Car insurance is a must-have for drivers in the state of Michigan—but nobody wants to pay more than they have to for adequate coverage.
The good news is that auto insurance premiums fluctuate by hundreds of dollars depending on a variety of factors, including the insurance company you purchase coverage from. By following a few best practices, you can learn how to save on car insurance in Michigan—whether you are looking for a simple, liability-only policy, need commercial vehicle insurance, or want to secure a full-coverage policy to further protect your finances and property in the event of an accident or mishap.
The Average Cost of Car Insurance in Michigan
According to 2024 estimates by Bankrate, the average annual cost of car insurance in the state of Michigan is $999 for state-mandated minimum coverage and $2,963 for full coverage. Monthly, these prices work out to $83/month for minimum coverage insurance and $247/month for full coverage insurance.
These numbers are higher than the national average—in fact, minimum coverage in Michigan costs 55% more on average, while full coverage is 28% higher.
With car insurance costs on the higher side, it’s no surprise that Michigan drivers are looking for ways to save money on car insurance.
9 Factors Affecting Michigan Car Insurance Rates
There are several factors that impact the cost of car insurance, many of which are in your control (and some of which are not).
While insurance companies in other states may consider factors such as zip codes, credit history, gender, or marital status when determining auto insurance rates, insurers in Michigan cannot do so by law. However, other factors—including your age, driving record, and vehicle—can impact auto insurance rates in the state of Michigan.
Keep these factors in mind as you think about how to save on car insurance.
1. Age
Both young drivers and elderly drivers are considered higher risk, so they can generally expect to pay higher car insurance rates.
2. Experience
Another important factor is experience; the number of years a driver has spent behind the wheel will have a big impact. New, inexperienced drivers—regardless of age—are riskier to insure and therefore have higher car insurance costs.
3. Location
Car insurance costs vary by state. Michigan has higher average car insurance rates than many other states. Rates will also vary from city to city in Michigan.
4. Driving Record
Moving violations, at-fault accidents, and driving under the influence (DUI) or driving while intoxicated (DWI) convictions on your record will raise your car insurance costs.
5. Annual Mileage
Drivers who have a higher annual mileage are at a higher risk of being involved in an accident, so more driving time usually equates to higher auto insurance rates.
6. Vehicle Type
Newer, more expensive vehicles are often more expensive to insure because repairs after an accident would cost more.
7. Vehicle Age
Since brand-new vehicles are more costly to repair or replace after an accident than cars that are at least a few years old, insurance rates will usually be higher for newer vehicles.
8. Vehicle Safety Rating
The safety rating of your vehicle can be an indicator of how likely (or unlikely) it is that a driver or passenger would be injured in a crash, so many car insurance companies will consider this factor when calculating rates.
9. Deductible
Your car insurance deductible is the amount you have to pay before your insurance covers the rest. What you choose to pay out of pocket in the event of an accident will impact overall premium rates.
7 Tips for Saving Money on Your Car Insurance in Michigan
Follow these practical tips to secure auto insurance discounts, save on premiums, and make car insurance more affordable.
Tip #1: Get Quotes from Different Insurance Companies
Prices differ among insurance companies, so shop around for your car insurance coverage. Ask relatives and friends for recommendations, research companies beforehand, and look into switching providers if it makes sense for your situation.
Since individual factors play a significant role in the cost of car insurance, the best way to figure out how much your insurance will cost with each carrier is to request a quote. Get at least three quotes from different insurers to compare rates.
Tip #2: Consider Local Options
In many cases, the large, national insurance companies cannot offer the lowest rates and best coverage. Talk to smaller companies and local insurance agents to see if they are the right fit.
Tip #3: Choose a Higher Deductible
Choosing a higher car insurance deductible will lower the cost of your annual insurance premium. However, before selecting a deductible amount, make sure you have enough money to pay the deductible out of pocket in the event of an accident.
Tip #4: Bundle Insurance Policies
Most insurance companies will offer you lower rates if you purchase two or more types of insurance coverage from them or have more than one vehicle insured. A common bundle available from many insurers is homeowners and auto insurance.
Tip #5: Take Advantage of Car Insurance Discounts
Typically, insurance companies offer discounts to drivers in a variety of situations. The following car insurance discounts are common across Michigan:
- Good student discount: For those students who maintain at least a B average or who attend a driver’s education course
- Low mileage discount: For those driving under a certain number of miles per year
- Loyalty discount: For those who have been insured by the same company for a certain number of years
- Military or profession-based discount: For those in certain professions, like teaching or nursing, or deployed service members
- Multiple policy discount: For those who bundle two or more insurance policies with the same carrier
- Pay-in-full discount: For those who pay their annual premium upfront rather than in monthly installments
- Safety feature discount: For those who have safety features (like anti-lock brakes) installed in their vehicle
These discounts can often be combined for additional savings.
Tip #6: Drive Safely
At-fault accidents, speeding tickets, and other traffic violations can drive up the cost of your car insurance premium. Drive safely to avoid higher premiums.
If you get a ticket, you may be able to attend traffic school to get the violation removed from your driving record. Depending on your situation, it may be worth the time spent in class in order to reduce how much your insurance goes up.
Tip #7: Review Your Policy Periodically & Before Renewal
Review your car insurance policy periodically, after a major life change, and especially before renewal to make sure the coverage still fits your needs and you are taking full advantage of all possible savings.
Looking for Ways to Save Money on Car Insurance? Contact Melton McFadden to Get Car Insurance in Michigan
At Melton McFadden, our experienced insurance professionals can help you find car insurance that protects your finances and peace of mind. We are ready to guide you through the process of identifying coverage essentials, finding gaps in your current car insurance plan, and creating a solution that works best for you and your family.
Whether you are looking to expand your current auto insurance coverage or sign up for a new car insurance policy, we’re here for you every step of the way.
Contact us today or request a free quote to get started.
