The vehicle requiring coverage is one of the biggest factors when quoting cheaper insurance for college students. Vehicles with limited speed and performance, modern passenger safety features, or a low likelihood of liability claims will cost substantially less to insure than higher performance models.
The next list estimates auto insurance premiums for a selection of the most economical automobiles to insure in Michigan.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $10,439 |
| Honda CR-V LX 4WD | $10,446 |
| Volkswagen Jetta S 2.5 Station Wagon | $11,371 |
| Honda Odyssey LX | $11,466 |
| Toyota Prius | $11,525 |
| Dodge Grand Caravan CV | $11,620 |
| Toyota Tacoma 4WD | $11,627 |
| Ford F-150 XL Crew Cab 4WD | $11,774 |
| Ford Edge Limited 2WD | $12,244 |
| Chevrolet Impala LS | $12,254 |
| Ford Fusion S 4-Dr Sedan | $12,398 |
| Toyota RAV4 Sport 4WD | $12,405 |
| Jeep Grand Cherokee Laredo 2WD | $12,398 |
| GMC Sierra SLE Crew Cab 2WD | $12,404 |
| Ford Explorer Limited 4WD | $12,552 |
| Chevrolet Malibu LT | $12,558 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $12,557 |
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Cost estimates assume single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in vehicle garaging location which can decrease or increase prices greatly.
By looking at the data, you can assume that vehicles like the Ford Escape, Honda CR-V, Volkswagen Jetta, Honda Odyssey, and Toyota Prius are most likely to be some of the cheaper vehicles to insure for students in college. The price of auto insurance will tend to be more expensive just because there is more exposure for college students, but overall those vehicles will most likely have the cheapest auto insurance rates that you are likely to find.
Finding decent, budget insurance is confusing at best, and finding out which companies quote the lowest-priced car insurance rates for college students involves even more shopping around. Each insurance company uses their own method for setting rates, so let’s take a look at the car insurance companies that tend to have lower prices in Detroit, MI.
We do need to point out that Detroit car insurance rates are based on many factors that control the price you have to pay for coverage. Simply having a birthday, buying a home, or getting caught speeding can produce rate changes resulting in some companies being higher-priced than the competition.
Best Cheap Insurance Rates for College Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $958 |
| 2 | GEICO | $1,023 |
| 3 | Safeco | $1,069 |
| 4 | MetLife | $1,310 |
| 5 | Chubb | $1,386 |
| 6 | MEEMIC | $1,408 |
| 7 | Pioneer State Mutual | $1,430 |
| 8 | Hastings Mutual | $1,643 |
| 9 | Auto-Owners | $1,652 |
| 10 | Frankenmuth | $1,713 |
| 11 | SECURA | $1,796 |
| 12 | Progressive | $1,923 |
| 13 | Wolverine Mutual | $2,191 |
| 14 | Allied | $2,263 |
| 15 | Grange Mutual | $2,276 |
| 16 | Allmerica | $2,316 |
| 17 | Auto Club Group | $2,391 |
| 18 | Hanover | $2,399 |
| 19 | Farm Bureau | $2,573 |
| 20 | Nationwide | $2,618 |
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USAA quotes some of the most affordable car insurance rates in Detroit at around $958 a year. GEICO, Safeco, MetLife, and Chubb would also be considered some of the best Detroit, MI auto insurance companies.
As the rates illustrate above, if you have coverage with MetLife and switched to GEICO, you may see a yearly savings of upwards of $287. Customers with Chubb could save as much as $363 a year, and MEEMIC insureds might reduce prices by as much as $385 a year.
Be aware that those policy prices are averaged across all insureds and vehicles and are not factoring in a vehicle location for college students. So the insurer that is best suited for you may not even be in the top 30 companies shown above. That is why you need to get auto insurance quotes using your own specific driver and vehicle information.
For students in college, one of the more important components that are looked at to determine the annual cost of car insurance is where your car is garaged. Cities with larger populations or higher claim trends tend to pay more, whereas areas that tend to be more rural have the luxury of cheap car insurance rates.
The illustration below ranks the most expensive areas in Michigan for college students to buy an auto insurance policy in. Detroit is listed at #1 with an annual cost of $4,960 for car insurance, which is approximately $413 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Detroit | $4,960 |
| 2 | Dearborn | $3,961 |
| 3 | Southfield | $3,902 |
| 4 | Pontiac | $3,675 |
| 5 | Flint | $3,473 |
| 6 | Warren | $3,390 |
| 7 | Dearborn Heights | $3,207 |
| 8 | Taylor | $3,178 |
| 9 | Sterling Heights | $2,954 |
| 10 | Westland | $2,821 |
| 11 | St. Clair Shores | $2,736 |
| 12 | Livonia | $2,714 |
| 13 | Farmington Hills | $2,704 |
| 14 | Rochester Hills | $2,567 |
| 15 | Royal Oak | $2,562 |
| 16 | Saginaw | $2,557 |
| 17 | Troy | $2,536 |
| 18 | Novi | $2,464 |
| 19 | Battle Creek | $2,426 |
| 20 | Lansing | $2,391 |
| 21 | Grand Rapids | $2,275 |
| 22 | Kalamazoo | $2,215 |
| 23 | Kentwood | $2,183 |
| 24 | Wyoming | $2,130 |
| 25 | Ann Arbor | $2,065 |
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Annual rates are approximated as vehicle location can lower or raise insurance rates substantially.
How to get discounts on Detroit auto insurance rates
Car insurance companies that provide policies for college students may also offer price discounts that may potentially lower prices by as much as 25% or more if you qualify. A few of the larger companies and their offered discounts can be found below.
- GEICO includes discounts for emergency military deployment, federal employee, good student, multi-policy, and defensive driver.
- MetLife offers discounts for accident-free, multi-policy, good student, defensive driver, good driver, claim-free
- State Farm has savings for safe vehicle, good driver, good student, multiple autos, and passive restraint.
- Progressive discounts include homeowner, online quote discount, continuous coverage, online signing, multi-vehicle, good student, and multi-policy.
- Mercury Insurance offers discounts including good driver, type of vehicle, multi-car, annual mileage, location of vehicle, and ease of repair.
- 21st Century has discounts for automatic seat belts, good student, anti-lock brakes, student driver, homeowners, and driver training.
- Allstate offers premium reductions for farm vehicle, premier plus, premier discount, auto/life discount, utility vehicle, defensive driver, and early signing.
The illustration below illustrates the difference between car insurance rates with and without some available policy discounts. The premiums are based on a male driver, no accidents or driving violations, Michigan state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with good student, passive restraint, vehicle safety, paid-in-full, continuous coverage, and paperless filing discounts applied. When drivers qualify for the discounts, the average savings per year on car insurance for college students is 18% or $990.
How violations and accidents impact rates
The ideal way to earn the best car insurance prices for students in college is to drive cautiously and avoid traffic citations and accidents. The chart below demonstrates how traffic citations and at-fault accidents drive up yearly insurance costs for each age group. The prices are based on a married female driver, comprehensive and collision coverage, $250 deductibles, and no policy discounts are applied.
In the chart above, the average cost of an auto insurance policy in Michigan per year with no accidents and a clean driving record is $2,774. Get one speeding ticket and the average cost jumps to $3,232, an increase of $458 each year. Then throw in one accident along with the one speeding ticket and the yearly cost of car insurance for college students increases to an average of $4,513. That’s an increase of $1,739, or $145 per month, just for not being more responsible behind the wheel!
Why are you paying too much for car insurance?
Detroit, MI car insurance rates are influenced by many factors that will increase or decrease the price of coverage. Simply having a birthday, moving to a different location, or getting a driving violation can trigger price changes resulting in some companies being more affordable than others.
Not only may things change on your end, but auto insurance companies amend premium rates as needed to adjust for gains or losses. Higher than usual claims can result in higher rates, while lower claim expenses may produce more affordable Detroit car insurance rates.
To illustrate this point, the graph below compares the cheapest car insurance in Detroit, MI for a 30-year-old female driver with a good driving record, no prior claims, and a good credit rating. When comparing rates based on her current rating profile, USAA has the best car insurance rates in Detroit at $2,212 per year. This is $181 less than the average rate paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and MEEMIC round out the rest of the cheapest Detroit, MI auto insurance companies.
The next chart shows rates after we give the driver from the above example a claim surcharge, a little lower credit rating, and a few blemishes on her driving record. Because every insurance company has a different process to determining premium rates, analyzing rate quotes may now show a new list of the cheapest car insurance companies in Detroit as shown below.
Pioneer State Mutual now has the best price in Detroit with GEICO, Safeco, Hastings Mutual, and USAA now being in the top five. This example shows why Detroit drivers need to compare rates when trying to find cheap insurance quotes for college students.
Rates are calculated by many risk factors and change dramatically, so the most affordable company two years ago may now be an over-priced policy.