Who Has the Cheapest Detroit Car Insurance Quotes for Drivers Under 25?

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.

How much does car insurance cost in Detroit, MI?
Rank City Premium Per Year
1 Detroit $5,009
2 Dearborn $4,123
3 Southfield $3,862
4 Pontiac $3,531
5 Flint $3,439
6 Warren $3,390
7 Dearborn Heights $3,239
8 Taylor $3,116
9 Sterling Heights $2,954
10 Westland $2,850
11 Farmington Hills $2,786
12 St. Clair Shores $2,736
13 Troy $2,614
14 Livonia $2,608
15 Rochester Hills $2,542
16 Saginaw $2,507
17 Royal Oak $2,487
18 Novi $2,439
19 Lansing $2,367
20 Battle Creek $2,354
21 Kalamazoo $2,282
22 Kentwood $2,250
23 Wyoming $2,216
24 Grand Rapids $2,208
25 Ann Arbor $2,128
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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

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Michigan car insurance ranked by cost per year
Rank Company Cost Per Year
1 USAA $978
2 GEICO $1,033
3 Safeco $1,069
4 MetLife $1,364
5 Chubb $1,372
6 MEEMIC $1,408
7 Pioneer State Mutual $1,430
8 Hastings Mutual $1,579
9 Frankenmuth $1,645
10 Auto-Owners $1,702
11 SECURA $1,832
12 Progressive $1,866
13 Wolverine Mutual $2,191
14 Grange Mutual $2,276
15 Hanover $2,305
16 Allied $2,332
17 Allmerica $2,386
18 Auto Club Group $2,416
19 Nationwide $2,541
20 Farm Bureau $2,678
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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.

Cheapest Vehicles to Insure in Detroit, MI
Make and Model Estimated Cost for Full Coverage
Honda CR-V EX-L 4WD $11,448
Ford Escape Limited 4WD $12,290
Toyota Prius $12,454
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
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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

Car insurance for drivers age 25 and younger in Detroit, MIAuto 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.

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.

Top Ten Car Insurance Companies for Drivers Under 25 in Detroit, MI
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
The Hartford 88 96 91 93% A+ 92.6
Progressive 84 94 99 90% A+ 92.4
State Farm 84 93 95 87% A++ 91
Farmers Insurance 87 92 90 85% A 90.6
Safeco Insurance 85 91 87 86% A 88.4
USAA 71 93 98 87% A++ 88
GEICO 73 93 95 85% A++ 87.1
21st Century 85 85 91 89% A 86.9
Liberty Mutual 72 91 97 83% A 86.4
AAA Insurance 85 85 88 86% A 85.8
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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.

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 AveDetroit, MI 48227(313) 835-4000

Clark Insurance Agency
2711 E Jefferson Ave #206Detroit, MI 48207(313) 259-6600

Dave Gilead Insurance Agency
18323 W McNichols RdDetroit, MI 48219(313) 533-3220

Michigan Basic Property Insurance
3245 E Jefferson AveDetroit, MI 48207(313) 877-7400

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