Editors’ take: Refinancing an auto loan through Gravity Lending could be a good option for those interested in an online refinance process with no fees. Refinancing through Gravity Lending can also allow you to skip three months’ worth of payments at the beginning of the loan term, which could be helpful if you’re short on cash. But if you have a current loan balance of less than $10,000, you’ll need to look elsewhere.

Gravity Lending auto loans at a glance

Pros

• No loan fees
• Works with lending partners to find competitive rates
• Ability to delay payments for up to 90 days
• Able to prequalify with a soft credit pull

Cons

• Must have at least a $10,000 loan balance
• Qualifying for the lowest APR requires a newer vehicle and 750 credit score

What you need to know about Gravity Lending auto loans

Gravity Lending isn’t a direct lender — it partners with various financial institutions to offer auto refinance products online. Gravity Lending doesn’t charge fees, and advertises rates as low as 5.99% APR, although the lowest rates are reserved for those with excellent credit scores (at least 750) and a vehicle with a model year of 2016 or newer.

Specializes in auto refinancing

Gravity Lending offers both traditional and cash-out auto refinancing along with lease buyout loans. The company doesn’t currently offer traditional purchase auto loans.

Borrowers can defer payments for up to 90 days

Gravity Lending allows its borrowers to skip payments for 90 days after closing on the loan, which could be beneficial for those seeking financial flexibility in the short term. Just be sure to check whether you will continue to rack up interest charges on your loan during this period.

Restrictions on eligible vehicles

Gravity Lending only offers auto refinance loans with balances of $10,000 or more. Additionally, the company doesn’t offer refinance loans on cars with more than 200,000 miles. If you’re interested in refinancing outside these parameters, you’ll have to look elsewhere.

A closer look at Gravity Lending auto loans

If you’re thinking of applying for an auto refinance loan through Gravity, here are some more details to know:

• You can get prequalified with a soft credit inquiry through Gravity Lending. If you’re prequalified and decide to move forward with an offer, your chosen lender will complete a hard inquiry to verify information as part of the loan application process, which will affect your credit.
• You can add or remove a co-borrower when refinancing your auto loan with Gravity Lending. Adding a co-borrower may help increase your chances of approval and allow you to get a better rate and terms. Gravity Lending can also remove a co-borrower, with their consent, from your previous auto loan if it makes sense for both parties. 
• For an additional cost, Gravity Lending offers products designed to protect your car and loan. Products include guaranteed asset protection (GAP) coverage, depreciation protection, vehicle debt protection, vehicle service contracts and vehicle protection plans.

How to apply for a loan from Gravity Lending

You can prequalify for an auto refinance through Gravity Lending online or over the phone. A Social Security number is not required to get a quote. You can expect to provide the following:

• Name and contact information
• Birthdate
• Vehicle year, make, model, mileage and trim
• Current loan balance
• Mortgage/rent payment

You’ll also need proof of employment and income, proof of residence, proof of insurance and vehicle information including your VIN. If you’re approved, you’ll see offers from lenders in Gravity Lending’s network and select one. That lender will then complete the application process with you.

FAQs about Gravity Lending auto refinance

Not sure if Gravity Lending is right for you? Consider these alternatives.

• RateGenius: RateGenius could be a good option if you’re looking for help with managing the refinance process.
• AutoPay: This lending platform could be ideal if you want a low APR and can qualify.

Replacement cost coverage helps repair or replace your home with similar materials if it’s destroyed in an incident. With this type of coverage, your insurance company won’t adjust what it pays based on your home’s depreciation.

Additionally, if you have replacement cost coverage for your personal property, your insurance company may reimburse you enough to replace lost items — such as TVs, beds or couches — with a similar model.

It’s important to know whether you have this type of home coverage, as well as how much coverage you have. Factors such as increased home value due to upgrades you’ve made and rising costs of building materials may require you to purchase more coverage. Read on to learn more.

• What’s the difference between replacement cost and actual cash value?
• Why should I pay attention to my home’s replacement cost now?
• How do I estimate my replacement cost?
• How do I know if I have replacement cost coverage?
• How do I change the replacement cost on my insurance policy?

What’s the difference between replacement cost and actual cash value?

Replacement cost coverage reimburses you for the cost of replacing your home with similar materials — up to your coverage limit — while actual cash value coverage only pays out your home’s current value. Actual cash value is generally calculated by subtracting depreciation from replacement cost.

For example, if your home were destroyed in a fire, replacement cost coverage would cover the cost of rebuilding your home with materials similar to the original ones. Actual cash value coverage would pay out only how much your home is currently worth, based on its condition and the local housing market.

Why should I pay attention to my home’s replacement cost now?

If you haven’t changed your amount of coverage on your home since you bought it, you are likely underinsured, according to the Insurance Information Institute. Failure to buy replacement cost coverage — or enough of it — could result in a large bill if something goes wrong. On the other hand, overestimating your home’s replacement cost could leave you paying more than necessary for insurance coverage.

Because home replacement cost isn’t affected by your house’s value on the open market, you won’t necessarily need more coverage as your home value increases. But revisiting your coverage options might be a good idea if …

• You’ve recently increased your home’s square footage
• You’ve installed a new deck or made major improvements — such as new, upgraded flooring
• The cost of home construction material and labor has increased in your area

How do I estimate my home replacement cost?

There are a few ways to estimate your home replacement cost.

• Get an estimate from your insurance agent or a professional appraiser familiar with local regulations and building costs.
• Use an online calculator or software to estimate the cost of rebuilding your home from the ground up.
• Ask a real estate agent or appraiser for the average cost per square foot to build a home in your area. Multiply that cost by your home’s square footage. For example, if it costs $200 per square foot to build in your area, and your house is 1,500 square feet, the replacement cost value for your home would be approximately $300,000.

Remember, this is a general estimation, and other factors — such as home style, structure age, construction type, custom materials and special features — may skew this figure.

How do I know if I have replacement cost coverage?

You can call your insurance agent or look at your home insurance declarations page to see what type of coverage you have as well as how much.

How do I change the replacement cost on my insurance policy? 

It can be a good idea to update your replacement cost coverage every year. Estimate the value of your home and personal property replacement costs and call your insurance agent to discuss what options are available to you.

Additionally, if you’ve recently undergone a major lifestyle change, made major updates to your home or upgraded your home’s security, it might be a good time to review your current policy and make any necessary adjustments.

Next steps

If you’re interested in updating your home replacement cost coverage, take stock of your current policy and estimate your current home replacement and personal property replacement costs. If there are large gaps in coverage between what you have and need, consider calling your agent to discuss updating your coverage.

Consider comparing insurance rates and coverage options from multiple providers to see if you can save money on your premium.

Note from our editor: Maybe you’re searching for car insurance for the first time or want to do some insurance shopping to help lower your monthly premium? This article can serve as a starting point for your car insurance research. There are a lot of factors when it comes to the cost of car insurance, so while you may not see the exact premiums we’ve researched, they can give you an idea of some of the insurers offering the cheapest rates in your state.

Driving in Michigan can be a treat with its scenic byways and miles of shoreline. But are you getting the best rate you can for auto insurance in the Great Lakes State?

We studied estimated rates from insurance companies in Michigan and calculated average cost, as well as cheapest estimated rates on basic coverage and different driver needs.

Unless otherwise noted, we based our calculations on a relatively neutral driver profile — no accidents, tickets or claims, for example — in order to evenly compare rates (see our full methodology). The rates you get may be higher or lower given not only your individual driving history but other factors that affect car insurance like your age, vehicle type, mileage and coverage options. Michigan is one of five states that doesn’t use credit scoring to determine auto insurance premium cost.

Read on to learn about Michigan’s average car insurance rates and our findings for the cheapest options for minimum coverage in the state.

• Cost of car insurance in Michigan
• 5 cheapest car insurance companies in Michigan
• Cheapest full-coverage car insurance in Michigan
• Cheapest state-minimum car insurance in Michigan
• Cheapest car insurance for drivers with multiple claims in Michigan
• Cheapest car insurance for young drivers in Michigan
• Michigan auto insurance requirements
• Is usage-based insurance available in Michigan?
• FAQs about the cheapest car insurance rates in Michigan
• Methodology

Cost of car insurance in Michigan

Average monthly premiums for car insurance in Michigan range from just over $100 up into the $200s, depending on type of coverage and who’s behind the wheel.

Average monthly auto insurance premiums in Michigan

5 cheapest car insurance companies in Michigan

We’ve calculated rates based on a specific Michigan driver profile, as detailed in our methodology, to assess insurers evenly and get the best sense of costs for an average driver — so your actual rates could be different. Characteristics include driver age of 36 to 45, no tickets or coverage gaps, and a $20,000 to $30,000 car value.

1. Travelers

Travelers car insurance is available in most states and offers customers who remain accident- and violation-free with a decreasing deductible every six months. Standout coverage options include new-car replacement coverage and accident forgiveness. Prospective customers can get a quote online, over the phone or through a local agent. Read reviews of Travelers to learn more.

2. Wolverine Mutual

Founded in 1917, Wolverine Mutual offers auto insurance policies to residents of Michigan and Indiana. The insurer also offers home, motorcycle, watercraft and RV policies. To get a quote, potential customers can fill out an online form to get connected with an agent.

3. USAA

USAA is available to military members and their families. USAA auto insurance is available nationwide with various discount opportunities, including unique savings for deployed military members. The USAA app allows members to manage their policy from their mobile devices. USAA offers standard and optional coverage options. Read reviews of USAA to learn more.

4. Meemic Insurance Company

Meemic Insurance Company is based in Michigan and provides car insurance in a few states. The company offers basic coverage options and focuses on providing exclusive benefits and discount opportunities to teachers and educators. For example, educators can save up to 40% or more and have multiple discount opportunities.

5. Pioneer State Mutual

Pioneer State Mutual has been offering coverage for individuals, farms and businesses since 1908 through its network of independent agents. In addition to its standard car insurance offerings, Pioneer State Mutual offers a bundled package that includes new car replacement coverage, trip interruption insurance and other extras. Additionally, policyholders can manage payments and claims and even access their insurance cards through Pioneer State Mutual’s mobile app.

Cheapest full-coverage car insurance in Michigan

For our Michigan driver, the following companies have the lowest estimated rates for full-coverage insurance. Full coverage is typically defined as including liability, property damage, uninsured motorist, personal injury protection, collision and comprehensive coverages.

5 cheapest full-coverage car insurance companies in Michigan

Cheapest state-minimum car insurance in Michigan

Looking at state-minimum coverage in Michigan, we’ve found that the following car insurance companies have the lowest estimated rates.

5 cheapest car insurance companies in Michigan for state-minimum coverage

Cheapest car insurance for drivers with multiple claims in Michigan

If you’ve got multiple auto insurance claims in your past, you’re probably shopping around for the best rate in Michigan. The following companies have the lowest estimated rates on minimum coverage for drivers with multiple claims.

5 cheapest car insurance companies in Michigan for multiple claims

Cheapest car insurance for young drivers in Michigan

With only a few years of driving behind them, younger drivers might be seen as a higher risk and face more-expensive car insurance rates. Here are our picks to help you out if you’re looking for the lowest estimated rates on minimum coverage for young Michigan drivers between the ages of 18 and 21.

5 cheapest car insurance companies in Michigan for young drivers

Michigan auto insurance requirements

Michigan law requires a mandatory 50/100/10 no-fault insurance policy as minimum coverage in the state. Drivers should have, at minimum, liability coverage of at least $50,000 per person and $100,000 per accident for bodily injuries, with at least $10,000 of property damage coverage. If you have a car loan or lease, your coverage responsibilities may be more extensive.

Is usage-based insurance available in Michigan?

Usage-based insurance is vehicle insurance that allows customers to pay premiums based on their driving behavior or mileage. UBI is available in Michigan. Costs are often calculated by vehicle type, distance, behavior, place and other factors.

FAQs about the cheapest car insurance rates in Michigan

Methodology

The estimated rates in this article are the lowest estimated rates based on the specific profile of a driver age 36 to 45 living in Michigan. Unless otherwise noted, the rates displayed assume a single driver on the insurance policy with no tickets on their driving record and no claims or coverage lapses. The vehicle used in this estimate is valued between $20,000 and $30,000 and has annual mileage of 12,000 to 15,000. Estimated rates for young drivers include those age 18 to 21. Estimated rates for those with multiple claims are calculated based on two claims.

Quadrant Information Services doesn’t include all insurance companies in its rate data. These are estimated rates meant only to provide a frame of reference and comparison. Your rate may vary depending on a range of factors that affect car insurance, such as your age, vehicle driving habits and history. Note that the rates are provided every six months by Quadrant Information services.

Average monthly premium for full coverage car insurance includes bodily injury, property damage, uninsured motorist, personal injury protection, collision and comprehensive coverages. Average monthly premium for state-minimum car insurance includes Michigan-mandated 50/100/10 no-fault insurance policy.

Why insurance premiums are up in 2022

A Credit Karma Study

Updated October 25, 2022

Written by: David Heiling

COVID-19, supply chain issues and the global semiconductor chip shortage are just a few of the world affairs that have affected the auto market since early 2021. New and used car prices have skyrocketed. Average new car sales reached a high point in September 2022 at $45,031 and average used car sales topped out in July 2022 at $28,219, according to Kelley Blue Book.

Supply chain issues have led to longer wait times for parts, increasing repair times. And the greater complexity of modern vehicles means greater reliance on high-tech support, which tends to be expensive given the in-depth training required and elevated operating costs.

Add an 8.3% rate of inflation from August 2021 to August 2022 and an increase in risky driving behavior, and it makes sense that a lot of people across the United States have seen their auto insurance bills increase.

Many auto insurance companies are raising their premiums — subject to the approval of each state’s department of insurance — to cover the increased costs of claims.

Wondering where your state ranks in average auto insurance premium growth?

Using Quadrant data, Credit Karma analyzed average auto insurance rate growth over the course of 21 months from July 2020 to April 2022 for a given driver profile (see the full methodology for details.)

Here’s a look at the five states that have seen monthly insurance rates go up the most during that period, according to our study of Quadrant rates.

In contrast, here are the five states with the greatest decrease in monthly auto insurance premiums:

Credit Karma Stat Snapshot

Greatest increase in average monthly car insurance premium between July 2020 and April 2022:

28%, South Carolina

Greatest decrease in average monthly car insurance premium between July 2020 and April 2022:

23%, North Dakota

Greatest increase in average monthly car insurance rate between October 2021 and April 2022:

30%, Connecticut

California hasn’t approved a car insurance rate increase since March 2020

Highest average monthly car insurance premium in the nation:

$429, New York

Progressive’s average monthly premium went up 17% between July 2020 and April 2022

Western states have seen an overall decrease in average monthly car insurance premiums since 2019

Calculations based on a standard driver persona. See methodology for details.

Which states have had the highest car insurance premium increases since 2020?

According to our study of Quadrant rates, monthly auto insurance rates have increased across the country by an average of $10 per month in the 21 months from July 2020 to April 2022 ($120 annually).

Of the 24 states that saw auto insurance rate increases during this time, South Carolina has spiked the most at 28%. North Dakota has seen the most drastic average monthly premium decrease during the same span, dropping 23%.

Hawaii’s monthly rates are second-cheapest nationwide, behind only North Carolina. New York’s average monthly auto insurance rates were the most expensive, followed by Louisiana and Michigan.

As this map shows, states in the eastern U.S. have the highest monthly auto insurance rates, while the Midwest has the cheapest. Since 2020, the Southeast has seen the highest rate increases.

Average auto insurance rate change from July 2020 to April 2022

Are auto insurance rates increasing?

Based on our research, car insurance premiums have increased an average of $10 per month since 2020. Car insurance rates dipped to as low as $161 per month on average in late 2021, but quickly rose. Between October 2021 and April 2022, auto insurance premiums have increased by an average of more than 5% ($9 per month) nationwide to $170 per month.

Auto insurance rate trends since 2021

According to our study of Quadrant rates, a total of 30 states saw their auto insurance rates increase in the six-month period from October  2021 to April 2022. Connecticut’s average auto insurance rates increased 30%, the highest such increase in the country during this time period.

Hawaii’s average monthly auto insurance premium fell 11% in the same six-month span — the greatest average auto insurance rate decrease of any state.

Car insurance premium increases by area

From October 2019 to April 2022, the biggest increase in average auto insurance premiums — from $168 to $190 — was in the northeastern United States. At the same time, car insurance rates in the western United States decreased during that time.

During the latter six months of that time period, northeast and southeast states saw a sudden increase in average insurance rates, while west and southwest states held relatively steady.

Average auto insurance rate change by region

Image: copy-avgai_region-copy

Car insurance premium increases by company

Smaller auto insurers make up the companies with the most drastic auto insurance rate changes per month in the 21 months from July 2020 to April 2022. Utica National Insurance Group, for example, has made the highest increase — a 226% average rate jump (from a monthly premium of $59.40 to $193.71) — at least for the driver personas we reviewed. The company primarily offers auto insurance in eastern states.

Wolverine Mutual, on the other hand, writes policies in three midwestern states and has seen the sharpest decrease in monthly premiums, lowering monthly premiums by up to 55% to an average of $102.80 per month.

Large auto insurance companies’ rate changes during this time period are less extreme in comparison. Progressive has increased its monthly rates by an average of 17%, while Nationwide has decreased monthly premiums by more than 11% on average.

Average monthly auto insurance premium (largest insurers)

Image: copy-avgai_company

Car insurance premium increases by age

Based on our study, auto insurance rates are the highest for young drivers between the ages of 18 to 21. As of April 2022, the average monthly car insurance premium for drivers in that age group are 57% more expensive than the cumulative average of all other age groups.

As a driver gets older (and more experienced), insurance rates typically decrease until a person touches the 55 to 64 age range. Drivers over the age of 65 have seen the highest rate of increase (8.16%) between October 2021 and April 2022.

Auto insurance rate change by age

Image: copy-avgai_age

FAQs about car insurance rates

Does your car insurance increase after a speeding ticket?

Probably, but it depends on your unique situation. According to Progressive, if the ticket is the first on your record, your insurance premium may not increase at all. However, if you get two speeding tickets in three years, it’s likely you’ll see an auto insurance premium increase. The potential rate hike depends on your unique situation and several factors like your insurance company, insurance history, driving record and others.

Does your car insurance increase after a claim?

An insurance company typically increases your premium by a percentage if you make a claim against your insurance policy above a certain amount and you’re at fault. The Quadrant data we examined shows that auto insurance premiums increase by 37% on average after the first claim, by an additional 38% after two claims and by an additional 41% at three claims. That means that a $170 monthly premium could turn into a $451 monthly premium after three claims.

At what age does your insurance go down?

According to our study of Quadrant rates, once a driver turns 22, their car insurance premium decreases an average of 25%, with their rate continuing to steadily decline until age 65.

At age 25, average premiums decrease 12% more. Drivers aged 36 to 45 see a further decrease of 5%, and those who hit the 46 to 54 age bracket see a decrease of an additional 6% before leveling out between the ages of 55 and 64.

Average premium per month by age in 2022

Image: aiage-1

Methodology

To identify auto insurance rate changes by state, we analyzed Quadrant Information Services data from October 2019, July 2020, February 2021, October 2021 and April 2022. Mention of the year 2020 references data from July 2020. Mention of the year 2021 references data from October 2021 and mention of the year 2022 references data from April 2022.

Rates provided fit the following profile, unless noted otherwise: The driver is between the ages of 26 and 35, drives a car valued between $15,000 and $20,000 and drives between 12,000 and 15,000 miles per year. The driver has been continuously insured for more than three years, has one vehicle on the policy, is the only driver and has no claims or tickets.

Quadrant Information Services doesn’t include all insurance companies in the rate data it provides. These are estimated rates meant only to provide a frame of reference and comparison. Your current rate or rates quoted to you may vary depending on a range of factors, such as your age, vehicle driving habits and history. Note that the rates are provided every six months by Quadrant Information services.

When referring to regions, the following is true:

• West: Alaska, Hawaii, Washington, Oregon, Idaho, Montana, Nevada, Utah, California, Colorado, Wyoming
• Southwest: New Mexico, Arizona, Texas, Oklahoma
• Midwest: North Dakota, South Dakota, Minnesota, Kansas, Nebraska, Iowa, Missouri, Wisconsin, Illinois, Indiana, Michigan, Ohio
• Southeast: Florida, Georgia, Alabama, Louisiana, Mississippi, Arkansas, North Carolina, South Carolina, Virginia, West Virginia, Tennessee, Kentucky
• Northeast: Pennsylvania, Rhode Island, Maryland, Connecticut, Maine, New Hampshire, Vermont, Massachusetts, Delaware, New York, New Jersey

All average rate data is rounded to the nearest whole number.