For drivers age 25 and younger, one of the largest components that help determine the price you pay for insurance is where your car is garaged in Detroit. Regions with larger populations or more claims are more likely to pay higher prices, whereas areas with less people or fewer weather incidents receive better rates.
The following table shows the most expensive places in Michigan for drivers under 25 to purchase auto insurance in. Detroit comes in at #1 with a yearly cost of $5,009 for the average policyholder, which is around $417 each month.
|Rank||City||Premium Per Year|
|12||St. Clair Shores||$2,736|
|Get a Custom Quote Go|
Annual rates are comparative as specific Detroit zip code can change rates noticeably.
Establishing which insurers offer the best car insurance rates for drivers under 25 calls for a bit more effort in order to find the lowest price quote. Each insurance company has a proprietary formula for establishing rates, so let’s take 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 influenced by many factors that can increase the cost of having a policy. Simply having another birthday, moving to a new city, or having an accident can produce rate changes that can make some companies more affordable than the competition.
Cheap Insurance Rates for Young Drivers
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,430|
|18||Auto Club Group||$2,416|
|View More Rates Go|
USAA may have some of the lowest car insurance rates in Detroit at around $978 each year. This is $1,415 less than the average policy premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb would also be considered some of the best Detroit, MI car insurance companies.
In the above example, if you have coverage with GEICO and switched to USAA, you might achieve yearly savings of upwards of $55. Michigan drivers with Safeco might save as much as $91 a year, and MetLife insureds might reduce prices by as much as $386 a year.
To find the cheapest coverage for you, click here to get quotes or visit any of the low-priced companies below.
Be aware that those premiums are averaged across all types of insureds and vehicles and do not factor in an exact zip code location for drivers under 25. So the company that is most affordable for your situation may not even be in the top 30 companies in the list above. That points out the importance of why you need to get car insurance quotes using your own driver data and vehicle information.
The vehicle model you are insuring is one of the largest factors that determines whether or not you can buy the most affordable coverage for drivers under 25. Vehicles with high performance engines, poor passenger safety features, or an increased likelihood of liability claims will cost quite a bit more to insure than safer, lower-performance models. The data below ranks coverage premiums for some of the most budget-friendly vehicles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 4WD||$11,448|
|Ford Escape Limited 4WD||$12,290|
|Dodge Grand Caravan SE||$12,548|
|Ford Explorer XLT 4WD||$12,558|
|Toyota Tacoma 2WD||$13,221|
|Ford Edge SEL 2WD||$13,229|
|Volkswagen Jetta SE 2.5 Station Wagon||$13,291|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$13,390|
|Toyota RAV4 Sport 2WD||$13,395|
|Jeep Grand Cherokee Laredo 4WD||$13,390|
|Chevrolet Malibu Hybrid||$13,399|
|Ford F-150 Lariat Crew Cab 4WD||$13,555|
|Hyundai Elantra Blue 4-Dr Sedan||$14,058|
|Toyota Camry SE||$14,227|
|Chevrolet Impala LTZ||$14,232|
|Honda Odyssey EX-L W/Navigation||$14,227|
|Find Cheaper Rates Go|
Data based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in specific location which can modify insurance rates considerably.
Looking at the numbers, makes and models like the Honda CR-V, Ford Escape, and Toyota Prius are the cheapest vehicles to insure for drivers age 25 and younger. The cost of auto insurance will tend to be higher just because there is more claim risk for drivers under 25, but generally speaking those models will probably have the lowest prices possible.
Types of discounts on Detroit car insurance rates
Auto insurance companies that offer coverage for drivers under 25 may have special discounts that could lower prices by 25% or more if you can meet the requirements. Larger car insurance companies and a selection of discounts are shown below.
- State Farm has savings for accident-free, anti-theft, good student, driver’s education, and Steer Clear safe driver discount.
- GEICO policyholders can earn discounts including military active duty, defensive driver, multi-policy, federal employee, and anti-theft.
- Liberty Mutual has discounts for new move discount, teen driver discount, multi-policy, multi-car, hybrid vehicle, preferred payment discount, and new vehicle discount.
- The Hartford offers discounts including anti-theft, defensive driver, air bag, driver training, and bundle.
- MetLife may include discounts for good student, multi-policy, claim-free, good driver, and defensive driver.
- Progressive discounts include online signing, continuous coverage, multi-policy, multi-vehicle, good student, online quote discount, and homeowner.
The illustration below compares insurance rates with and without discounts applied to the rates. The data is based on a female driver, no violations or accidents, Michigan state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with passive restraint, good student, vehicle safety, paperless filing, continuous coverage, and paid-in-full discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on car insurance for drivers under 25 is 21% or $979.
Choosing the right auto insurance company can be rather challenging considering how many companies there are in Detroit. The ranking information listed below may help you select which insurers to look at purchasing a policy from. These ratings are only made up of large, nationwide insurance companies, so smaller companies are not taken into consideration for the list.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
|Compare Rates Now Go|
Data Source: Insure.com Best Car Insurance Companies
The diagram below shows how choosing a deductible can change premium costs when trying to find cheap insurance for drivers under 25. The data is based on a married female driver, full physical damage coverage, and no discounts are applied.
As shown above, a 40-year-old driver could cut expenses by $470 a year by changing from a $100 deductible up to a $500 deductible, or save $714 by switching to a $1,000 deductible. Even younger insureds, such as the Age 20 example, could drop their prices as much as $1,172 each year by choosing larger deductibles on their policy. When choosing a higher deductible, it’s a good idea to have spare funds to satisfy the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
How to find more affordable car insurance for drivers under 25
Below you’ll find some of the recommended thrifty suggestions that can help Michigan drivers quote lower-cost coverage.
- Avoid having at-fault accidents
- Buy vehicles with five-star safety ratings
- Pay cheaper rates with good credit scores
- Serious violations like DUI or reckless driving can increase rates dramatically
- Higher deductibles mean lower rates
- Do not waste money insuring older vehicles for full coverage
- Compare prices as often as possible
The last tip in the list is remarkably critical, as was discussed in the article above. Auto insurance rates in Detroit vary considerably, so don’t be afraid to switch companies if a cheaper price is available.
Staying with the same company for years is fine, but is isn’t recommended if that loyalty ends up costing hundreds of dollars a year. Take a couple minutes and compare rates and find cheaper auto insurance for drivers under 25.
If you aren’t sure which coverage to buy and prefer to have a little guidance when trying to find the best insurance rates for drivers under 25, the agents listed below are a good start to answer your questions and help you decide which policy is best. To locate an agency close to where you live, click the button at the bottom or click here to compare prices now.
L.A. Insurance Agency
15607 Grand River Ave – Detroit, MI 48227 – (313) 835-4000
Clark Insurance Agency
2711 E Jefferson Ave #206 – Detroit, MI 48207 – (313) 259-6600
Dave Gilead Insurance Agency
18323 W McNichols Rd – Detroit, MI 48219 – (313) 533-3220
Michigan Basic Property Insurance
3245 E Jefferson Ave – Detroit, MI 48207 – (313) 877-7400