The vehicle you are insuring is a large factor when shopping around for the best cheap car insurance for a school permit. Vehicles with lots of horsepower, a lack of advanced safety features, or a history of substantial liability claims will cost significantly more to insure than safer models.
The next list illustrates car insurance rates for some of the most budget-friendly vehicles to insure in Michigan.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $16,763 |
| Honda CR-V EX-L 4WD | $16,917 |
| Toyota Prius | $18,091 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $18,711 |
| Dodge Grand Caravan CV | $18,865 |
| Ford F-150 XL Crew Cab 4WD | $19,019 |
| Toyota Tacoma 2WD | $19,732 |
| Honda Odyssey EX W/Rear Entertainment | $19,741 |
| Chevrolet Impala LT | $19,886 |
| Toyota RAV4 Limited 2WD | $19,893 |
| Chevrolet Malibu LT | $20,040 |
| Ford Explorer Limited 2WD | $20,048 |
| Ford Focus SES 4-Dr Sedan | $20,753 |
| Hyundai Elantra SE 4-Dr Sedan | $20,907 |
| Toyota Corolla LE | $20,913 |
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Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific zip code location which can raise or lower prices considerably.
Based upon the rates shown, you can expect makes and models like the Ford Escape, Honda CR-V, Toyota Prius, Jeep Wrangler, and Dodge Grand Caravan should be a few of the most budget-friendly vehicles to insure for a learners permit. The cost of auto insurance will be higher anyway just due to the fact that there is more liability exposure for a school permit, but in general those vehicles will probably have the cheapest rates compared to other vehicles.
Deciphering which company has the cheapest car insurance rates for a school permit will take a bit more work than just getting one or two price quotes. Every auto insurer has a proprietary method for establishing rates, so we need to take a look at the lowest cost car insurance companies in Detroit, MI.
Cheap Insurance Rates for Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $987 |
| 2 | GEICO | $1,023 |
| 3 | Safeco | $1,047 |
| 4 | MetLife | $1,364 |
| 5 | Chubb | $1,428 |
| 6 | MEEMIC | $1,436 |
| 7 | Pioneer State Mutual | $1,488 |
| 8 | Hastings Mutual | $1,579 |
| 9 | Auto-Owners | $1,636 |
| 10 | Frankenmuth | $1,696 |
| 11 | SECURA | $1,850 |
| 12 | Progressive | $1,904 |
| 13 | Wolverine Mutual | $2,126 |
| 14 | Allied | $2,240 |
| 15 | Grange Mutual | $2,345 |
| 16 | Allmerica | $2,362 |
| 17 | Hanover | $2,376 |
| 18 | Auto Club Group | $2,489 |
| 19 | Nationwide | $2,516 |
| 20 | Farm Bureau | $2,599 |
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USAA quotes some of the lowest car insurance rates in Detroit at around $987 annually. GEICO, Safeco, MetLife, and Chubb also are some of the cheapest Detroit, MI auto insurance companies.
As illustrated above, if you are a policyholder with Chubb and switched to GEICO, you could see an annual savings of upwards of $405. Drivers with MEEMIC might save as much as $413 a year, and Pioneer State Mutual customers might cut rates by $465 a year.
To get a fast rate comparison, click here to begin a quote or visit any of the companies below.
Be aware that those prices are averaged for all types of drivers and the different vehicles they drive and do not take into consideration an exact location for a school permit. So the company that has the cheapest price for you may not even be in the list above. That is why you need to get quotes using your own personal information and vehicle type.
One of the more important things that determine car insurance rates is where your residence is. Areas with a lot of weather claims or more people tend to have more expensive car insurance rates, whereas areas with less crime or weather claims have the luxury of lower rates.
The illustration below ranks the highest-priced places in Michigan for a school permit in which to buy car insurance. Detroit makes the list at #1 with an annual premium of $4,960 for the average insurance policy, which is around $413 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Detroit | $4,960 |
| 2 | Dearborn | $4,082 |
| 3 | Southfield | $3,980 |
| 4 | Pontiac | $3,567 |
| 5 | Flint | $3,371 |
| 6 | Dearborn Heights | $3,305 |
| 7 | Warren | $3,289 |
| 8 | Taylor | $3,210 |
| 9 | Sterling Heights | $2,954 |
| 10 | Westland | $2,850 |
| 11 | St. Clair Shores | $2,819 |
| 12 | Farmington Hills | $2,758 |
| 13 | Livonia | $2,714 |
| 14 | Troy | $2,614 |
| 15 | Rochester Hills | $2,567 |
| 16 | Saginaw | $2,507 |
| 17 | Royal Oak | $2,487 |
| 18 | Novi | $2,439 |
| 19 | Battle Creek | $2,426 |
| 20 | Lansing | $2,391 |
| 21 | Grand Rapids | $2,252 |
| 22 | Kentwood | $2,206 |
| 23 | Wyoming | $2,195 |
| 24 | Kalamazoo | $2,192 |
| 25 | Ann Arbor | $2,128 |
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Information shown are estimated as specific Detroit zip code can affect premiums substantially.
Car insurance company ratings
Picking a good quality insurance provider can be rather challenging considering how many different companies insure vehicles in Michigan. The information shown below can help you choose which companies you want to consider purchasing from. The ratings below are only made up of companies that insure vehicles across America, so companies with more of a regional focus are not factored into the list.
Top 10 Major Auto Insurance Companies in Detroit Ranked by A.M. Best Rating
- State Farm – A++
- USAA – A++
- GEICO – A++
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
- Esurance – A+
- Progressive – A+
- Safeco Insurance – A
- Liberty Mutual – A
Top 10 Major Auto Insurance Companies in Detroit Ranked by Claims Service
- Progressive
- USAA
- Liberty Mutual
- State Farm
- GEICO
- Nationwide
- Allstate
- The Hartford
- 21st Century
- Farmers Insurance
How to get discounts on Detroit auto insurance
Car insurance companies that provide coverage for a school permit may also provide special discounts that can lower rates by 25% or more if you are eligible to receive them. Popular car insurance companies and their offered discounts are shown below.
- State Farm may offer discounts for passive restraint, safe vehicle, anti-theft, good student, and defensive driving training.
- American Family has discounts for good driver, early bird, good student, defensive driver, air bags, accident-free, and Steer into Savings.
- AAA may have discounts that include multi-car, multi-policy, pay-in-full, AAA membership discount, anti-theft, education and occupation, and good driver.
- GEICO offers premium reductions for anti-lock brakes, seat belt use, air bags, good student, multi-policy, and anti-theft.
- Mercury Insurance has savings for low natural disaster claims, multi-car, accident-free, location of vehicle, type of vehicle, ease of repair, and anti-theft.
- Farmers Insurance may include discounts for homeowner, electronic funds transfer, business and professional, bundle discounts, early shopping, distant student, and switch companies.
- Progressive discounts include homeowner, continuous coverage, multi-vehicle, online quote discount, multi-policy, good student, and online signing.
The illustration below illustrates the comparison of insurance costs with and without discounts applied to the premium. The information is based on a female driver, no accidents or driving violations, Michigan state minimum liability limits, full physical damage coverage, and $250 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with paperless filing, paid-in-full, anti-theft, passive restraint, continuous coverage, and vehicle safety discounts applied. In this example, theamount saved on car insurance for a school permit is 28% or $1,652.
Full coverage versus liability only rates
Finding the cheapest car insurance should be important to most vehicle owners, and one good way to pay less for insurance for a school permit is to not buy full coverage. The information below shows the difference between annual premium costs with full physical damage coverage compared to only buying the minimum liability limits required in Michigan. The data is based on no claims, a clean driving record, $100 deductibles, drivers are not married, and no additional discounts are factored in.
On average, comp and collision coverage costs an extra $5,275 per year over and above liability coverage. Lot’s of drivers question if paying for full coverage is a waste of money. There is no clear-cut rule for eliminating comp and collision coverage, but there is a general guideline. If the yearly cost of full coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then it might be time to buy liability only.
The benefit of shopping around
Michigan car insurance rates are influenced by many factors that can increase the price you have to pay for coverage. Improving your credit score, moving to a different location, or getting a couple of tickets can trigger rate changes that may make certain companies much cheaper than others. Also, insurers amend pricing at least once a year to help ensure profitability. Larger than normal claims can cause higher priced premiums, while better underwriting may cause cheaper Detroit car insurance rates.
The chart below shows the company with the cheapest car insurance in Detroit, MI for a 40-year-old male driver with a clear driving record, no claims, and good financial standing. When quoting prices based on his current risk profile, USAA might offer the most affordable car insurance rates in Detroit at $2,211 per year. This is $182 less than the average price paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb round out the rest of the cheapest Detroit, MI auto insurance companies.
The chart below compares rates after we give the driver in the first chart a claim or two, a lower credit score, and a stop sign violation. Since each insurance company has a different formula for setting prices, comparing prices may now show a significantly different list of affordable Detroit car insurance companies as shown below.
Pioneer State Mutual now has the cheapest insurance rate in Detroit, MI with GEICO, Safeco, USAA, and Auto-Owners also being competitive. This shows why consumers need to take the time to shop around with many companies to find the lowest insurance rates for a school permit.
Insurance prices are impacted by many different factors and change dramatically, so the most affordable company the last time you compared rates may now cost much more than other companies.