What Auto Insurance is Cheapest for Homeowners in Detroit?

The words “low-priced” and “insurance” really should not be used together, in particular when you are trying to find the lowest insurance rates for homeowners. To save some money, let’s take a look at some of the factors that help determine auto insurance premiums, and find a few ways to take a little off the next policy you buy.

For people who own their homes, one of the more important things that are looked at to determine the amount you pay for auto insurance is your address in Detroit. More populated areas tend to pay more, whereas more rural areas benefit from lower prices.

The table below rates the most costly cities in Michigan for homeowners to buy car insurance in. Detroit is ranked #1 having an annual price of $4,862 on average, which is around $405 monthly.

Car insurance prices in Detroit
Rank City Average Per Year
1 Detroit $4,862
2 Southfield $3,980
3 Dearborn $3,961
4 Pontiac $3,675
5 Flint $3,473
6 Warren $3,322
7 Dearborn Heights $3,239
8 Taylor $3,210
9 Sterling Heights $3,014
10 Westland $2,850
11 St. Clair Shores $2,792
12 Livonia $2,688
13 Farmington Hills $2,676
14 Troy $2,562
15 Saginaw $2,557
16 Royal Oak $2,537
17 Rochester Hills $2,467
18 Battle Creek $2,450
19 Novi $2,439
20 Lansing $2,367
21 Kalamazoo $2,259
22 Wyoming $2,216
23 Grand Rapids $2,208
24 Kentwood $2,183
25 Ann Arbor $2,065
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Price information shown is estimated as specific Detroit zip code can impact premium rates substantially.

The vehicle model requiring coverage is one of the main factors that determines whether or not you find the cheapest car insurance for homeowners. Vehicles with lots of speed or power, poor safety features, or a track record of large liability claims will cost substantially more to insure than more modest models. The information below showcases insurance costs for a handful of the most cost-effective automobiles to insure in Michigan.

Cheapest Vehicles to Insure in Detroit, MI
Vehicle Make and Model Estimated Cost for Full Coverage
Jeep Wrangler Sahara 4WD 2-Dr $4,831
Ford Explorer XLT AWD $4,836
Honda CR-V LX 4WD $4,930
Ford Focus S 4-Dr Sedan $4,996
Toyota Tacoma 2WD $5,002
Toyota RAV4 Sport 4WD $5,095
Nissan Altima 2.5 4-Dr Sedan $5,104
GMC Sierra SLE Crew Cab 2WD $5,095
Dodge Grand Caravan Crew $5,189
Hyundai Elantra SE Touring Station Wagon $5,345
Ford Edge Sport AWD $5,359
Toyota Camry SE $5,367
Toyota Corolla XLE $5,359
Ford Escape XLT 4WD $5,406
Chevrolet Silverado LT Crew Cab 4WD $5,453
Chevrolet Equinox LT 2WD $5,834
Toyota Prius $5,863
Dodge Ram Quad Cab Laramie 2WD $5,919
Chevrolet Malibu LT $5,947
Ford F-150 XL Crew Cab 4WD $6,037
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Data based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, multi-vehicle, claim-free, multi-policy, and homeowner. Price information does not factor in vehicle location which can increase or decrease prices greatly.

Looking at the data, makes and models like the Jeep Wrangler, Ford Explorer, Honda CR-V, Ford Focus, and Toyota Tacoma should be a few of the more affordable vehicles to insure for people who own their homes.

Deciphering which company has the cheapest car insurance rates for homeowners will involve more time in order to find the lowest price quote.

Every auto insurer has a proprietary method for establishing rates, so let’s take a look at the lowest cost car insurance companies in Detroit.

Find the Best Cheap Insurance for Homeowners

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Cheapest auto insurance in Michigan ranked by cost per year
Rank Company Cost Per Year
1 USAA $958
2 GEICO $1,033
3 Safeco $1,037
4 MetLife $1,350
5 Chubb $1,414
6 Pioneer State Mutual $1,444
7 MEEMIC $1,450
8 Hastings Mutual $1,579
9 Frankenmuth $1,696
10 Auto-Owners $1,702
11 SECURA $1,832
12 Progressive $1,847
13 Wolverine Mutual $2,212
14 Grange Mutual $2,253
15 Allied $2,332
16 Hanover $2,376
17 Allmerica $2,386
18 Auto Club Group $2,464
19 Nationwide $2,516
20 Farm Bureau $2,678
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USAA quotes some of the lowest car insurance rates in Detroit at around $958 each year. This is $1,435 less than the average policy premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb would also make the list of some of the best Detroit, MI car insurance companies.

In the above rates, if you are a customer of MetLife and switched to GEICO, you might realize savings of about $317. Drivers with Chubb could save as much as $381 a year, and Pioneer State Mutual customers might reduce prices by as much as $411 a year.

Bear in mind that those prices are averaged for all drivers and vehicles in Michigan and and are not figured with an exact zip code location for homeowners. So the car insurance company that fits your age and vehicle best may not even be in the top 30 companies in the list above. That helps illustrate why you need to compare prices as often as possible using your own driver and vehicle profiles.

Ending up with a high-quality company can be challenging considering how many companies sell coverage in Michigan. The ranking information shown below could help you choose which auto insurance companies you want to consider comparing rate quotes with. The ratings below are only comprised of large nationwide companies, so smaller companies will not be included in this list.

Top 10 Large Car Insurance Companies in Detroit Ranked by Claims Service

  1. Progressive
  2. USAA
  3. Liberty Mutual
  4. State Farm
  5. GEICO
  6. Nationwide
  7. Allstate
  8. The Hartford
  9. 21st Century
  10. Farmers Insurance

Top 10 Large Car Insurance Companies in Detroit Ranked by Customer Satisfaction

  1. The Hartford – 93%
  2. Progressive – 90%
  3. 21st Century – 89%
  4. USAA – 87%
  5. State Farm – 87%
  6. Safeco Insurance – 86%
  7. AAA Insurance – 86%
  8. Farmers Insurance – 85%
  9. GEICO – 85%
  10. American Family – 85%

Full coverage or liability only

Paying a lower price for car insurance is important to the majority of drivers, and one of the easiest ways to buy cheap insurance for homeowners is to not buy comprehensive and collision coverage. The diagram below shows the difference between yearly insurance costs with full physical damage coverage and with liability coverage only. The premium estimates are based on no claims or driving citations, $100 deductibles, single marital status, and no discounts are applied.

As an average, physical damage coverage costs $5,275 per year more than just buying liability only. That touches on the question if buying full coverage is a waste of money. There isn’t a steadfast formula to delete comp and collision coverage, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it may be the right time to buy liability only.

How to find budget-friendly car insurance for homeowners

It’s not impossible to find cheaper rates, and here are some of the better money-saving ideas that can help drivers quote cheaper coverage.

That final tip is remarkably crucial, as we noted in this write-up. Insurance rates can change significantly in a year, so drivers shouldn’t be reluctant to switch companies if a cheaper rate is available.

Being loyal to a particular company is commendable, but we do not recommend it if that loyalty ends up costing a wad of cash every year. If you have a few minutes, now is a great time to compare rates and find cheaper auto insurance for homeowners in Detroit.