Comparing quotes for low-cost car insurance is confusing at best, and deciding which companies quote the best car insurance rates for used cars will involve more quotes for comparison. Every insurance provider has a different process for establishing rates, so let’s take a look at the most affordable car insurance companies in Detroit, MI.
It’s a good idea to know that Detroit car insurance rates are impacted by many factors that will increase or decrease the price of coverage. Simply improving your credit, buying a newer car, or getting a couple of tickets may generate price changes that can make some companies higher-priced than the competition.
Find Cheaper Car Insurance for Used Cars
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,474|
|18||Auto Club Group||$2,464|
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USAA quotes some of the lowest car insurance rates in Detroit at around $978 per year. GEICO, Safeco, MetLife, and Chubb also make the cut as some of the best Detroit, MI auto insurance companies.
As shown in the table above, if you are a policyholder with MetLife and switched to GEICO, you may see a yearly price reduction of approximately $371. Customers with Chubb could save as much as $379 a year, and MEEMIC policyholders might reduce prices by as much as $415 a year.
Understand that those premium estimates are averaged for all drivers and vehicles in Michigan and are not factoring in a specific vehicle garaging location for used cars. So the auto insurance company that is most affordable for your situation may not even be in the list above. That’s why you need to get rate quotes from many companies using your own driver and vehicle profiles.
The vehicle on the policy is a large consideration when quoting cheap auto insurance for used cars. Vehicles with higher performance, poor safety features, or a high likelihood of having liability claims will cost substantially more to insure than safer models. The information below features auto insurance rates for a handful of the most cost-effective vehicles to buy insurance for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Ford Escape Limited 2WD||$4,209|
|Jeep Wrangler Sport 4WD 2-Dr||$4,250|
|Honda CR-V LX 2WD||$4,506|
|Ford F-150 FX2 Super Cab 2WD||$4,606|
|Chevrolet Silverado LS Regular Cab 2WD||$4,867|
|Toyota Camry LE||$4,873|
|Dodge Grand Caravan Hero||$4,867|
|Jeep Grand Cherokee Laredo 2WD||$4,872|
|Honda Odyssey LX||$4,931|
|Ford Edge SE 2WD||$5,109|
|Toyota Tacoma X-Runner 2WD||$5,132|
|Nissan Rogue S AWD||$5,218|
|Chevrolet Equinox LTZ AWD||$5,223|
|Chevrolet Impala LT||$5,328|
|Ford Explorer Limited 4WD||$5,433|
|Ford Focus SE 2-Dr Coupe||$5,483|
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Table data represents single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include multi-policy, claim-free, safe-driver, homeowner, and multi-vehicle. Price estimates do not factor in garaging location in Detroit, MI which can increase or decrease rates noticeably.
Based on these rates, we can presume that makes and models like the Ford Escape, Jeep Wrangler, and Honda CR-V are most likely to be the cheaper vehicles to insure for pre-owned vehicles.
One of the many things that determine the amount you pay for auto insurance is where you call home in Detroit. More populated areas tend to pay slightly more, whereas areas with less congestion have the gratification of cheaper auto insurance rates.
The table below sorts the most expensive cities in Michigan for used cars to buy auto insurance in. Detroit ranks #1 with a yearly cost of $4,862 for car insurance, which is approximately $405 per month.
|Rank||City||Average Per Year|
|12||St. Clair Shores||$2,709|
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Information shown are approximated as zip code location can raise or lower prices greatly.
The diagram below illustrates how your deductible choice can raise or lower insurance premiums when researching cheap insurance for used cars. The costs are based on a married female driver, full physical damage coverage, and no additional discounts are factored in.
The chart above illustrates that a 40-year-old driver could lower rates by $470 a year by changing from a $100 deductible to a $500 deductible, or save $714 by changing to a $1,000 deductible. Younger drivers, like the 20-year-old, could roll back prices $1,172 or more by using a higher deductible.
If you do make the decision to raise your deductibles, it is important to have spare funds to be able to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Careless Detroit drivers pay higher rates
The easiest way to receive the best car insurance premiums in Detroit for pre-owned vehicles is to drive cautiously and maintain a clean driving record. The illustration below highlights how speeding tickets and at-fault collisions influence yearly insurance costs for different age categories. The information is based on a single male driver, comp and collision included, $250 deductibles, and no policy discounts are applied.
The chart shows that the average cost of an auto insurance policy in Michigan per year with no accidents or violations is $3,603. Get written up for two speeding tickets and the average cost increases to $4,779, an increase of $1,176 each year. Then add one accident along with the two speeding tickets and the 12-month cost of car insurance for used cars jumps again to an average of $5,953. That’s an increase of $2,350, or $196 per month, just for being a little careless behind the wheel!
Cost of full coverage
Saving on car insurance is probably important to the majority of people, and one easy way to find cheaper insurance for used cars is to not buy comprehensive and collision coverage. The chart below visualizes the comparison of annual premium costs with and without full coverage. The rate quotes are based on no claims or violations, $250 deductibles, single marital status, and no discounts are applied.
If averaged out across all ages, physical damage coverage on your policy costs $4,820 per year more than just buying liability only. Lot’s of drivers question if it’s worth it to buy full coverage. There isn’t a written rule that is best for determining when to drop physical damage coverage on your policy, but there is a general guideline you can use. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you may need to consider dropping full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $3,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $2,000 after paying the physical damage deductible. If you are paying over $200 a year for comprehensive and collision coverage, then it might be time to buy liability only.
How to find cheaper auto insurance for used cars
The list below shows some of the better money-saving solutions that can help you find cheaper coverage.
- Buy safe vehicles
- Pay lower rates with good credit
- Increase your physical damage deductibles
- Avoid accidents
- Do not insure for full coverage
- Save money by obeying traffic laws and keeping a clean driving record
- Compare rates and switch if you can find a better deal
That last tip is certainly necessary, as we emphasized in this write-up. Rates can be changed at any time, so don’t be afraid to switch carriers if a lower price can be found. Loyalty to a specific company is fine, but is isn’t recommended if that loyalty results in overpaying several hundred dollars every year. Now is a great time to compare prices to find cheaper car insurance for used cars in Detroit.
If you like to get some professional advice when trying to find the best insurance rates for pre-owned vehicles, the agencies below are a good start to answer your questions and help you decide which policy fits your needs best.
To find a Detroit insurance agency nearest to you, click the link at the bottom.
- Midwest Underwriters Insurance
19640 Harper Ave – Grosse Pointe Woods, MI 48236 – (313) 884-8600
- L.A. Insurance Agency
15607 Grand River Ave – Detroit, MI 48227 – (313) 835-4000
- Cagwin Insurance Agency
3031 W Grand Blvd #320 – Detroit, MI 48202 – (313) 875-9147
- J Healan Baker Insurance
645 Griswold St # 2015 – Detroit, MI 48226 – (313) 963-0480