Best Cheap Auto Insurance in Detroit, Michigan (2023)
Auto-Owners, USAA, and Chubb are the best car insurance companies in Detroit, where the average cost of insurance is 341% higher than the national average.
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Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
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Detroit drivers pay some of the highest car insurance rates in the country. The overall average cost of car insurance in the Motor City is 69% higher than Michigan’s state average — and Michigan is the most expensive state for car insurance, according to Insurify’s most recent auto rates report.
The average cost of car insurance in Detroit is $613 per month, more than four times higher than the national average of $139 per month. A liability-only policy averages $411 per month, while a full-coverage policy averages $814 per month. Car insurance in Detroit is expensive in part due to socioeconomic factors and state law.
Detroit drivers may find lower rates with Auto-Owners, USAA, and Chubb insurance.
Quick Facts
Car insurance premiums in Detroit are the highest in the nation and have been for several years.
Rates in Michigan rose by 31% in the first six months of 2023.
Insurers in Michigan can use your credit history when setting your premiums.
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Best car insurance companies in Detroit
The right auto insurance company and policy for you will depend on your financial situation and insurance needs. However, the table below shows some of the cheapest car insurance companies currently writing policies in the Motor City.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.1
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
837
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$102/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$158/mo
Auto-Owners offers competitive rates for drivers in Detroit and several discounts for bundling, going claims-free, paperless billing, and more.
Pros
Policies for home, auto, life, and business insurance
Only one deductible applies if you bundle home and auto insurance and have a claim that involves both
Cons
Quotes only available through an agent
No 24/7 claims service
I’ve had no problems with them, and they’re cheaper than any other insurer for the coverage I have.
Dean - April 26, 2019
Verified
Good customer service
Debora - February 12, 2019
Verified
Their staff is always friendly, they answer all my questions, and I may stay with them. Regardless, I’m researching other options because my rates are so high due to two accidents in 2016.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
880
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$102/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$160/mo
USAA offers a variety of insurance policies for military members, veterans, and their families. You may be able to qualify for insurance from USAA if you have a current or past family member serving in the military.
Pros
Mobile app allows you to access ID cards, request policy changes, pay your bill, and manage claims
Available in all 50 states, the District of Columbia, U.S. territories, and some international locations
Cons
Only covers passenger vehicles and trucks — no motorcycles, ATVs, RVs, boats, or personal watercraft
Not accessible to people without a connection to the U.S. military
The representative was very helpful and caring. I felt valued.
Tawana - January 17, 2023
Verified
I have been a member for 14 years. They have always delivered excellent customer care anytime I needed to reach out to them for any reason, whether it was to resolve an issue or assist me with an application for one of the many services and products they offer.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-five scale. The Insurify editorial team researches insurer data to determine the final scores.
4.3
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
835
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$154/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$242/mo
GEICO offers a broad range of coverage options and discounts, including roadside assistance coverage starting at just $14 per year. You can also get rental reimbursement and mechanical breakdown coverage to help you get back on the road.
Pros
Competitive rates and variety of discounts
Mobile app has excellent customer ratings
Cons
Below-average J.D. Power customer satisfaction rating
Gap insurance not available
Good communication
John - February 4, 2023
Verified
They offer the best rate.
Shannon - February 1, 2023
Verified
Any time I called them, they were on top of it and gave me an answer right away.
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.[1]
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 below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest full-coverage car insurance in Detroit
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-accident related claims, such as vehicle theft or vandalism.
The table below shows the insurance companies offering the cheapest full-coverage policies in Detroit.
The below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Car insurance requirements in Michigan
Michigan is a no-fault state for car insurance.[2] 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 bodily injury liability coverage. Most drivers must also purchase a minimum amount of personal injury protection (PIP) medical coverage, which pays for medical expenses, recovery, and rehabilitation after an auto accident. Only Medicaid recipients who meet certain criteria can opt out of carrying PIP medical coverage.[3]
Coverage
Minimum Requirements
Bodily injury liability
$50,000 per person and $100,000 per accident
Personal injury protection
$250,000
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 vandalism, fire, or hail.
Collision coverage
This reimburses you for damage to your vehicle due to a collision with another vehicle or an object.
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.[4]
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.[5] 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.
Cheapest car insurance for Detroit drivers with an incident
Incidents can include at-fault accidents, speeding tickets, driving under the influence (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
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. The following table shows the cheapest car insurance options available in Detroit, Michigan, for drivers with speeding tickets on their records.
The below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest car insurance for drivers with an at-fault accident
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. 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.
The below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest car insurance for drivers with a DUI
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. The table below shows the insurance companies offering the most competitive rates for Detroit drivers with a DUI.
The below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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.[6] As a result, insurance companies tend to increase rates for senior drivers.
If you’re a senior driver looking for affordable car insurance in Detroit, the companies below offer some of the most competitive monthly rates.
The below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Cheapest car insurance for teens
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.[7]
The below rates are estimated rates current as of: Monday, September 18 at 12:00 PM PDT.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Insurance companies base their rates on several factors, including your age, the year, make and model of your vehicle, your credit score, and the ZIP code where you park your car at night. 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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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 $814 for full coverage and $411 for liability-only coverage, according to Insurify data. Nationwide, the average monthly premiums are $172 for full coverage and $106 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.[8]
In 2020, that system was replaced by a tiered system that allows Michigan drivers to purchase lower PIP limits. The legislation also requires insurance companies to reduce statewide average premiums for eight years.[2]
More cities in Michigan
The cost of car insurance in Detroit is significantly higher than in other Michigan cities. One reason for this disparity is that insurance companies in Michigan are allowed to use non-driving characteristics, such as marital status, education level, and home ownership status, to set premiums.
With the median income in Detroit half that of the region and only 17% of Detroit residents having a bachelor’s degree or higher, the city’s residents continue to pay higher rates for auto insurance.[9]
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Detroit car insurance FAQs
Finding the right car insurance can be challenging. Below, you’ll find answers to some commonly asked questions about how to find the best auto insurance in Detroit.
How much is car insurance in Detroit?
Car insurance in Detroit costs $613 per month, on average. Drivers pay an average of $814 per month for full-coverage insurance and $411 per month for liability coverage. Your exact rate will depend on your insurer, age, driving record, credit history, vehicle type, chosen coverage level, and more.
What are the best car insurance companies in Detroit?
Auto-Owners is the best car insurance company in Detroit, with an Insurify Quality (IQ) Score of 4.0 out of 5 and an A.M. Best financial strength rating of A++ (Superior). Of the insurers Insurify has rate data for, other top Detroit choices include USAA and GEICO.
How do credit scores affect car insurance in Detroit?
Insurers in Michigan are allowed to use your credit score when determining your premium. A high credit score often results in lower car insurance rates, while a low credit score typically results in higher car insurance rates.
Why is Detroit car insurance so high?
Detroit car insurance is so expensive because insurers are allowed to use characteristics outside of driving ability, such as your education level and marital status, when setting your premiums. As of 2021, Detroit’s income level is lower than much of the rest of the region, and only 17% of residents have a bachelor’s degree or higher, so insurance rates remain high.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Janet Berry-Johnson, CPA is a freelance writer with a background in accounting and income tax planning and preparation. She's passionate about making complicated financial topics accessible to readers. She lives in Omaha, Nebraska with her husband and son and their rescue dog, Dexter. Visit her website at www.jberryjohnson.com.
As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
Auto-Owners
USAA
GEICO
