The words “low-cost” and “insurance” really shouldn’t be used together, specifically when shopping around for the best insurance rates for high risk drivers. To save some money, let’s go over a few of the factors that impact auto insurance premiums, and figure out some ideas to shave a little off your next policy.
The car, truck, or SUV that is being insured is probably the most important factor when quoting cheaper insurance for high risk drivers. Vehicles with limited top-end speed, a plethora of safety features, or a low likelihood of liability claims will cost substantially less to insure than fast, unsafe models.
The list below illustrates insurance rates for a number of the cheapest automobiles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$16,179|
|Honda Accord LX 4-Dr Sedan||$16,679|
|Honda CR-V EX 4WD||$16,876|
|Hyundai Elantra SE Touring Station Wagon||$17,241|
|Ford F-150 XL Regular Cab 4WD||$18,288|
|Jeep Wrangler Rubicon 4WD 2-Dr||$18,298|
|Ford Explorer Eddie Bauer 2WD||$19,076|
|Chevrolet Silverado LS Extended Cab 4WD||$19,167|
|Chevrolet Malibu Hybrid||$19,176|
|Toyota RAV4 Sport 2WD||$19,167|
|Ford Edge SEL AWD||$19,552|
|Chevrolet Impala LS||$19,559|
|Toyota Tacoma 2WD||$19,720|
|Honda Civic EX 4-Dr Sedan||$19,859|
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Data variables include single male driver age 50, two speeding tickets, two at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include multi-vehicle, multi-policy, and homeowner. Rate information does not factor in vehicle location which can decrease or increase price quotes noticeably.
Looking at the numbers, you can assume that vehicles like the Ford Escape, Honda Accord, and Honda CR-V are going to be some of the cheaper vehicles to insure for high risk drivers. Auto insurance rates will tend to be higher just due to the fact that there is more inherent risk for high risk drivers, but in general those vehicles will tend to have the lowest prices compared to all other vehicles.
One of the more important factors that determine the cost of insurance is where you live in Detroit. Cities with larger populations tend to have more expensive car insurance rates, whereas areas with less congestion get the luxury of paying less.
The information below lists the most costly cities in Michigan for high risk drivers to buy auto insurance in. Detroit makes the list at #1 with an annual cost of $4,813 for car insurance, which is around $401 per month.
|11||St. Clair Shores||$2,709|
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Annual rates are approximated as the specific zip code location can increase or decrease coverage prices substantially.
Finding reliable, reasonably-priced auto insurance is not the easiest thing to do, and deciding which insurers offer the lowest-priced insurance rates for high risk drivers calls for even more shopping around. Each auto insurer uses slightly different criteria to determine rates, so let’s begin by examining the insurance companies with the most affordable rates in Detroit, MI.
It’s important that readers know that Michigan insurance rates are impacted by many things that control the policy premium. Simply improving your credit, buying a different home, or having an accident can trigger changes in premium that can cause some rates to be higher-priced than before.
Compare Cheap Insurance Quotes for Risky Drivers
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,444|
|18||Auto Club Group||$2,489|
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USAA has some of the best car insurance rates in Detroit at around $978 each year. This is $1,415 less than the average price paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb also make the cut as some of the lowest-priced Detroit, MI auto insurance companies.
As illustrated above, if you currently have coverage with Chubb and switched to GEICO, you could earn savings of about $369. Insureds with MEEMIC might save as much as $433 a year, and Pioneer State Mutual insureds might cut rates by $441 a year.
To get a fast rate comparison, click here to begin a quote or visit any of the low-priced companies below.
It’s important to note that these rates are averages across all types of insureds and vehicles and do not factor in an exact vehicle garaging location for high risk drivers. 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 compare rates from as many companies as possible using your own driver data and vehicle information.
Full coverage versus liability only rates
Reducing the cost of insurance should be important to most drivers, and one common way to buy cheap insurance for high risk drivers is to buy only liability coverage. The illustration below illustrates the difference between auto insurance costs with liability coverage only compared to full coverage. The price estimates are based on no claims, a clean driving record, $100 deductibles, single status, and no discounts are taken into consideration.
As an overall average, full coverage costs $3,933 per year more than just buying liability only. A very common question is if buying full coverage is worth the expense. There is no set rule of when to exclude comprehensive and collision coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than around 10% of any settlement you would receive from your insurance company, then you might want to consider buying only liability coverage.
For example, let’s assume your vehicle’s book value is $4,000 and you have $1,000 deductibles. If your vehicle is destroyed, you would only receive $3,000 after you pay the deductible. If you are paying in excess of $300 a year to have full coverage, then you might consider buying liability only.
Get discount Detroit car insurance rates
Auto insurance companies that sell policies for high risk drivers may provide special discounts that could lower prices by 35% or more if you are eligible to receive them. Larger insurance companies and a partial list of their discounts can be read below.
- State Farm offers discounts including defensive driving training, passive restraint, good student, multiple autos, driver’s education, accident-free, and anti-theft.
- Progressive discounts include online quote discount, homeowner, multi-policy, online signing, and good student.
- Travelers has discounts for multi-policy, good student, multi-car, save driver, IntelliDrive, and early quote.
- American Family offers premium reductions for bundled insurance, defensive driver, air bags, mySafetyValet, multi-vehicle, and accident-free.
- Liberty Mutual may offer discounts for multi-car, multi-policy, newly retired, good student, exclusive group savings, teen driver discount, and new vehicle discount.
The information below visualizes the comparison of auto insurance rates with and without discounts being applied to the rates. The premiums assume a female driver, three violations and one at-fault accident, Michigan state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with continuous coverage, marriage, vehicle safety, multiple policy, anti-theft, and passive restraint discounts applied. When taking advantage of discounts, theaverage amount saved on insurance for high risk drivers is 28% or $1,917.
Why it’s important to shop around
Detroit insurance rates are impacted by many things which can substantially decrease or increase the price of your policy. Improving your credit score, filing a claim, or getting a ticket for careless driving can cause premium changes that can now make some companies cheaper than competitors. Not only may your risk profile change, but insurers change prices as often as every three months to ensure their profitability. An unexpected high level of claims may cause increased rates, while a lower level of claims may produce cheaper Detroit car insurance rates.
To illustrate this point, the chart below shows rates for the cheapest car insurance in Detroit, MI for a 45-year-old female driver with no accidents, a clean driving record, and a good credit history. Based on her personal risk profile, USAA may offer the lowest car insurance rates in Detroit at $2,372 a year. This is $21 less than the average rate paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb round out the rest of the top five cheapest Detroit, MI auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates a couple of claims, less-than-perfect credit, and a traffic ticket or two. Due to the fact that every auto insurer has their own formula for establishing rates, comparing rates could result in a different set of affordable companies as shown below.
GEICO now has the cheapest auto insurance in Detroit, MI with Pioneer State Mutual, Safeco, USAA, and Hastings Mutual now rounding out the top five. This example shows why drivers need to compare lots of rates when trying to get the lowest auto insurance quotes for high risk drivers. Auto insurance prices can be altered by many risk factors and change frequently, so the best option when you last compared rates may now be an over-priced policy.
If you have questions and prefer to have a little guidance when shopping around for cheaper insurance for high risk drivers, the insurance agencies below can answer your questions and help you decide which auto insurance policy fits you best. To find a Detroit insurance agent close to you, click the button following the list.
13600 W 8 Mile Rd C – Detroit, MI 48205 – (313) 521-0300
State Farm – Eric Huffman
3031 W Grand Blvd #568 – Detroit, MI 48202 – (313) 875-3172
Kenya Wells – State Farm Insurance Agent
20021 Kelly Rd – Detroit, MI 48225 – (313) 822-5948
17516 Livernois Ave – Detroit, MI 48221 – (313) 863-6000
Michelle Sims – State Farm Insurance Agent
24970 W Outer Dr – Lincoln Park, MI 48146 – (313) 928-1348
How to find budget-friendly insurance for high risk drivers
The list below details some of the better money-saving ideas that can help you get low-cost auto insurance.
- Do not get traffic tickets
- Good credit can mean cheaper rates
- Staying accident-free helps keep rates low
- Bundle home and auto and earn a discount
- Don’t have frequent claims
- Higher deductibles save money
- Keep rates low by shopping around frequently
The last idea is extremely significant, as we discussed in the prior article. Car insurance prices can change significantly in a year, so don’t be afraid to buy a different policy if you can save money. Many drivers prefer to stick with one company, but we do not recommend it if that inflexibility results in costing you a considerable chunk of change every month. Spend a few minutes and compare prices to find cheaper auto insurance for high risk drivers in Detroit.