Buying reasonably-priced auto insurance is difficult, and deciding which company has the cheapest car insurance rates in Detroit calls for even more shopping around. Every insurance company uses a slightly different approach to set policy rates, so let’s begin by taking a look at the car insurance companies with the overall best prices in Detroit, MI.
Keep in mind that Detroit, MI car insurance rates are based on many factors which can significantly increase or decrease the policy price. Things like having a birthday, buying a home, or getting a speeding ticket can produce rate changes that can now make some companies more expensive than competitors.
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,488|
|18||Auto Club Group||$2,391|
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USAA quotes some of the cheapest car insurance rates in Detroit at around $958 annually. GEICO, Safeco, MetLife, and Chubb are also some of the lowest-priced Detroit, MI car insurance companies.
As shown in the rates above, if you buy coverage from MetLife and switched to GEICO, you could earn an annual savings of approximately $317. Michigan drivers with Chubb might save as much as $379 a year, and MEEMIC insureds might reduce rates by $443 a year.
To find the cheapest rates for your vehicle, click here to start your free quote or click through to the companies below.
Be aware that those estimates are averages for all types of drivers and the different vehicles they drive and do not take into consideration an exact vehicle garaging location in Detroit. So the car insurance company that fits you best may not even be in the top 30 companies in the list above. That affirms the importance of why you need to compare rates from multiple companies using your own driver and vehicle profiles.
One of the more important considerations that are used to help calculate the price you pay for insurance is where you call home in Detroit. Cities with larger populations likely pay more, whereas areas with less crime or weather claims benefit from lower rates.
The next table rates the highest-priced areas in Michigan to buy auto insurance in. Detroit is listed at #1 costing $4,862 on average, which is around $405 monthly.
|11||St. Clair Shores||$2,736|
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Information shown are approximated as the specific Detroit residence address can raise or lower rates significantly.
The car, truck, or SUV requiring insurance is probably the biggest factor when comparing the most economical auto insurance in Detroit. Vehicles with lower performance, advanced safety features, or a low likelihood of liability claims will cost substantially less to insure than fast, unsafe models. The table below features insurance premiums for a handful of the cheaper automobiles to insure in Michigan.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$4,383|
|Ford Edge SE 2WD||$4,717|
|Toyota Camry LE||$5,075|
|Toyota RAV4 Limited 4WD||$5,084|
|Honda CR-V EX 2WD||$5,263|
|Volkswagen Jetta S 2.5 Station Wagon||$5,334|
|Toyota Corolla LE||$5,343|
|GMC Sierra SL Crew Cab 4WD||$5,442|
|Hyundai Sonata GLS 4-Dr Sedan||$5,446|
|Chevrolet Silverado LT Regular Cab||$5,456|
|Toyota Tacoma 4WD||$5,517|
|Honda Accord EX 2-Dr Coupe||$5,714|
|Honda Odyssey LX||$5,771|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$5,781|
|Kia Optima EX||$5,813|
|Toyota Camry Hybrid||$5,818|
|Chevrolet Impala LT||$5,823|
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Data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, safe-driver, multi-vehicle, homeowner, and multi-policy. Rates do not factor in vehicle location which can alter premiums greatly.
Looking at the numbers, we can presume that makes and models like the Ford Escape, Ford Edge, Toyota Camry, and Toyota RAV4 are most likely to be a few of the most economical vehicles to insure for drivers in Detroit.
Liability-only versus full coverage
Finding the cheapest insurance should be important to most drivers, and one good way to find cheap insurance in Detroit is to not buy comprehensive and collision coverage. The chart below illustrates the comparison of insurance premiums with full coverage and liability only. The rate quotes are based on no tickets, no at-fault accidents, $100 deductibles, marital status is single, and no additional discounts are factored in.
If all age groups are averaged, physical damage coverage on your policy costs $3,933 per year more than carrying just liability coverage. Lot’s of drivers question if buying full coverage is worth the expense. There is no written rule to eliminate comprehensive and collision coverage on your policy, but there is a broad guideline. If the annual cost of coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, the it may be a good time to stop paying for full coverage.
For example, let’s assume your vehicle’s settlement value is $9,000 and you have $1,000 deductibles. If your vehicle is severely damaged, the most you would receive is $8,000 after the deductible is paid. If premium cost is more than $800 annually to have full coverage, then you might want to consider buying only liability coverage.
There are some scenarios where dropping full coverage is not a good idea. If you haven’t paid off your loan, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should keep full coverage in place.
Types of discounts on Detroit auto insurance
Insurance companies that offer quotes in Detroit may provide policy discounts that could reduce prices by as much as 35% or more if you are eligible for them. A list of companies and some of the discounts include:
- GEICO offers discounts including emergency military deployment, seat belt use, multi-vehicle, daytime running lights, and five-year accident-free.
- Travelers may have discounts that include multi-car, student away at school, home ownership, driver training, and hybrid/electric vehicle.
- Nationwide discounts include good student, anti-theft, Farm Bureau membership, family plan, multi-policy, easy pay, and defensive driving.
- Farmers Insurance offers premium reductions for mature driver, teen driver, business and professional, homeowner, electronic funds transfer, and switch companies.
- Esurance has savings for good driver, online quote, defensive driver, multi-car, anti-theft, and good student.
- State Farm may offer discounts for Steer Clear safe driver discount, anti-theft, good driver, safe vehicle, Drive Safe & Save, and multiple autos.
- Progressive offers discounts for homeowner, online signing, continuous coverage, multi-policy, online quote discount, good student, and multi-vehicle.
- Mercury Insurance policyholders can earn discounts including professional/association, good driver, multi-car, age of vehicle, type of vehicle, low natural disaster claims, and accident-free.
The illustration below compares premium costs with and without discounts being applied to the rates. The data assumes a female driver, no claims or violations, Michigan state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with multiple policy, claim-free, passive restraint, anti-theft, homeowner, and multiple vehicle discounts applied. When these discounts are applied, theaverage yearly reduction on insurance in Detroit is 28% or $1,416.
Rate increases following a ticket or accident
The best way to get the cheapest insurance prices in Michigan for drivers in Detroit is to be a good driver and avoid accidents and keep your driving record clean. The illustration below shows how speeding tickets and accident claims raise car insurance costs for each different age group. The premiums assume a married male driver, comp and collision included, $250 deductibles, and no additional discounts are factored in.
The chart shows that the average cost of an auto insurance policy per year with no violations or accidents is $3,403. Add in two speeding tickets and the average cost increases to $4,717, an increase of $1,314 each year. Now include two accidents along with the two speeding tickets and the annual cost of insurance in Detroit jumps again to an average of $9,340. That’s an increase of $5,937, or $495 per month, just for not being a responsible driver!
How to find economical insurance in Detroit
The list below details some of the better money-saving suggestions that can help you locate low-cost coverage.
- Prevent price hikes by avoiding at-fault accidents
- Raise physical damage deductibles
- You will pay more if you get tickets or have at-fault accidents
- Clean up your credit
- Safer vehicles generally have cheaper insurance rates
- Keep rates low by shopping around frequently
That last tip is very valuable, as was affirmed in this article. Prices can change in a short period of time, so don’t hesitate to buy a different policy if a more affordable price is available.
We understand brand loyalty, but is isn’t recommended if that stubbornness costs you hundreds of dollars a year. In less than five minutes you could compare rates and find cheaper insurance in Detroit in Detroit.