Car Insurance Discounts for Michigan Drivers
Whether you’re a Detroit autoworker, a Traverse City teacher, or a Yooper RV nut, chances are Michigan insurers have a car insurance discount for you.
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Michiganders pay an average of $1,645 annually for minimum-coverage liability insurance. Full-coverage policies cost more, averaging $2,531.
The good news is that many car insurance companies offer discounts that can help lower your premiums. And, like with Petoskey stones, discounts are often more abundant than you might expect once you know where to look. Below are some of the best car insurance discounts for Michigan drivers and how to save money on car insurance costs.
Quick Facts
Although Michigan’s car insurance reform laws are complicated, they offer money-saving opportunities.
Auto-Owners and USAA offer the cheapest liability-only rates, on average, in Michigan.
You may be able to save on your insurance through your employer or even through memberships related to recreational activities like camping.[?]
Car insurance discounts for Michigan drivers
Whether in the deep woods in the north or the industrial hubs in the south, Michigan residents work and play in many different ways. Depending on your lifestyle, that could unlock potential car insurance discounts.
Membership discounts
Check with organizations that support hobbies and activities you enjoy. Many advocacy organizations for popular Michigan pastimes offer members-only car insurance discounts:
If you’re a member of AAA, you can also receive a discount on car insurance offered through AAA.
Boat Owners Association of The United States members may qualify for a car insurance discount through GEICO.
Good Sam RV club offers members auto and RV coverage and extended service plan options.
Alumni discounts
If you graduated from a Michigan college or university, you might be eligible for car insurance discounts:
Michigan State University alumni can receive a car insurance discount through Liberty Mutual.
University of Michigan alumni also have access to Liberty Mutual auto insurance discounts.
Grand Valley State University alumni may qualify for discounts through Farm Bureau Insurance.
Occupational discounts
Michigan is a long-standing auto industry hub, and nearly 600,000 Michiganders work in manufacturing today. Even more work in the healthcare, education, hospitality, and trade industries.
Depending on your occupation and employer, you may qualify for an insurance discount:
Members of the United Auto Workers (UAW) union and other union members can get special pricing on auto policies through Farmers Insurance.
Healthcare workers, like those at Trinity Health, can get special discounts when paying their premiums via payroll deduction.
Higher education employees, like those at Michigan State University, are eligible for a car insurance discount through Farmers Insurance.
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Car insurance discounts available to all drivers
Aside from Michigan-specific discounts, you may be eligible for other insurance discounts. Although many of the best insurance companies advertise discounts on their websites, it’s a good idea to ask your agent if you’re getting all the discounts you qualify for.
Insurance companies often offer discounts if you’re a low-mileage driver, have completed a defensive driving course, or are in the military. Take a look at the table below to find out which discounts you qualify for:
Discount
SavingsWho’s Eligible?Active-duty military or veteran 15%–25% Current or former members of the military Safe driver 22% Drivers who haven’t received any citations or caused any accidents within a certain period of time Good student 10%–15% College or high school students who maintain a B average or higher Defensive driving course 5% People who take an approved defensive driving course Student away from home Varies Students who leave their car at home while attending school a certain distance away from home Low-mileage Varies People who drive less than a certain number of miles each year Cars with certain features pose less risk for insurers, which may lead to savings for you.[?] When it’s time to replace your current vehicle, look for a car with the following features to save money:
DiscountSavingsWho’s Eligible?Passive restraint 30% Drivers whose vehicles have airbags and other safety devices Anti-theft 23% Owners of vehicles with theft-prevention features, whether factory or owner installed New vehicle 10%–15% Drivers of vehicles less than 3 years old Anti-lock brakes 5% Drivers whose cars have anti-lock brakes EV/fuel-efficient discounts Varies Drivers with all-electric or hybrid vehicles Some insurance companies offer discounts for demonstrating safe driving habits, bundling several types of insurance, or managing your policy online or paying in full. Take a look at some discounts you might qualify for:
DiscountSavingsWho’s Eligible?Telematics 10%–30% Drivers who use their insurer’s telematics program and demonstrate safe driving habits Multi-vehicle 7%–25% Drivers insuring more than one car with the same company Bundling 7%–25% People who buy two types of insurance with the same company, such as car and homeowners insurance Loyalty Varies Drivers who renew their policy with the same company, sometimes after a set period of time Pay-in-full Varies Drivers who pay their entire policy premium in one payment Paperless Varies Drivers who sign up to receive digital-only billing notifications Early shopper Varies Drivers who purchase coverage before their current policy expires
Cheapest insurers for Michigan drivers
After the state’s auto reform laws took effect in 2020, many Michigan drivers saw their car insurance rates drop.[?] Today, drivers in Michigan pay an average of $137 per month for liability-only coverage and $211 for a full-coverage policy.
Just as car insurance rates are increasing across the U.S., they’re also rising in Michigan. Insurify data shows that Michigan car insurance premiums could increase by 6% in 2025.
To ensure you get the best rate for your driving record and the type of coverage you need, it’s worth getting a quote from these insurers, which offer some of the lowest rates in Michigan:
The below rates are estimated rates current as of: Friday, October 31 at 5:00 PM PDT.
Insurance Company | Average Quote: Liability Only | Average Quote: Full Coverage |
|---|---|---|
| Auto-Owners | $67 | $108 |
| USAA | $68 | $109 |
| Chubb | $73 | $119 |
| Safeco | $109 | $192 |
| National General | $114 | $235 |
| Bristol West | $134 | $269 |
| Nationwide | $136 | $220 |
| State Farm | $139 | $224 |
| Direct Auto | $140 | $269 |
| Liberty Mutual | $158 | $233 |
| Progressive | $158 | $188 |
| Travelers | $160 | $260 |
| GEICO | $178 | $232 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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How to find cheap car insurance in Michigan
If your auto policy payment is draining your wallet, you can often find ways to get cheaper car insurance rates.[?] Aside from shopping around for car insurance quotes from other companies, here are a few ideas:
How much car insurance do you need in Michigan?
Michigan experienced a major legal overhaul in the no-fault car insurance market to help control skyrocketing costs for residents. As of 2020, all drivers must purchase the following types of coverage, at a minimum:
Personal injury protection (PIP) covers medical expenses up to the policy limits for you and your passengers after a car accident, regardless of who’s at fault.
Property protection insurance (PPI) covers up to $1 million in accidental property damage you cause.
Residual bodily injury and property damage liability (BI/PD) pays medical expenses if you cause an accident — up to $50,000 per person and $100,000 total per accident. It also pays up to $10,000 in property damage for an accident in another state.
Under the new law, you can choose from six PIP coverage options. You may be eligible for lower limits if you have health insurance covering car accidents, Medicare Parts A and B, or you’re enrolled in Medicaid.[?]
Car insurance discounts in Michigan FAQs
Figuring out the type of car insurance you need and how to get the lowest rate can be confusing, particularly in Michigan. These answers to some frequently asked questions might help.
Auto-Owners has the lowest average rates for liability-only insurance in Michigan, with minimum-coverage policies averaging $67 per month. Your exact rate will depend on factors like your age, driving record, and where you live.
Michigan requires all drivers to have car insurance with at least the following minimum coverage amounts:[?]
Liability insurance: $50,000 for bodily injury per person, $100,000 per accident, and $10,000 for property damage in another state
Property protection insurance (PPI): Up to $1 million in coverage for accidental property damage in Michigan
Personal injury protection (PIP): Limits range from unlimited coverage to opting out, which is available only if you have Medicare Parts A and B
Although you can choose the lowest PIP and residual BI/PD coverage allowed, most experts recommend buying more than the state minimum.[?] Other ways to save include getting quotes from at least three companies before choosing a policy, driving safely, choosing a car with safety features, and ensuring you get all the discounts you qualify for.
Yes. You can opt out of PIP coverage, but only if you have Medicare Parts A and B. Any other household members must have their own auto insurance policy or health insurance that covers auto accident injuries.
If you and other drivers in your household have health insurance that covers auto accident injuries, you can choose a lower PIP medical coverage limit of $250,000.
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