The words “affordable” and “auto insurance” really don’t belong together, especially when searching for the best insurance rates for active military. In an attempt to save some money, let’s take a look at some of the factors that have an effect on insurance premiums, and come up with some ways to reduce the price of your next policy.
Finding good, low-priced insurance is easier said than done, and deciding which insurers offer the most affordable car insurance rates for active military calls for more quotes for comparison.
Every insurance company uses a little different formula for determining rates in each state, so let’s take a look at the car insurance companies with the overall cheapest rates in Detroit, MI. It’s important to understand that Detroit, MI car insurance rates are based on many factors that may substantially change the price you have to pay for coverage. This price variation is why Detroit drivers need to perform a complete rate comparison when trying to get affordable auto insurance quotes for active military. Insurance prices are determined by many different factors and can change substantially, so the lowest-price company when you last compared rates may now be one of the higher cost companies.
Find Cheaper Car Insurance for Military
USAA has some of the lowest car insurance rates in Detroit at around $958 annually. GEICO, Safeco, MetLife, and Chubb also qualify as some of the more affordable Detroit, MI insurance companies.
As shown in the table above, if you buy coverage from Safeco and switched to USAA, you might see a yearly savings of around $111. Policyholders with MetLife could save as much as $406 a year, and Chubb customers might reduce rates by $428 a year.
To get a fast rate comparison, click here to begin a quote or click several companies below for low rates.
Be aware that those estimates are averages for all drivers and vehicles and do not take into consideration an exact zip code location for active military. So the company that has the lowest price for you may not even be in the top 30 companies shown above. That emphasizes why you need to get quotes using your own personal information and vehicle type.
The make and model of vehicle you are buying coverage for is probably the largest consideration when trying to find cheaper coverage for active military. Vehicles with lots of speed or power, a lack of advanced safety features, or a track record of large liability claims will cost quite a bit more to insure than safer models.
The next table estimates auto insurance prices for a number of the cheapest vehicles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $4,410 |
| Toyota Prius | $4,465 |
| Honda CR-V EX-L 2WD | $4,668 |
| Chevrolet Impala LT | $4,768 |
| Toyota RAV4 Sport 4WD | $4,777 |
| Honda Accord EX-L 4-Dr Sedan | $4,922 |
| Dodge Grand Caravan SE | $4,935 |
| Jeep Wrangler Sahara 4WD 2-Dr | $4,942 |
| Toyota Corolla S | $5,026 |
| Jeep Grand Cherokee Laredo 4WD | $5,220 |
| Chevrolet Equinox LT 2WD | $5,227 |
| GMC Sierra SL Extended Cab 2WD | $5,220 |
| Ford Focus SE 4-Dr Sedan | $5,252 |
| Ford Explorer Limited 2WD | $5,324 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $5,332 |
| Chevrolet Malibu LT | $5,324 |
| Nissan Altima 2.5 S 2-Dr Coupe | $5,460 |
| Toyota Camry Hybrid | $5,468 |
| Ford F-150 XLT Crew Cab 4WD | $5,492 |
| Honda Odyssey EX-L W/Navigation | $5,505 |
| Chevrolet Silverado 3500HD LTZ Crew Cab Diesel 2WD | $5,555 |
| GMC Sierra 3500HD SLT Crew Cab 2WD | $5,561 |
| Hyundai Sonata GLS 4-Dr Sedan | $5,591 |
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Cost estimates assume single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, safe-driver, multi-policy, homeowner, and multi-vehicle. Prices do not factor in specific garaging location which can impact coverage prices considerably.
By looking at the data, you can infer that vehicles like the Ford Escape, Toyota Prius, Honda CR-V, and Chevrolet Impala are a few of the most budget-friendly vehicles to insure for military personnel.
Impact of careless driving on Detroit car insurance rates
The recommended way to find the best car insurance prices in Michigan for military personnel is to be a careful driver and avoid accidents and traffic violations. The information below shows how violations and at-fault claims increase yearly insurance costs for different age groups. The premiums are based on a married male driver, comp and collision included, $500 deductibles, and no discounts are applied to the premium.
In the previous chart, the average cost of auto insurance in Michigan per year with a clean driving record and no accidents is $2,751. Get written up for two speeding tickets and the average cost rises to $3,794, an increase of $1,043 each year. Then include one accident along with the two speeding tickets and the yearly cost of car insurance for active military jumps again to an average of $4,841. That’s an increase of $2,090, or $174 per month, just for not driving carefully!
Liability rates compared to full coverage
Paying less for car insurance is probably important to most drivers, and one of the quickest ways to buy cheaper insurance for active military is to not buy comprehensive and collision coverage. The illustration below illustrates the comparison of yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Michigan. The data is based on no accidents, no driving violations, $1,000 deductibles, single status, and no discounts are applied to the premium.
Averaged for all ages 20 through 70, physical damage insurance costs an additional $3,841 per year more than just buying liability only. Lot’s of drivers question if you should buy full coverage. There is no definitive rule for dropping physical damage coverage on your policy, but there is a general school of thought. If the annual cost of having full coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.
For example, let’s assume your vehicle’s settlement value is $12,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, you would only receive $11,000 after the policy deductible has been paid. If it’s costing you more than $1,100 annually for your policy with full coverage, then it may be the right time to buy liability only.
There are some situations where buying only liability insurance is not recommended. If you still have a lienholder on your title, you have to keep full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not buy liability only.
Discounts on Detroit insurance
Insurance companies that offer cheap quotes for active military could also offer discounts that can reduce rates by as much as 35% if you meet specific eligibility requirements. A few popular companies and the discounts they provide are detailed below.
- The Hartford has discounts for vehicle fuel type, defensive driver, anti-theft, good student, bundle, and driver training.
- American Family may have discounts that include TimeAway discount, defensive driver, Steer into Savings, bundled insurance, good student, and mySafetyValet.
- Progressive includes discounts for online quote discount, good student, multi-vehicle, multi-policy, continuous coverage, and online signing.
- Travelers offers discounts for student away at school, IntelliDrive, multi-car, payment discounts, driver training, new car, and hybrid/electric vehicle.
- Farmers Insurance may offer discounts for homeowner, alternative fuel, pay in full, bundle discounts, mature driver, and switch companies.
- USAA policyholders can earn discounts including new vehicle, multi-policy, military installation, driver training, and good student.
- Liberty Mutual offers premium reductions for preferred payment discount, new graduate, teen driver discount, new vehicle discount, and multi-car.
The chart below illustrates the difference between car insurance costs with and without discounts applied to the premium. The price estimates are based on a male driver, no claims or violations, Michigan state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with marriage, multiple policy, homeowner, passive restraint, safe-driver, and claim-free discounts applied. In this example, the average savings per year on car insurance for active military is 28% or $1,229.
How to find economical insurance for active military
The list below shows some of the recommended penny-pinching ideas that can help Detroit drivers quote more affordable auto insurance.
- Drop full coverage on older vehicles
- Pay cheaper rates with good credit scores
- At-fault accidents will increase rates
- Safe vehicles generally have lower rates
- Bundle home and auto and save
- Shop your coverage around for the best deal
That final tip is notably critical, as was pointed out in the prior information. Prices charged by auto insurers in Detroit adjust often, so you should be ready to buy a different policy if you find a better deal.
Many drivers prefer to stick with one company, but it’s not a great idea if that faithfulness ends up costing you thousands of dollars over several years. In just a couple of minutes you could compare prices to find cheaper car insurance for active military.