Who Has Affordable Detroit Auto Insurance for Business Use?

The words “low-cost” and “insurance” really shouldn’t be used in the same sentence, especially when you are searching for the best car insurance rates for business use. In an attempt to save some money, let’s learn about a few of the factors that have a considerable impact on insurance prices, and come up with some ways to shave a little off the next policy you buy.

Finding out which company has the best auto insurance rates for business use will involve a tad more effort than just comparing rates from one or two companies. Every insurance company uses a slightly different approach to determine premium rates, so let’s rank the auto insurance companies with the overall cheapest rates in Detroit, MI.

It’s important that you understand Detroit auto insurance rates are determined by lots of factors which can significantly increase or decrease the policy price. Improving your credit score, buying higher coverage limits, or getting a ticket for running a stop sign can trigger changes in premium that can make some companies more affordable than before.

Cheapest Insurance Rates for Business Use

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Rankings for the cheapest Michigan auto insurance companies
Rank Company Cost Per Year
1 USAA $987
2 GEICO $1,033
3 Safeco $1,037
4 MetLife $1,310
5 Chubb $1,428
6 Pioneer State Mutual $1,430
7 MEEMIC $1,450
8 Hastings Mutual $1,627
9 Frankenmuth $1,662
10 Auto-Owners $1,702
11 SECURA $1,796
12 Progressive $1,904
13 Wolverine Mutual $2,126
14 Allied $2,309
15 Grange Mutual $2,345
16 Hanover $2,376
17 Allmerica $2,386
18 Auto Club Group $2,416
19 Nationwide $2,541
20 Farm Bureau $2,573
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USAA may have some of the cheapest car insurance rates in Detroit at around $987 annually. This is $1,406 less than the average rate paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb also are some of the cheaper Detroit, MI insurance companies.

In the above example, if you currently have a policy with Safeco and switched to USAA, you might realize savings of about $50. Drivers with MetLife could save as much as $323 a year, and Chubb insureds might see rate reductions of $441 a year.

If you want to see how much you could save, click here to start a quote or visit any of the low-priced companies below.

Be aware that those premium estimates are averaged across all drivers and vehicles and and are not figured with an exact zip code location for business use. So the insurer that is most affordable for your situation may not even be in the top 30 companies shown above. That illustrates why you need to get auto insurance quotes using your own personalized driver profile and vehicle information.

The vehicle model requiring insurance is a large consideration when trying to find cheaper insurance for business use. Vehicles with average performance, good crash test ratings, or a positive history of liability claims will cost significantly less to insure than high performance models. The next table outlines car insurance costs for the most budget-friendly vehicles to buy insurance for.

Cheapest Vehicles to Insure in Detroit, MI
Make and Model Estimated Cost for Full Coverage
Ford Escape XLS 2WD $4,482
Volkswagen Jetta S 2.5 Station Wagon $4,857
Ford Edge SE AWD $5,203
Honda CR-V EX 4WD $5,246
Jeep Grand Cherokee Laredo 4WD $5,303
Ford Fusion S 4-Dr Sedan $5,312
Ford Explorer Eddie Bauer 4WD $5,404
Hyundai Elantra Blue 4-Dr Sedan $5,481
Toyota Corolla LE $5,582
Chevrolet Impala LTZ $5,587
Ford Focus S 4-Dr Sedan $5,962
Hyundai Sonata Limited 4-Dr Sedan $6,062
Toyota RAV4 Limited 2WD $6,077
Chevrolet Equinox LS AWD $6,085
Dodge Grand Caravan Hero $6,077
Chevrolet Malibu LS $6,087
Chevrolet Silverado LT Extended Cab 4WD $6,077
Toyota Prius $6,101
Dodge Ram Crew Cab Laramie 2WD $6,163
Honda Civic LX-S 4-Dr Sedan $6,279
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Table data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, multi-policy, multi-vehicle, claim-free, and homeowner. Price information does not factor in Detroit, MI location which can revise premium rates greatly.

Looking at the rates, we can infer that vehicles like the Ford Escape, Volkswagen Jetta, and Ford Edge are most likely to be the most budget-friendly vehicles to insure for using your car for business. Prices will be more expensive just due to the fact that there is more inherent risk for business use, but in general those vehicles will most likely have the least expensive rates possible.

For using your car for business, one of the more important considerations that help determine the amount you pay for auto insurance is where your car is garaged in Detroit. Cities with larger populations likely pay more, whereas areas that tend to be more rural have the luxury of cheap car insurance rates.

The information below lists the highest-priced areas in Michigan for business use to purchase a policy in. Detroit shows up at #1 with the yearly price of $4,960 for the average policy, which is about $413 monthly.

How much does car insurance cost in Detroit, MI?
Rank City Average Per Year
1 Detroit $4,960
2 Southfield $4,020
3 Dearborn $3,961
4 Pontiac $3,567
5 Warren $3,390
6 Flint $3,371
7 Dearborn Heights $3,305
8 Taylor $3,210
9 Sterling Heights $3,014
10 Westland $2,937
11 St. Clair Shores $2,819
12 Farmington Hills $2,676
13 Livonia $2,634
14 Troy $2,562
15 Royal Oak $2,562
16 Saginaw $2,507
17 Rochester Hills $2,467
18 Novi $2,464
19 Battle Creek $2,378
20 Lansing $2,367
21 Kalamazoo $2,282
22 Kentwood $2,250
23 Wyoming $2,195
24 Grand Rapids $2,185
25 Ann Arbor $2,149
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Annual rates are comparative as the specific geographic location can increase or decrease premiums significantly.

How accidents and tickets impact rates in Detroit

A great way to obtain the most affordable auto insurance prices for using your car for business is to be an attentive driver and avoid accidents and traffic violations. The chart below demonstrates how speeding tickets and at-fault accidents influence insurance costs for different insured age categories. The data is based on a married male driver, comprehensive and collision coverage, $1,000 deductibles, and no policy discounts are applied.

In the previous example, the average cost of car insurance in Detroit per year with no accidents and a clean driving record is $2,442. Get written up for one speeding ticket and the average cost increases to $2,815, an increase of $373 each year. Now include two accidents along with the one speeding ticket and the annual cost of auto insurance for business use goes up to an average of $6,318. That’s an increase of $3,876, or $323 per month, just for not being a responsible driver!

Should you buy full coverage?

Finding cheaper auto insurance should be important to the majority of drivers, and an easy way to pay lower rates for insurance for business use is to not buy full coverage. The diagram below shows the comparison of insurance costs with and without full coverage. The rates are based on a clean driving record, no at-fault accidents, $100 deductibles, drivers are not married, and no discounts are taken into consideration.

As an overall average, full coverage costs $3,933 per year more than just insuring for liability. That is a large expense and it proposes the question if buying full coverage is a waste of money. There is no specific rule for excluding comp and collision coverage, but there is a general guideline you can use. If the annual cost of having full coverage is more than about 10% of replacement cost minus your deductible, then you might want to think about dropping full coverage.

Detroit car insurance rates

Michigan auto insurance rates are impacted by many factors that control the price of coverage. Getting older, having a teenage driver, or getting a ticket for careless driving can trigger changes in premium that can cause some rates to be much cheaper than others.

In addition to those changes, auto insurance companies change the rates they charge in Michigan as needed to ensure their profitability. Larger than normal claims may cause high rates, while profitable underwriting may result in lower-cost Detroit car insurance rates.

The graph below shows the cheapest car insurance in Detroit, MI for a 30-year-old female driver with no prior claims, no tickets, and a good credit rating. If we estimate rates based on her current situation, USAA has the cheapest car insurance rates in Detroit at $2,302 annually. This is $91 less than the average price paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and MEEMIC also make the list of the cheapest Detroit, MI auto insurance companies.

Let’s now give the driver in the first chart an at-fault accident, less-than-perfect credit, and a blemish on her driving record. Because each company uses a different method to determine rates, analyzing rates could now result in a different ranking of the cheapest companies as shown below.

GEICO now has the cheapest insurance rate in Detroit with Safeco, Pioneer State Mutual, USAA, and Hastings Mutual also having competitive pricing. This shows why it is important to compare many different companies when trying to get affordable auto insurance rates for business use. Insurance rates can be altered by many different factors and change dramatically, so the most economical option the last time you checked may now not even be in the top five.