Cheap Auto Insurance Quotes in Detroit, MI (2023)

Michigan is the most expensive state for car insurance, according to Insurify’s 2022 Auto Trends Insurance Report. So in Detroit, where the average monthly car insurance premium is $446 — $93 more than the state average — drivers pay some of the highest insurance rates in the country.

Various factors can influence your premiums, including which company you buy your policy through. Here’s a closer look at the cost of car insurance in Detroit and the information you need to compare rates and make an informed decision about your car insurance coverage.

How much does car insurance cost in Detroit?

According to the latest Insurify data, the average cost of liability-only Detroit car insurance is $446 per month. However, it’s important to note that insurance costs can vary, and it’s always a good idea to compare quotes from multiple companies to find the best monthly cost for your coverage needs.

“To have a firm understanding of the insurance rating system, we have to go back to the beginning; insurance rates are based on … statistics,” says Ashley Jantovsky, insurance agent and founder of Perfect Price Insurance Agency in the Detroit suburb of Livonia, Michigan.

Your individual Detroit car insurance costs will vary based on your statistical likelihood of filing a claim. For people who drive in Detroit, costs may be higher because more claims are filed in that area.

“In order to saturate the loss ratio and remain profitable in some higher-claim areas like Detroit, [insurers] must spread the higher premiums across neighboring consumers,” explains Jantovsky.

Insurify data scientists analyzed the latest insurance rates in Detroit to help you find an insurance policy that fits your budget and meets your needs:

• USAA has the cheapest liability-only coverage in Detroit.

• USAA also has the cheapest full-coverage policy in Detroit.

• Safeco has the cheapest insurance for new and young drivers in Detroit.

Check Out: Cheap Car Insurance in Michigan

Cheapest car insurance in Detroit: USAA

USAA earned the top spot as the cheapest car insurance provider in Detroit. The company has the lowest average cost for liability-only and full-coverage policies. It’s important to note, however, that USAA only serves members of the military, veterans, and their families. So if you don’t fit into one of those categories, you won’t be able to buy car insurance from the company.

Various factors can affect your rates, such as your age, vehicle make and model, driving history, ZIP code, and chosen coverage amounts.^[1]

Average cost of auto insurance in Detroit

While coverage level, insurance riders and add-ons, and other factors influence the cost, the average rate among top insurers in Detroit ranges from $206 to $1,391.

Average car insurance premiums in Detroit by marital status

The average monthly cost of car insurance for a single person in Detroit is $647, and it’s $614 for married drivers. While it’s usually a factor in the cost of car insurance, Michigan law doesn’t allow insurance companies to use marital status when setting rates.^[2] However, married couples who live at the same residence may insure multiple cars under one policy and get a potential multi-car discount on their insurance rates.

How much car insurance do you need in Detroit?

If you own a car in Detroit, state law requires you to have auto insurance coverage. Under Michigan’s new auto no-fault legislation, effective July 1, 2020, drivers must purchase personal injury protection (PIP), property protection (PPI), and bodily injury and property damage liability (BI/PD).^[3] The state’s minimum insurance requirements have three parts:

A PIP policy covers your medical expenses and those of your passengers in the event of an accident. Coverage options include:

• $500,000 per person per accident

• $250,000 per person per accident

• $250,000 per person per accident, if someone on the policy has health insurance that’s not Medicare

• $50,000 per person per accident, if everyone on the policy has health insurance or is covered by another policy with PIP, and the named insured is enrolled in Medicaid

• No medical PIP coverage, if the named insured has Medicare Parts A and B, and all others on the policy are covered by health insurance or another auto policy with PIP medical coverage^[3]

A PPI policy covers damage to another person’s property, but it won’t cover any other damage to your vehicle. And it only applies to accidents in Michigan. Your policy must cover up to $1 million.

Michigan is a no-fault state, which limits car accident lawsuits. For that reason, BI/PD coverage pays for damages you’re found liable for. Detroit drivers must have coverage that includes:

• $20,000 per person for bodily injury

• $40,000 per accident for bodily injury

• $10,000 for property damage in another state^[4]

Whenever you drive in Michigan, make sure you carry your proof of insurance in your car at all times. You must be ready to show it when requested by law enforcement or when registering your car.

Michigan DMV information

In Michigan, the Secretary of State Office manages the state’s Department of Motor Vehicles (DMV). You can renew your driver’s license, update your address, check the availability of personalized plates, and perform many other services online.

If you prefer in-person services, offices are available in many locations throughout the state and are generally open Monday through Friday, from 9 a.m. to 5 p.m.

Tips for getting cheap car insurance in Detroit

Detroit drivers pay rates higher than the state average for car insurance coverage. But it’s possible to reduce Detroit car insurance premiums in a few ways:

• Bundle your car insurance with other types of insurance, such as renters insurance or homeowners insurance in Detroit.

• Look for discounts, such as a good driver discount, a multi-car discount, or a discount for having safety features on your vehicle.

• Consider raising your deductible. A higher deductible can lower your premiums, but it also means you’ll be responsible for paying more if you file a claim.

• Purchase only the coverage you need. If you have an older car, for example, you may not need comprehensive and collision coverage.^[5]

• Participate in telematics programs. Jantovsky notes telematics programs “monitor your driving and come with a preliminary discount just for enrolling. Having your driving data reported to the [insurer] takes a lot of guesswork out of the rates,” she continues. “They will know that you are a safe driver because you’ll be delivering them proof on a silver platter.”

Overall, the best tip for getting cheap car insurance in Detroit is to compare rates and quotes with multiple companies and consider all your options. Comparing quotes will help you find the coverage that fits your budget and needs.

Read More: Compare Home and Auto Insurance Bundles

How age affects car insurance rates in Detroit

Insurance companies often use age as a rating factor in the cost of car insurance. Research has shown that a lack of maturity and driving experience leads to a higher risk of crashes. This higher risk leads to higher premiums on average than for older, experienced drivers.^[6]

Read More: Compare Car Insurance by Age and Gender

Cheapest car insurance for young drivers in Detroit

If you’re a young driver in Detroit, Safeco offers the cheapest car insurance for a full-coverage policy, at an average of $384 a month. Teens and their parents may be able to reduce their car insurance costs by maintaining good grades, asking about good student discounts, and taking defensive driver courses.^[5]

Cheapest car insurance for middle-aged drivers in Detroit

Safeco is also the cheapest full-coverage car insurance provider for middle-aged drivers in Detroit, with an average monthly quote of $443. To help lower your premiums as you gain more experience behind the wheel, maintain a clean driving record, and ask about bundling discounts to combine homeowners or renters insurance with your auto coverage.^[5]

Cheapest car insurance for senior drivers in Detroit

Seniors who want a full-coverage policy can find the cheapest insurance with Safeco, at an average monthly cost of $375. Joining an affinity group like AARP, bundling policies, maintaining a clean driving record, and enrolling in a defensive driving course can help seniors save money on car insurance.^[5]

See More: The Best Car Insurance Companies for Seniors

How credit scores affect cheap car insurance in Detroit

Credit score is one of many factors that typically affect car insurance rates. “Statistically, consumers with better credit are less likely to file claims; [they] pay their premiums on time and cost the [insurer] less overall, so these consumers are ‘rewarded’ with a lower premium,” says Jantovsky.

However, Michigan is one of a handful of states that prohibit insurance companies from using credit to determine rates. Additionally, insurers aren’t allowed to reject a new application, cancel a policy or non-renew a car insurance policy because of your credit.NE 

The table below shows average rates for Detroit drivers based on their credit score ranges.

See More: Car Insurance Rates by Credit Tier

The effect of driving habits on car insurance in Detroit

A variety of factors determine car insurance rates, including driving habits. Insurance companies use your driving record to assess the risk of insuring you. If you engage in risky behaviors, like speeding or distracted driving, you’re considered a higher risk and may pay higher premiums.^[1]

Cheapest car insurance with a clean record in Detroit: USAA

A clean driving record means you don’t have any traffic violations or accidents. It’s a positive indicator that you’re a responsible driver with good driving habits. Maintaining a clean driving record can help you get the best car insurance rates and avoid potential premium increases.

Cheapest car insurance with an accident in Detroit: USAA

Car accidents can affect car insurance rates. Your insurance company may increase your premiums if you’re at fault in a car accident. It’s important to drive safely and defensively to avoid car accidents and minimize the impact on your car insurance cost.^[1]

Cheapest car insurance with a DUI in Detroit: USAA

A DUI (driving under the influence) is a serious offense with severe consequences, including fines, imprisonment, and the loss of driving privileges. Insurance companies consider drivers with DUIs high-risk and may increase their premiums. In some cases, insurance companies may cancel a driver’s policy after a DUI conviction.^[7]

Cheapest car insurance with a speeding ticket in Detroit: USAA

Speeding tickets can carry fines and other penalties and may add points to your driving record. You may see an increase in your car insurance rate if you have a history of speeding tickets and other traffic violations.^[1] In addition to the cost of paying the ticket itself, consider the potential impact of driving too fast on your car insurance rates.

Car insurance in other Michigan cities

Here’s a look at car insurance rates in some other Michigan cities:

• Cheapest Car Insurance Quotes in Ann Arbor, MI

• Cheapest Car Insurance Quotes in Grand Rapids, MI

• Cheapest Car Insurance Quotes in Holland, MI

• Cheapest Car Insurance Quotes in Dearborn, MI

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