The best car insurance in Detroit, MI

Latisha Catchatoorian

By

Latisha Catchatoorian

Latisha Catchatoorian

Insurance Expert

Latisha Catchatoorian is a freelance insurance writer at Policygenius, specializing in auto insurance.

Published November 10, 2021

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The average cost of full coverage car insurance in Detroit is $5,357 which comes in at more than double the Michigan state average of $2,377. Car insurance rates in Detroit are higher for multiple reasons, including the high population density relative to most other cities in Michigan.

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When it comes to car insurance, the best way to save money is to compare insurance rates between different companies. Policygenius helps you see quotes from several companies and choose the coverage that’s right for you.

Key Takeaways

  • USAA has the lowest average car insurance rate in Detroit at $1,831 per year

  • GEICO has the lowest average rate for drivers with bad credit in Detroit

  • Michigan minimum liability requirements are $50,000 per person and $100,000 per accident in bodily injury liability, and $10,000 in property damage liability

Cheapest car insurance companies in Detroit, MI

Insurance companies calculate auto insurance premiums based on several factors. These can include characteristics such as your age, whether you’ve ever been in an accident before, the amount of car insurance that you need, and the kind of car you drive.

While all companies will use the same basic information to determine your rate, premiums can vary based on an insurer’s own underwriting guidelines and internal processes. So while you may live in the same ZIP code as someone with the same make and model of car as you, your rate can be different depending on the insurance company you choose. This is why it is important to compare rates ahead of purchasing car insurance.

Company

Average cost

JD Power Rating

USAA

$1,831

890

GEICO

$1,958

871

Westfield Insurance

$2,779

--

MetLife

$2,883

886

Donegal

$2,996

--

Cheapest car insurance rates by ZIP code in Detroit, MI

Your ZIP code is a major factor when it comes to how insurance companies calculate your car insurance rates. This is due, in part, to the number of car thefts, auto accidents, and traffic tickets in a given ZIP code. The availability of secured garage parking or street parking can also impact rates in a ZIP code.

Below are the average rates by ZIP code in Detroit, MI.

ZIP code

Average cost

48201

$5,453

48202

$5,383

48203

$5,310

48204

$5,452

48205

$5,450

48206

$5,570

48207

$5,310

48208

$5,451

Choosing the right car insurance company in Detroit, MI

Choosing the best car insurance company means finding the right coverage at an affordable price. With so much information out there, it can be hard to sift through it all and find the right insurance for you. Policygenius does the work for you — our insurance experts are here to help you find the right policy at a price that fits your budget.

Car insurance rates for drivers with driving violations in Detroit, MI

Insurers use your motor vehicle report (MVR), also known as your driving record, as a factor when determining your insurance rate. If you have a driving violation (such as a DUI or DWI) or have been in an accident, this affects your rate because you are seen as more of a risk. All states track the same kinds of incidents, but states have different rules about how long they stay on your MVR. In Michigan, a driving violation or accident will stay on your MVR for at least seven years.

Below are the average rates for Detroit drivers with violations or accidents on their driving record.

Violation

USAA

GEICO

Westfield Insurance

MetLife

Donegal

At-fault Accident

$2,709

$5,219

$3,798

$5,471

$4,730

DUI

$3,488

$13,630

$6,614

$6,428

$7,988

Driving with a suspended license

$3,488

$4,443

$6,614

$7,027

$3,278

Driving with an open container

$3,488

$9,952

$2,875

$2,883

$7,988

Driving with expired registration

$2,439

$4,443

$2,875

$3,416

$3,278

Driving without Lights

$2,439

$4,443

$3,316

$3,416

$3,278

Failure to show documents

$2,439

$4,443

$2,875

$3,416

$3,278

Failure to stop at a red light

$2,439

$4,443

$3,316

$3,416

$3,713

Cheapest car insurance for drivers with bad credit in Detroit, MI

Drivers with low credit scores can expect to pay more for car insurance. Car insurance companies see drivers with lower credit scores as posing a greater risk to insurance because studies have shown they file more claims than drivers with higher credit scores.

Some states allow insurance companies to rate drivers based on their credit scores and Michigan is one of them. Since your credit history can impact your insurance rates, it is especially important to compare rates across several companies if you have poor credit.

Company

Rates for drivers with bad credit

GEICO

$3,268

USAA

$4,197

Donegal

$5,581

Westfield Insurance

$5,772

Progressive

$5,883

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Buying car insurance in Detroit, MI

Michigan state law requires that all licensed drivers have no-fault auto insurance. This means that if you are in a car accident, your insurance will pay for things like medical expenses and damage to another person’s property no matter who caused the accident. Basic no-fault insurance in Michigan does not pay for repairs to your own vehicle (though you can purchase a policy that includes this type of coverage).

Michigan state law requires that your no-fault policy include the following:

  • Personal injury protection: PIP will pay all necessary medical expenses with no maximum limit if you are hurt in an auto accident, as well as pay up to 85% of the income you would have earned if you had not been hurt, for up to three years. However, this lost wages amount is limited and the limit is updated annually.

  • Property protection: This provides coverage for up to $1 million of damage that you may cause to another person’s property — like buildings, fences, or a parked car — during an accident.

  • Residual liability insurance: This will cover you up to a certain amount if you are found legally responsible for property damage or bodily injury that falls in a “special situation” category. While Michigan’s no-fault law generally protects insured persons from being sued as a result of an auto accident, there are some exceptions such as cases of death or serious injury.

How to get cheap car insurance in Detroit, MI

Insurance in Detroit is expensive, but there are many discounts available, including:

  • Safe driver discount: Having a clean driving record can make you an attractive customer to insurance companies and keep your premiums low.

  • Bundling discount: Many companies offer a discount if you purchase multiple types of insurance policies (such as auto and home) as a way to encourage you to use their business.

  • Loyalty discount: If you’ve been with the same auto insurance company for multiple years, some companies will provide you with a discount to reward you for your loyalty.

  • Professional discount: Some companies offer discounts for certain employers and professions, such as teachers or public servants (like firefighters). 

  • Low mileage discount: Drivers who don’t spend much time on the road are often entitled to a lower rate than drivers who have long commutes.

  • Military discount: Several insurance companies offer a discount to active military members and their families.

Frequently asked questions

Which company has the cheapest car insurance in Detroit?

The cheapest average car insurance in Detroit is from USAA. However, your personal rates may vary greatly by company, so it’s important to compare policies from different companies to guarantee you’re paying the lowest possible rate.

Why is insurance in Detroit so much higher than other cities in Michigan?

Detroit has one of the highest population densities in the state of Michigan, so there are more drivers and a higher likelihood of accidents compared to other cities. Related factors, like higher crime rates in some parts of Detroit, may also lead insurance companies to charge higher rates.

How much car insurance do I need in Detroit?

Detroit drivers must meet Michigan’s minimum liability requirements, which include bodily injury liability of $50,000 per person and $100,000 per accident, as well as $10,000 in property damage liability.

If I have bad credit, can I still get a cheap policy?

If you have bad credit, you will most likely pay higher premiums than someone with good credit. You can find the most affordable options by shopping around and comparing rates since rates can vary greatly by insurance company.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.