Which Company Has the Lowest Cost of Car Insurance in Detroit?

People who live in Detroit travel from residential areas to business areas that are crowded with businesses and traffic. The mean travel time to get to work in Detroit is slightly over 26 minutes—26.4, exactly. The same is true of the commute home, meaning that a working commuter is on the road for almost an hour every day that they work. In 2-vehicle households, this may end up meaning 10 hours on the road before you even take into account grocery store runs, kid’s activities, and entertainment outside the home.

In Detroit alone, the number of vehicle thefts in 2018 was 11,507. This gave the city a per capita rate of 265.97 per every 100k residents and a total rank in the US of 109. When combined with vehicle accidents and “acts of God”, it becomes clear that vehicle owners deal with many factors that lead to increases in auto insurance premiums.

Additionally, if a driver is the one at fault in an accident, their insurance company increases their annual and monthly premiums. And, if the vehicle’s owner holds down a lower-paying job, then high insurance premiums may be almost impossible to pay. Next, if this driver has a bad credit history, insurance companies may decline to cover their vehicle – which means the driver will have to shop around for insurance providers who do cover the vehicles of those who have bad credit.

What is Required for Detroit Drivers?

You can expect to buy an insurance plan with a premium ranging from $5,976 up to $6,072. Remember, these are annual premiums, not monthly payments. Your insurance provider should give you the option to make a lump-sum payment or break the annual premium up into 2, 6-month or even 12 monthly payments. Average annual rates vary from city to city in Michigan. In Detroit, this is $8,521.

Your insurance package is likely to contain a 50/100/50 plan (which covers property damage and medical care for someone injured in an accident), a minimal plan (liability) though you could also choose to pay for a full coverage plan. A full coverage plan is made up of comprehensive and the 50/100/50 liability plan you are required to have by law.

Comprehensive coverage pays for damage to your vehicle not resulting from an accident. This damage may result from a falling tree limb, striking an animal, storm (tornado, hail) damage and fire, among other events. Liability only will only cover the other vehicle if you are found to be at-fault in an accident.

If you are still making vehicle payments to your lender, they may require you to pay for comprehensive coverage, though you should be able to opt out once you are done paying off your loan.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Detroit by Insurer

As you consider your vehicle insurance options, you may decide that looking for the least-expensive coverage available is your best option; after all, you do have other financial commitments to consider. If you are looking for the least expensive payments, look no further. Though you may want to double-check with online reviews to make sure they offer solid customer support, these are some of the least expensive plans offered in the area.

Compare auto insurance quotes with our expert guide here.

Low Cost Auto Insurance for Bad Credit in Detroit

If your credit could be better, you may want to look around for insurance plans that take your credit history into account without declining to insure your vehicle. Vehicle insurance coverage is mandatory in Michigan, as it is in just about every other state. Ranging from $2,128 up to $10,386, these plans are offered for drivers with bad credit.

Learn more on finding low cost car insurance rates with poor credit.

What is the Difference Between Full Coverage and Liability?

What is Liability Only Coverage?

Liability-only coverage is the cheapest option for automobile insurance. This coverage level only covers vehicles that are not at fault in an accident. Thus, if you carry liability-only coverage and cause an accident, the other driver will be covered by your policy. Any damage done to your car must be covered out of pocket, if at all.

Another way to think of liability insurance is that it protects you from claims made by another driver. Without the protection of insurance, you might be sued if you were to collide with another vehicle.

Full Coverage Auto Insurance

Full Coverage is a commonly used term which covers more than just the damage you might cause in an accident, or the coverage you are liable for. If your policy covers your liability to another vehicle, the damage done to your vehicle (collision insurance), and any incidental damage done to your car by any non-auto elements (comprehensive coverage), then you have a policy that is indeed full coverage. If you have a new car, you may wish to cover it with such a policy, as you might want the peace of mind that any damage will be covered by insurance.

What is the Difference Between the Two Types of Car Insurance?

The difference between full and liability coverage is quite dramatic. With liability, insurers gamble that they will only have to pay for one car in an accident. With a comprehensive or full coverage policy, insurance companies know that they are taking on more liability exposure and so their rates reflect the increased risk. In the case of a comprehensive policy, they might even have to cover claims for damages that don’t arise from a traffic incident.

Average Annual Car Insurance Rates in Michigan by City

Additional cities in Michigan you can check out.

Grand Rapids

Sterling Heights


Utilize These Auto Insurance Discounts to Get a Lower Rate

There are many car insurance discounts and ways to save on your policy in Detroit:

  • Avoid Accidents

    Each time you are at fault in an accident, your insurance company must pay out to cover your liability. Thus, your rates are definitely going to rise any time you cause an accident. The longer you are able to maintain a driving record clean of accidents, the more favorable your policy will be in the eyes of insurance companies.

  • Don’t Speed

    Insurance rates are set relative to the risk you pose as a driver. Since speeding is positively linked to accidents, and thus to insurance claims, your tickets will also result in higher insurance rates.

  • Shop Around

    Insurance is like any other business and so some will charge lower rates in order to gain more customers. Before you purchase a policy from the last company you saw on television, do some homework and determine which policy is the best for you, even if it’s not the least expensive.

  • Comprehensive Insurance Packages

    Typically, insurance companies insure multiple asset types. They write policies for homes, boats, renters, and they can also cover your health. If you package your automobile insurance with your home, boat, and health insurance, you will likely pay a bit less for your car insurance.

  • Multiple Vehicles

    If you have more than one car, combine them on the same policy. The more cars you add, the lower your rates will be on a per-car basis.

We can help you get the best auto insurance discounts to lower your coverage costs here.

Detroit, MI Car Insurance Premiums Cost – What Affects Your Rates?

Your car insurance rate in Detroit, MI is based upon many factors. You will be charged more or less on your policy based upon your age, marital status, and your number of moving violations and accidents. You will also be charged by the carrier based upon the type of vehicle you drive, whether it is paid for or not, and whether you decide that it is cost effective and prudent to have collision insurance or not. Also, insurance agency rates are highly variable, based upon the company and what area of the country you live in. Those in rural areas often pay less, while people in large, metropolitan cities often pay more. Armed with knowledge and by shopping around, you overcome some of these factors and save substantial money each year on auto insurance.

Learn how driving violations can affect your car insurance rates.

Helpful Detroit, Michigan Vehicle Resources:

Live Traffic Accidents by City

DMV in Michigan (Find Locations, Vehicle Registration, Titles and Insurance Info)


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