The most affordable auto insurance depends on your needs. Travelers is the cheapest insurer for minimum coverage in Detroit, while Chubb is the most affordable for full coverage, driving violations, young drivers, seniors and those with sports cars. GEICO is the cheapest for teens, and USAA is the most affordable for military families.
If you need a balance of affordability and service, MoneyGeek analyzed the best car insurance in Detroit.
Cheapest Car Insurance in Detroit, MI
Cheapest Minimum Coverage Car Insurance in Detroit
The cheapest minimum coverage car insurance policies in Detroit are from:
- Travelers: $253 per year
- Chubb:: $391 per year
Travelers is the cheapest auto insurance provider in Michigan, albeit at a lower annual cost of $101. The price difference between Detroit and Michigan as a whole demonstrates how location can affect premiums. The annual premium for Hanover's minimum coverage insurance is the highest in Detroit, at $8,778.
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According to Michigan state law, an insurance policy must provide minimum coverage for bodily injury, property damage and personal injury of at least the following:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $10,000 property damage liability per accident outside Michigan
- $1 million property protection within Michigan
- $250,000 personal injury protection (PIP)
If you cause an accident where there is $200,000 in bodily injury total, you’ll be responsible for paying $100,000 out of your own pocket when you are only covered by this minimum coverage policy.
Cheapest Full Coverage Car Insurance in Detroit
The following auto insurance providers in Detroit have the most affordable full coverage policies:
- Chubb: $977 per year
- Progressive: $1,777 per year
Hanover has the highest annual full coverage rate in the city at $11,992. As of October 2022, GEICO offers the cheapest full coverage auto insurance in Michigan for the general population at $877 per year. The cheapest insurer can vary by location, but anywhere in Michigan, insurers are prohibited from using your ZIP code to calculate your premium.
Michigan is unique because it prohibits many common rating factors used amongst car insurance companies when calculating a premium. They are credit score/history, sex, marital status, occupation, home ownership, education level and ZIP code. When you get car insurance in Detroit, none of the above influences how much you pay. But remember: Your motor vehicle record has a significant impact on car insurance costs, whether you are a young or more experienced older driver, regardless of where you live.
A full coverage policy gives you collision and comprehensive coverage.
- Collision insurance: This covers damage to your vehicle as a result of collisions with other vehicles or objects, such as a tree, fence or light pole. Collision also covers vehicle damage from a rollover accident.
- Comprehensive insurance: This is used to repair your car if it receives physical damage due to events like theft, vandalism, fire and severe weather.
Older cars might not be worth paying for full coverage because of their lower value. But, for more recent vehicles, we recommend it.
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Cheaper insurers could pocket you hundreds of dollars per year.
Cheapest Car Insurance in Detroit After a Driving Offense
Individuals with a history of traffic offenses can get the most affordable rates from the following Detroit auto insurers:
- Speeding ticket: Chubb ($977 per year)
- At-fault accident: Chubb ($977 per year)
- DUI: Chubb ($977 per year)
Hanover charges the highest rates for different traffic violations in Detroit. Drivers pay $18,954 per year after causing an accident, $23,475 per year after an OWI (Michigan does not have DUI) and $17,307 per year following a speeding citation.
Drivers with spotty records pay the highest rates when compared to those with excellent records, underscoring the impact that driving histories have on insurance costs.
The severity of the incident typically dictates the increase in auto insurance rates. The difference is significant in Detroit, where drivers who incur a speeding citation pay $3,947 less than those guilty of operating while intoxicated (OWI). Policyholders with poor driving records must find affordable auto insurance since auto insurers perceive them as high-risk clients.
Cheapest Car Insurance in Detroit for Teens and Their Families
The following auto insurance providers offer the cheapest family coverage for teenagers in Detroit:
- GEICO: $4,070 per year for male and female teens
- Progressive: $4,194 per year for male and female teens
Farmers has the most costly teen family insurance policy in the city, costing $20,618 per year for both male and female teenagers.
Teenage boys typically pay higher rates than girls because they are considered riskier drivers, but in Michigan, considering sex/gender is not allowed when determining rates — boy teens won't pay more than girl teens by default.
Teens joining a family policy will spend less than those who purchase their own auto insurance. And in most cases, it is illegal for a teen under 18 to get car insurance without a parent or guardian as a co-signer. In Detroit, the cost difference between getting a male teenager auto insurance and adding him to a family policy is $3,897. To save thousands of dollars a year, families should look into how to get affordable car insurance for teenagers.
Cheapest Car Insurance in Detroit for Military Drivers
The cheapest car insurance providers for military families for full coverage policies in Detroit are:
- USAA: $904 per year
- Chubb: $977 per year
For a minimum coverage policy, Travelers is the cheapest military auto insurer at $253 per year. Chubb takes second place at $391 per year.
How to Compare Cheap Detroit Car Insurance Quotes Online
The process of getting a car insurance quote in Detroit takes roughly 15 minutes per quote and requires you to share personal details.
You can use MoneyGeek’s car insurance calculator. With just a few bits of basic information, such as your age, coverage amount, the type of vehicle you drive and your driving history, you can get quick and precise online estimates.
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Cheapest Car Insurance in Detroit for Young Adults
The following providers offer the most affordable full coverage insurance for young drivers in Detroit:
- Chubb: $1,084 per year
- GEICO: $1,819 per year
Hanover charges young adults the highest annual premium at $13,487.
Drivers under 25 in Detroit pay $486 more annually than the average adult policyholder. Younger drivers are statistically more inclined than older drivers to be involved in accidents, making them riskier for insurance companies to cover.
Cheapest Car Insurance in Detroit for Seniors
These auto insurance providers in Detroit offer the cheapest full coverage policies for seniors:
- Chubb: $809 per year
- Progressive: $1,664 per year
The most expensive auto insurance for seniors is offered by Hanover at $10,936 per year. On average, MoneyGeek found that senior policyholders in Detroit pay $276 less for car insurance than drivers in their 40s, which isn't the norm.
After age 65, auto insurance prices continue to rise as driving becomes more difficult and accident risk increases due to aging and slower reflexes.
Cheapest Car Insurance in Detroit for Poor Credit
These companies offer the most affordable car insurance for people with poor credit in Detroit:
- GEICO: $3,019 per year
- Progressive: $3,255 per year
Hanover has the highest premium in Detroit for drivers with poor credit at $49,301 per year.
Having bad credit can significantly raise the cost of auto insurance. In Detroit, the average annual premium differential between good and bad credit policyholders is a whopping $8,644. This is a 217% price increase.
Customers with bad credit are more likely to submit claims to insurance providers, which is why the premium is higher. Fortunately, people with poor credit can try various ways to get cheaper rates. They can, for instance, compare policy rates from different insurers and look for universally applicable discounts. Credit scores may also increase over time as responsible credit usage is implemented.
Cheapest Car Insurance in Detroit for Sports Cars
For sports car drivers in Detroit, the following companies offer the most affordable auto insurance:
- Chubb: $1,073 per year
- Progressive: $2,008 per year
Farmers is the most costly auto insurer in Detroit at $8,585 a year for this type of policyholder. Typically, sports car drivers pay more for coverage, but in Detroit, this isn’t the case. In this city, sports car drivers pay 9% or $369 less than those who drive a Toyota Camry.
Although MoneyGeek uses a Ford Mustang as an example, you should be aware that the cost of a sports car might vary greatly based on the brand and model you drive. Luxury, electric and sports car insurance often costs more than coverage for a regular vehicle.
Average Cost of Car Insurance in Detroit
In Detroit, the average cost of auto insurance is $3,987 per year. This is $2,722 more expensive than the national average and $1,796 more expensive than the average auto insurance rate in Michigan. Other factors affect premiums aside from location, such as accident frequency and severity, vehicle theft rates and the cost of repairs — but remember, your ZIP code won't influence auto insurance costs in Detroit.
These prices apply to a policy with full coverage that has $100,000 in bodily injury liability per person (maximum of $300,000 per accident) and $100,000 in property damage liability.
About Mark Fitzpatrick