In an ideal world, we could simply give you the name of the company that has the rock bottom lowest rates in Michigan. That is not the case, however, as there are a whole bunch of unknown factors like whether you want full coverage, what coverage limits you need, whether you are married or single, and your credit score, that all influence how much you pay for auto insurance. We will try to teach you about the different scenarios that increase car insurance cost and will give you a good start in finding the cheapest car insurance.
The vehicle that needs insurance is probably the biggest factor when quoting the best auto insurance for 18 year olds. Vehicles with high performance engines, a lack of safety features, or a high likelihood of having liability claims will cost much more to insure than safer, lower-performance models. The next list features auto insurance rates for some of the cheaper vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$13,794|
|Honda CR-V LX 4WD||$13,800|
|Ford Escape Limited 4WD||$14,880|
|Hyundai Elantra SE Touring Station Wagon||$14,889|
|Dodge Grand Caravan CV||$15,444|
|Jeep Wrangler Rubicon 4WD 2-Dr||$15,450|
|Volkswagen Jetta 2.0T Station Wagon||$15,962|
|Honda Odyssey EX W/Rear Entertainment||$16,223|
|Ford Edge SEL 2WD||$16,230|
|Chevrolet Impala LS||$16,223|
|Toyota RAV4 2WD||$16,377|
|Chevrolet Equinox LS AWD||$16,385|
|Toyota Camry LE||$16,377|
|Chevrolet Malibu LT||$16,530|
|Toyota Tacoma Double Cab 4WD||$16,539|
|Ford Explorer Limited AWD||$16,530|
|Honda Civic LX 4-Dr Sedan||$17,150|
|Ford F-150 Lariat Crew Cab Harley 2WD||$17,458|
|Jeep Grand Cherokee Limited 2WD||$17,468|
|GMC Sierra SLE Crew Cab 4WD||$17,458|
|Toyota Corolla XRS||$17,466|
|Ford Fusion SE 4-Dr Sedan||$17,458|
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Cost estimates assume single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in vehicle location which can revise insurance rates considerably.
Looking at the data, we can conclude that vehicles like the Honda Accord, Honda CR-V, and Ford Escape are some of the cheaper vehicles to insure for teen drivers. The price of auto insurance will be more costly because of the fact that there is more risk for 18 year olds, but generally speaking those particular models will most likely have the lowest prices that you’ll find.
For teen drivers, one of the largest things that are looked at to help calculate the price you pay for insurance is the neighborhood you call home in Detroit. Areas with a lot of weather claims or more people likely pay more, whereas areas that tend to be more rural have the benefit of cheaper car insurance.
The information below lists the most costly cities in Michigan for 18 year olds to buy auto insurance in. Detroit is listed at #1 costing $4,862 for coverage, which is about $405 per month.
|Rank||City||Premium Per Year|
|11||St. Clair Shores||$2,736|
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Prices are approximated as the specific geographic location can influence price quotes greatly.
Buying low-cost car insurance is easier said than done, and deciding which company has the cheapest insurance rates for 18 year olds will require even more perseverance.
Each auto insurer has a proprietary method for establishing rates, so we’ll go over the most competitive insurance companies in Detroit. We do need to point out that Detroit insurance rates are based on many factors which can substantially change the policy price. This price fluctuation is why it is critical to spend some time comparing rates when trying to get the most budget-friendly auto insurance quotes for 18 year olds. Car insurance prices are influenced by many different factors and can decrease or increase without notice, so the best price a year ago may now be one of the more expensive options.
Find the Cheapest Auto Insurance for Teens
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,474|
|18||Auto Club Group||$2,489|
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USAA has some of the cheapest car insurance rates in Detroit at around $958 per year. This is $1,435 less than the average policy premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are also some of the more affordable Detroit, MI auto insurance companies.
As shown in the table above, if you currently have coverage with Chubb and switched to GEICO, you may see a yearly price reduction of around $369. Insureds with MEEMIC may save as much as $447 a year, and Pioneer State Mutual policyholders might lower prices by up to $471 a year.
If you want to find out if you’re overpaying, click here to start a quote or visit any of the low-priced companies below.
These policy prices are averages for all insureds and vehicles and are not factoring in a specific location for 18 year olds. So the insurer that fits you best may not even be in the top 30 companies shown above. That’s why you need to get auto insurance quotes using your own driver information and specific vehicle type.
Liability-only versus full coverage
Reducing the cost of insurance is the goal of the majority of drivers, and an effective way to find cheaper insurance for 18 year olds is to only buy liability insurance. The illustration below illustrates the difference between annual premium costs when comparing full coverage to liability only. The prices are based on no claims, a clean driving record, $100 deductibles, marital status is single, and no policy discounts are applied.
On average, comp and collision coverage costs an additional $3,933 per year over and above liability only. That is a large expense which might make you wonder if physical damage coverage is worth the money. There is no exact rule for dropping physical damage insurance, but there is a guideline you can use. If the annual cost of comprehensive and collision coverage is more than about 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.
There are a few cases where buying only liability insurance is not recommended. If you still have a lienholder on your title, you have to carry full coverage to satisfy the loan requirements. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should maintain full coverage.
Discount Detroit insurance rates
Auto insurance companies that provide policies for 18 year olds may also give you premium discounts that can reduce rates by 30% or more if you meet the requirements. A few of the larger companies and a selection of discounts are:
- State Farm offers discounts for passive restraint, driver’s education, Drive Safe & Save, multiple autos, and safe vehicle.
- Esurance offers discounts including online quote, DriveSense, Switch & Save, Pac-12 alumni, and multi-car.
- Progressive includes discounts for continuous coverage, multi-policy, homeowner, online quote discount, good student, online signing, and multi-vehicle.
- Liberty Mutual discounts include safety features, new vehicle discount, teen driver discount, exclusive group savings, preferred payment discount, and new graduate.
- Auto-Owners Insurance has savings for multiple vehicles, safe driver, paid in full, anti-lock brakes, group or association, and mature driver.
- GEICO may offer discounts for military active duty, driver training, membership and employees, seat belt use, good student, and multi-policy.
The example below shows the difference between insurance rates with and without some available policy discounts. The data assumes a female driver, no claims or driving violations, Michigan state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with continuous coverage, paid-in-full, good student, paperless filing, passive restraint, and anti-theft discounts applied. When taking advantage of discounts, the average savings per year on insurance for 18 year olds is 28% or $1,699.
What aren’t you shopping around?
Detroit insurance rates are impacted by many things that may substantially change the cost of having a policy. Improving your credit rating, having a claim, or getting a ticket for running a stop sign may cause policy rate changes that may make certain companies cheaper than competitors. Not only may things change on your end, but auto insurance companies change premium rates as often as every three months to reflect underwriting profits or losses. Higher than usual claims may cause rate increases, while a better claims history may cause cheaper Detroit car insurance rates.
To illustrate this point, the data below shows rates for the cheapest car insurance in Detroit, MI for a 30-year-old female driver with no violations or accidents, and excellent credit. If we look at prices based on her current situation, USAA may offer the best car insurance rates in Detroit at $2,301 annually. This is $92 less than the average price paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are the remaining best Detroit, MI auto insurance companies.
In this next rate comparison, we will give the driver from the first example a chargeable accident, poor credit, and a couple of points charged on her driving record. Since each auto insurance company has a different formula for setting rates, getting updated rate quotes may result in a slightly different list of the cheapest companies as shown below.
GEICO now has the best car insurance rate in Detroit, MI with Safeco, Pioneer State Mutual, Hastings Mutual, and USAA completing the list. This shows why it is critical to shop around to get affordable car insurance quotes for 18 year olds. Car insurance prices are made up of many factors and can increase or decrease at any time, so the best company the last time you compared rates may now be an over-priced policy.
How to find budget-friendly car insurance for 18 year olds
It is possible to find better rates, and here are many penny-pinching ideas that can help Detroit drivers find more affordable coverage.
- Drive safely
- Avoid having at-fault accidents
- Do not waste money insuring older vehicles for full coverage
- Having too many claims will increase rates substantially
- Raise comprehensive and collision coverage deductibles
- Shop around for lower rates once a year
That last tip is particularly valuable, as was pointed out in the article above. Prices charged by car insurance companies can be modified anytime, so drivers shouldn’t hesitate to switch to a new company if a lower-cost policy is available.
Many consumers stick with the same company and that’s fine, but is isn’t recommended if that inflexibility results in costing you thousands of dollars over the life of your policy. Now is a great time to compare prices and find cheaper car insurance for 18 year olds in Detroit.
The Detroit auto insurance agencies shown below are a good start to help you decide which auto insurance policy would work best for you, as some drivers wish to get help from a professional when buying car insurance for 18 year olds. It can be challenging to find the best coverage yourself, so getting professional guidance from a licensed agent can provide comfort knowing you have adequate coverage if you have an accident or claim.
To find an auto insurance agency using an interactive map, click the button below the list.
3144 Woods Cir Dr – Detroit, MI 48207 – (313) 974-7085
2922 W Grand Blvd – Detroit, MI 48202 – (313) 871-0100
11324 W Jefferson Ave # 1 – River Rouge, MI 48218 – (888) 566-5467
John Cash – State Farm Insurance Agent
19203 Grand River Ave – Detroit, MI 48223 – (313) 537-1200