Who has the best cheap car insurance in Michigan?

Rebecca Cook/Reuters

Detroit, Michigan.

• Michigan residents face some of the highest car insurance rates in the US, with the average driver paying $1,279.70 each year.
• Auto insurance costs are high because of Michigan's no-fault laws and required unlimited personal injury protection.
• Find the best cheap car insurance in Michigan by shopping around. Compare quotes and look for the best coverage, not just the lowest premium.
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According to the Insurance Information Institute, Michigan residents will pay the fourth-highest premiums in the US with an average of $1,270.70 per year.

Michigan car insurance is expensive because of two factors: The state has no-fault laws, and also requires unlimited personal injury protection coverage. For those who have poor credit histories or driving records, getting car insurance in Michigan can be costly.

But, that doesn't mean you can't find a deal. It's worth shopping around and getting auto insurance quotes from several different companies. Then, compare those quotes to get the most insurance for your money. Your driving history, zip code, and even personal factors like your marriage status or gender could affect your rates.

Here's where to find the best cheap car insurance in Michigan

Consumer Reports looked at which companies offer the best rates for those with three different tiers of credit, calculated based on each company's pricing formulas for each state. Here are the three companies that offered the most affordable rates for each credit level.

Drivers with good credit, or FICO scores between 670 and 739, will find that their best options are USAA and Progressive:

• USAA car insurance: $1,083 per year
• Progressive car insurance: $1,584 per year
• Home-Owners car insurance: $1,952 per year

People with excellent FICO scores above 800 in Michigan can expect to see some of the lowest rates:

• USAA car insurance: $802 per year
• Progressive car insurance: $1,300 per year
• Citizens Insurance Company of the Midwest: $1,697 per year

Those with poor FICO scores between 300 and 579 will pay the most for car insurance. Here are the three most affordable companies for this credit range:

• Citizens Insurance Company of the Midwest: $3,272 per year
• Progressive car insurance: $3,277 per year
• USAA car insurance: $3,302 per year

Who gets the best car insurance rates in Michigan?

Drivers who get the best car insurance rates are going to be those who have the best credit scores and driving records.

But, there are lots of factors that go into how much your car insurance will cost. Your age, your gender, the type of car you're driving, and even where you live will have an impact on the costs of your car insurance.

Every insurance company prices their policies and looks at factors differently, so its important to get quotes from multiple companies and compare them. Don't just look for the lowest premium - consider all the moving parts of the policy, including the deductible and the coverage limits for each type of liability. The best way to save on car insurance in Michigan is to shop around.

Why is Michigan car insurance so expensive?

No-fault laws are one of the main reasons Michigan residents see such high car insurance rates. In a no-fault state, each driver is reimbursed for damages by their own insurance company. Many of the states with the most expensive auto insurance policies are also no-fault states, including Florida, Massachusetts, New Jersey, and New York.

Additionally, personal injury protection (also called PIP) liability is required in Michigan, and it's expensive. Michigan law requires no maximum limit on the payout for personal injury protection, which drives up prices. While it's helpful to have if you're hurt in an accident, the price can make car insurance expensive up front.

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