Best cheap car insurance in Ann Arbor for 2025

The best car insurance companies in Ann Arbor

No two insurance companies are the same — and depending on your driver profile, insurance needs and personal priorities, the best car insurance company in Ann Arbor may be different for you than for another driver.

To identify carriers that consistently offer quality coverage and low rates, Bankrate’s insurance editorial team analyzed average premium data from Quadrant Information Services, third-party scores from J.D. Power and AM Best financial strength ratings, along with each company’s available coverage options and discount opportunities. Based on those metrics, we assigned each company a Bankrate Score on a five-point scale to quickly capture how well it might meet customer needs. Of the best car insurance companies in Michigan, we identified a few that may be ideal for drivers in Ann Arbor.

The cheapest car insurance companies in Ann Arbor

The three cheapest car insurance companies in Ann Arbor for drivers seeking state minimum coverage are Farmers, USAA and Auto-Owners. If you’re looking for a full coverage policy, the three cheapest carriers in our analysis are Geico, Hastings Mutual and USAA. Keep in mind that car insurance rates are highly personalized — while the companies listed below are cheapest on average, your own quotes may look different from the average driver’s.

How much is car insurance in Ann Arbor, Michigan?

The average cost of car insurance in Ann Arbor, Michigan is $2,551 per year, or $213 per month, for full coverage. For minimum coverage, drivers in Ann Arbor pay $681 per year and $57 per month.

Ann Arbor drivers pay average rates that are 18 percent less than the Michigan state average for full coverage and 5 percent less than the national average. However, these averages are based on adult drivers with clean records — which doesn’t describe every driver in Ann Arbor. Your age and driving record, in addition to a wide range of other rating factors, can impact the cost of auto insurance in Ann Arbor.

Ann Arbor rates for teens

On average, teen drivers pay some of the highest rates for car insurance in Ann Arbor. An Ann Arbor couple with an 18-year-old driver on their policy pay an average of $5,589 per year for full coverage, while an 18-year-old on their own policy pays $7,389 per year, on average.

Ann Arbor rates for young drivers

Car insurance for young adults typically costs less than coverage for teens, especially after age 25. On average, a 25-year-old driver in Ann Arbor pays $3,039 per year for full coverage, compared to $6,335 per year for a 20-year-old driver.

Ann Arbor rates for adults

With adulthood comes greater driving experience — and lower rates. At age 30, drivers in Ann Arbor pay an average of $2,701 per year for full coverage, while 50-year-olds pay $2,343 per year for the same coverage.

Ann Arbor rates for senior drivers

Later in adulthood, senior citizens may pay the lowest average rates for car insurance in Ann Arbor. However, it’s not uncommon to see premiums begin to climb again as drivers reach their seventies. Age-related conditions like failing vision or delayed reaction times can contribute to on-road accident risks, which in turn raises the cost of auto coverage. On average, we found that 60-year-old drivers in Ann Arbor pay $2,233 per year for full coverage, while 70-year-olds pay $2,508 per year.

The cheapest car insurance in Ann Arbor by driving record

The way you drive can have a major impact on the amount you pay for car insurance in Ann Arbor. While the rates above are based on drivers with clean records, a single moving violation — from a speeding ticket to a drunk driving conviction — could cause your rates to go up at your next policy renewal.

Car insurance with a speeding ticket in Ann Arbor

A speeding ticket conviction can cause your auto insurance rates to go up in Ann Arbor. On average, Ann Arbor drivers with a single speeding ticket on their driving record pay $3,096 per year for full coverage auto insurance — 21 percent more than drivers with clean records.

Car insurance after an accident in Ann Arbor

If you’re found at fault in just one accident, insurers will view it as a risk factor for future accidents. On average, drivers with a single at-fault accident in Ann Arbor pay 50 percent more rates for full coverage for a total of $3,821 per year.

Car insurance after a DUI in Ann Arbor

Michigan law takes drunk driving convictions seriously, with fines from $500 to $700 and up to 180 days in jail for a first offense. Michigan insurers will also usually view a drunk driving conviction as a major risk factor and raise premiums to account for it. On average, Ann Arbor drivers with a single drunk driving conviction on their record pay $7,140 per year for full coverage and $1,912 for state minimum coverage. That’s 180 percent more than the city average for full coverage and 181 percent more for minimum coverage.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2023 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 20-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Teens: Rates were determined by adding a 16- or 18-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Bankrate Score

Our Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• • Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC). 
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated the discount options listed on each company’s website.
  • Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.