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 $1,704 annually for minimum-coverage liability insurance. Full-coverage policies cost more, averaging $2,566.

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.

  • USAA and Auto-Owners 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.1

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.

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:

  • Cars with certain features pose less risk for insurers, which may lead to savings for you.2 When it’s time to replace your current vehicle, look for a car with the following features to save money:

  • 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:

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.3 Today, drivers in Michigan pay an average of $142 per month for liability-only coverage and $214 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:

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.4 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.5

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.

  • USAA has the lowest average rates for liability-only insurance in Michigan, with minimum-coverage policies averaging $61 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:6

    • 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.7 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.

Lindsay VanSomeren
Lindsay VanSomeren

Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.

Lindsay has been a contributor at Insurify since October 2022.

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