Cheap Auto Insurance in Detroit, MI
As of July 2020, Detroit, MI auto insurance companies can no longer use gender or credit history when calculating your auto insurance rates. The new laws make it easier for you to secure low-cost auto insurance in Detroit, Michigan.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about insurance when he got his first policy for his own family. He has been featured as an insurance expert speaker at agent conventions and in top publications. As an independent licensed insurance agent, he has helped clients nationwide to secure affordable coverage while making the process simpl...
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UPDATED: Nov 27, 2023
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- Average Detroit, MI car insurance rates are around $523 per month or $6,280 annually
- Nationwide offers some of the lowest auto insurance rates in Detroit, MI
- Detroit, MI’s auto theft rate is higher than the national average
Are you in need of cheap auto insurance in Detroit, Michigan? Average Detroit, MI auto insurance rates are $523 per month or $6,280 annually. Researching auto insurance can be time-consuming and frustrating, but cheap auto insurance in Detroit, MI, can be easily found.
If you are looking for cheap auto insurance in Detroit, MI, read our comprehensive guide to learn how to compare auto insurance to help you find cheap Detroit auto insurance premiums.
Ready to easily compare Detroit, MI car insurance rates? Compare online auto insurance by entering your Detroit ZIP code into our FREE quote comparison tool above to get the best Detroit, MI auto insurance quotes now.
What is the average cost of auto insurance in Detroit, MI?
Auto insurance in Detroit, MI, varies. However, there is an average annual cost. Here are the average annual rates of Detroit auto insurance compared to the Michigan average and national average.
| Detroit Average Monthly Auto Insurance Rate | Michigan Average Monthly Auto Insurance Rate | National Average Monthly Auto Insurance Rate |
|---|---|---|
| $523 | $258 | $129 |
Detroit’s average annual rate is thousands of dollars more than Michigan and the national average. Your Detroit car insurance rates could be more expensive or much cheaper. Continue reading to learn how to find affordable Detroit, MI auto insurance, and what factors affect your rates the most.
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What are the auto insurance coverage requirements in Michigan?
Cheap insurance in Detroit, Michigan, seems hard to find because it has some of the country’s most comprehensive auto insurance requirements.
Take a look at the table below to learn what policies you must invest in to legally drive in Detroit.
| Auto Insurance Coverage | MI Coverage Requirements | Most Common Coverage Amounts in MI |
|---|---|---|
| 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 |
As of July of 2020, the mandatory no-fault auto insurance coverage law in Michigan has changed. While personal injury protection used to be required in the state (otherwise known as PIP), you now have the option to waive this extra policy.
This new ability to choose reduced amounts of PIP coverage will help lower your overall insurance rates. While gender, education level, credit history, and marital status used to be factored in, the new laws ban auto insurance companies in Detroit, MI, from using those demographics to determine rates.
Detroit, Michigan auto insurance agencies still consider numerous elements when calculating your rates. For example, if you’re making payments on your vehicle, it’s essential to let your insurance company know upfront. Many lenders won’t allow you to purchase any kind of insurance that doesn’t contain comprehensive and collision auto insurance coverage. Otherwise, you’ll probably be free to buy a liability-only policy.
Who has the cheapest insurance in Michigan? Michigan car insurance rates run at an average of about $213 to $523 per month for most drivers. However, people aged 60 with a clean driving record usually receive much lower quotes.
Those wondering why car insurance is so high in Detroit should know that Detroit drivers can get better than average rates by comparison shopping and applying for discounts. Some local rates are as low as $156 per month.
With the right help, you can get the affordable Detroit, MI car insurance you deserve. The best auto insurance in Detroit is just a few clicks away.
How much is auto insurance in Detroit?
How much does auto insurance cost in Detroit? Your rates for insurance in Detroit, MI, will vary depending on your age, ZIP code, and driving record. Every company calculates rates using a different formula, which means some companies might give you very competitive quotes while others could be too high.
The following graph shows the average monthly rates for auto insurance in Detroit by the company. Take a look.
Who has the cheapest car insurance in Michigan? If you want competitive rates, you can’t go wrong with Nationwide or Farm Bureau.
However, to learn if these companies are right for you, you’re going to want to compare as many online customer service reviews as you can find. Most major carriers can be found in Detroit, including MetLife car insurance and USAA car insurance.
You might also consider looking into local insurance competitors as well.
Auto insurance carriers consider many variables when determining insurance rates, including marital status, ZIP code, type of vehicle owned, years of driving experience, and the number of cars and drivers you’re putting on your policy.
The following table compares average rates from insurance companies in Detroit, Michigan, based on age and gender. Find where you fit in below.
| Group | Married 60-Year-Old Female Average Annual Auto Insurance Rates | Married 60-Year-Old Male Average Annual Auto Insurance Rates | Married 35-Year-Old Female Average Annual Auto Insurance Rates | Married 35-Year-Old Male Average Annual Auto Insurance Rates | Single 25-Year-Old Female Average Annual Auto Insurance Rates | Single 25-Year-Old Male Average Annual Auto Insurance Rates | Single 17-Year-Old Female Average Annual Auto Insurance Rates | Single 17-Year-Old Male Average Annual Auto Insurance Rates |
|---|---|---|---|---|---|---|---|---|
| USAA | $3,929.35 | $3,691.81 | $4,188.15 | $3,934.09 | $5,119.27 | $4,872.01 | $10,283.62 | $9,677.09 |
| Progressive | $5,112.06 | $5,861.60 | $5,871.62 | $5,371.89 | $6,866.26 | $6,139.79 | $21,049.94 | $22,029.49 |
| Nationwide | $9,004.53 | $9,004.53 | $10,252.47 | $10,252.47 | $11,293.29 | $11,293.29 | $27,953.26 | $27,953.26 |
| Geico | $11,066.10 | $11,066.10 | $10,972.43 | $10,972.43 | $10,401.09 | $10,401.09 | $27,193.66 | $27,193.66 |
| Travelers | $13,702.06 | $13,702.06 | $16,071.64 | $16,071.64 | $17,503.81 | $17,503.81 | $49,504.78 | $49,504.78 |
| State Farm | $18,276.94 | $18,276.94 | $19,538.87 | $19,538.87 | $22,947.49 | $22,947.49 | $70,156.15 | $70,156.15 |
| Liberty Mutual | $30,873.16 | $30,873.16 | $31,191.90 | $31,191.90 | $31,191.90 | $31,191.90 | $74,758.09 | $74,758.09 |
| Allstate | $30,773.97 | $30,773.97 | $33,005.77 | $33,005.77 | $34,731.66 | $34,731.66 | $78,931.78 | $78,931.78 |
| Farmers | $34,760.08 | $34,760.08 | $37,679.98 | $37,679.98 | $42,456.92 | $42,456.92 | $78,647.23 | $78,647.23 |
As you can see, not all companies will be able to offer you competitive or realistic rates. Since each company uses a unique algorithm, premiums vary among Detroit, MI auto insurance companies.
Remember, gender is no longer allowed to be used to determine your insurance rates in Michigan.
To find out whether you’re still paying the most affordable price, keep reading. We’ll review significant factors that impact your Detroit, MI auto insurance quotes.
What major factors affect auto insurance rates in Detroit, Michigan?
Many major factors that impact your rates in Detroit, like your gender, credit history, and marital status, can no longer be used when determining your quotes.
Over time, the differences in rates will start to lessen. For now, we’ll cover all you need to know about what impacts your insurance premiums.
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What ZIP codes have the cheapest auto insurance rates in Detroit?
Your car insurance rates will vary based on the place you call home. Usually, parts of the city with the highest population density also have higher auto insurance rates. More people means more drivers on the road, which increases the likelihood of an accident.
According to Data USA, the population of Detroit is 672,681. The city has 32 different ZIP codes. Find out which ZIP codes receive the highest annual rates in the following table.
| ZIP Code | Average Annual Auto Insurance Rates |
|---|---|
| 48236 | $11,437.08 |
| 48242 | $11,642.43 |
| 48239 | $12,436.68 |
| 48217 | $16,349.31 |
| 48233 | $16,815.07 |
| 48243 | $17,735.07 |
| 48221 | $18,344.36 |
| 48219 | $18,365.80 |
| 48223 | $18,522.27 |
| 48214 | $18,720.70 |
| 48234 | $18,761.90 |
| 48235 | $18,767.33 |
| 48209 | $18,954.55 |
| 48212 | $19,028.05 |
| 48203 | $19,058.98 |
| 48224 | $19,128.70 |
| 48207 | $19,249.09 |
| 48205 | $19,541.66 |
| 48211 | $19,654.24 |
| 48226 | $19,655.73 |
| 48208 | $19,659.50 |
| 48238 | $19,763.30 |
| 48215 | $19,797.84 |
| 48213 | $19,874.51 |
| 48216 | $19,922.76 |
| 48228 | $19,969.29 |
| 48210 | $20,130.92 |
| 48202 | $20,411.55 |
| 48204 | $20,743.41 |
| 48227 | $20,797.61 |
| 48206 | $21,023.36 |
| 48201 | $21,306.33 |
The differences are stark. The cheapest average rates are found in 48236, and people there pay a staggering $10,000 less annually than those in the most expensive ZIP code, 48201.
Where you park your car at night matters. Review the following graph, which compares Detroit’s monthly rates to other Michigan cities.
If you live in Detroit, expect your rates to be higher than the Michigan state average. The city’s higher population density leads to increases in your premiums.
How do automotive accidents in Detroit impact auto insurance?
If there are many accidents where you live, your risk to the insurance company increases, which will be reflected in your monthly premium.
Unfortunately, Detroit’s accident rates are very high, which helps explain why Detroit’s insurance is so expensive. See what we mean in the following graph.
These statistics are much higher than the national average. Because you’re more at risk of getting into an accident when driving in this city, insurance companies charge higher insurance rates.
Search for cheap car insurance rates in Detroit, Michigan, and other areas by using our FREE comparison tool.
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What is the number of auto thefts in Detroit?
Residing in a big city, particularly one with a significant crime rate, raises your probability of being a victim of auto theft. If your area is known for a high auto theft claim rate, you’ll probably pay more for auto insurance to counteract these costs.
According to City-Data, the number of stolen vehicles in Detroit in 2018 was 6,454. While this number had decreased from 11,893 in 2013, the numbers are still alarmingly high.
Check out more car theft details for Detroit in the graph below.
The only way to replace your car through insurance if it is stolen is by purchasing comprehensive coverage. Consider adding a comprehensive policy to your contract if you live in Detroit.
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What is the best auto insurance for credit history rates in Detroit?
While credit scores can be a major factor in determining auto insurance rates in some areas, Detroit car insurance companies no longer factor your credit score into rates.
Do gender and age affect my auto insurance rates in Detroit?
Detroit’s auto insurance cost is no longer impacted by gender. However, young drivers are statistically more likely to cause car accidents than older drivers.
Because of these statistics, teenage drivers are usually charged more for their auto insurance. Check out the following graph, which compares monthly auto insurance rates in Detroit by age.
If you are a younger driver, you should look into discounts for teens. Many companies offer good student discounts or even discounts for taking driver’s education courses.
What is the best auto insurance for driving record rates in Detroit?
If you have a poor driving record, expect your auto insurance rates to be much higher than average. Safe driving not only saves lives, but it also helps keep your insurance premiums low.
See how much a single driving violation can cause your annual rates to rise in Detroit in the table below.
| Group | Clean Record Average Annual Auto Insurance Rates | With One Accident Average Annual Auto Insurance Rates | With One DUI Average Annual Auto Insurance Rates | With One Speeding Violation Average Annual Auto Insurance Rates |
|---|---|---|---|---|
| USAA | $4,563.43 | $5,736.46 | $7,561.53 | $4,986.27 |
| Progressive | $8,158.17 | $10,964.24 | $9,834.97 | $10,193.94 |
| Nationwide | $12,404.70 | $16,758.27 | $15,254.87 | $14,085.70 |
| Geico | $5,300.92 | $11,019.61 | $33,606.62 | $9,706.14 |
| Travelers | $16,230.60 | $23,352.98 | $37,954.54 | $19,244.17 |
| State Farm | $20,605.13 | $24,822.42 | $54,343.55 | $31,148.36 |
| Liberty Mutual | $29,767.96 | $35,590.61 | $64,799.47 | $37,857.02 |
| Farmers | $40,441.56 | $51,997.88 | $51,147.45 | $49,957.31 |
| Allstate | $21,898.62 | $29,245.36 | $95,941.37 | $30,357.82 |
A single speeding ticket can cause your rates to increase by over $1,000 annually. If you receive too many driving violations, car insurance companies in Detroit may refuse to renew your policy, leaving you to seek high-risk insurance elsewhere.
Take a look at the following graph for more details about how your driving record can impact your monthly insurance rates.
Recently, more companies have included an accident forgiveness policy as a benefit for consumers. In short, your provider will ignore one or more minor blemishes on your driving history, thereby giving you discounts on your auto policy.
If your driving record is imperfect and you live in Detroit, consider applying for an accident forgiveness program.
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Your Car Model and Auto Insurance Rates
Are you thinking about purchasing insurance for a luxury vehicle? Keep in mind that you’ll need an equally luxurious insurance policy to keep yourself protected from the threat of accidents and theft.
Remember, vehicle theft rates are higher than average in your city.
On the other hand, economical cars don’t require as much coverage and therefore have lower monthly rates. See what we mean in the graph below.
When it comes to securing cheap insurance quotes in Detroit, you’ll have an easier time if you drive an economy vehicle.
What are the factors that affect cheap auto insurance in Detroit, Michigan?
There are a few more factors that will affect your auto insurance rates to a less significant degree. Let’s take a look at those in more detail now.
Your Marital Status and Auto Insurance in Detroit
Being married used to provide Detroit residents with cheaper auto insurance rates, but that is no longer the case.
However, you and your spouse still have the opportunity to bundle your insurance policies. Often, more cars on a single policy mean slightly cheaper rates.
If your insurer sells multiple types of insurance, you can bundle those together as well for even bigger discounts.
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Your Driving Distance to Work and Auto Insurance in Detroit
Most Detroit commuters spend an average of 20 to 25 minutes behind the wheel each trip, though the commute ranges as high as 30 to 35 minutes.
Carpooling and buses are quite popular in Detroit; together, they make up about 25 percent of daily commute transportation. However, 65 percent of commuters still prefer to take their vehicle to work.
Some Detroit, Michigan auto insurance agencies will adjust your rates 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 vehicle is registered as a business vehicle on your insurance policy, you could be looking at 10-15 percent higher premiums each month.
Below, we’ve provided a chart featuring average rates in Detroit based on commute distance.
| Companies | Average Annual Rates for 10 Miles Commute 6,000 Annual Mileage | Average Annual Rates for 25 Miles Commute 12,000 Annual Mileage | Average Annual Rates |
|---|---|---|---|
| USAA | $3,358.88 | $3,435.96 | $3,397.42 |
| Geico | $5,334.58 | $5,580.73 | $5,457.66 |
| Farmers | $5,642.34 | $5,642.34 | $5,642.34 |
| Progressive | $5,921.39 | $5,921.39 | $5,921.39 |
| Nationwide | $6,028.35 | $6,028.35 | $6,028.35 |
| Travelers | $7,925.51 | $8,017.06 | $7,971.29 |
| State Farm | $10,659.93 | $11,237.09 | $10,948.51 |
| Liberty Mutual | $17,303.58 | $18,535.24 | $17,919.41 |
| Allstate | $24,328.32 | $24,328.32 | $24,328.32 |
As you can see, some companies will adjust your rates based on how much you drive, while others charge the same price no matter how much time you spend behind the wheel.
Auto Insurance Coverage Levels and Deductibles in Detroit
Did you know a higher deductible can lower your auto insurance in Detroit, MI? Let’s take a quick look at how $500 and $1,000 affect Detroit car insurance.
| Location | Average Monthly Liability-Only Coverage Rates | Average Annual Liability-Only Coverage Rates | Monthly Liability-Only Rates w/ $1,000 Comprehensive Deductible | Annual Liability-Only Rates w/ $1,000 Comprehensive Deductible | Monthly Liability-Only Rates w/ $500 Comprehensive Deductible | Annual Liability-Only Rates w/ $500 Comprehensive Deductible |
|---|---|---|---|---|---|---|
| Detroit, MI | $213 | $2,556 | $330 | $3,955 | $523 | $6,280 |
| Michigan | $145 | $1,745 | $236 | $2,832 | $258 | $3,096 |
| National Average | $52 | $621 | $114 | $1,373 | $156 | $1,868 |
A good strategy for lowering your insurance premium, especially if you’re a cautious 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 those savings and put them away, in case you ever do have to file a claim on your vehicle.
Education in Detroit, MI
If you have a higher education, providers used to offer you cheaper rates in Michigan.
However, companies are no longer allowed to use education level as a determining factor when calculating your auto insurance rates in Detroit.
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Frequently Asked Questions: Detroit, MI Auto Insurance
You are now an expert on securing cheap car insurance in Detroit, Michigan. Refer back to this guide as much as needed while comparison shopping. Did you think of something we missed? Check out our frequently asked questions below.
#1 – How much does PLPD insurance cost in Michigan?
PLPD insurance, also known as Personal Liability and Property Damage insurance, is basic liability insurance, and its cost can depend on several factors. The average rates in Michigan are around $258 per month.
#2 – Why is Detroit auto insurance so high?
Detroit has some of the country’s highest car insurance rates for several reasons, including that Michigan’s policies used to require coverage for more medical expenses than average policies around the country.
In July 2020, laws have been enacted to change these policies, and overtime, Detroit’s insurance should start to lower.
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#3 – What about seven-day auto insurance?
Cheap seven-day car insurance is legal and available in Michigan but is discouraged in most situations. LA Insurance is a company that was once known for offering seven-day car insurance.
#4 – Who has the cheapest auto insurance in Detroit?
The cheapest car insurance in Detroit is USAA, followed by Geico, Farmers, and Progressive.
#5 – What are driving conditions like in Detroit?
On average, Detroit receives 34 inches of rain per year, which is three inches less than the national average. On the other hand, Detroit’s average snowfall is five inches higher than the national average at 33 inches. These conditions can increase the risk of having an automobile accident.
Major highways in the city are the U.S. 12, I-74, and I-95. Public transport is also available all over Detroit.
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#6 – How much is auto insurance in Detroit?
Detroit car insurance costs $213 per month for PLPD coverage and $523 per month for full coverage. Depending on your ZIP code, you could be paying more.
Are you ready to buy Detroit, MI auto insurance? To find the best Detroit, MI auto insurance company for you, enter your ZIP code into our FREE quote tool now. We can help you find great car insurance quotes in Michigan.