UPDATED: Mar 13, 2020
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Cheap Car Insurance in Detroit, MI
Are you in need of auto insurance in Detroit, Michigan? At AutoInsuranceEZ.com, you will find the lowest cost insurance rates for your area. To receive free car insurance rates from the major providers today, enter your zipcode in the quote box here.
Also known as “the Motor City”, Detroit is the largest city in Michigan and has been the center for economic activity for much of the state’s history. The city also has roots in the entertainment industry as the center of the Motown era. In recent years its production base has struggled, but it was once the automobile manufacturing capital of the world.
- Fun fact: even in the face of recent population declines, Detroit is still #10 on the list of “Top 100 biggest cities”.
Auto Insurance Coverage Requirements in Michigan
Driving legally in Detroit requires:
|Bodily Injury Liability||20,000/40,000||100,000/300,000|
|Property Damage Liability||10,000||100,000|
|Uninsured Motorist Bodily Injury||Not required||20,000/40,000|
|Medical Payments||Not required||5,000|
|Collision||Not required||500 deductible|
|Comprehensive||Not required||100 deductible|
Are you still making payments on a new car? Well, it’s important to let your insurance company know up front. Many lenders won’t let you purchase any kind of insurance which doesn’t contain Comprehensive and Collision coverage. Otherwise, you’ll probably be free to buy a liability only policy.
Michigan insurance rates run at an average of about $213 per month for most drivers. However, Detroit motorists can get a better deal – did you know that local rates can get as low as $156/mo*? With the right help, you can get the affordable rate you deserve.
If you want a competitive rate, you can’t seem to go wrong with Nationwide or Farm Bureau. In order to learn more about these companies, as well as their local competitors, you’re going to want to compare as many online customer service reviews as you can find.
Auto insurance carriers consider many variables when determining insurance rates, which includes marital status, zip code, type of vehicle owned, years of driving experience, and multiple cars and drivers. In addition, premiums vary from carrier to carrier. To find out whether you’re still paying the most affordable price, review cheap Detroit auto insurance costs online.
Major Car Insurance Factors in Detroit
Once your car insurance agency gets ready to write your insurance plan, they take numerous aspects into consideration. A few of these, for instance your age or your specific locale, usually are unfeasible to improve. Here are a few additional examples:
Your Zip Code
Your car insurance rates could vary based on the place you call home. Usually, populous areas have greater auto insurance rates because the additional number of motorists on the highway raises the likelihood of an accident! The total population of Detroit amounts to 688,701 and also the median family income is approximately $24,820.
Any area with a high number of serious accidents put you at greater risk for having one, too. And this increased risk can drastically raise your monthly premiums. Unfortunately, accident rates in Detroit are very high, which helps explain why insurance in Detroit is so expensive.
Auto Thefts in Detroit
Residing in a big city (Particularly one having a significant crime rate) raises your probability of being a victim of auto theft. If your overall locale features substantial statistics of theft claims, you will probably pay more for auto insurance to counteract these costs. The full amount of stolen automobiles in Detroit was 11,893 during the fiscal year 2013. The auto theft rates are alarmingly high, so consider adding Comprehensive coverage to your auto policy – it’s the only way to replace your car in case of theft.
Your Credit Score
It turns out that your credit score is one of the biggest influential factors when it comes to determining your insurance premiums. Just look at the chart below. If you have poor credit, your rates could be anywhere from 2x to 3x higher than someone with better credit.
Young drivers are statistically more likely to cause car accidents than any other type of driver. Because of this, they are charged much more for their monthly premiums than older drivers. However, you should look into discounts for teens, such as Good Student discounts, or discounts for taking Drivers Ed.
Your Driving Record
Have you heard of “accident forgiveness”? It’s a new type of discount that many companies are offering their clients. In short, your provider will ignore one or more minor blemishes on your driving history, thereby giving you discounts on your auto policy.
Thinking about purchasing insurance for a luxury vehicle? If you can afford it, go right ahead – but keep in mind that you will need an equally luxurious insurance policy to keep yourself protected from accident- and theft-related expenses. Economical cars, on the other hand, don’t require as much coverage, and therefore have lower monthly rates.
Minor Car Insurance Factors in Detroit
These factors, in addition to the factors above that are very significant, can all contribute to your final monthly insurance premium:
Your Marital Status
Being married presents a special opportunity to bundle your insurance policies. Married couples have the option to bundle their auto policies together (under the same company, of course). And if your insurer sells multiple types of insurance, you can bundle them all together for even bigger discounts.
Data shows that there is no statistically significant difference between male and female drivers. Therefore, most insurance companies have no reason to charge one gender more than the other, and many have abandoned the practice all together. Those who still do rarely charge more than a 2-3% difference.
Your Driving Distance to Work
While most commuters will spend an average of 20-25 minutes behind the wheel each trip, some typical commute times can range as high as 30-35 minutes. Carpooling and buses are quite popular in Detroit; together they make up about 25% of daily commute transportation. 65% of motorists still prefer to take their own vehicle to work, though.
Some companies will adjust your rate based on why you drive, or how far you drive each year. Even though your provider might request this information from you, driving a few thousand miles each year for pleasure tends to cost about the same as driving tens of thousands of miles for work, give or take a few percentage points. However, if your automobile is registered as a business vehicle on your insurance policy, you could be looking at 10-15% higher premiums each month.
Your Coverage and Deductibles
A good strategy for lowering your insurance premiums, especially if you are a particularly careful driver, is to raise your deductible. Assuming you never have to file a claim, you can save a good deal of money each month. But it’s a good idea to take some of that savings and put it away, in case you ever do have to file a claim on your vehicle.
Education in Detroit, MI
If you have a higher education, you’re in luck; providers are increasingly offering cheaper rates to those motorists who possess advanced degrees. In Detroit, nearly 61% of the population either has a high school diploma or has yet to complete all four years of high school.
There are a great variety of institutions to choose from for those Detroit residents looking for an advanced education. Wayne State University is the city’s largest public university and educates nearly 35,000 students each year. For a private institution, you might want to look into the University of Detroit-Mercy, a Catholic university with one of the most culturally diverse student bodies in the Midwestern region of the US.
Discovering reasonably priced car insurance may end up being a headache. There’s a lot of information you need to look at, and understanding just how insurance companies assess your prospective risk can be complex. But try not to allow the wrong insurance company to convince you to buy a second-rate policy. Learn more about Detroit, MI.
How We Conducted Our Car Insurance Analysis
*We calculated our average rate based on the following metrics: a married, 34 year old male with good credit, a 12-month history of maintaining auto insurance, a clean driving record, who owns his own home. Miles driven annually were based on the national average. The average rate was also calculated based on a financed 2015 Honda Accord with a pre-installed anti-theft device.