The Bank of America® Customized Cash Rewards credit card offers flexibility to maximize your cash back earnings, but you’ll need to understand its key features to truly make it work for you.

As a new cardholder, you can immediately take advantage of high cash back rates in your first year. Beyond that initial boost, knowing how to use its adaptable reward structure is key to continuously optimizing your benefits.

1. Select your 6% cash back category
2. Keep an eye on quarterly earning caps 
3. Earn your welcome bonus
4. Choose how to get your cash back
5. Understand your 0% intro APR offer
6. Explore Preferred Rewards for even more cash back

1. Select your 6% cash back category

Choosing your top category early with the Bank of America® Customized Cash Rewards credit card can be the difference when it comes to maximizing your rewards. 

As a new cardholder, you’ll earn 6% cash back in your chosen category for your first year from account opening. Officially, that’s 3% cash back plus an additional 3% first-year cash back bonus in the category of your choice. After your first year, you’ll earn 3% cash back in your chosen category and 1% on other purchases. Keep in mind that you’ll receive the boosted cash back rate in your chosen category and 2% cash back at grocery stores and wholesale clubs on up to $2,500 in combined purchases each quarter, then 1% on all purchases.

You can select from the following categories for this higher cash back rate:

• Gas and EV charging stations (default)
• Online shopping
• Dining
• Travel
• Drugstores
• Home improvement and furnishings

No matter your initial pick, you can change your bonus category once each calendar month through your Bank of America Online Banking or Mobile Banking app.

2. Keep an eye on quarterly earning caps

While the bonus cash back on your chosen category is a nice perk, there’s a limit to how much you can earn at the higher rate.

Your earnings on both that bonus category and the 2% cash back you earn at grocery stores and wholesale clubs are capped at $2,500 in combined purchases each quarter. After that, you earn 1% — the same rate as on all other purchases.

Even if you don’t hit the cap, it’s good to be mindful of your spending to maximize rewards. If you have another card that earns rewards in those categories, it might be worth using once you reach your limit.

3. Earn your welcome bonus

New cardholders can earn a $200 online cash rewards bonus after making at least $1,000 in purchases within the first 90 days of account opening. That’s a substantially higher rewards rate than what you can earn in your 6% bonus category each quarter.

4. Choose how to get your cash back

Once you start earning and accumulating cash back, you have a few redemption options.

• Statement credit — Apply your cash back directly to your credit card balance.
• Direct deposit — Have your cash back deposited into a Bank of America checking or savings account.
• Pay for purchases — Use your cash back to pay for eligible purchases when you shop at Amazon or check out with PayPal.
• Credit to an eligible Merrill account — If you have an investment account with Merrill, you can deposit your cash back there.

The deposit options have the potential to be especially convenient — you can set up automatic redemptions (minimum $25) to have your cash back applied as a deposit into an eligible Bank of America or Merrill account.

5. Understand your 0% intro APR offer

Your Bank of America® Customized Cash Rewards credit card comes with a 0% introductory APR for your first 15 billing cycles for purchases, and for any balance transfers made within the first 60 days of account opening. Here’s what to know.

• Balance transfer fee: There’s an intro balance transfer fee of 3% for 60 days from account opening, then 4% for future balance transfers.
• Variable APR after intro period: After the intro 0% APR offer ends, a variable APR of 18.24% - 28.24% will apply to both purchases and balance transfers.

You can use the introductory APR strategically to save on interest, but it’s crucial to have a plan to pay off your balance before the promotional period expires to avoid interest charges.

6. Explore Preferred Rewards for even more cash back

If you’re an existing Bank of America member with significant assets, you might be eligible for the Bank of America Preferred Rewards® program. This program offers an even higher cash back bonus on your Bank of America® Customized Cash Rewards credit card, ranging from 25% to 75% more cash back, depending on your tier.

Even the lowest thresholds for Preferred Rewards requires a three-month average daily balance of $20,000, but it’s worth investigating if you qualify. It could significantly boost your card’s rewards-earning potential.

Next steps

The perks we’ve highlighted in this guide are designed to help you maximize your card’s value, especially in your first year. As your financial journey continues, though, you may want to consider other Bank of America credit cards to fill any gaps you may have. For example, you might be able to optimize your travel rewards with a card that earns points that can be redeemed for flights and hotel stays.

Looking to save money at the pump? Gas credit cards can help you earn rewards or cash back every time you fill up. Here are our top picks.

Best for gas rewards with no annual fee: Bank of America® Customized Cash Rewards credit card

Here’s why: The Bank of America® Customized Cash Rewards credit card allows you to choose what category you get 3% cash back on each month. Eligible categories include gas, online shopping, dining, travel, drugstores and home improvement. You’ll get:

• 3% cash back on purchases in the category of your choice
• 2% on grocery store and wholesale club purchases 
• 1% on all other purchases 

It’s important to note that the 3% and 2% cash back categories are capped at a total of $2,500 in purchases each quarter. After you spend $2,500, you’ll get 1% cash back on all additional purchases. The card charges a $0 annual fee. 

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Best for rewards variety: Wells Fargo Autograph® Card

Here’s why: The Wells Fargo Autograph® Card offers 3 points for every $1 you spend in several useful bonus categories, including at gas stations and electric vehicle charging stations. 

In addition to fuel, you’ll also earn 3 points per $1 spent on restaurants, travel, transit, popular streaming services and phone plans. All other purchases earn 1 point per $1. There’s a $0 annual fee to help maximize your rewards value.

See if you have an offer for the Wells Fargo Autograph® Card on Credit Karma.

Best for gas and groceries: Blue Cash Preferred® Card from American Express

Here’s why: The Blue Cash Preferred® Card from American Express could save you at the pump — and when you’re checking out at the grocery store. You’ll earn:

• 3% cash back on eligible U.S. gas station purchases and on transit (including rideshare, parking, tolls, trains, buses and more). 
• 6% cash back on up to $6,000 in eligible purchases each year at U.S. supermarkets
• 6% cash back on select U.S. streaming subscriptions. 
• 1% cash back on all other purchases. 

The Blue Cash Preferred® Card from American Express has a $0 intro annual fee for the first year, then $95.

See if you have an offer for the Blue Cash Preferred® Card from American Express on Credit Karma (you must be logged in to see this offer).

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Best for road trips: Hilton Honors American Express Surpass® Card

Here’s why: The Hilton Honors American Express Surpass® Card is great for road trips. When you fill up, you’ll earn 6 points for every $1 you spend at U.S. gas stations. For overnight stays, find a Hilton hotel — you’ll earn 12 points per $1 spent on purchases there. 

Purchases outside of bonus categories earn 3 points per $1 spent. You can use the points you earn to help pay for future Hilton stays. This card has an annual fee: $150. So consider whether you’ll get enough value from the card before applying.

See if you have an offer for the Hilton Honors American Express Surpass® Card on Credit Karma (you must be logged in to see this offer).

Best for Costco members: Costco Anywhere Visa® Card by Citi

Here’s why: The Costco Anywhere Visa® Card by Citi offers great value for Costco members. You get:

• 5% cash back on gas at Costco 
• 4% cash back on other eligible gas and electric vehicle charging purchases
• 3% cash back at restaurants
• 3% cash back on eligible travel purchases
• 2% back on all other purchases from Costco and costco.com
• 1% on everything else

It’s important to note that cash back on gas and EV charging purchases is capped at $7,000 per year (after which you earn 1%). There’s a $0 annual fee for the card.

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Costco Anywhere Visa® Card by Citi

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Best for Sam’s Club members: Sam’s Club® Mastercard®

Here’s why: When you pay with your Sam’s Club® Mastercard®, you’ll earn 5% cash back on gas at many gas stations across the U.S. This applies to both Sam’s Club and non-Sam’s Club locations, and is limited to the first $6,000 you spend on gas each year (1% after). There’s no annual fee for the card, but you must be a Sam’s Club member to get it.

Best for free nights: World Of Hyatt Credit Card

Here’s why: The World Of Hyatt Credit Card stands out for its complimentary free night award delivered each year on your cardmember anniversary. This benefit is typically sufficient to offset the card’s $95 annual fee, and, if you spend $15,000 on the card in a calendar year, you’ll receive a second free night. 

You’ll earn up to 9 total points per $1 spent at Hyatt hotels (4x from the card, plus up to 5x as a World of Hyatt member). Cardholders also get automatic Discoverist status in the World of Hyatt program, which comes with perks like preferred room upgrades, late checkout and premium internet access.

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Best for hotel variety: Chase Sapphire Reserve®

Here’s why: The Chase Sapphire Reserve® features a $300 annual travel credit that’s flexible enough for use at any hotel. And once this travel credit is fully used, cardholders can earn four Ultimate Rewards® points per $1 spent on hotels when booked direct.

If you’re taking a flight to your hotel destination, the Chase Sapphire Reserve® card offers a complimentary Priority Pass™ Select membership, giving you access to more than 1,300 airport lounges worldwide. The card comes with a $795 annual fee, so make sure you’ll get enough value from the benefits and perks to make the card worth it.

Best for no annual fee: Hilton Honors American Express Card

Here’s why: The Hilton Honors American Express Card can help maximize Hilton benefits with a $0 annual fee. Cardholders earn 7 Hilton Honors Bonus Points per $1 spent directly at Hilton hotels and resorts. 

The card also grants complimentary Hilton Honors Silver status, which includes a 20% bonus on base points earned during Hilton stay. As an added bonus, you’ll get a fifth night free on standard room reward stays of five nights or more.

Best for rewards points: Hilton Honors American Express Surpass® Card

Here’s why: The Hilton Honors American Express Surpass® Card helps you earn a large number of Hilton Honors points quickly, making it easier to work toward free nights at Hilton properties. Cardholders earn 12 Hilton Honors Bonus Points per $1 spent directly with Hilton hotels and resorts. 

Complimentary Hilton Honors Gold status is included, offering benefits like free breakfast, room upgrades and an 80% bonus on base points earned during Hilton stays. The Hilton Honors American Express Surpass® Card has an annual fee: $150

Best for a more comfortable stay: Hilton Honors American Express Aspire Card

Here’s why: The Hilton Honors American Express Aspire Card is built for dedicated Hilton loyalists seeking a premium experience. You’ll get to use various travel credits annually to help offset travel expenses: 

• $400 in Hilton resort credits (split as $200 in statement credits January through June and $200 in statement credits July through December)
• $200 in flight credits ($50 in statement credits per calendar quarter)
• $100 in property credits at participating Waldorf Astoria® Hotels & Resorts and Conrad® Hotels & Resorts 

To top it off, the card offers a free night reward redeemable at Hilton properties and automatic Diamond status — Hilton’s highest elite tier. All these perks come at a price: The card has a $550 annual fee.

Best for elite status: Platinum Card® from American Express

Here’s why: The Platinum Card® from American Express provides complimentary elite status at both Hilton and Marriott hotels, an exclusive perk that requires enrollment to activate.

Travelers get access to the Global Lounge Collection®, which provides entry to more than 1,400 airport lounges across 140 countries. The Platinum Card® from American Express card also provides various statement credits for travel, entertainment and shopping (enrollment required), which can help offset the hefty $695 annual fee.

Best for road trips: Wyndham Rewards® Earner℠ Card

Here’s why: The Wyndham Rewards® Earner℠ Card is an ideal companion for road trippers. It offers 5 points per $1 spent at Wyndham hotels and on qualifying gas purchases, a strong earning rate for both filling up at the pump and finding a comfortable place to rest after a long day of driving.

With a $0 annual fee, there’s no cost limiting your rewards. The Wyndham Rewards® Earner℠ Card also gives you automatic Wyndham Rewards Gold membership status, which comes with perks like late checkout and preferred room selection (subject to availability).

Best for business trips: Marriott Bonvoy Business® American Express® Card

Here’s why: The Marriott Bonvoy Business® American Express® Card offers great value for business travelers. You’ll earn 6 points per $1 spent on Marriott stays, 4 points per $1 spent on global dining and 2 points per $1 on all other purchases. The card includes automatic Marriott Bonvoy Gold Elite status (with perks like late checkout and room upgrades) and an annual free night award. 

The card also comes with a welcome offer of 125,000 Marriott Bonvoy® points after spending $8,000 in the first 6 months of account opening, and a 7% discount on paid stays when you book directly with Marriott. This card comes with a $125 annual fee.

Getting rewarded for everyday purchases can be one of the most exciting benefits of using credit cards. And with the right activity, they can help you improve your credit scores and level up to another class of credit card.

Many rewards cards also come with free tools to help monitor and boost your credit scores, like automatic reviews for credit line increases or APR decreases after consistent good credit behavior.

We’ve highlighted some of our favorite cards that can help you start earning rewards and get access to credit building features right away.

• Capital One QuicksilverOne Cash Rewards Credit Card: Get cash back with fair credit
• Citi Double Cash® Card: Earn more cash back on all purchases
• Discover it® Secured Credit Card: Get rewards with the potential to upgrade
• Capital One VentureOne Rewards Credit Card: Earn travel rewards

Capital One QuicksilverOne Cash Rewards Credit Card: Get cash back with fair credit

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The Capital One QuicksilverOne Cash Rewards Credit Card can be an excellent option for those with fair credit who are looking to earn cash back on all purchases. 

This card offers unlimited 1.5% cash back on every purchase, making it simple to earn rewards without worrying about rotating categories or spending limits. With a $39 annual fee, you’d need to spend a few hundred dollars every month to recover that upfront cost.

The Capital One QuicksilverOne Cash Rewards Credit Card also features automatic reviews for credit line increases after as little as six months. With a higher credit line, it might be easier to maintain a lower credit card utilization rate and raise your scores.

Citi Double Cash® Card: Earn more cash back on all purchases

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The Citi Double Cash® Card is another strong option for those looking to earn rewards on all purchases. This card comes with a $0 annual fee and offers an impressive 2% cash back on all purchases — 1% when you buy and another 1% when you pay.

You’ll also get a sign-up bonus worth $200 when you spend $1,500 on purchases in the first 6 months after your account opens.

The Citi Double Cash® Card also features a 0% introductory APR for 18 months on balance transfers (then 18.24% - 28.24%) completed within the first four months of account opening. You’ll also pay a balance transfer fee: Intro fee 3% of each transfer ($5 minimum) completed within the first 4 months of account opening. After that, 5% of each transfer ($5 minimum). This offer might allow you to pay down an existing credit card balance quicker by paying less interest over time, which could help you raise your scores.

Discover it® Secured Credit Card: Get rewards with the potential to upgrade

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The Discover it® Secured Credit Card is the only card on our list that requires a deposit, but it’s one of the rare secured cards that offers cash back, a $0 annual fee and  a clear opportunity to graduate to an unsecured card. 

For rewards, you’ll get 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% cash back on all other purchases.

The Discover it® Secured Credit Card requires a security deposit of a minimum $200, and that deposit will also set your credit line. Not everyone can afford that deposit, but you can get it back and upgrade to an unsecured card after a minimum of six consecutive on-time payments (while also maintaining good status on all your credit accounts).

That mix of rewards and extra motivation to pay on time could make this card a good choice to help you improve your credit, even if a secured card isn’t your first choice.

Capital One VentureOne Rewards Credit Card: Earn travel rewards

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The only travel rewards card on this list, the Capital One VentureOne Rewards Credit Card offers 1.25 miles per $1 spent on every purchase. Your rewards can be redeemed for travel expenses such as flights, hotels and car rentals through Capital One’s travel portal. Plus, there’s a $0 annual fee, making it an affordable option for those looking to earn travel rewards.

On top of it all, you’ll also get 20,000 bonus miles when you spend at least $500 on purchases within the first 3 months of account opening, along with a $100 credit to use towards flights, stays and rental cars booked through Capital One Travel during your first cardholder year. 

The Capital One VentureOne Rewards Credit Card also provides access to CreditWise, which allows you to monitor your credit score and track your progress. It includes a credit simulator, which allows you to choose “what if” actions regarding your financial situation to see how certain decisions may affect your credit score.

Finding more rewards cards that can help you build credit

The cards on this list all offer rewards alongside features that set you up for success with your credit. While you need to pay on time and not use too much of your credit line to improve your scores, these cards help make that easier with more manageable fees and other features that can help motivate you to stay on top of your credit.

But it’s important to remember that this list is just a place to start. Not everyone will qualify for every option on this list, and other cards might feature rewards categories or other perks you prefer. The key is to find the right option for you, both in terms of card features and your chances at approval.

As you look for your next card, keep an eye out for the same things we pointed out here — strong rewards, low fees and additional features that can help you manage debt and improve your credit.

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.

FAQs about Gravity Lending auto refinance

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

• 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:

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

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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)

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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

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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

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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.

If you’ve spotted an error on one of your credit reports, you should take immediate action to correct the inaccuracy.

An error on one or more your credit reports could lower your credit scores and make it harder to qualify for new credit or loans. If you spot an inaccuracy, you can take steps to request the credit bureaus remove it by disputing the error.

• How to contact the credit bureaus to dispute an error
• When to dispute credit report errors directly with the furnisher
• How long it takes for the credit bureau or furnisher to investigate and respond
• What happens after you dispute a credit report error
• When do credit reports update after a successful dispute?
• How does Credit Karma Direct Dispute work?
• Next steps: What to do when you disagree with the outcome of your dispute
• FAQs about credit report disputes

How to contact the credit bureaus to dispute an error

If you’re not sure if there are mistakes on your credit reports, remember that you’re entitled to a free credit report from each of the three major credit bureaus once a week by visiting AnnualCreditReport.com. 

If you identify an error on your credit reports, contact the credit bureaus that show the erroneous reports. Equifax, Experian and TransUnion — the three major credit bureaus — let you dispute inaccuracies online, over the phone or by mail. Contact the bureau and explain the error and why it’s wrong. Be sure to include supporting documentation — such as a copy of an email verifying the status of the account that’s reported incorrectly — and keep copies of any letters or documentation you send or receive.

Where to submit a dispute to the three major credit bureaus

Common credit report errors

• Identity-related errors such as a misspelled name, wrong phone number or address
• Your information incorrectly merged with another person’s credit record
• Incorrectly reported accounts, such as a closed account reported as open or vice versa
• An account wrongly reported as delinquent
• Account balance and credit limit errors
• Reinsertion of inaccurate information after it’s corrected

When to dispute credit report errors directly with the furnisher

Companies that provide information to credit bureaus (like credit card issuers, banks and lenders) are called furnishers. If you have clear evidence of an error that only a specific furnisher can verify or correct — such as a payment that wasn’t recognized, an incorrect credit limit or another account detail — consider disputing the error directly with that furnisher.

The furnisher must conduct a reasonable investigation into disputes including disagreements about your financial liability (including identity theft and fraud), account terms (such as balances and credit limits), your account activity (payment status and due dates) and any other information you believe is hindering your chances of getting credit.

How long it takes for the credit bureau or furnisher to investigate and respond

Credit bureaus generally have 30 days after receiving your dispute to investigate and verify information with the furnisher. The credit bureaus must then report the results to you within five days of completing the investigation.

If you dispute the error directly with the furnisher, that company must also report the results of its investigation to you. It also typically has 30 days to investigate. But if the furnisher stands by the accuracy of the information it reported, it won’t update or remove the error.

When your dispute may be deemed frivolous

The credit bureau or furnisher may decide your dispute is “frivolous.” This generally happens when you’ve submitted incorrect or incomplete information regarding the dispute, but it can also occur if you’ve tried to contest the same item multiple times without any new information.

Credit bureaus don’t need to investigate disputes deemed frivolous if they communicate that to you within five days. If your original dispute was deemed frivolous, you can try to resubmit a dispute with updated materials.

What happens after you dispute a credit report error

When you dispute an error on your credit report, the credit bureau must provide the results of its investigation in writing. The credit bureau must also provide you with the name, address and phone number of the furnisher that supplied the incorrect information.

If the investigation confirms the information on your credit report is indeed an error, the furnisher must notify the credit bureaus to which it sent the incorrect information so the bureaus can correct their records. If the furnisher maintains the disputed information is accurate, you can still request the credit bureau include a statement in your credit file explaining the dispute.

When do credit reports update after a successful dispute?

Updates to your affected credit reports may take some time to appear. The timing depends on the specific credit bureau’s update cycle and when the furnisher sends the new information to the credit bureau. 

Since not all lenders necessarily report to all three credit bureaus, their information and your score may vary across them. If an expected update isn’t reflected on your reports within several months, contact both the credit bureaus and the furnisher to verify accurate reporting.

How does Credit Karma Direct Dispute work?

Credit Karma is not a credit bureau, but it does provide your VantageScore 3.0 credit scores from two of them: TransUnion and Equifax. Credit Karma’s Direct Dispute feature lets you dispute errors on your TransUnion credit report right from the Credit Karma app. Here’s how to use the tool. 

If you review your TransUnion credit report in the app and find an error, you’ll see an option to go to the Dispute Center. From there, you can select the account with the error and choose whether you’re disputing ownership or accuracy. Select the reason for the dispute that best fits your situation and send it directly to TransUnion.

You can also start the process of disputing an error on your Equifax credit report through Credit Karma, but you won’t be able to submit it directly within the app. Instead, Credit Karma provides a link that takes you to the official Equifax website where you can submit your dispute.

Next steps: What to do when you disagree with the outcome of your dispute

If your credit report dispute doesn’t lead to the credit bureau changing your information, you can file another dispute. But, if you simply submit the same information, you’ll likely get a similar result. 

When filing the same dispute, make sure to add supplemental information that will help support your claim. You can also add a statement to your credit report that explains that you disagree with some of the information on your credit report. That way, when someone pulls your credit, they have additional context on the dispute.

Regularly monitoring your credit can help you spot potential errors before they linger on your credit reports.

FAQs about credit report disputes