Cheapest car insurance in Michigan for 2025

To help you look for the cheapest car insurance companies in Michigan, Bankrate analyzed average car insurance rates from various companies based on a variety of situations. The state's average annual cost of car insurance is $3,161 for full coverage and $879 for minimum coverage. However, your rates will vary depending on individual driving factors, so it may be advantageous to quote from more than one company for the best rate.

Key takeaways

• Cheapest company for minimum coverage: USAA
• Cheapest company for full coverage: Geico
• Cheapest company for drivers with prior incidents: USAA and Farmers
• Cheapest company for young drivers: USAA

Like drivers in most states, Michigan drivers are required to carry at least a minimum amount of car insurance, or a liability-only policy. This is typically the cheapest type of auto insurance policy you can find, with the lowest premiums in the state found with USAA.

Minimum coverage requirements for Michigan drivers

To register your vehicle with the state’s department of motor vehicles (DMV), you must show proof that you purchased at least the minimum amount of coverage, which is 50/100/10:

• $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 million property protection insurance (PPI)

Michigan drivers are also required to carry personal injury protection (PIP), which pays for medical expenses and lost wages. However, there are six PIP options, including one for unlimited coverage and two intended for those with Medicaid or Medicare.

Michigan car insurance laws require policies default to 250/500/10 coverage, so you will need to select lower limits if you want to purchase minimum coverage. You can save money on car insurance by choosing minimum coverage, but you'll have less financial protection in the event of an accident. The average cost of minimum coverage in Michigan is $879 per year.

If finding the cheapest car insurance in Michigan is your top priority, minimum coverage may be the best choice. But remember that minimum coverage does not include payments for damage to your car following an accident or other vehicle mishap, like theft or weather-related damage. To have coverage for your own vehicle, you will need to purchase a full coverage policy, which includes optional collision and comprehensive insurance. Although not required by law, you may need full coverage if you have a car loan or lease since lenders often require this to protect their investment in your vehicle.

Getting a full coverage auto policy may be more expensive for Michigan drivers, though it can provide them with additional financial protection in the case of an accident. While these policies can cost you more than a minimum coverage auto policy, you can still find cheap policy options with the following carriers, with Geico offering the cheapest full coverage policies.

When a driver receives a speeding ticket, gets convicted of a DUI or gets in an at-fault accident, it can affect their auto insurance rates in Michigan. Most of the time, having incidents like these on your driving record will cause your insurance premiums to rise temporarily. But it may still be possible to find cheap auto insurance in Michigan even if you have prior incidents on your record.

• Cheapest car insurance for drivers with a ticket: USAA
• Cheapest car insurance for drivers with an at-fault accident: Secura
• Cheapest car insurance for high-risk drivers: USAA

Cheapest insurance companies for drivers in Michigan with a speeding ticket: USAA

Speeding ticket convictions may be a red flag for auto insurers that your driving habits aren’t safe. Speeding tickets typically increase your car insurance rates for three to five years, depending on the carrier. Although all carriers will have access to your driving record specifics, some may not raise your rates as much for a single speeding ticket conviction. Based on Bankrate research, the following companies offer some of the cheapest car insurance in Michigan for drivers with a single speeding ticket conviction.

Cheapest car insurance for drivers in Michigan with an at-fault accident: Secura

If you cause an accident, insurance companies may see you as riskier to insure and increase your rates accordingly. If you have a clean driving record at the time of your accident and you have an accident forgiveness benefit on your insurance policy, you might avoid this surcharge after your first accident. If you have just one at-fault accident on your record, you might find low-cost car insurance in Michigan by shopping with the companies below:

Cheapest car insurance in Michigan for high-risk drivers: USAA

Being named a high-risk driver by your insurance company will likely come with a higher premium. Although every insurer has its own definition of what makes a driver high risk, you may find yourself in this category if you have more than one speeding ticket, at-fault accident or one or more DUI convictions. All these infractions may mean you are at higher risk of future violations, increasing the risk to insurers who underwrite your policy. In some cases, you may be turned down for coverage if you are high-risk.

Finding cheap auto insurance in MI when you are a high-risk driver is challenging. You may need to look at companies known for writing non-standard insurance. Bankrate's extensive research suggests that the following companies may be able to write you an affordable auto insurance policy when you are deemed a high-risk driver.

Young drivers in Michigan will typically face higher auto insurance rates than older drivers. This is because carriers tend to view young drivers as inexperienced and more likely to file a claim. Just like with older drivers, certain incidents like receiving a speeding ticket or being involved in an at-fault accident can cause teen drivers’ rates to increase. But, young drivers who are able to maintain a clean driving record will likely see their rates decrease as they get older.

• Cheapest car insurance for insuring a teen driver: USAA
• Cheapest car insurance for teens with a ticket: Auto-Owners
• Cheapest car insurance for teens with an at-fault accident: Auto-Owners
• Cheapest car insurance for young drivers with a DUI: USAA

Cheapest Michigan car insurance for insuring a teen driver: USAA

Statistically, teen drivers file more insurance claims than any other age group. They generally have less experience behind the wheel and are more likely to engage in risky behaviors such as texting while driving — all of which make them, as a group, more risky to insure. Adding a teen driver to an existing family policy may significantly increase premium costs, but there are ways to mitigate that and keep your rate as low as possible. Some insurers offer teen discounts, including discounts for young drivers who are good students. Shopping around may also allow you to find a company with a better rate for your policy. When searching for the most affordable auto insurance in Michigan with a teen driver, consider the following companies:

Cheapest Michigan car insurance for teens with a ticket: Auto-Owners

Teens with a speeding ticket on their record will likely find it challenging to obtain cheap auto insurance in MI. Their average rates are already higher and may be even less affordable after this infraction. However, by shopping around and taking advantage of discounts, they may be able to find a relatively cheap policy. Based on Bankrate's research, the following companies offered the lowest average rates for 18-year-old drivers on their own policy who have earned a single speeding ticket.

Cheapest Michigan car insurance for teens with an at-fault accident: Auto-Owners

A teen driver in Michigan who has been in an at-fault accident will likely see their car insurance premiums increase as a result. Though this premium surge will only last for a few years, there is still cheap auto insurance for high-risk drivers like these from the following carriers in the meantime, with Auto-Owners offering the cheapest policy options on average.

Cheapest Michigan car insurance for young drivers with a DUI: USAA

Unfortunately, young drivers in Michigan who are convicted of a DUI will likely see their rates increase the most compared to any other incident. The following companies may offer cheap coverage for such drivers, but keep in mind that they may not extend coverage to all young drivers convicted of  DUI.

One of the most common ways to improve your premium is to consider available discounts when choosing your insurance company. Almost all insurers offer at least a small handful of discounts that can save you a percentage off of all or part of your rate. Although discount options vary from company to company, the following are some that you are likely to see at most carriers and which may be fairly easy to earn:

• Safe driving discounts: You might earn a discount if you go for a certain number of years without filing a claim, suggesting that you are a safe driver. Many insurers also offer a discount to drivers who take a defensive driving course. This may also help you avoid points on your license. These courses are generally low-cost and often available online.
• Telematics discounts: Telematics programs are becoming increasingly popular with insurers. They use a mobile app installed on your phone to monitor your driving skills. If you exhibit safe behaviors, you may earn a sizable discount. In some cases, however, unsafe driving could result in an increased premium. 
• Bundling discount: If you are happy with your car insurance company, you may want to consider purchasing your home, condo or renters insurance from them as well. This is called bundling and generally will lead to a small discount on both policies.
• Professional discounts: Some insurers offer discounts to those who belong to organizations such as alumni groups or to certain companies. Others may offer discounts to those in professions such as teachers, early responders or health care fields.
• Payment discounts: You may take advantage of these easy-to-earn discounts if you agree to receive policy documents by email rather than postal mail, for paying online or for paying your entire premium at the beginning of the coverage period.

Bankrate utilizes Quadrant Information Services to analyze the latest rates in February 2025 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate increases filed by insurance companies and are weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. Quoted rates are based on a 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. Young driver DUI rates are for 21-year-old drivers on their own policy; other young driver incident rates are for 18-year-old drivers on their own policy.

Teens: Rates were determined by adding a 16-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.

Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

*Correction: A previous version of this article stated that Wisconsin Mutual is one of the cheapest carriers in Michigan. The article has been corrected to remove Wisconsin Mutual, as the carrier does not write insurance policies in this state.