Cheapest Auto Insurance in Detroit, Michigan (2024)

On average, Detroit drivers pay $377 per month for car insurance. By comparison, the Michigan state average is $265 per month. At the national level, drivers pay a monthly average of $158.

Michigan has the highest car insurance costs of any state, Insurify data shows. High accident frequency and severity, a high rate of vehicle theft and vandalism, and a high rate of uninsured motorists contribute to the cost of car insurance in the state and in Detroit.^[1]

Cheapest car insurance companies in Detroit

Finding affordable car insurance in Detroit can be tricky. The right policy for you will depend on your coverage needs, location, driving history, and more. Always compare quotes before buying a policy.

Below are some of the cheapest car insurance companies in Detroit.

Best insurer for bundling: Auto-Owners

Best insurer for military families: USAA

Best insurer for discounts: GEICO

How to get the cheapest car insurance in Detroit

Insurance companies base their rates on several factors, including your age and the year, make, and model of your vehicle. While some of these factors are outside your control, you can take steps to find affordable car insurance and keep your rates low.

Jeffrey L. Brewer, vice president of public affairs at the American Property Casualty Insurance Association (APCIA), recommends the following:

• Adjust your coverage. “Increase your deductible and lower non-essential coverage like glass, rental car, and roadside service,” Brewer says.

• Consider a usage-based policy. “Some insurers offer savings for signing up for these programs and will offer additional savings based on how you drive. The safer the driving behavior, the greater the discount,” Brewer says.

• Ask for discounts that may be available. “Ask your insurer if they have billing method discounts or other discount programs,” Brewer says.

• Shop around. Brewer recommends you shop around with different companies. “As you shop, make sure you are comparing apples to apples regarding the coverage and service,” Brewer says. “Buying the cheapest policy is not necessarily the best decision for every driver. Consider the type of vehicle that is being insured and the assets you need to protect.”

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Cheapest liability-only car insurance in Detroit: Auto-Owners

Liability-only car insurance is a type of auto insurance that covers the cost of damages to other vehicles, pedestrians, or property caused by the insured driver, but not damage to the driver’s own vehicle.²

Liability-only coverage is cheaper than full-coverage car insurance, so you may be interested if you have an older model car that isn’t worth a lot. But if you have a car payment, your lender or leasing company will probably require you to carry full coverage.

The table below shows the companies offering the cheapest liability-only policies in Detroit. The cheapest insurer for liability-only car insurance in Detroit is Auto-Owners, with a cost of $93 per month.

Cheapest full-coverage car insurance in Detroit: Auto-Owners

Full-coverage auto insurance includes liability coverage as well as collision and comprehensive coverage, which pay for damage to your own vehicle caused by a covered claim. Collision coverage can pay for an accident with another vehicle or when your vehicle hits another object, like a phone pole. Comprehensive insurance covers non-collision-related claims, such as vehicle theft or vandalism.

You can find the cheapest full-coverage car insurance in Detroit from Auto-Owners, at a rate of $156 per month.

The table below shows the insurance companies offering the cheapest full-coverage policies in Detroit.

Car insurance requirements in Michigan

Michigan is a no-fault state for car insurance.³ This means that drivers receive compensation from their insurance company after an accident, regardless of who caused the accident.

All drivers must carry a minimum amount of residual bodily injury and property damage liability coverage, as well as property protection insurance (PPI). PPI pays for damage to other people’s property in Michigan caused by your car. But it doesn’t apply to other cars unless they’re parked.

Most drivers must also purchase a minimum amount of personal injury protection (PIP), which pays for medical expenses, recovery, and rehabilitation after an auto accident for the rest of your life, up to the chosen limit. Only Medicaid recipients who meet certain criteria can opt out of carrying PIP medical coverage.⁴

For peace of mind behind the wheel, you should consider carrying more than the minimum coverages on your auto insurance policy. Some other coverages to consider include:

• 

  Comprehensive coverage

  This reimburses you for theft or damage to your car due to events other than a collision, such as theft, vandalism, fire, or severe weather hazards, including snow, ice, and hail.

• 

  Collision coverage

  This reimburses you for damage to your vehicle due to a collision with another vehicle or an object such as a tree, fence, or light pole. Collision also covers rollover accidents and damage from hitting a pothole.

• 

  Glass coverage

  This coverage pays to repair or replace your car windshield, windows, and sunroof with no deductible.

• 

  Gap insurance

  This pays the difference between the fair market value of your car and what you owe on your car loan if it’s totaled in an accident or stolen.⁵

• 

  Uninsured/underinsured motorist coverage

  More than 25% of Michigan motorists drive without insurance. That percentage is likely higher in Detroit, where car insurance premiums consume about 18% of a household’s annual pre-tax income.⁶ Uninsured/underinsured motorist coverage can help pay your costs if you’re in an accident with a driver who has no insurance or too little insurance. It also provides coverage for hit-and-run accidents.

Cheapest car insurance for Detroit drivers with an incident

Incidents can include at-fault accidents, speeding tickets, operating while intoxicated (DUI), and other moving violations. Having these on your record can increase your car insurance rates above what drivers with a clean driving record pay. This is because insurance companies see you as a higher risk, and they charge higher premiums to offset that risk.

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Cheapest car insurance for drivers with a speeding ticket: USAA

If you have a speeding ticket on your record, you’ll likely face a rate increase, depending on the severity of the incident and whether it was your first offense.Detroit drivers with speeding tickets face average monthly rates of $505 for full coverage and $412 for a liability-only policy, Insurify data shows. The following table shows the cheapest car insurance options available in Detroit, Michigan, for drivers with speeding tickets on their records.

Cheapest car insurance for drivers with an at-fault accident: Auto-Owners

Finding affordable insurance after an at-fault accident can be challenging. Insurers consider you a risky driver, so they’ll increase your rates to account for that extra risk. Accident forgiveness coverage can hold your premium steady after your first at-fault accident, but you’ll need to buy it before getting into an accident.

An at-fault accident pushes the average monthly cost of car insurance in Detroit to $521 for full coverage and $424 for liability only. You can still find affordable premiums with the right insurers, though. The table below shows the best cheap options for Detroit drivers with an at-fault accident on their record.

Cheapest car insurance for drivers with a DUI: Auto-Owners

Driving under the influence of drugs or alcohol can be a costly mistake that affects your car insurance rates for years. Finding cheap car insurance can be tough if you’ve been convicted of a DUI. In fact, the average monthly cost of full-coverage car insurance for Detroit drivers with a DUI is $604, while liability coverage averages $492 per month with a DUI.

The table below shows the insurance companies offering the most competitive rates for Detroit drivers with a DUI.

Cheapest car insurance for seniors: Auto-Owners

Drivers 70 and older have higher rates of fatal crashes per mile driven than middle-aged drivers, according to the Insurance Institute for Highway Safety.⁷ As a result, insurance companies tend to increase rates for senior drivers.

On average, Detroit seniors pay $369 for full-coverage car insurance and $301 for liability-only policies. If you’re a senior driver looking for affordable car insurance in Detroit, the companies below offer some of the most competitive monthly rates.

Cheapest car insurance for teens: Auto-Owners

Car insurance companies typically charge higher rates for young drivers because they have less experience behind the wheel and are prone to taking risks that more mature drivers might not take. Teens and their families can help keep rates low by staying on their parents’ policy and taking advantage of discounts many insurance companies offer, such as those for good students and completing a driver training course.⁸

Minors can’t legally buy their own car insurance policy without written consent from a parent or guardian. In Detroit, the average cost of car insurance for teen drivers is $454 per month for a liability policy. The following table illustrates what top insurers charge teen drivers in Detroit.

Is car insurance more expensive in Detroit?

Yes. The cost of car insurance in Detroit is significantly higher than the national average and has been for several years. Average monthly premiums in Detroit are $416 for full coverage and $339 for liability-only coverage, according to Insurify data. Nationwide, the average monthly premiums are $213 for full coverage and $104 for liability-only coverage.

One of the reasons for this large discrepancy has historically been Michigan’s unique form of no-fault insurance. Until July 1, 2020, insurance companies in the state had to offer unlimited PIP coverage, meaning they were on the hook for unlimited medical damages in the event of an accident.^[2]

In 2020, that system was replaced by a tiered system that allows Michigan drivers to purchase lower PIP limits.

More cities in Michigan

The cost of car insurance in Detroit is significantly higher than in other Michigan cities. For example, the average monthly rate in Detroit is $377, compared to Flint’s average rate of $310. The following table shows average monthly car insurance costs in other Michigan cities.

Detroit car insurance FAQs