Best and Cheapest Car Insurance in Detroit, MI (2024 Rates)

People living in Detroit, also known as “The Motor City,” know their cars, and they also know car insurance. Especially how expensive it is. To help Detroiters get the cheapest car insurance quotes in Detroit, we’ve evaluated dozens of top insurers and have found USAA to provide the cheapest car insurance in Detroit by a wide margin.

Which is saying a lot, considering the average annual rate for auto insurance in the city of Detroit is $6,239, compared to the average annual state rate of $3,229.

If you’re looking for a review that will save you money based on your driving record and the amount of coverage you’re looking for, you’ve come to the right place. We’ll steer you in the right direction to find not only the cheapest overall (USAA), the cheapest for full coverage (GEICO), the cheapest for minimum coverage (Nationwide), the cheapest for young adults (Chubb), and the cheapest for seniors (Chubb).

Overall Cheapest Car Insurance Rates In Detroit

Cheapest Full Coverage Rates In Detroit

Cheapest Minimum Coverage Rates In Detroit

Cheapest Coverage For Young Adults

Cheapest Coverage For Seniors

Average Cost Of Car Insurance In Detroit

Average Cost Of Car Insurance In Detroit – By Age

Average Cost Of Car Insurance In Detroit – By Gender

Average Cost Of Car Insurance In Detroit – By Marital Status

Average Monthly Cost In Detroit With An Accident

Average Monthly Cost Of Car Insurance In Detroit – By Credit Tier

Average Cost Of Car Insurance In Detroit – By Zip Code

Minimum Car Insurance Requirements In Michigan

As you shop for auto insurance, keep in mind the minimum coverage required in Michigan:

• Bodily injury liability per person: $50,000
• Bodily injury liability per accident: $100,000
• Property damage liability per accident outside Michigan: $10,000
• Property protection within Michigan: $1 million
• Personal injury protection: $250,000 (lower limits are allowed for some Medicare and Medicaid recipients)

This is the minimum coverage required in Michigan. You may want higher limits and add collision and comprehensive insurance depending on your vehicle and how much time you spend on the road.

How To Buy Car Insurance In Detroit

Buying car insurance in Detroit doesn’t have to be time-consuming or complex once you decide if you want to take the traditional route of shopping for insurance by working with an agent or shopping online. Whichever you choose, following these steps will save you time and money.

Do Your Information Gathering

Before you hop online or call a local agent, gather up this information they’ll be asking you for to give you an accurate quote:

• Name and birthdate of everyone who will be on the policy
• Drivers license numbers for each person to be covered
• Facts about the car: make, model, vehicle identification number, safety features, current odometer reading, annual miles driven
• Driving history for all drivers, including tickets, accidents, or any other violations
• Your current insurer, if applicable, and your current coverage limits

Determine Your Coverage Needs

Make sure you know how much coverage you need. If you’re unsure, use the Michigan minimum car insurance requirements:

• Bodily injury liability per person: $50,000
• Bodily injury liability per accident: $100,000
• Property damage liability per accident outside Michigan: $10,000
• Property protection within Michigan: $1 million
• Personal injury protection: $250,000 (lower limits are allowed for some Medicare and Medicaid recipients)

If you’re still unsure of how much coverage you need, you may want to work with an agent who can help you determine what you need.

Choose Your Buying Method

There are a couple of ways to buy the cheapest car insurance in Detroit.

First, you can work with an insurance agent. There are several different types of agents to choose from. Captive agents work for only one insurance company (Nationwide, State Farm, etc.), car insurance brokers that represent more than one company (i.e., Progressive, Geico), and specialty agencies that can help if you have a poor driving record, such as having had recent accidents, DUIs, tickets, or lapses in coverage.

The other way to buy car insurance in Detroit is to buy it directly from the insurer online. You won’t have to speak with an agent if you buy this way; you simply enter your information, and you’ll get a quote(s) with all of your policy options and pricing.  You can then complete the application online.

Either buying method will work; it just depends on whether you want to interact with an agent or representative of the different companies you get quotes from.

Compare Car Insurance Companies

When buying car insurance, get quotes from at least three companies before deciding which company and coverage are best for you. When comparing prices, make sure you compare apples to apples and get quotes for the same coverage limits.

After you get your quotes, check how many consumer complaints have been filed against the insurer by visiting the National Association of Insurance Commissioners website.

Buy Your New Policy And Cancel Your Old One

If you’re buying a new car, don’t drive off the lot without having car insurance. If you’re replacing coverage on an existing vehicle, contact your former insurer and cancel the policy once your new coverage takes effect. You should receive a refund minus any cancellation fee if there is any unused premium.

Factors That Impact The Cost Of Your Car Insurance Policy In Detroit

Insurance companies use many factors to arrive at your cost of auto insurance in Detroit, such as

• State requirements: your policy must have at least the minimum coverage required by the state of Michigan.
• Your age: car rates can vary by as much as 350% based on age. Younger drivers will pay the most due to inexperience and their frequency of accidents. Rates will begin to drop after age 25.
• Car make and model: the safer your vehicle, the lower your rates will be. For example, it will cost you at least twice as much to insure a Ford Mustang GT as a Ford Focus with a 4-cylinder engine.
• Your driving record: accidents and traffic violations can cause your car insurance rates to more than double because you’re a more considerable risk to the insurer.
• Yearly mileage: people with a long commute will pay more than those who only drive for leisure.
• Credit history: the better your credit score, the lower your rates will be since insurers see you as being more responsible and less of a risk than someone with poor credit.
• Zip code: depending on where you work and park your car at night, you might get a discount or a rate increase, depending on the likelihood of your vehicle being damaged.
• Marital status: married drivers get lower rates because they are less expensive to insure than single drivers.
• Gender: men around age 45 pay an average of 6% lower than females the same age, but the gender gap evens out for drivers in their 30s.

Car Insurance Discounts In Detroit

Car insurance in Detroit is expensive compared to the rest of the state of Michigan, so shopping for discounts is important if you want to cut costs. The most common discounts you can get are for the following:

• Good driving history
• Vehicle safety features
• Customer loyalty
• Being claims-free
• Low mileage discount
• Good student discount
• Military discount
• Senior discount

Michigan Car Insurance Laws To Know

Drivers in Michigan are required to have a minimum of 50/100/10 in liability insurance, PIP coverage, and a minimum of $1 million in property protection insurance.

Michigan’s no-fault insurance law means drivers must carry proof of insurance showing they have PIP, PPI, and third-party liability coverage.

In The News

Car insurance premiums are expected to increase by an average of 8.4% this year after a slight 0.6% decrease in 2022, as reported by Repairer Driven News. This is the largest rate increase since 2017.

Information About Detroit

Detroit is the largest city in the U.S. state of Michigan and the seat of Wayne County. It is located in southeastern Michigan on the Detroit River opposite the city of Windsor, Ontario, Canada. The Detroit River connects Lake Erie and Lake St. Clair, contributing to the city’s vital role as a major port city.

“Detroit” is a word almost universally associated with the American automotive industry. The city is also an important contributor of famous music legacies, celebrated by the city’s two familiar nicknames, Motor City and Motown.

The city was once the fourth largest in the United States, but since 1950 it has experienced a significant shift in population to the suburbs. As a result, the name Detroit is commonly used to refer to the Metro Detroit area, a sprawling region with a population of 4,467,592. It is currently the eighth-largest city in the U.S.

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