What Car Insurance is Cheapest for Electric Cars in Detroit?

One of the many things that are looked at to help calculate the price you pay for insurance is where your car is garaged. Areas with more people or higher crime rates tend to have more expensive car insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.

The following table ranks the priciest cities in Michigan for electric cars to buy car insurance in. Detroit is ranked #1 with an annual premium of $5,009 for the average insurance policy, which is approximately $417 monthly.

Prices are comparative as vehicle location can lower or raise premium rates considerably.

The vehicle model that needs insurance is a significant factor when quoting cheaper coverage for electric cars. Vehicles with limited top-end speed, good safety features, or low incidents of liability claims will cost less to insure than fast, unsafe models. The list below ranks car insurance rates for some of the most affordable automobiles to insure.

Data based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include multi-vehicle, claim-free, multi-policy, safe-driver, and homeowner. Table data does not factor in the specific area where the vehicle is garaged which can lower or raise premium rates significantly.

Based upon the table data, we can assume that makes and models like the Honda CR-V, Honda Accord, Chevrolet Equinox, and Toyota RAV4 will be a few of the cheapest vehicles to insure for eco-friendly vehicles.

Reckless driving habits raise car insurance rates

The best way to score the best car insurance premiums in Detroit for eco-friendly vehicles is to drive safely and maintain a clean driving record. The chart below shows how violations and at-fault accidents can drive up insurance costs for each age group. The information is based on a married male driver, full physical damage coverage, $500 deductibles, and no other discounts are factored in.

In the previous example, the average cost of a car insurance policy in Michigan per year with no accidents or violations is $3,731. Add in one speeding ticket and the average cost jumps to $4,295, an increase of $564 each year. Now add in two accidents along with the one speeding ticket and the annual cost of car insurance for electric cars goes up to an average of $9,333. That’s an increase of $5,602, or $467 per month, just for not driving safely!

Liability rates compared to full coverage

Buying cheaper car insurance should be important to most people, and one common way to reduce the cost of insurance for electric cars is to only buy liability coverage. The information below shows the comparison of insurance rates with liability coverage only compared to full coverage. The premiums assume no violations or accidents, $100 deductibles, single marital status, and no discounts are applied to the premium.

As an overall average, full coverage on your policy costs an extra $3,933 per year over and above liability coverage. That is a large expense which might make you wonder when is it a good idea to stop buying full coverage. There is no set rule that works best for making the decision to drop full coverage, but there is a guideline you can consider. If the yearly cost of full coverage is more than around 10% of replacement cost minus your deductible, then it might be time to buy liability only.

For example, let’s pretend your vehicle’s book value is $10,500 and you have $1,000 policy deductibles. If your vehicle is destroyed, the most you would receive is $9,500 after paying your policy deductible. If premiums are more than $950 a year for physical damage coverage, then you may need to consider dropping full coverage.

There are some conditions where dropping physical damage coverage is not recommended. If you haven’t satisfied your loan, you have to maintain full coverage in order to keep the loan. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should not eliminate full coverage.

How to find budget-friendly insurance for electric cars

The list below shows a few penny-pinching suggestions that can help Detroit drivers quote cheaper car insurance.

• At-fault accidents will increase rates
• Good credit can save money
• Claim-free policyholders usually earn a discount
• Serious violations like DUI or reckless driving can increase rates dramatically
• Buy vehicles with five-star safety ratings
• Shop around for cheaper prices often

The last item on the list is extremely significant, as we noted in the prior article. Car insurance prices can change considerably based on profitability, so don’t be unwilling to change to a new company if you can save money. Being loyal to a particular company is commendable, but it isn’t a good idea if that loyalty results in overpaying a wad of cash every year. In just a few minutes you could shop around to find cheaper car insurance for electric cars in Detroit.

If you aren’t sure which coverage you need and prefer to have some professional guidance when shopping for the best coverage for eco-friendly vehicles, the agents below can most likely help you decide which auto insurance policy would work best for you.

To find a Detroit insurance agent in your neighborhood, click the button at the bottom.

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