How Much Does Car Insurance Cost for a Company Car in Michigan?

For your employer’s vehicle, one of the more important components that insurance companies take into consideration when calculating insurance cost is where your residence is in Michigan. Cities with larger populations or higher claims like Detroit, Southfield, and Warren tend to pay more, whereas areas that are not as densely populated generally have lower rates.

The information below shows the priciest cities in Michigan for a company car to purchase car insurance in.

Rate information is comparative as specific Michigan garaging address can change auto insurance rates significantly.

The car, truck, or SUV you are buying coverage for is probably the most important factor when quoting cheaper auto insurance for a company car. Vehicles with lots of speed or power, a lack of safety features, or high incidents of liability claims will cost significantly more to insure than safer, lower-performance models. The table below shows auto insurance costs for a selection of the most economical vehicles to insure.

Data assumes married female driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, claim-free, multi-policy, multi-vehicle, and homeowner. Table data does not factor in vehicle location which can raise or lower rates greatly.

Looking at the numbers, you can conclude that vehicles like the Dodge Grand Caravan, Honda CR-V, Ford Escape, and Honda Accord are going to be some of the cheapest vehicles to insure for your employer’s vehicle.

Establishing which insurers offer the cheapest auto insurance rates for a company car calls for a bit more work than just quoting one company’s rates. Each company has a unique approach to set premium rates, so let’s examine the auto insurance companies that tend to have lower prices in Michigan.

It’s a good idea to know that Michigan auto insurance rates are impacted by many factors that will increase or decrease the policy price. Turning one year older, moving across town, or getting a ticket for careless driving can trigger rate changes that can cause some rates to be more affordable than the competition.

Best Car Insurance Prices in Michigan

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USAA offers some of the most affordable car insurance rates in Michigan at around $958 per year. GEICO, Safeco, MetLife, and MEEMIC also make the cut as some of the more affordable Michigan auto insurance companies.

As the rates illustrate above, if you are a policyholder with MetLife and switched to GEICO, you could see a yearly price reduction of about $371. Policyholders with MEEMIC may save as much as $401 a year, and Chubb customers might reduce prices by as much as $421 a year.

Be aware that those policy rates are averages for all types of drivers and the different vehicles they drive and do not factor in a price discount for a company car. So the auto insurance company that can offer you the lowest price may not even be shown in the company chart above. That illustrates why you need to compare prices as often as possible using your own driver information and specific vehicle type.

Types of discounts on Michigan auto insurance rates

Car insurance companies that sell cheap car insurance for a company car in Michigan may also provide policy discounts that could reduce prices by 40% or more if you meet specific criteria. Companies and a summarized list of policyholder discounts are detailed below.

• 21st Century includes discounts for automatic seat belts, air bags, theft prevention, anti-lock brakes, and driver training.
• Progressive has savings for online quote discount, continuous coverage, good student, multi-vehicle, homeowner, online signing, and multi-policy.
• State Farm policyholders can earn discounts including anti-theft, accident-free, good driver, safe vehicle, driver’s education, Drive Safe & Save, and good student.
• Nationwide may include discounts for Farm Bureau membership, good student, accident-free, easy pay, multi-policy, defensive driving, and business or organization.
• Esurance may have discounts that include good student, safety device, claim free, renters, and online quote.
• The Hartford may offer discounts for anti-theft, defensive driver, good student, bundle, driver training, vehicle fuel type, and air bag.

The example below illustrates the comparison of car insurance rates with and without discounts applied to the premium. Data assumes a female driver, no claims or violations, Michigan state minimum liability limits, full coverage, and $100 deductibles.

The first bar for each age group shows the average rate with no discounts. The second shows the rates with vehicle safety, defensive driving course, claim-free, multiple vehicle, safe-driver, and homeowner discounts applied. When drivers take advantage of discounts, the average savings per year on auto insurance for a company car is 28% or $1,034.

Does Progressive, Allstate, Geico, or State Farm have the cheapest car insurance?

When comparing car insurance, four companies to consider are Progressive, Allstate, Geico, and State Farm. Between them, they insure over 48% of all car insurance policies in America. The data below points out ratings for price, service, and claims, in additional to some of the optional coverages that are available from each company.