How to Get Michigan Car Insurance for Less Than $140 a Month
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No other state touches Michigan's average auto insurance rates, which last year reached a painful $5,766 annually. With premiums this high, it's not surprising that close to 20% of Michigan drivers risk fines and jail time just to save themselves a huge expense.
But believe it or not, there are some Michigan drivers that pay less than $1,700 per year for coverage. Here's how.
Check these three boxes to get Michigan car insurance for less than $160 a month
Our data shows that Michigan drivers who do the following three things have an average car insurance premium of $136.92 per month.
1. Maintain a clean driving record
Those with clean records receive lower rates because they're perceived to be safer drivers. Those with histories of accidents, speeding tickets, or DUIs pay significantly more. The table below breaks down the difference in average monthly premiums for Michigan drivers based on their driving record.
Driver profile | Monthly Michigan car insurance premium | Premium percentage increase compared to those with clean records |
|---|---|---|
Clean Driving Record | $354.92 | N/A |
Driver with 1 Accident | $513.00 | 44.5% |
Driver with 1 Speeding Ticket | $549.42 | 54.8% |
Driver with 1 DUI | $930.25 | 162.1% |
Data source: Quadrant data.
Drivers with multiple negative marks on their driving records could face even higher rate increases. But this isn't forever. Over time, accidents and tickets have smaller effects on premiums until they eventually stop affecting rates at all.
Read more: check out our picks for the best car insurance companies
2. Have excellent credit
Credit might seem unrelated to safe driving, but insurers argue that there's a link between someone taking risks with borrowed money and taking risks behind the wheel. In Michigan, the rewards for maintaining an excellent credit score are pretty substantial. Here's a look at the difference in average monthly premiums for drivers with excellent and poor credit.
Credit history | Monthly Michigan car insurance premium | Premium percentage increase compared to those with excellent credit |
|---|---|---|
Excellent (800 to 850 FICO® Score) | $231.17 | N/A |
Poor (Less than 580 FICO® Score) | $729.92 | 215.8% |
Data source: Quadrant data.
Some car insurance companies penalize drivers for poor credit more than others, which is why it's important for drivers to get quotes from multiple companies before deciding which to work with. But those hoping to secure a lower premium may want to think about building a good credit history as well.
This takes time because your credit score is designed to provide a long-term look at how you've handled borrowed money in the past. But it's worth the investment; a higher credit score also opens the door to better credit cards and lower interest rates on loans.
3. Have a bachelor's degree
Higher education levels are also associated with less risky driving behavior. As with credit history, this is likely an overgeneralization. There are plenty of bad drivers with PhDs and a lot of great drivers with only a high school diploma. Nevertheless, those with at least a bachelor's degree can save big on Michigan car insurance.
Highest education level | Monthly Michigan car insurance premium | Premium percentage Increase compared to those with bachelor's degrees |
|---|---|---|
Bachelor's Degree | $440.75 | N/A |
High School Diploma | $798.58 | 81.2% |
Data source: Quadrant data.
This probably isn't reason enough for someone to go out and obtain a bachelor's degree if it isn't part of their career plan. But those who choose to pursue higher education should definitely notify their auto insurer once they get their degree to take advantage of these savings.
Putting it all together
Drivers can benefit from more than one of the factors above. In fact, stacking them together results in the biggest savings. The table below outlines how various combinations of the above factors affect the average Michigan car insurance premium, for better or for worse.
Driver profile | Monthly Michigan car insurance premium | Premium percentage increase from driver with clean record, excellent credit, and a bachelor's degree |
|---|---|---|
Clean Record, Excellent Credit, Bachelor's Degree | $136.92 | N/A |
1 Accident, Excellent Credit, Bachelor's Degree | $235.08 | 71.7% |
Clean Record, Excellent Credit, High School Diploma | $443.33 | 223.8% |
Clean Record, Poor Credit, Bachelor's Degree | $476.50 | 248.0% |
1 Accident, Poor Credit, Bachelor's Degree | $791.00 | 477.7% |
Clean Record, Poor Credit, High School Diploma | $1,153.83 | 742.7% |
Data source: Quadrant data.
It's natural for drivers facing high premiums due to the factors listed above to feel discouraged. But remember that every company weighs risk differently. Finding rates under $140 per month might not be possible for everyone, but there are companies willing to cut drivers more slack for having poor credit or a few dings on their driving record. Getting quotes from at least three to five companies before buying a policy gives drivers the best chance of finding a rate they can easily fit into their budget.
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