The vehicle model requiring coverage is one of the largest factors when shopping around for the most affordable coverage for high school students. Vehicles with limited top-end speed, a great safety record, or low incidents of liability claims will cost substantially less to insure than higher performance models.
The next list outlines car insurance costs for a selection of the most economical automobiles to buy insurance for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$15,000|
|Ford Escape XLT 4WD||$15,167|
|Ford F-150 XL Regular Cab 2WD||$15,629|
|Honda Odyssey LX||$16,628|
|Jeep Wrangler Sahara 4WD 2-Dr||$16,796|
|Ford Explorer Eddie Bauer 2WD||$16,805|
|Dodge Grand Caravan CV||$16,796|
|Chevrolet Impala LS||$17,628|
|Ford Edge SEL AWD||$17,635|
|Toyota RAV4 Limited 2WD||$17,795|
|GMC Sierra SLE Regular Cab 2WD||$17,805|
|Nissan Altima 2.5 4-Dr Sedan||$17,795|
|Jeep Grand Cherokee Laredo 4WD||$17,800|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$17,967|
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Cost estimates assume single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific garaging location which can increase or decrease coverage prices noticeably.
Based on these rates, we can expect vehicles like the Honda CR-V, Ford Escape, Ford F-150, Toyota Prius, and Honda Odyssey are likely to be some of the cheapest vehicles to insure for teenagers. Prices will trend higher because of the fact that there is more liability risk for high school students, but overall those makes and models will probably have the lowest prices compared to other vehicles.
For teenagers, one of the largest things that are used to help calculate the annual cost of car insurance is where you normally keep your vehicle in Detroit. Areas with more people or more claims tend to pay more, whereas areas with less people or fewer weather incidents benefit from lower coverage costs.
The illustration below ranks the highest-priced places in Michigan for high school students to buy car insurance in. Detroit is ranked at #1 with a yearly premium of $4,862 for the average policyholder, which is approximately $405 each month.
|12||St. Clair Shores||$2,709|
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Premium amounts are comparative as specific Detroit garaging address can raise or lower prices substantially.
Full coverage or liability only
Reducing the cost of auto insurance should be important to the majority of people, and one good way to find cheaper insurance for high school students is to not buy full coverage. The illustration below shows the difference between auto insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Michigan. The data assumes no accidents, no driving violations, $100 deductibles, marital status is single, and no discounts are applied to the premium.
As an average, full coverage on your policy costs an additional $3,933 per year more than insuring for liability only. Lot’s of drivers question when is the right time to remove full coverage. There is no specific rule that is best for determining when to drop physical damage coverage, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is about 10% or more of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s say your vehicle’s replacement value is $9,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would receive is $8,000 after paying your deductible. If it’s costing in excess of $800 a year for comprehensive and collision coverage, then it may be the right time to buy liability only.
Poor driving habits will raise your auto insurance rates
The easiest method to receive good auto insurance premiums in Detroit for teenagers is to be a cautious driver and not have accidents or get tickets. The illustration below highlights how traffic violations and at-fault fender-benders can increase premium costs for different age groups of insureds. The price estimates are based on a married male driver, comp and collision included, $250 deductibles, and no discounts are taken into consideration.
The data above shows the average cost of an auto insurance policy in Michigan per year with no violations or accidents is $4,180. Get written up for two speeding tickets and the average cost increases to $5,789, an increase of $1,609 each year. Then include one accident along with the two speeding tickets and the yearly cost of auto insurance for high school students goes up to an average of $7,408. That’s an increase of $3,228, or $269 per month, just for not driving responsibly!
Ideas to find more affordable insurance for high school students
Below you’ll find a few money-saving ideas that can help you locate more affordable coverage.
- Avoid getting tickets or violations
- Avoid price increases by not filing claims
- Maintain a safe distance and avoid accidents
- Improve your credit score
- Vehicles with good safety ratings have lower liability rates
- Compare rate quotes often
The last tip is extraordinarily vital, as we pointed out in this article. Prices charged by auto insurers in Detroit fluctuate considerably, so you should be ready to buy from a different company if you can save money. Having a favorite company is fine, but it’s not a good idea if that loyalty ends up costing big bucks every year. Now is a great time to compare rates to find cheaper insurance for high school students.
The insurance agencies below can help you determine which car insurance policy is best, since lots of drivers aren’t clear which coverage they need and would like to have some advice when trying to find lower insurance rates for teenagers. It can be complicated to find the cheapest auto insurance company, and agents can provide satisfaction knowing your policy gives you sufficient coverage at claim time. To find an auto insurance agency close to you, click the button below the list or click here to compare rates now.
- PD Dandnaik – State Farm Insurance Agent
W, 7725 Vernor Hwy – Detroit, MI 48209 – (313) 554-1500
- Woodward Insurance
1529 Woodward Ave – Detroit, MI 48226 – (313) 962-6200
- Cosby Insurance Agy and Financial Services
10140 W McNichols Rd – Detroit, MI 48221 – (313) 864-3285
- L.A. Insurance Agency 150
14701 Mack Ave – Detroit, MI 48215 – (313) 884-8888