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Best cheap car insurance in Ann Arbor for 2024
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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.
Bankrate Score
Avg. min coverage premium
Min. coverage
Avg. full coverage premium
Full coverage
Why Geico made our list: With some of the lowest average rates for car insurance in Ann Arbor and a high Bankrate Score, Geico tops our list of the best auto insurers for Ann Arbor. In 2024, Geico tied for Bankrate Awards for Best Auto Insurance Company Overall and Best Budget Auto Insurance Company and won an award as the Best Auto Insurance Company for Young Drivers. Geico’s key strengths come down to cheap coverage and convenient mobile and online policy management, so it may be a good choice for drivers seeking affordable insurance that’s easy to manage.
Why Geico may be best for digital tools: With just one physical office in Michigan located in Detroit, Geico prioritizes an all-digital auto insurance experience over brick-and-mortar agencies. Geico’s mobile app is highly rated on the Apple App Store and Google Play Store. Via the app, customers can file claims, summon roadside assistance, request photo estimates for vehicle damage and access ID cards and policy documents. If you prefer to manage your insurance primarily from your phone, you may want to get quotes from Geico.
| Bankrate Score | 4.4 |
| J.D. Power | 831/1,000 |
| AM Best score | A++ |
Bankrate Score
Avg. min coverage premium
Min. coverage
Avg. full coverage premium
Full coverage
Why Auto-Owners made our list: Auto-Owners tied with Geico as one of the two Best Budget Auto Insurance Companies of 2024 — and in Ann Arbor, its average rates for both full and minimum coverage are well below the city’s average. Auto-Owners stands out for its affordable average rates and robust coverage options, which include endorsements like gap insurance that aren’t available from Geico. Auto-Owners also scored well above the industry average for claims satisfaction according to the J.D. Power 2023 U.S. Auto Claims Satisfaction Study.
Why Auto-Owners may be best for local agents: Customers who prefer working with a local agent may want to reach out to one of the many Auto-Owners agents in the Ann Arbor area. The company’s extensive independent agent network may offer drivers more personalized service compared to its mobile tools, which are a frequent target of customer complaints.
| Bankrate Score | 4.3 |
| J.D. Power | 833/1,000 |
| AM Best score | A++ |
Bankrate Score
Avg. min coverage premium
Min. coverage
Avg. full coverage premium
Full coverage
Why USAA made our list: USAA received a high Bankrate Score for auto insurance and scored higher for customer satisfaction than any other carrier in the North Central region, according to the 2024 J.D. Power U.S. Auto Insurance Study. In our analysis, USAA’s average premiums for both full and minimum coverage were well below the Ann Arbor average. However, USAA auto insurance is only available to eligible USAA members — U.S. military members, veterans and their eligible family members.
Why USAA may be best for military-focused coverage: In addition to affordable coverage and highly-rated service, USAA offers a few unique benefits to drivers enlisted in the military. If you’re deployed and need to put your vehicle into storage, USAA offers significantly discounted rates for the duration of your deployment. You can also earn a discount for garaging your vehicle on a military installation.
| Bankrate Score | 4.2 |
| J.D. Power | |
| AM Best score | A++ |
Bankrate Score
Avg. min coverage premium
Min. coverage
Avg. full coverage premium
Full coverage
Why Travelers made our list: Travelers had some of the lowest average prices for state minimum coverage in our analysis, but the carrier also offers affordable full coverage policies with robust customization options to fit your unique insurance needs. A low rate of customer complaints, a healthy network of local agents and a highly-rated home insurance product could make Travelers an ideal choice for many Ann Arbor residents.
Why Travelers may be best for discounts: In addition to standard auto insurance discounts for bundling home and auto or insuring multiple vehicles, Travelers offers some savings opportunities that may not be available from other carriers. Owners of hybrid or electric vehicles may be eligible for discounted rates, along with drivers who opt for electronic fund transfers for payment or those who consistently pay their bill on time.
| Bankrate Score | 4.2 |
| J.D. Power | 806/1,000 |
| AM Best score | A++ |
Bankrate Score
Avg. min coverage premium
Min. coverage
Avg. full coverage premium
Full coverage
Why Farmers made our list: In Ann Arbor, Farmers is among the most affordable auto insurance companies. The company also has a comparatively low rate of customer complaints recorded by the National Association of Insurance Commissioners (NAIC) and one of the longest lists of available discounts in the industry. Be aware, however, that customers in the North Central region scored Farmers lower than any other carrier for customer satisfaction in the J.D. Power 2024 U.S. Auto Insurance Study.
Why Farmers may be best for custom coverage: In addition to standard coverage like liability, collision and comprehensive insurance, Farmers offers a number of less-common endorsement options. Drivers for Uber or Lyft may be able to add rideshare insurance to their policy. Owners of modified vehicles can select customized equipment coverage or spare parts coverage. Other coverage options include original equipment manufacturer (OEM) coverage, full windshield and glass coverage, accident forgiveness and new car replacement coverage. If you need your auto insurance policy to do a little more than the standard policy, Farmers may be the best option for you.
| Bankrate Score | 3.8 |
| J.D. Power | 816/1,000 |
| AM Best score | A |
Bankrate's trusted insurance industry expertise
Read our full methodologyBankrate’s insurance editorial team is made up of licensed insurance agents and other industry professionals with combined decades of experience advising consumers on insurance matters. We work with the latest rate data available from Quadrant Information Services to ensure that our recommendations are backed by the most up-to-date pricing information.
46
years of industry experience
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
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, Pioneer State and Auto-Owners. If you’re looking for a full coverage policy, the three cheapest carriers in our analysis are Hastings Mutual, Geico and Secura. 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.
| Insurance company | Average annual min coverage premium | Average annual full coverage premium |
|---|---|---|
|
Hastings Mutual
|
$590
|
$1,138
|
|
$446
|
$1,283
|
|
|
$520
|
$1,493
|
|
|
$606
|
$1,518
|
|
|
$415
|
$1,531
|
How much is car insurance in Ann Arbor, Michigan?
The average cost of car insurance in Ann Arbor, Michigan is $2,334 per year, or $195 per month, for full coverage. For minimum coverage, drivers in Ann Arbor pay $658 per year and $55 per month.
Ann Arbor drivers pay average rates that are 19 percent less than the Michigan state average for full coverage and 2 percent more 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 $5,270 per year for full coverage, while an 18-year-old on their own policy pays $7,371 per year, on average.
| Insurance company | 16-year-old* | 18-year-old* |
|---|---|---|
|
$575
|
$527
|
|
|
Pioneer State
|
$626
|
$603
|
|
$762
|
$689
|
|
|
$799
|
$589
|
|
|
$839
|
$702
|
| Insurance company | 16-year-old* | 18-year-old* |
|---|---|---|
|
$2,486
|
$2,104
|
|
|
Hastings Mutual
|
$2,488
|
$2,426
|
|
$2,638
|
$2,290
|
|
|
$2,927
|
$2,820
|
|
|
Pioneer State
|
$3,068
|
$2,834
|
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 $2,844 per year for full coverage, compared to $5,860 per year for a 20-year-old driver.
| Insurance company | 20-year-old | 25-year-old |
|---|---|---|
|
$518
|
$405
|
|
|
$608
|
$475
|
|
|
Pioneer State
|
$709
|
$426
|
|
$735
|
$454
|
|
|
$1,068
|
$684
|
| Insurance company | 20-year-old | 25-year-old |
|---|---|---|
|
$2,411
|
$1,268
|
|
|
$2,721
|
$1,895
|
|
|
$3,113
|
$2,089
|
|
|
Hastings Mutual
|
$3,114
|
$1,252
|
|
$3,403
|
$1,910
|
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 $2,494 per year for full coverage, while 50-year-olds pay $2,153 per year for the same coverage.
| Insurance company | 30-year-old | 40-year-old | 50-year-old |
|---|---|---|---|
|
$349
|
$349
|
$349
|
|
|
$371
|
$392
|
$428
|
|
|
Pioneer State
|
$371
|
$380
|
$390
|
|
$437
|
$415
|
$433
|
|
|
$453
|
$446
|
$452
|
| Insurance company | 30-year-old | 40-year-old | 50-year-old |
|---|---|---|---|
|
Hastings Mutual
|
$1,180
|
$1,138
|
$1,118
|
|
$1,254
|
$1,283
|
$1,212
|
|
|
$1,624
|
$1,493
|
$1,460
|
|
|
$1,686
|
$1,954
|
$1,808
|
|
|
$1,759
|
$1,764
|
$1,640
|
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 $2,120 per year for full coverage, while 70-year-olds pay $2,374 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 $2,894 per year for full coverage auto insurance — 24 percent more than drivers with clean records.
| Insurance company | Average min coverage rate | Average full coverage rate |
|---|---|---|
|
Pioneer State
|
$380
|
$1,719
|
|
$395
|
$2,108
|
|
|
$455
|
$2,077
|
|
|
$508
|
$2,052
|
|
|
$558
|
$1,511
|
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 52 percent more rates for full coverage for a total of $3,548 per year.
| Insurance company | Average min coverage rate | Average full coverage rate |
|---|---|---|
|
Pioneer State
|
$448
|
$1,986
|
|
$463
|
$2,129
|
|
|
$558
|
$1,511
|
|
|
$576
|
$2,347
|
|
|
$664
|
$3,634
|
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 $6,078 per year for full coverage and $1,917 for state minimum coverage. That’s 160 percent more than the city average for full coverage and 192 percent more for minimum coverage.
| Insurance company | Average min coverage rate | Average full coverage rate |
|---|---|---|
|
$629
|
$4,233
|
|
|
$673
|
$2,710
|
|
|
Pioneer State
|
$781
|
$3,131
|
|
$805
|
$2,221
|
|
|
$918
|
$3,786
|
Minimum coverage requirements in Ann Arbor
All drivers in Ann Arbor must carry at least the following car insurance coverage, as per Michigan insurance law:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $10,000 property damage liability per accident (for damage in other states)
- $1,000,000 property protection insurance (PPI)
However, keep in mind that all Michigan car insurance policies come with default coverage limits of $250,000/$500,000/$10,000 for liability insurance. If you want to choose a lower limit, you’ll need to request it using a special form.
In addition to these coverage requirements, all Michigan drivers have a choice between six levels of personal injury protection (PIP) coverage, from unlimited coverage to an opt-out option available only to certain households enrolled in Medicaid.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze July 2024 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 2022 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 2024 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.
-
Cost & ratings 50%
-
Coverage & savings 30%
-
Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average 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 NAIC, were analyzed.
- 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 each company’s discount options listed on its 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 a company’s corporate sustainability efforts.
