Why Auto Insurance Is Expensive In Detroit
If you already have a car insurance policy, you know that its very expensive to insure a car in Detroit. The primary reason for high rates is Michigans no-fault laws. Insurance companies are required to pay all medical expenses as long as its needed including up to three years of lost wages. Most states cap the amount insurance companies are required to pay when someone is injured in an accident, but Michigan does not. This results in claim amounts that are multiple times higher than in neighboring states.
Until Michigan lawmakers change the no-fault laws to cap the amount insurance companies are required to pay, rates will remain high. No-fault laws provide protection for accident victims to ensure they receive the treatment they need, but the laws encourage unnecessary and drawn-out treatments. The high cost of insurance contributes to Michigans high rate of uninsured drivers and also discourages residents from moving into the state.
Detroit Car Insurance Premiums By Gender And Marital Status
The Zebra reports that single drivers pay about $51 more for auto insurance than married drivers who otherwise have similar characteristics. Widowed drivers also have lower rates than single drivers. Insurance companies find that single drivers file more claims than their counterparts who are married or widowed.
Male drivers get a price break of about $180 annually on auto insurance compared to female drivers. Statistically speaking, female drivers represent a higher risk for Detroit insurance providers.
Cheapest Car Insurance For Drivers With A Dui: Progressive
Driving while under the influence is a grievous infraction, and insurance companies tend to raise your rates very steeply if you’re convicted of one. The typical rate was $29,182 for a full coverage policy after a DUI in Detroit, with one insurer charging over $100,000 for a policy.
However, Progressive has surprisingly affordable rates, with a typical price of just $3,444. That’s only 18% more than what it charged a driver with a clean record.
Unfortunately, no other widely available insurer offered us a comparable rate: Auto-Owners gave us a typical price of $9,779 annually.
| Rank |
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| $1,459 |
*USAA is only available to current and former military members and their families.
One of the best ways for teens to save on car insurance is to share a policy with an older family member, or by taking a driver’s education class beyond what’s required to get your license.
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Detroit Auto Insurance Premiums By Driver Age
The Zebra reports that as in most of the U.S., teenagers have the most expensive auto insurance costs in Detroit. Once drivers turn 20, they save more than $10,000 per year on average compared to the price for auto insurance as an adolescent. No other location has a price gap this large between age 19 and 20.
Detroit drivers in their 50s have the lowest car insurance rates. They pay an average of $5953 annually. The average increases just slightly to $6050 per year for drivers in their 60s.
What Are The Requirements For Auto Insurance In Detroit
If youre someone who doesnt drive very often or cant afford an expensive insurance plan, then you might wonder whether Michigan has a minimum policy for auto insurance and, if it does, how much the insurance needs to cover. Like many other states, Michigan has a minimum level of coverage it requires drivers to have by law. As of July 2020, Michigan requires all drivers in the state to have the following level of coverage:
- $20,000 in liability coverage for bodily injuries per person
- $40,000 in liability coverage for bodily injuries per accident
- $10,000 in liability coverage for property damage per accident outside of Michigan
- $1,000,000 in liability coverage for property damage per accident in Michigan
- Up to $500,000 in personal injury protection , $50,000 in personal injury protection
Liability coverage is how you protect yourself against claims for damage and injuries to people in the event of an accident. Personal injury protection or no-fault insurance is a way you can cover expenses like medical bills, funeral coverage, or lost wages regardless of who is at fault in a car accident. This coverage is to help you and your passengers after an accident, while liability pays for damage to another vehicle and injuries to those inside it.
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What Is The Average Cost Of Car Insurance In Detroit
Detroit is Michigans largest city and has the nickname Motor City because of its ties to the auto industry. General Motors has its headquarters in Detroit, and Ford and Chrysler are nearby. Detroit is also the birthplace of Motown Records. And near downtown Detroit, youll find the Detroit Institute of Arts. In Detroit, youll also find Belle Island, a 982-acre island park, which was developed in the late 19th century and includes an aquarium. There is Comerica Park, a baseball park where the Detroit Tigers play, located in downtown Detroit. There is also Fox Theatre, a performing arts center, and the Detroit Zoo, which is known for its polar bears. The Michigan Science Center is renowned for its interactive exhibits and planetarium. There is much to do in Detroit including The William G. Milliken State Park and Harbor, which is located on the Detroit River just east of downtown. The park’s 31 acres include wetlands, paved trails and a 52-slip harbor. With a nickname like Motor City, it is easy to think about your car when driving around the streets of Detroit. Wouldnt you like to lower your car insurance rates? SmartFinancial can help. SmartFinancial has access to more than 200 insurance companies so you are bound to find the low rate that you want. Now heres a look at what you need to know about insurance for your car in Detroit.
How Much Does Car Insurance Cost In Detroit Mi
Detroit drivers pay an average car insurance rate of $478 per month for full coverage. This rate is considerably higher than the average of both the national average and the state of Michigan .
The state-required minimum liability car insurance in Detroit is also exceedingly high. On average, motorists in Motor City will pay $356 per month for this basic liability coverage that includes bodily injury/death liability and property damage liability . Also included is Personal Injury Protection , although Michigan drivers can now opt out of PIP if they have some other health insurance that will cover their injuries from a car crash.
Full coverage car insurance consists of liability, collision auto insurance and comprehensive car insurance. Drivers who have a leased or financed vehicle will most likely be required by their lender to carry cull coverage. Other drivers purchase it because it offers greater financial protection.
Rates between cities also vary significantly. For example, residents of sparsely-populated Lansing and Midland will find the cheapest insurance in Michigan and pay much less than drivers who live in the congested cities.
How does Detroit compare with other cities in Michigan? Here is a breakdown of average monthly car insurance costs for other cities in the state.
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Read Also: Cars With Best Insurance Rates
How Much Does Insurance Go Up After A Speeding Ticket In Detroit
A speeding ticket in Detroit will hike your car insurance rates by an average of 41% , or about $2,719 yearly. CarInsurance.coms rate analysis shows how much more drivers in Detroit can expect to pay, on average, for speeding and other common violations.
Minor traffic violations, such as speeding, typically stay on your record for about three years, and you can expect to see the rate increase upon your policy renewal date. More severe infractions, such as DUI, typically stay on your record much longer.
Usaa: Best Military Provider
J.D. Power satisfaction rating: 909/1,000
BBB rating: A+
AM Best rating: A++
Telematics program: SafePilot
USAA consistently offers affordable car insurance for drivers from many different categories and performs well in industry studies. However, to have access to USAA, you must be a military member or a family member of one.
USAA is known for its first-rate claims servicing and has a wide selection of car insurance discounts. USAA also offers flexible payment plans to meet the unique needs of military personnel. If your family lives on base, you can receive additional discounts.
Recommended Reading: Progressive Auto Insurance Telephone Number
Cheapest Luxury Suv Insurance Rates In Detroit
The five lowest-cost SUVs to insure in Detroit are the Acura RDX, Cadillac XT4, Volvo XC40, Cadillac XT5, and Lexus NX 250. Auto insurance rates for these five models range from $5,112 to $5,934 per year.
Some other luxury SUVs that have cheaper rates include the BMW X1, Lexus UX 250h, Lexus NX 350, and Lexus UX 200, with average annual insurance rates of $6,100 per year or less.
Some additional vehicles on the list include the Lexus RX 350, Jaguar E-Pace, Infiniti QX50, and Land Rover Evoque, which average between $6,100 and $6,318 per year for insurance in Detroit.
Full-coverage insurance in Detroit for this segment for an average middle-age driver will start around $426 per month, depending on your location and insurance company.
The comparison table below ranks the twenty SUVs with the most affordable car insurance in Detroit, starting with the Acura RDX at $426 per month and ending with the Lincoln Corsair at $527 per month.
| Make/Model |
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Get Rates in Your AreaWhy is this important?
Table Data Details:
See our guides for luxury SUV insurance to compare rates for additional makes and models.
Dont see rates for your luxury SUV? No problem! Enter your zip code at the bottom of the table and click the orange GO button to get free Detroit car insurance quotes from top companies in Michigan.
Progressive: Best For High
Average annual premium: $1,397
J.D. Power satisfaction rating: 862/1,000
BBB rating: NR
AM Best rating: A+
Telematics program: Snapshot
If you have a less-than-stellar driving record, Progressive can be a smart choice. The company often offers some of the cheapest auto insurance for people with DUIs and other high-risk drivers.
Progressive has numerous discounts and ways to save on coverage. The company offers discounted rates for online account management, loyalty, safe drivers and multi-vehicle coverage, just to name a few. Progressives Name Your Price tool can also help you find a policy that fits your budget.
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Cheapest Auto Insurance In Detroit: Progressive
The most affordable option for basic coverage in Detroit is Progressive, which offered a full year of coverage for $1,817. That’s 64% cheaper than the average of $5,081 across all insurers.
Auto-Owners had a comparable price for coverage, at just $1,853 per year. The absolute lowest rate was at USAA it provided us with a typical rate of $808 per year. However, USAA is only available to people who’ve served in the military and their families.
Compare Car Insurance Rates in Detroit
*USAA is only available to current and former military members and their families.
How Much Is Auto Insurance In Detroit
Drivers often ask how much it costs to insure a vehicle in Detroit. There are a number of factors that determine how much you will pay, and some of those include:
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Cheap Car Insurance In Detroit By Age
Along with where you live, your age is another major factor in the price you pay for car insurance. For example, younger drivers usually pay more than older drivers with similar driving histories and credit scores due to having less experience on the road.
You could easily find that the cheapest company for you changes as you age. Here’s a breakdown of prices in Detroit for similar drivers at various ages, according to NerdWallets most recent analysis.
Cheapest Cars To Insure In Detroit
The top five models for the lowest-cost Detroit car insurance rates in the sedan or hatchback segment are the Volkswagen Jetta, Subaru Legacy, Volkswagen Golf, Subaru Impreza, and Chevrolet Spark. Auto insurance quotes for these vehicles average $5,798 or less per year, or around $483 per month.
Other cars that have cheaper rates are the Honda Insight, Nissan Sentra, Kia K5, and Toyota Camry, with average rates of $5,866 per year or less.
Some additional cars that make the list include the Chevrolet Malibu, Kia Rio, Hyundai Veloster, and Kia Forte, which cost between $5,866 and $6,198 per year to insure in Detroit.
On a monthly basis, auto insurance in Detroit on this segment for a good driver can cost as low as $431 per month, depending on your location and insurance company.
The cheapest compact car to insure in Detroit is the Subaru Impreza at $5,174 per year. For midsize models, the Subaru Legacy is cheapest to insure at $5,780 per year. And for full-size non-luxury cars, the Toyota Avalon has the cheapest rates at $6,264 per year.
The comparison table below ranks the twenty cars with the most affordable insurance rates in Detroit.
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Get Rates in Your AreaWhy is this important?
Table Data Details:
See our guides for compact car insurance, midsize car insurance, and full-size car insurance to view any vehicles not shown in the table.
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Cheap Car Insurance Quotes In Detroit Mi
Get average car insurance rates for Detroit, MI by coverage level, ZIP code and company. Also get advice and information needed to make a smart decision to get cheapest insurance.
Here youll learn everything you need to know to buy the best car insurance policy in Detroit for your particular situation. Youll see which carriers are rated as the best car insurance companies for customer satisfaction and what the average car insurance rates are for your neighborhood.
Youll also discover how much you can save from knowing how to make smart choices about coverage. And, find out how rates for Detroit drivers are affected by tickets, accidents and adding teen drivers.
- In Michigan comprehensive costs $1,096 and collision costs $2,286, on an average per year, according to a rate data analysis done by CarInsurance.com.
- For state minimum coverage, the average cost in Detroit is $2,296.
- You can save an average of $16,712 a year on a full coverage policy in Detroit by comparing price quotes from different car insurance companies, according to CarInsurance.coms rate analysis.
Cheapest Car Insurance For Good Drivers
| Cheapest Car Insurance Company |
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J.D. Power satisfaction rating: 881/1,000
BBB rating: A+
AM Best rating: A++
Telematics program: DriveEasy
GEICO is best known for its gecko-centered marketing campaign. However, the insurer brings much more to the table than just a clever advertising strategy. In fact, the company topped our rankings in all of our review categories.
We awarded GEICO a 9.8 out of 10.0 for industry reputation. The company earned a 8.5 for coverage, customer experience, and cost. We like GEICO for its low prices, wide array of discounts, and usage-based insurance option. GEICO also offers mechanical breakdown insurance and rideshare insurance.
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Cheapest Luxury Cars To Insure In Detroit
The four lowest-cost luxury car models to insure in Detroit are the Acura ILX at $5,490 per year, Mercedes-Benz A220 at $5,862 per year, BMW 330i at $6,304 per year, and Acura TLX at $6,342 per year.
Other luxury cars that have affordable average insurance rates are the BMW 330e, Alfa Romeo Giulia, BMW 228i, and BMW 230i, with an average cost to insure of $6,616 per year or less.
Car insurance rates in this segment for a safe driver can cost as low as $458 per month, depending on the company and your location.
The table below ranks the twenty cars with the most affordable average insurance rates in Detroit, starting with the Acura ILX at $5,490 per year and ending with the Audi S3 at $6,930 per year .
| Make/Model |
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Get Rates in Your AreaWhy is this important?
Table Data Details:
See our comprehensive guide for luxury car insurance to view data for vehicles not featured in the table.
Is your vehicle not in the list? Enter your zip code at the bottom of the above table and click the orange GO button to get free car insurance quotes from top-rated companies in Michigan.
Cheapest Car Insurance In Detroit For Minimum Coverage
If youre looking for Detroits cheapest car insurance offers, you can opt for a state minimum policy. Such policies are significantly more affordable, but they dont include comprehensive and collision coverages, exposing the driver to financial risks in case of an accident.
These providers offer the most affordable minimum coverage policies:
- Nationwide: $977 per year
- GEICO: $1,879 per year
USAA offers the most affordable state minimum policies for eligible military members and their family in Detroit at $889 annually. Its $10,967 cheaper than the citys most expensive state minimum provider, Farmers.
Check out the table below to see how costs vary depending on liability coverage.
Cheapest Minimum Liability Car Insurance in Detroit
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All drivers in Michigan are required by law to have a minimum coverage policy, which includes personal injury protection, property protection insurance, and liability insurance.
A minimum coverage policy is the cheapest car insurance in Detroit. Buying it will result in savings in your monthly premiums, but you may end up paying more out of pocket in the event of an accident.
In Michigan, liability insurance only covers $20,000 for bodily injuries per person. That means if youre at fault in a collision and the other partys medical expenses reach $30,000, youll have to pay $10,000 by yourself.
Michigan Minimum Liability Requirements
- $1 million property protection.
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