Cheap Car Insurance Quotes in Michigan

Posted on September 25, 2014

Car insurance in Michigan

This handy page summarizes the latest rates, laws, stats and other useful info pertaining to car insurance in the state of Michigan. Keeping track of just a few important details goes a long way. Here’s how you can customize a Michigan auto insurance coverage package that suits your needs at the lowest possible rates.

Michigan Minimum Liability Coverage

The state of Michigan requires that drivers purchase a minimum per-vehicle insurance coverage of 20/40/10. That means $20,000 in Personal Injury Protection, $40,000 in per-accident protection, and $10,000 coverage against property damage (fences, lawns, other cars, etc.).

Unfortunately, state minimum coverage amounts are often not enough to pay for the actual cost of most accidents. Experts recommend at least 100/300 coverage for drivers in every state. They also recommend Uninsured Motorist Insurance (UMI) for Michigan drivers, as roughly nineteen percent (19%) of vehicles on Michigan roads are uninsured. Michigan ranks seventh among U.S. states in percentage of uninsured vehicles on the road.

Penalties for Driving Without Insurance in Michigan

The standard penalty for getting caught driving an uninsured vehicle in Michigan is a fine of up to $500, a suspended driver’s license, and/or up to one year in jail. The amount of the fine and the length of the jail term are based on whether or not the driver has prior traffic-related convictions, and whether or not an accident has occurred.

Auto Insurance Rates in Michigan

Michigan’s annual car insurance premium was roughly $2,738 in 2016, well over twice the national average of $1,347! According to experts at Top50States.com, the relatively high auto insurance rates in Michigan are partly due to the tough economy that resulted from the collapse of the auto industry, as well as high crime rates, a higher than average percentage of uninsured vehicles, and the effects of certain state laws.

For instance, Michigan is a “no-fault” state. This means that car insurance purchased for vehicles in Michigan will cover deaths, injuries and property damage regardless of who is at fault. Under Michigan’s no-fault law, premiums are higher. Details regarding no-fault laws vary from state to state. Uniquely, Michigan’s no-fault auto insurance system allows auto accident victims unlimited, lifetime medical benefits for treatment of their injuries. Whatever is not covered by insurance is paid by the Michigan Catastrophic Claims Association, a nonprofit created by state law.

Low Cost Car Insurance Programs in Michigan

Auto insurance companies in Michigan often advertise special discounts as behavioral incentives. The Accident-Free Discount is for avoiding accidents for three years. The Good Driver Discount is for avoiding moving violations. The Good Student Discount rewards high grades. The Multiple Automobiles Discount is for owners of more than one vehicle. The Multiple Policy Discount benefits holders of more than one insurance policy. And so on. Ask several agents for full details on discount car insurance programs in the state of Michigan. Then compare costs.

Obtaining Auto Insurance Quotes in Michigan

According to recent customer satisfaction ratings, Michigan’s most favored auto insurance providers are Geico, 21^st Century, and Auto Owners Insurance. Still, some local drivers opt for smaller-sized regional carriers like Farm Bureau Insurance or Hastings Mutual. In any case, car insurance is mandatory in Michigan. Fortunately, the state features many dozen insurance companies that provide auto accident coverage at locally competitive rates. Call around and compare free online quotes. Remember to inquire about their discounts. Above all, read consumer reviews.

Michigan Car Insurance

This page features fascinating facts about Michigan car insurance. Michigan drivers can use this info to get insurance premiums at the lowest possible rates available in their zip codes. However, Michigan drivers should not get their hopes up about super cheap car insurance: Michigan’s premium rates on auto insurance are the highest of any state in the nation.

In 2016, the population of the state of Michigan was estimated at 9,928,301, making Michigan the 10^th most populous state in America. Roughly 15.8 percent of Michigan residents live at or below the poverty level. By comparison, the United States average poverty rate is 13.5 percent. Michigan’s unemployment rate is close to the national average of 4.7 percent. The rate of uninsured drivers in Michigan is an eye-popping 21 percent. The resident median age of the population of Michigan is about 39 years.

Michigan drivers may wonder about the statewide average annual premium for Michigan car insurance, but statewide averages are not especially helpful to drivers in Michigan. For one thing, there is just so much variability in premium rates between zip codes. For another thing, statewide averages are normally based on the demographics of an “average” driver, the details of which do not apply to most drivers.

Statewide averages can only be useful if you fit the description of the selected “average” driver. But what are the odds that you are, for instance, a 30-year-old single male with a clean driving record, a full time job, and a 2013 Ford Explorer XLT with dual airbags, which you drive somewhere between 15,000 and 25,000 miles a year? Even if you are this person, your premium will still depend largely on your zip code.

Just for the record, the statewide “average” premium on an auto insurance policy in the state of Michigan was about $2,226 last year, according to insurance statistics posted on insure.com. The national “average” annual quote for car insurance at the time was about $1,325.

Drivers in Michigan are probably better off obtaining online quotes for Michigan car insurance by comparing zip codes within the state of Michigan. Get at least a few free online quotes for different zip codes in your area, such as your home zip code, your school zip code, and your work zip code, for instance. This should give you a more realistic idea of the car insurance premium options available to you in your part of Michigan.

Read on for more details on Michigan car insurance. This page features a breakdown of both the cheapest and the priciest zip codes in Michigan to buy car insurance, a list of Michigan’s most popular auto insurance carriers, a list of Michigan’s largest auto insurance carriers, and the types of car insurance and coverage amounts needed by Michigan drivers, along with some quirky, outdated Michigan state laws, and other info about Michigan car insurance.

Best Car Insurance Companies in Michigan

Last year, a study by insure.com determined that the “top” ten car insurance companies in the United States are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21^st Century Insurance, GMAC, and AIG, in that order. This study ranked insurance companies by their total dollar amount of written premiums, which is a measure of their market value.

Also last year, insure.com conducted another research study where insured drivers from every state, including Michigan, were asked to rank auto insurance carriers, based on customer service, claims service, and premium rates. The results showed that the best liked car insurance carriers in Michigan for customer service are USAA, State Farm Insurance, Allstate Insurance, Geico, and Progressive Insurance, in that order. For claims service, the Michigan state favorites are USAA, Liberty Mutual Insurance, Geico, Progressive Insurance, and State Farm Insurance, in that order. In terms of value for the price, Michigan drivers favor USAA, Progressive Insurance, State Farm Insurance, Geico, and Liberty Mutual Insurance, in that order.

Here is a list of the largest Michigan car insurance companies, based on market share:

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$1,496,940	18.56
2	Auto Club Group	$1,287,045	15.96
3	Progressive Insurance Group	$885,241	10.98
4	Auto Owners Insurance	$775,363	9.61
5	Allstate Insurance Group	$726,139	9
6	Hanover Insurance Group	$462,349	5.73
7	Liberty Mutual Insurance	$374,837	4.65
8	Michigan Farm Bureau	$365,506	4.53
9	USAA Group	$215,755	2.68
10	Geico	$191,802	2.38

Michigan drivers are encouraged to read at least a few consumer reviews of all major car insurance carriers, as well as some of the smaller, regional carriers. Insurance company reviews can be found on websites such as consumerreviews.com, pissedconsumer.com, and yelp.com, among others. You might also visit the websites of A.M. Best and the Better Business Bureau (BBB).

An important thing to remember is that there is no such thing as a The One Best Michigan Car Insurance Company. Different insurance companies focus on different demographics. Each insurance company tends to target a particular demographic, such as students, seniors, educators, regional customers, military personnel, or high risk drivers, for instance. Even the best insurance companies are plagued by customer complaints, which seems normal, considering the sheer multitudes of car insurance policyholders in America.

Drivers in Michigan should shop around for Michigan car insurance quotes if they expect to save any money on premium costs.

What Types Of Car Insurance Do Michigan Drivers Need?

Michigan state law requires a minimum liability coverage of $20,000 in personal injury protection, $40,000 in bodily injury liability, and $10,000 in property damage liability for each vehicle owned.

Yet, insurance experts recommend that drivers in Michigan (not to mention every other U.S. state) purchase more than the minimum amount of car insurance coverage required by state law. The suggested coverage amounts are $100,000 for personal injury protection, $300,000 in liability for injury to others, and at least $50,000 insurance against property damage.

Michigan drivers also need uninsured / underinsured motorist protection (UMI), as roughly one out of five Michigan drivers is operating an uninsured vehicle. What’s more, due to low state-mandated minimums, many other drivers are underinsured.

For more complete vehicle protection, Comprehensive and Collision coverage are a smart idea. These coverages protect drivers from collisions, weather damage, falling objects, fire, and car theft, among other things.

Outdated Michigan Traffic Laws

Cars cannot be sold on Sundays in Michigan.
In Detroit, it is illegal for couples to make love in an automobile, unless the automobile is parked on their own property.
In Grand Haven, it is illegal to throw an abandoned hoop skirt onto a street or sidewalk.
In Wayland, cows can be kept downtown on Main Street at a cost of three cents a day.

Best And Worst Zip Codes For Michigan Car Insurance

Michigan car insurance premium rates are affected by population density, climate conditions, and crime rates in your zip code, among other things. What’s more, each auto insurance company has its own way of calculating premium costs, based on the vehicle’s location, the driving record of the owner, various insurance laws, and other factors.

Here is a rundown of some of the priciest zip codes in Michigan to buy car insurance. It is not too surprising that all of them are in Detroit, a major American city in southeastern Michigan, situated between the shores of Lake St. Clair and Lake Erie.

The city of Detroit has a population of more than 677,000, with another 4.3 million people living in the outlying metropolitan area. The actual city of Detroit has an overall population density of 5,142 people per square mile. Small wonder that zip codes in Detroit feature some of the priciest car insurance premium rates in all of Michigan, not to mention the whole USA. In some Detroit zip codes, premium rates can soar to more than $8,000 a year.

Zip Code	Pop Density	Unemployed %	Poverty %
48227 (Detroit)	5,591	20.90%	38.40%

According to a research study from insure.com, this urban zip code is the most expensive zip code in the whole United States to buy car insurance. This is interesting, considering that the following three Detroit zip codes all have higher poverty rates, and two of them have higher unemployment rates. However, this zip code is bad enough, with about four times the state average unemployment rate, and a poverty rate well over twice the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
48206 (Detroit)	5,894	31.30%	44.00%

This zip code is afflicted with more than six times the Michigan state average unemployment rate, and nearly three times the state average poverty rate. The population density is also quite high. These factors are a sure formula for high premium rates on auto insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
48204 (Detroit)	5,115	27.30%	44.50%

Likewise for this zip code, high numbers on all three parameters means high rates of uninsured drivers, which equals high rates on Michigan car insurance premiums. Poverty skyrockets in this neighborhood, and unemployment is more than five times the state (and national) average.

Zip Code	Pop Density	Unemployed %	Poverty %
48201 (Detroit)	6,507	18.30%	53.00%

Michigan’s low income neighborhoods are some of the nation’s poorest. Here, unemployment is more than four times the state average. Population density is about as high as it gets in Detroit. Those who purchase car insurance in this neighborhood have to pay a lot for it, as more than half of the residents of this zip code live at or below the poverty level, and can probably not afford to buy a car, let alone car insurance.

The cheapest zip codes for Michigan auto insurance are listed below. Annual premium rates can be as low as around $1,100, or as high as $3,000 or more, according to comparisons of Michigan zip codes. Here is a list of some of the cheapest zip codes to purchase Michigan car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
48710 (University Center)	77	0%	0%

This zip code is situated north of Saginaw, near Delta College and Saginaw Valley State University. Despite the nearby college campuses, the median resident age in this zip code is 52.3 years. Poverty and unemployment are virtually nonexistent, and the population density is a breeze. That’s why this zip code is the cheapest zip code for Michigan car insurance.

Zip Code	Pop Density	Unemployed %	Poverty %
49084 (Riverside)	0	0%	0%

Riverside Township is a sparse community located in central Michigan. The lowest premium rate in Riverside Township, according to carinsurance.com, is $1,172. The highest is $2,643. The average car insurance premium in this zip code is about $1,750.

Zip Code	Pop Density	Unemployed %	Poverty %
49864 (Nahma)	18	10%	25.30%

Nahma Township is another sparse community of only a few hundred people, located in Delta County. The median resident age in this zip code is 52.6 years. Older residents and a light population density lead to low premium rates on car insurance, despite a poverty rate above the state average, and an unemployment rate more than twice the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
49814 (Champion)	6	9.20%	13.60%

Champion is a town of about 1,400 people. The poverty rate falls below the state average, although unemployment is nearly double the state average. Still, a low population density allows for low premiums on Michigan car insurance.

Overall, the storied state of Michigan is home to 1,158 zip codes in 881 cities scattered across 83 counties, from Acme to Zilwaukee and all towns in between.

Annual rates on car insurance in Michigan run the range from prohibitively high to relatively low, varying by as much as $5,000 or more between the cheapest zip code and the priciest zip code in the state of Michigan.

Hopefully, this data will provide Michigan drivers with some idea of the cost of auto insurance in their zip codes. To learn more about your own specific Michigan car insurance premiums, enter your own demographics as prompted and compare online quotes.

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