How Much is Detroit Auto Insurance for Welfare Recipients?

One of the more important things that determine car insurance rates is where you normally keep your vehicle in Detroit. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of cheap car insurance rates.

The following table shows the most expensive places in Michigan for welfare recipients in which to purchase auto insurance. Detroit is listed at #1 with an annual cost of $5,009 for the average policy, which is approximately $417 monthly.

Car insurance prices in Detroit
Rank City Annual Rate
1 Detroit $5,009
2 Southfield $4,020
3 Dearborn $4,002
4 Pontiac $3,675
5 Flint $3,371
6 Warren $3,322
7 Dearborn Heights $3,239
8 Taylor $3,084
9 Sterling Heights $3,044
10 Westland $2,821
11 Farmington Hills $2,786
12 St. Clair Shores $2,736
13 Livonia $2,634
14 Saginaw $2,583
15 Troy $2,562
16 Royal Oak $2,562
17 Rochester Hills $2,542
18 Novi $2,514
19 Lansing $2,439
20 Battle Creek $2,354
21 Grand Rapids $2,275
22 Kentwood $2,250
23 Kalamazoo $2,215
24 Wyoming $2,195
25 Ann Arbor $2,149
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Prices are comparative as vehicle location can raise or lower rates greatly.

Comparing quotes for cost effective car insurance is difficult, and deciding which company has the cheapest auto insurance rates for welfare recipients involves a little more work.

Each company uses a little different formula to set policy rates, so let’s begin by examining the auto insurance companies with the overall cheapest rates in Detroit.

Cheap Insurance Rates in Michigan

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What’s the cheapest car insurance in Michigan?
Rank Company Cost Per Year
1 USAA $949
2 GEICO $1,033
3 Safeco $1,079
4 MetLife $1,324
5 Chubb $1,372
6 Pioneer State Mutual $1,430
7 MEEMIC $1,450
8 Hastings Mutual $1,627
9 Auto-Owners $1,636
10 Frankenmuth $1,713
11 SECURA $1,778
12 Progressive $1,866
13 Wolverine Mutual $2,126
14 Grange Mutual $2,322
15 Allied $2,332
16 Allmerica $2,386
17 Hanover $2,399
18 Auto Club Group $2,489
19 Nationwide $2,593
20 Farm Bureau $2,651
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USAA may offer some of the cheapest car insurance rates in Detroit at around $949 per year. GEICO, Safeco, MetLife, and Chubb also make the cut as some of the most economical Detroit, MI car insurance companies.

In the above example, if you are insured with Chubb and switched to GEICO, you might achieve annual savings of around $339. Drivers with Pioneer State Mutual could save as much as $397 a year, and MEEMIC insureds might reduce rates by $417 a year.

To compare your rates to other Michigan insurance companies, click here or visit any of the low-priced companies below.

Understand that those premium estimates are averages for all ages of drivers and types of vehicles and do not factor in an exact location for welfare recipients. So the auto insurance company that can offer you the best rate may not even be in the top 30 companies in the list above. That points out the importance of why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.

The car, truck, or SUV driven is one of the largest factors when shopping around for the best insurance for welfare recipients. Vehicles with higher performance characteristics, poor crash test ratings, or an increased likelihood of liability claims will cost substantially more to insure than safer, lower-performance models. The list below estimates car insurance costs for a number of the most economical vehicles to buy insurance for.

Cheapest Vehicles to Insure in Detroit, MI
Make, Model, and Trim Level Estimated Cost for Full Coverage
Honda CR-V EX-L 2WD $4,392
Jeep Wrangler Sport 4WD 2-Dr $4,463
Ford Escape Limited 4WD $4,661
Toyota Prius $4,759
Toyota Tacoma 4WD $4,821
Chevrolet Equinox LS 2WD $5,089
Jeep Grand Cherokee Laredo 2WD $5,095
Dodge Grand Caravan Hero $5,089
Toyota Corolla XRS $5,452
Chevrolet Malibu LTZ $5,460
Nissan Rogue S 2WD $5,456
Dodge Ram Quad Cab TRX4 Off Road 2WD $5,555
Ford Edge SEL AWD $5,720
Honda Accord EX 2-Dr Coupe $5,727
Volkswagen Jetta S 2.5 Station Wagon $5,729
Hyundai Elantra SE Touring Station Wagon $5,736
Chevrolet Silverado 2500HD LT Crew Cab Diesel 4WD $5,814
Toyota Camry Hybrid $5,819
Toyota Camry LE $5,828
Toyota RAV4 Limited 4WD $5,836
Ford Explorer Eddie Bauer AWD $5,936
Ford F-150 XL Crew Cab 4WD $6,035
Honda Odyssey EX W/Rear Entertainment $6,115
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Premium data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, multi-policy, multi-vehicle, safe-driver, and homeowner. Information does not factor in specific zip code location which can revise price quotes significantly.

By looking at the data, we can infer that vehicles like the Honda CR-V, Jeep Wrangler, Ford Escape, Toyota Prius, and Toyota Tacoma are likely to be the most economical vehicles to insure for drivers on welfare.

Irresponsible driving raises your rates

The common sense way to receive the best auto insurance prices in Michigan for drivers on welfare is to drive safe and not get tickets or have accidents. The chart below highlights how traffic violations and accident claims increase premium costs for different age groups. The premiums are based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied.

In the previous example, the average cost of a car insurance policy per year with no violations or accidents is $3,731. Get written up for two speeding tickets and the average cost jumps to $5,153, an increase of $1,422 each year. Now add in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for welfare recipients increases to an average of $10,668. That’s an increase of $6,937, or $578 per month, just for not driving safely!

Best auto insurance company in Detroit

Finding a highly-rated auto insurance company can be a challenge considering how many companies sell coverage in Michigan. The company ratings in the next section could help you select which providers you want to consider purchasing coverage from. These rankings are for insurance companies that insure vehicles in the majority of U.S. states, so companies that focus mainly on Michigan business are not factored into the list.

Best 15 Auto Insurance Companies for Welfare Recipients in Michigan
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
Nationwide 71 90 93 83% A+ 84.9
Allstate 69 92 92 83% A+ 84.4
American Family 77 96 80 85% A 83.8
Esurance 70 80 89 77% A+ 79.2
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Data Source: Best Car Insurance Companies

A good deal can quickly turn bad

Detroit auto insurance rates are impacted by many factors that can increase the cost of having a policy. Simply turning a year older, buying another vehicle, or getting a driving violation can trigger rate changes that can now make some companies more affordable than competitors.

Not only may your situation change, but companies change premium rates as often as every quarter in order to maintain liquidity for claims. Heavier than normal losses may result in price increases, while lower claim levels may cause cheaper Detroit car insurance rates.

The graph below shows a variety of companies that have the cheapest car insurance in Detroit, MI for a 35-year-old male driver with a clear driving record, no claims, and a good credit rating. When quoting prices based on his personal risk profile, USAA might quote the lowest car insurance rates in Detroit at $2,301 each year. This is $92 less than the average rate paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are the rest of the cheapest Detroit, MI auto insurance companies.

Now we will pretend the driver from the first rate comparison an at-fault accident, a lower credit rating, and a couple of points charged on his driving record. Because each insurer has a unique formula for setting rates, comparing insurance quotes most likely will result in a different ranking of the cheapest car insurance companies in Detroit as shown below.

Pioneer State Mutual now has the cheapest price in Detroit, MI with GEICO, Safeco, Hastings Mutual, and USAA now rounding out the top five. This example shows why consumers need to take the time to perform an extensive rate comparison when trying to find the cheapest auto insurance rates for welfare recipients.

Prices can be determined by many risk factors and can decrease or increase without notice, so the best price three years ago may now be quite expensive.