Best Cheap Car Insurance in Detroit, MI 2024

USAA offers the best cheap car insurance in Detroit, followed closely by GEICO.

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Updated: 15 May 2024
Written by Bob Phillips
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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).

Cheapest Car Insurance In Detroit, MI 2024

Cheapest Car Insurance, Detroit 2024

Compare The Best Car Insurance In Detroit, MI

Overall Rating Best For J.D. Power Rating Average Annual Cost AM Best Rating Get A Quote
USAA
4.9

Cheapest

876

$1,424

A++

Instant Quote
GEICO
4.9

Cheapest Full Coverage

824

$2,728

A++

Instant Quote
Nationwide
4.8

Cheapest Minimum Coverage

787

$977

A+

Instant Quote
Chubb
4.8

Cheapest For Young Adults

NR

$3,865

A++

Instant Quote
Chubb
4.8

Cheapest For Seniors

NR

$1,915

A++

Instant Quote
Scroll to see comparisons

Our Methodology

To find the cheapest car insurance rates in Detroit, we analyzed findings from numerous auto insurance review sites, some of which analyzed rates from public filings obtained by Quadrant Information Services. Also factored into the overall rating is my subjective opinion based on fifteen years of experience as a licensed insurance agent and over three decades of purchasing car insurance.

67

Quotes Analyzed

25+

Years Of Industry Experience

21

Brands Reviewed

23+

Research Hours

Cheapest Auto Insurance Companies In Detroit, MI


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
10/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Drivers with a military background or are part of a military family may be eligible for USAA car insurance, which is the cheapest we found in Detroit for a company that doesn’t require you to bundle other insurance with their auto insurance.

In addition to already having an affordable car insurance in Detroit, USAA offers insureds a variety of discounts, including:

  • Responsible driver
  • Insure a new car
  • Install anti-theft devices
  • Bundle multiple policies
  • Be a loyal member

USAA’s standard coverage includes comprehensive coverage and collision coverage for accidents, theft, vandalism, fire, or weather-related incidents. It also helps protects a policyholder’s finances if they’re liable for injuries or property damage. If you’re hit by someone who is uninsured or underinsured, you’ll be covered for your injuries, vehicle damage, and lost wages if you can’t work.

USAA also has an excellent website and mobile app, which allow you to report a claim and track the status, get roadside assistance, schedule vehicle inspections and other services, and chat with your adjuster.

In addition to its cheap car insurance rates, USAA had the highest customer satisfaction ratings from JD Power of any insurer we reviewed. The company is known for its member loyalty because of its exceptional customer service.

Benefits & Drawbacks

Benefits
  • Highest customer satisfaction ratings for auto insurance
  • One-stop shop for insurance, as well as banking and investing products
  • Policies are available in all states and Washington, D.C.
Drawbacks
  • Only available for active military, veterans, and their families

Overall Cheapest Car Insurance Rates In Detroit

Auto Insurance Company Rate Per Year
USAA $1,601
GEICO $1,985
State Farm $5,892
Progressive $3,840
Travelers $2,562

Cheapest For Full Coverage

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Even though USAA’s rates were lower than GEICO’s, GEICO placed first in this category because it is available to everyone, unlike USAA, which is available only to active military, veterans, and their families.

Full coverage insurance in Detroit and throughout the state of Michigan is defined as a policy that provides comprehensive and collision insurance plus at least the state’s minimum required coverage. Full coverage also includes personal injury protection and property protection insurance.

In addition to the cheapest full coverage car insurance in Detroit, GEICO has good scores in customer service, policy renewals, claims handling, customer recommendations, and customer loyalty.

Full coverage in Michigan includes:

  • Bodily injury liability insurance: $50,000 per person / $100,000 per accident
  • Property damage liability insurance: $10,000
  • Property protection insurance: $1,000,000
  • Personal injury protection: $250,000 with exceptions for drivers who have Medicare or Medicaid
  • Collision insurance: covers up to the value of the vehicle
  • Comprehensive insurance: covers up to the value of the vehicle

When financing a vehicle, lenders usually require full coverage, which includes collision and comprehensive coverage in addition to state minimums.

Benefits & Drawbacks

Benefits
  • High customer satisfaction ratings for auto insurance according to J.D. Power
  • Robust website and mobile app
  • Many discounts available
Drawbacks
  • Limited network of local agents
  • Doesn’t offer gap or rideshare insurance

Cheapest Full Coverage Rates In Detroit

Company Rate Per Year
GEICO $1,809
Progressive $1,770
Auto-Owners $2,358
Westfield $3,090
Farm Bureau $3,503

Cheapest Minimum Coverage

Overall Rating
4.8

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claims/payouts
9/10 Coverage Level

Why We Like Them

Nationwide is a major insurer that offers full coverage and minimum coverage in Detroit, but it is the most competitive price-wise in providing the minimum coverage required.

The minimum coverage required in Detroit and the state of Michigan includes:

Minimum coverage does not require comprehensive and collision insurance.

In addition to its standard coverage, Nationwide also offers extras through its loyalty rewards program, which is available to everyone, regardless of their coverage amount. These extras include:

  • Minor accident forgiveness: your rates won’t increase if you have a fender bender or small accident, even if you were at fault if the repairs are under Nationwide’s accident threshold. There is no limit on the number of accidents you have for this extra.
  • Guaranteed repairs for life: your repairs are guaranteed for life if you get them fixed at a shop in Nationwide’s auto repair network.
  • Waive auto and home deductible: Your deductible will be waived, or you’ll get reimbursed for your lowest deductible if a covered loss affects your house and car.

You can manage your Nationwide auto insurance through its website or mobile app. On each, you can start a claim, get insurance ID cards, and manage your policy. In addition, the company has a separate app for its SmartRide program, which tracks your driving behavior and offers discounts for safe driving habits.

Benefits & Drawbacks

Benefits
  • Fewer than expected number of complaints to state regulators for an insurer its size
  • Many discounts available
  • Generous extras for loyal customers
Drawbacks
  • J.D. Power score is lower than average for car insurers
  • Above average car insurance premiums for drivers with a DUI

Cheapest Minimum Coverage Rates In Detroit

Company Rate Per Year
Nationwide $977
Auto Owners $1,298
GEICO $1,210
Progressive $1,132
Westfield $1,642

Cheapest For Young Adults

Overall Rating
4.8

Key Statistics

9/10 Affordability
9/10 Customer Reviews
10/10 Claims/payouts
10/10 Coverage Level

Why We Like Them

A higher rate of accidents among young adults means they also pay more for their auto insurance than older drivers with similar driving records and credit scores.  Chubb has the cheapest car insurance in Detroit for this younger demographic.

Even though Chubb specializes in property and casualty insurance for higher-income clients, its rates for younger drivers of all income levels are the cheapest you’ll find in Detroit. Chubb’s Masterpiece auto insurance policy, which is available for drivers of all ages, is geared toward owners of more expensive vehicles. It provides:

  • Generous rental reimbursement coverage: reimburses you up to $15,000 to rent a car, with no per-day limit.
  • Coverage for original equipment manufacturer (OEM) parts: unlike many other car insurers, Chubb doesn’t just pay for less expensive aftermarket parts.
  • Worldwide rental car coverage: good for young adults studying abroad, the Chubb auto policy extends to damage to a rental car you drive anywhere in the world.
  • Lifetime repair guarantee: if your car is fixed in a Chubb-certified shop.
  • Lock and key replacement: with no deductible.
  • Removal of personal information: if your vehicle is totaled, Chubb will delete personal data stored in the car’s systems, such as GPS addresses, phone contacts, and garage door codes.

Benefits & Drawbacks

Benefits
  • Best car insurance rates for young drivers overall
  • Generous car insurance coverage and perks for high-end customers
  • Received fewer complaints than expected for auto insurance
Drawbacks
  • Above-average rates for adults
  • Fewer agents represent Chubb than many other car insurers

Cheapest Coverage For Young Adults

Company Rate Per Year
Chubb $3,865
GEICO $3,942
Auto-Owners $5,197
Hastings Mutual $6,783
Progressive $7,191

Cheapest For Seniors

Overall Rating
4.8

Key Statistics

9/10 Affordability
9/10 Customer Reviews
10/10 Claims/payouts
10/10 Coverage Level

Why We Like Them

For adults aged 60 and over, car insurance rates are at their lowest if you have a clean driving history. This is because most older adult drivers have many years of experience on the road, established driving records, and higher credit scores. Insurers know this is a lower-risk group and price their policies accordingly.

Senior drivers can also save money by bundling their car insurance with other products from the same insurer and taking advantage of other discounts, such as good driver discounts, loyalty discounts, and early renewal discounts.

Even though Chubb is known for insuring high-end vehicles, it’s till the cheapest overall for seniors because the average value of their cars tends to be higher than their younger counterparts. Chubb is also very popular with the senior market because of it’s “concierge service,” which gives white-glove treatment to policyholders filing claims.

Unlike younger drivers who find using texting and mobile apps preferable to conversing by phone, many seniors prefer talking with a live customer service representative, which Chubb also makes readily available to their clients.

Overall, Chubb provides an excellent value for its older clientele in terms of excellent coverage, abundant customer service options, and lower rates for seniors.

Benefits & Drawbacks

Benefits
  • A++ rating for financial strength by AM Best
  • Generous coverage options
  • Multiple policy options for household insurance needs
Drawbacks
  • Online quotes are unavailable
  • Fewer agents represent Chubb than many other car insurers

Cheapest Coverage For Seniors

Company Rate Per Year
Chubb $805
GEICO $1,810
Travelers $2,012
Westfield $3,005
State Farm $4,461

Average Cost Of Car Insurance In Detroit

Insurance Company Average Monthly Quote
USAA $208
GEICO $312
Safeco $357
State Farm $427
Bristol West $628

Average Cost Of Car Insurance In Detroit – By Age

Age Group Average Monthly Rate
Teenagers $1,241
Under 25 $1,167
25-29 $1,015
30s $849
40s $924
50s $766
60s $686
70s $521
80+ $559

Average Cost Of Car Insurance In Detroit – By Gender

Gender Annual Rate
Female $5,224
Male $5,223

Average Cost Of Car Insurance In Detroit – By Marital Status

Marital Status Average Monthly Cost
Single $649
Married $618

Average Monthly Cost In Detroit With An Accident

Insurance Company Clean Record At-Fault Accident Difference
USAA $268 $385 $117
GEICO $405 $581 $176
Safeco $452 $648 $196
State Farm $549 $787 $238
Bristol West $793 $1,135 $343

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

Very poor: $1,481
Fair: $959
Good: $873
Exceptional $746

Average Cost Of Car Insurance In Detroit – By Zip Code

ZIP Code Average Rate
48228 $4,157
48219 $3,832
48235 $4,037
48227 $4,558
48224 $4,248
48221 $4,018
48205 $5,098
48234 $5,162
48210 $6,423
48209 $6,204

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. This is the largest rate increase since 2017.

FAQs

What is the cheapest car insurance in the state of Michigan?

Travelers is the cheapest car insurance in Michigan for good drivers, while Secura is a great option for cheap car insurance with full coverage.

How much does car insurance cost in Detroit on average?

The average car insurance cost in Detroit is $6,239 per year, almost twice the state average.

Do I need car insurance in Detroit?

Auto liability insurance is required by law in Michigan, so Detroit drivers must have it.

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