How Much Does Auto Insurance Cost for Drivers with a Bad Driving Record in Michigan?

When shopping for the cheapest auto insurance for bad drivers, one of the many components that auto insurance companies use to determine the policy price is your zip code in Michigan. Areas with more people like Detroit, Southfield, and Flint tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims get the luxury of paying less.

The following table ranks the most expensive areas in Michigan for drivers with a bad driving record to purchase auto insurance in.

Information shown are estimated as the vehicle garaging location can affect rates greatly.

Deciphering which insurers offer the most affordable auto insurance rates for drivers with a bad driving record takes a bit more work in order to find the most economical policy. Every auto insurer uses different criteria to set their prices, so let’s examine the auto insurance companies that tend to be cheaper in Michigan.

Lowest Insurance Price Quotes for Imperfect Drivers

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USAA generally has some of the cheapest car insurance rates in Michigan at around $949 a year. GEICO, Safeco, MetLife, and Chubb are also some of the best Michigan auto insurance companies.

As shown in the rates above, if you are currently insured with Chubb and switched to GEICO, you might see yearly savings of about $391. Customers with Pioneer State Mutual may save as much as $421 a year, and MEEMIC customers might realize rate reductions of up to $427 a year.

To get a fast rate comparison, click here to start your free quote or click through to the companies below.

Remember that these estimates are averaged across all drivers and vehicles and do not factor in a price surcharge for drivers with a bad driving record. So the car insurance company that fits your age and vehicle best may not even be included in the chart above. That’s why you need to compare rates from as many companies as possible using your own specific driver and vehicle information.

Difference between liability only and full coverage rates

Finding cheap auto insurance for drivers with a bad driving record in Michigan is probably important to most people, and an effective way to pay less for insurance is to not buy comprehensive and collision coverage. The information below compares car insurance rates when comparing full coverage to liability only. The information is based on no tickets, no at-fault accidents, $100 deductibles, marital status is single, and no policy discounts are applied.

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As an overall average, comp and collision coverage costs $4,382 per year more than just buying liability insurance. That brings up the question if buying full coverage is a waste of money. There is no clear-cut formula to stop buying full coverage on your policy, but there is a broad guideline. If the yearly cost of full coverage is more than around 10% of the replacement cost minus the deductible, then it could be time to drop full coverage.

For example, let’s say your vehicle’s replacement cost is $11,000 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most you would receive is $10,000 after the deductible is paid. If you are paying more than $1,000 a year for full coverage, then you may want to consider only buying liability coverage.

There are a few cases where removing full coverage is not recommended. If you still owe money on your vehicle, you have to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you don’t have enough money to buy a different vehicle in the even your car is totaled, you should not remove full coverage.

Company comparison: Progressive vs Allstate vs Geico vs State Farm

When buying car insurance for bad drivers in Michigan, the top insurers to get price quotes from are Progressive, Allstate, Geico, and State Farm. The next table rates some of the different options and features shoppers can expect to find with each one.

How to find cheap auto insurance for drivers with a bad driving record in Michigan

It is possible to find better rates, and here are some of the recommended money-saving suggestions that can help Michigan drivers buy lower-cost car insurance.

• Do not pay for comprehensive and collision coverage on older vehicles
• Drive vehicles with five-star safety ratings
• Clean up your credit rating
• At-fault accidents will increase rates
• Buying home and auto insurance together can earn discounts
• Shop around and save

That last idea is particularly vital, as we pointed out in the prior article. Car insurance rates in Michigan adjust frequently, so drivers shouldn’t hesitate to buy a different policy if a cheaper price is available.

Having a favorite company is fine, but it’s not recommended if that loyalty results in overpaying major coinage every year. Spend a few minutes and compare prices to find cheaper insurance for drivers with a bad driving record.

Who has the cheapest insurance quotes for bad drivers?

Drivers have a lot of ways to find cheaper auto insurance in Michigan, but the most common are through an exclusive insurance agency such as State Farm or Auto-Owners, an independent insurance agent, or direct online or over the phone from a company like Geico or Progressive.

You can use whichever you prefer, but they differ in how they provide rate quotes.

Independent insurance agents write for multiple companies and can compare rates with every one. They are not required to write business for one company and can give you more rate choices, which can help you get improved chances of finding a lower rate. If the agent locates a cheaper price, the business is moved internally and you don’t have to switch agencies.

An exlusive, or captive, agency is only able to write business for a single company such as a Liberty Mutual or State Farm agent. These agents usually cannot provide prices from multiple companies, so it’s a good idea to get additional price quotes.

Auto insurance from a direct company means you do not use an exlusive or independent agent and buy direct online or over the phone from a company like Esurance or Geico. Buying direct is a good choice for people who do not have complex finances and have knowledge of the limitations of auto insurance.

Which way is best to buy cheap auto insurance for drivers with a bad driving record in Michigan? It would be simple to say buying from a direct company results in the cheapest rates since that eliminates agent commissions, but that is generally not the case. An argument could also be made that buying auto insurance from an independent agent is the best way to save because they can shop around, but that is not accurate either. And occasionally, exclusive agents may have prices that cannot be beaten by either independent or direct companies.

Because it’s impossible to say who has the best auto insurance rates, the one way to get the lowest rate is to get rate quotes and compare. Set aside the time to get quotes from all three to have the best rate selection. For a list of companies with online discounts, click here to view.