How Much is Auto Insurance in Detroit?
Drivers often ask how much it costs to insure a vehicle in Detroit. There are a number of factors that determine how much you will pay, and some of those include:
- The vehicle you drive is a significant factor in determining rates. High performance vehicles are expensive to repair and have a higher tendency to have larger liability claims. Safer, lower-performance vehicles tend to be the cheapest to insure. Two tables at the bottom of this page show the top 10 cheapest and most expensive vehicles to insure in Detroit.
- Your driving record also plays a large part in the price calculation. Having a few speeding tickets or at-fault accidents will increase your rates quickly. One speeding ticket and one at-fault accident can result in price increases of 50% or more. Attentive driving and obeying traffic laws is a good way to keep your rates cheaper.
- If you have a poor credit history or a bankruptcy in your past, you’ll probably pay higher rates. Credit scores are used to help set prices because good credit is an indicator of financial stability.
- Younger drivers will pay higher rates than more mature drivers. Drivers aged 16-19 pay the highest rates, and male drivers especially will cost more to insure. Drivers age 30 to 50 generally have the lowest rates, and they start to increase slightly once you are over age 60.
Why Auto Insurance is Expensive in Detroit
If you already have a car insurance policy, you know that it’s very expensive to insure a car in Detroit. The primary reason for high rates is Michigan’s no-fault laws. Insurance companies are required to pay all medical expenses as long as it’s needed including up to three years of lost wages. Most states cap the amount insurance companies are required to pay when someone is injured in an accident, but Michigan does not. This results in claim amounts that are multiple times higher than in neighboring states.
Until Michigan lawmakers change the no-fault laws to cap the amount insurance companies are required to pay, rates will remain high. No-fault laws provide protection for accident victims to ensure they receive the treatment they need, but the laws encourage unnecessary and drawn-out treatments. The high cost of insurance contributes to Michigan’s high rate of uninsured drivers and also discourages residents from moving into the state.
Detroit Auto Insurance Rates
The table below shows insurance rates for a variety of vehicles in Detroit. Thanks to Michigan’s no-fault laws, Detroit rates are as much as three times higher than other comparable U.S. cities.
|Make, Model, and Trim Level||Annual Policy Premium||6-month Policy Premium||Monthly Premium|
|Chevrolet Colorado LT Extended Cab 4WD||$2,228||$1,114||$186|
|Chevrolet Malibu LS||$2,642||$1,321||$220|
|Chevrolet Silverado LTZ Crew Cab 4WD||$2,862||$1,431||$239|
|Dodge Ram Quad Cab ST 2WD||$2,646||$1,323||$221|
|Ford Escape XLT 4WD||$2,290||$1,145||$191|
|Ford F-150 STX Regular Cab 4WD||$2,482||$1,241||$207|
|Ford Focus S 4-Dr Sedan||$2,580||$1,290||$215|
|Honda Accord LX 4-Dr Sedan||$2,228||$1,114||$186|
|Honda CR-V EX 2WD||$2,228||$1,114||$186|
|Honda Civic EX 2-Dr Coupe||$3,274||$1,637||$273|
|Hyundai Sonata Limited 4-Dr Sedan||$3,026||$1,513||$252|
|Mazda 3 I SV 4-Dr Sedan||$2,642||$1,321||$220|
|Nissan Altima 3.5 SR 2-Dr Coupe||$3,186||$1,593||$266|
|Toyota Camry XLE||$2,800||$1,400||$233|
|Toyota Corolla S||$2,800||$1,400||$233|
|Volkswagen Jetta S 4-Dr Sedan||$2,642||$1,321||$220|
|Get a Custom Quote for Your Vehicle Go|
Cheapest Cars to Insure in Detroit
The vehicles that receive the lowest auto insurance rates in Detroit all have the same things in common. They have high safety ratings and they do not have excessive performance levels.
Liability rates are lower for these vehicles because historically they have good claim ratings which means insurance companies can expect lower quantity and severity of expensive claims. This allows them to charge less for coverage.
Good safety ratings from the Insurance Institute for Highway Safety means the vehicles have less chance of occupant injury during an accident. Safety features like air bags, crash avoidance, and lane departure warning all factor into cheap rates.
Most Expensive Cars to Insure in Detroit
The vehicles that have the highest car insurance rates in Detroit are primarily expensive, high-performance luxury sports cars. These vehicles are expensive to insure because they have a higher than normal likelihood of having severe liability claims, as well as the fact that repair costs are substantially higher than the average.
If you can afford one of these vehicles, chances are good that you can also afford the high insurance rates that come along with them. Prices are well above $50,000, and full-coverage insurance will cost several thousand dollars a year.
If your goal is to have the cheapest Detroit car insurance rates, it’s a good idea to buy a more conservative vehicle.
How to Find Cheaper Detroit Auto Insurance
If we had a nickel every time someone requested cheaper car insurance in Detroit, we’d be rich. Despite the high rates, drivers can take steps to make sure they’re not overpaying for coverage.
Prices from one company to the next can vary considerably, and shopping around for lower-priced coverage is the best way to keep your rates down. There are a lot of companies to choose from, and the only way to know which insurer has the best car insurance rates in Detroit is to regularly compare price quotes.
It’s important to compare rates from all three types of insurance providers: exclusive, independent, and direct. Exclusive agents only work for one company, with State Farm and Allstate being examples. These agents can only give one price for coverage, so it’s important to quote multiple companies to get a wide range of rates. Independent agents are able to provide price quotes from many different companies, so you need to include at least one independent agency when shopping around. The last type of company sells direct either online or via their toll-free number. This includes companies like GEICO and Progressive. Progressive does also sell through independent agents, so you may not need to contact them directly if an independent agent quotes your coverage with them.
If your goal is to find the cheapest car insurance in Detroit, you need to include all three types of agents when getting comparison quotes. It’s the only way you’ll have enough prices to make an adequate comparison. To start your rate comparison, click here to see a list of companies who offer fast, free price quotes in Detroit.