automobile:
Macomb $2,500 $1,804 $2,198 $1,761 $2,345 :oncoming_automobile:
Kent $1,886 $1,385 $1,693 $1,438 $1,926 :oncoming_automobile:
Genesee $2,087 $1,592 $1,934 $1,483 $1,965 :oncoming_automobile:
Washtenaw $1,887 $1,400 $1,678 $1,419 $1,889 :oncoming_automobile:
Ingham $1,794 $1,336 $1,606 $1,372 $1,834 :oncoming_automobile:
Kalamazoo $1,769 $1,312 $1,594 $1,373 $1,864 :oncoming_automobile:
Ottawa $1,912 $1,413 $1,709 $1,378 $1,838 :oncoming_automobile:
Saginaw $2,031 $1,495 $1,799 $1,483 $1,965 :oncoming_automobile:

Different types of car

How much is Car insurance in other States?

How much is car insurance? This should be the first question arising in your minds while purchasing a car. Although the answer to this question cannot be described in a single line. Rate of car insurance varies widely depending on various factors such as age of driver, credit store, driving history and also the location.

Among these location is the most important factor. The insurers will check the population in your area i.e. how heavily populated your area is, do you have high crime rate in your area, are the roads properly maintained or not, what is the weather there, etc. Therefore your pay rate may vary widely because of this single factor. Following are the pay rates to get in some of the states of US:

In Florida

Looking for cheap car insurance in Florida? You might want to check out the following companies as they have the cheaper annual rates as compared to others:

  • USAA = $940
  • GEICO = $1,337
  • State Farm = $1,867

In Indiana

It is easy to get cheap car insurance in Indiana as the prices start from paying as low as $23 per month which is highly affordable as compared to rates in other states of US. Following are the three cheapest companies:

  • Erie: $546
  • GEICO: $572
  • Progressive: $626
  • State Farm: $646

In California

California is the most expensive state for getting car insurance. Among other cheap auto insurance companies California, but not so cheap, Esurance ranked as number 1 cheapest insurance company with yearly rate of $1,055. And it is predictable that the rates will only increase going down the list of companies.

In Texas

Texas is among the expensive states of US in terms of insurance rates. But following are some of the cheap auto insurance in Texas with their annual rates:

  • Farmers = $821
  • USAA = $885
  • State Farm = $924
  • GEICO = $952

In LasVegas

Las Vegas is the city in Nevada which is a state in United States. Getting a car insurance here? Well then you should know about the cheap car insurance in LasVegas:

  • Geico: $735
  • Allstate: $1,262
  • Safeco: $1,277

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Get the necessary insurance done

Disadvantages of Having Cheap Auto-insurance

Besides being all the attractive due to the cheap annual prices, following are some of the disadvantages which you may brought upon yourself for having really cheap car insurance:

  1. At times the coverage amount is not optimum to cover your damages. The common view of experts is to have a $500,000 worth liability coverage to be safe whereas the cheap companies are offering the coverage worth $10,000 or $30,000 on a single accident.

  2. If you are at fault in the accident, then the liability coverage will only pay for the damage you have caused onto other’s property. As for your own damaged car, you have to pay for yourself.

  3. Drivers having cheap insurances with policies not being able to repair their damaged cars will remain without having a car until they can afford to repair it.

  4. Having a lower premium may attract you people but have you checked your amount of deductible before signing for the policy? If not then you are in big trouble. Because this is what insurance companies do, they made you look at the brighter side of it by showing low rates, on the other hand deductible increases which you have to pay to make the insurance work in case of any claim.

  5. Get ready to be treated less good than the people having expensive policies. The insurers will provide better customer support to them as compared to you having only liability coverage.

Frequently Asked Questions

Why is Michigan car insurance so expensive?

Car insurance is so expensive because of two factors mainly i.e. a no-fault law of the state and requiring an unlimited personal injury protection coverage. Therefore, drivers with poor credit or not having a much experienced history of driving will encounter severe financial problems in Michigan.

What is the new auto insurance law in Michigan?

According to the new auto insurance law, drivers of Michigan will be able to choose from the four levels of Personal Injury Protection allowable expenses which are:

  • Unlimited
  • $50,000 million
  • $250,000 million and
  • $500,000 million.

Who has the best auto insurance rates in Michigan?

According to the good credit following five has the best not so cheap car insurance rates in Michigan:

  1. Allstate: $5,575
  2. Farmers: $3,648
  3. GEICO: $1,286
  4. Nationwide: $2,798
  5. Progressive: $1,845

Are Michigan insurance rates going down?

As Michigan is a very expensive state, it has been heard that rates are going to drop 10% because of the implementation of new auto insurance law. Priory, it was required by the law to have unlimited personal injury protection(PIP) coverage which was highly expensive whereas the new law now gives you four options of PIP to choose from, according to your credit.

Can you insure a car you don’t own in Michigan?

According to No fault auto insurance law of Michigan a vehicle’s owner must maintain this insurance but is is not specified that the policy should be personalized by the owner. Anyone can purchase the policy whose name is not on the list. So, yes you can insure a car even if you don’t own it.

Is 7 day insurance legal in Michigan?

Yes, it is totally legal to have seven day insurance policy in Michigan rather than driving around without having any auto insurance. It is also illegal to lapse this short term policy. You should be able to pay the premium prior getting this policy. Seven day policy is helpful to wait for your license and number plate to be ready by the Michigan Secretary of State.


Thus, it is quite clear from the above discussion that the cheapest car insurance in Michigan is GEICO. It may not be cheap when considered solely but when comparing with other cheap companies you can know the difference. Other than that not getting a car insurance is not an option in such a state having a no-fault law.

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