Finding the best cheap auto insurance in Michigan may be a difficult task. This is because insurance is expensive in Michigan. Consequently, the average health insurance coverage in the state is $3 096 per year which is twice as expensive as that of the national average.
Although the above is the case, we are going to help you find the cheapest auto insurance that serves your purpose as well. Moreover, the good news is that recent changes in state laws have helped in reducing the price rate for drivers in Michigan.
In this guide, we’ll list the best cheap car insurance in Michigan.
Auto Insurance Requirements in Michigan
Each state has its own requirements for drivers when it comes to car insurance cover. The essence of car insurance is to reduce the effect of any damage caused by accident, fire, or any other eventuality. The laws by each state vary, and Michigan’s laws are complex.
Besides, Michigan is a no-fault state, meaning that your own PIP coverage covers your medical bills, regardless of which driver is at fault. Initially, drivers were mandated to have unrestrained personal injury protection ( PIP) coverage and that means that the policy will take care of their medical bills indefinitely in the case of a serious injury and no medical cost was too great. On the contrary, today, there are just a few options for PIP coverage.
Here are some of them:
- Unlimited PIP coverage for each person and each accident
- Up to $500 000 for each person and accident
- You will get up to $250 000 for each person and accident
- Up to $50 000 for each person and accidentt
In addition, the government has mandated the insurance providers to minimize average PIP premiums according to the chosen amount of coverage. For instance, unlimited PIP plans will cost 10% less than the average price, and $50 000 PIP plans will cost 45% less than the average amount. There are also varying degrees of discount for individuals.
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Best Cheap Auto Insurance Companies in Michigan
Here are the top five auto insurance companies in the state of Michigan:
1. Progressive
Progressive car insurance company in Michigan has the reputation for having some of the cheapest car insurance rates. This is as a result of the discounts it offers on its insurance covers. Due to this case, many drivers prefer purchasing auto insurance from the company.
Moreover, if you have a ticket, car accident, or DUI on your recent driving record, this company will be one of the best choices in the marketplace for you. There are also numerous other benefits of making Progressive your first choice. Even drivers with poor driving records get affordable coverage from this company.
2. USAA
If you are a military official, USAA is the best bet for you. With USAA, you may find cheaper rates than other auto insurance providers. It has over 10 discounts for car insurance cover in Michigan, of course. These include good students, safe driving, new vehicle, and military installation discounts. The company also offers rental reimbursement, accident forgiveness, roadside assistance, and many others.
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3. Auto-Owners Insurance
Established in 1916, Auto-Owners Insurance ranked the third cheapest auto insurance in Michigan according to Marketwatch.com. It offers standard coverage to drivers, in addition to GAP insurance, diminished value coverage, cell phone replacement, among others. You can always find cheap auto insurance quotes with Auto-Owners.
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4. Frankenmuth Insurance
This is a small auto insurance provider in Michigan and other states, including Ohio. Currently, it manages more than 325 000 insurance policies. This means that you will likely find every auto insurance cover you are looking for. Moreover, you can get insurance for non-standard vehicles and collector car insurance through Frankenmuth Insurance. Not to forget, it is a good option if you are looking for low price and friendly services in Michigan.
5. State Farm
Established in 1922, State Farm is another affordable option in Michigan for auto insurance. In addition, it is the second-largest auto insurance company in the state and performs above average in the J.D. Power Claims Satisfaction Study. If you are a student and under the age of 25, you can get a discount of up to 25% depending on your grades. Interestingly, this is the highest student discount for any car insurance.
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How Much Is Car Insurance Cost in Michigan Cities?
For your car insurance rate to be calculated by car insurance companies, many factors came into play. First, the location of the vehicle is an important factor. Below is a table containing the cost of insurance in the cities of Michigan:
Rank City Premium
| Company | Cost |
| Detroit | $6,280 |
| Dearborn | $5,147 |
| Warren | $4,425 |
| Sterling Heights | $4,109 |
| Flint | $3,901 |
| Livonia | $3,248 |
| Lansing | $2,901 |
| Grand Rapids | $2,686 |
| Ann Arbor | $2,634 |
| Kalamazoo | $2 546 |
Best Cheap Auto Insurance for Prudent Drivers in Michigan
There are drivers who have track records for driving roughly or carefully and this is identified by how much they default over time. However, drivers who have good driving records enjoy cheaper car insurance rates than those with poor driving records. If you live and drive in Michigan and do not have a recent at-fault record, you will typically save 57% on your car insurance premiums. Remarkably, this is 7% more than the national average which is 50%.
In addition to the above, you may qualify for a bonus for safe driving through your auto insurance company. However, there is no stable amount for this as your auto insurance company determines what to offer to their clients. But they vary between 5 and 10%.
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Best Cheap Auto Insurance For Young Drivers in Michigan
If you are a young driver between the ages of 16 and 25, you are likely to pay a high insurance rate for your car. Even so, those between the ages of 16 and 19 pay higher. The reason for the high premium on your car insurance is the risk posed by the inexperienced driving of the young people of the age bracket.
Furthermore, due to the expensiveness of the Michigan auto insurance plan, teens and young adults pay premiums as high as $8 820 per year. And this is almost $4 000 higher than the national average of $5 023 per year.
Ways To Maintain An Affordable Auto Insurance Rate
To maintain your affordable rate, you need to do the following:
1. Keep a clean driving record
If you have a clean driving record, you will always avoid extra charges that can increase your insurance policy. Therefore, you need to avoid accidents, tickets, and DUI convictions to enable you to keep your premiums to the barest minimum.
2. Assess your coverage
If you have a change in your coverage needs, it can as well affect the amount of insurance premium to pay. Therefore, you need to periodically evaluate your insurance policy with your professional adviser and also adjust your coverage if need be. This will help you not to pay for options that are not relevant to you.
3. Shop with other auto insurance providers
Although being loyal to a particular provider pays, sometimes, you may need to try other providers to enable you to make an adequate comparison. Another reason is that the cheapest insurance coverage at one point may not be the cheapest in the next season.
How To Get The Best Deal in Auto Insurance in Michigan
Generally speaking, Progressive is the best option for auto insurance in Michigan. That is aside from the other aforementioned options. However, you must bear in mind that the cost of auto insurance in the state of Michigan depends on your individual situation and the factors considered by the company in question.
For you to find the best car deal, you will need to compare multiple quotes from different insurers. The factors to take into account while searching for the best auto insurance company include reputation, availability, coverage, cost, customer experience, and more. To know better, you can check out the websites of individual providers and other rating platforms to know what the best bet is for you.
Frequently Asked Questions
Although Michigan is a no-fault state and you are right, the insurance for this kind of accident does not include damage to vehicles. It only covers for bodily injury.
To be precise, Michigan drivers pay expensively on auto insurance but the major reason is because of the high number of uninsured drivers, insurance fraud claims, and unlimited amount of PIP coverage needed for bare minimum coverage.
Although there is no cheap insurance cover in Michigan, however, Safeco operates at the lowest rate.
Conclusion
We have been able to analyze the best cheap auto insurance in Michigan for your car. And so, we believe you can make the best choice any time, any day. Do not forget to share the article to bless someone on your timeline.
References
- https://www.bankrate.com/insurance/car/ – Cheapest car insurance in Michigan
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