For new drivers, one of the more important considerations that determine the cost of insurance is your address. Areas with more people or more claims tend to have more expensive car insurance rates, whereas more rural areas benefit from lower coverage costs.
The next table rates the highest-priced places in Michigan for a learners permit to purchase a policy in. Detroit shows up at #1 with a yearly premium of $5,009 for the average policy, which is approximately $417 each month.
|Rank||City||Average Per Year|
|11||St. Clair Shores||$2,792|
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Prices are comparative as the specific zip code location can lower or raise price quotes significantly.
Deciphering which companies offer the best car insurance rates for a learners permit involves a tad more effort in order to find the best policy.
Each company has a unique approach to set their prices, so let’s examine the most budget-friendly car insurance companies in Detroit, MI. We do need to point out that Detroit, MI car insurance rates are calculated based on many things that can increase the price of your policy. Getting older, getting married, or getting into an accident can trigger price changes resulting in some companies being cheaper than before.
Find Cheaper Car Insurance in Michigan
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,488|
|17||Auto Club Group||$2,391|
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USAA has some of the best car insurance rates in Detroit at around $958 each year. GEICO, Safeco, MetLife, and Chubb also qualify as some of the cheapest Detroit, MI auto insurance companies.
As the rates illustrate above, if you currently have coverage with GEICO and switched to USAA, you could see an annual premium reduction of in the vicinity of $45. Michigan drivers with Safeco might save as much as $79 a year, and MetLife customers might realize rate reductions of up to $392 a year.
It’s important to note that these premium estimates are averages for all drivers and vehicles and and are not figured with an exact vehicle garaging location for a learners permit. So the auto insurance company that has the cheapest price for you may not even be in the top 30 companies in the list above. That underscores the importance of why you need to compare rates from multiple companies using your own specific driver and vehicle information.
The make and model of vehicle requiring coverage is one of the main factors when shopping around for cheap car insurance for a learners permit. Vehicles with reasonable performance levels, good safety features, or a low likelihood of having liability claims will cost substantially less to insure than high performance models. The information below outlines auto insurance prices for some of the most cost-effective vehicles to insure in Michigan.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$16,112|
|Honda CR-V EX-L 4WD||$16,258|
|Ford Escape Limited 2WD||$16,263|
|Jeep Wrangler Sport 4WD 2-Dr||$17,008|
|Volkswagen Jetta S 2.5 Station Wagon||$17,241|
|Honda Accord EX-L 4-Dr Sedan||$17,247|
|Ford Explorer XLT 2WD||$18,132|
|Ford F-150 STX Regular Cab 4WD||$18,141|
|Toyota Tacoma 4WD||$18,132|
|Ford Edge SEL 2WD||$18,968|
|Ford Focus S 4-Dr Sedan||$18,973|
|Dodge Grand Caravan Hero||$19,114|
|Chevrolet Impala LT||$19,121|
|Jeep Grand Cherokee Laredo 4WD||$19,114|
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Prices based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in garaging location in Detroit, MI which can influence coverage prices noticeably.
Looking at the rates, you can see that models like the Hyundai Elantra, Honda CR-V, Ford Escape, Jeep Wrangler, and Volkswagen Jetta are most likely to be some of the less-costly vehicles to insure for new drivers. Prices will be more costly because there is more exposure for a learners permit, but in general those models will tend to have the lowest insurance prices that you are likely to find.
How accidents and tickets impact rates in Detroit
The easiest way to find good car insurance rates in Michigan for new drivers is to be a safe driver and maintain a clean driving record. The illustration below illustrates how violations and at-fault fender-benders can influence insurance prices for each different age group. The prices are based on a single male driver, full coverage, $1,000 deductibles, and no policy discounts are applied.
In the example above, the average cost of auto insurance per year with no accidents and a clean driving record is $2,877. Add in two speeding tickets and the average cost surges to $3,791, an increase of $914 each year. Now get two accidents along with the two speeding tickets and the 12-month cost of car insurance for a learners permit goes up to an average of $7,620. That’s an increase of $4,743, or $395 per month, just for not driving attentively!
Picking the best insurance provider is difficult considering how many different companies insure vehicles in Michigan. The rank data displayed below can help you analyze which car insurance companies you want to consider when buying insurance for a learners permit. The ratings below are only made up of major nationwide insurance companies, so smaller companies that only insure vehicles in Michigan will not be included in these rankings.
Top 10 Major Car Insurance Companies in Detroit Ranked by Claims Service
- Liberty Mutual
- State Farm
- The Hartford
- 21st Century
- Farmers Insurance
Does it make sense to buy full coverage?
Finding the cheapest car insurance is probably important to the majority of drivers, and a good way to find cheaper insurance for a learners permit is to not buy full coverage. The information below shows the comparison of car insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The costs are based on no tickets, no at-fault accidents, $500 deductibles, single status, and no policy discounts are applied.
If we average the cost for all age groups, physical damage coverage costs $4,318 per year over and above liability only. That proposes the question if full coverage is worth the money. There is no exact rule of when to drop comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the yearly cost of full coverage is 10% or more of the settlement you would receive from your company, then you might consider buying liability only.
For example, let’s pretend your vehicle’s settlement value is $8,000 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, the most you would receive is $7,000 after paying your deductible. If you are paying over $700 a year for comprehensive and collision coverage, then you may want to consider only buying liability coverage.
Why you should be shopping around
Detroit car insurance rates are impacted by many things that can increase the policy premium. Simply having a birthday, adding a teenager to your policy, or getting a speeding ticket may cause policy rate changes that can cause some rates to be cheaper than before.
Additionally, insurance companies change rates every year as an adjustment for underwriting gains or losses. Significantly higher losses may cause a rate increase, while lower claims can produce cheaper Detroit car insurance rates.
The data below shows which companies have the cheapest car insurance in Detroit, MI for a 40-year-old female driver with a clear driving record, no claims, and a good credit history. Based on her current risk profile, USAA may offer the most affordable car insurance rates in Detroit at $2,256 each year. This is $137 less than the average premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are the remainder of the cheapest Detroit, MI auto insurance companies.
In this next rate comparison, we will give the driver from the first set of rates a couple of claims, bad credit, and an imperfect driving record. Since every insurance provider has a unique approach to set their prices, comparing prices could result in a substantially altered list of the cheapest car insurance companies in Detroit as shown below.
MEEMIC now has the lowest price on auto insurance in Detroit with GEICO, Safeco, USAA, and Hastings Mutual now rounding out the top five. This example proves why it is so important to do a thorough rate comparison to get affordable insurance quotes for a learners permit. Rates are influenced by many things and change dramatically, so the most economical option the last time you shopped around may now be costing you a lot of money.