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If you’re looking for cheap Detroit car insurance, but you still want great coverage, you’re in the right place. With Michigan being the most expensive state to obtain car insurance for 6 years in a row, we understand saving as much as possible on insurance is a necessity.
We’ve reviewed the top providers and insurers to give you the honest truth about which company is the cheapest and best overall for your car insurance needs. Whether you’re insuring several vehicles or you have a teen in the family who’s just starting out on the road, we’ve got you covered. Let’s take a closer look.
Quick Look: Best Detroit Car Insurance
- Best for Drivers With Consistently Good Driving Habits: Progressive
- Best for Rideshare Drivers: State Farm
- Best for Active Military Members: USAA
Best Detroit Car Insurance
If you’re wondering who the best insurance providers in Detroit are, the answer is “it depends”. What constitutes the best is going to depend on things like your driving record, how many vehicles you want to insure, the type of coverage you want, and so on.
We’ve selected what we feel are the best companies offering cheap car insurance in Detroit to give you an unbiased look at your options:
1. Progressive
As you’ll see from the tables above, USAA offers the cheapest car insurance in Detroit by far. If you don’t meet the eligibility requirements, however, the second option would be Progressive.
Progressive is also a great option for new drivers or drivers with less than perfect records. With a simple online application process, you can insure your vehicle, contact your agent, and file claims within minutes.
Read Benzinga's full Progressive Auto Insurance Review
2. State Farm
If you need car insurance to cover your luxury vehicle, State Farm is going to be a solid option in Detroit. Additional options can help further enhance your insurance protection from things like vandalism, fire or other accidents.
While it’s no secret that Detroit is an expensive option as far as car insurance goes, State Farm is a solid choice in terms of affordability and maximum coverage at the best rates.
If you still aren't sure if State Farm is right for you, check out our guide to the best sports car insurance companies.
3. USAA
USAA is a top-notch financial institution and has excellent customer service. Car insurance is no exception. What’s more, even if you’re not in the military, you may still be eligible to be a USAA member and get car insurance coverage this way.
For example, if your spouse is an active or former military member, or you have parents who were in the military and were USAA members, you may be eligible even if you didn’t serve in the armed forces yourself.
Read Benzinga's full USAA Auto Insurance Review
Detroit Car Insurance Overview
The price you pay for car insurance in Detroit depends on several factors. It’s understandable that in order to save money, you want to know what the state minimums are for insurance in Michigan. But in addition to the state minimums, there are also other insurance requirements:
- Bodily injury: $20,000 per person up to $40,000 total per accident
- Property damage: $10,000. Keep in mind that this is for damage that occurs out of state. Under Michigan law, property damage is covered under PPI or Property Protection Insurance and you must have a minimum of $1,000,000 worth of coverage.
- Michigan Catastrophic Claims Association Fee (MCCA): All insured drivers in Michigan must also pay the Michigan Catastrophic Claims Association fee. This fee ensures that all insured drivers can have unlimited medical coverage should they be injured in an accident. Your insurer pays this fee out of your premium.
What You'll Need to Know Before You Get Coverage in Detroit
Michigan car insurance rates are some of the highest in the nation. Make sure you understand insurance minimums and specific driving laws before you get coverage.
Detroit Car Insurance Minimum Explained
Minimum liability limits in Michigan are set with bodily injury at $20,000 per person, up to $40,000 per accident. The minimum for property damage is $10,000, making Michigan one of under a dozen states with lower liability limits.
Keep in mind that the medical portion of a Michigan insurance policy is known as PIP or Personal Injury Protection. Insurance providers are responsible for up to $500,000 of medical coverage. There are different PIP levels available from Michigan auto insurers.
Although it may seem like a good idea to get only the minimum coverage, you have to remember that minimum coverage doesn’t cover things like collision or comprehensive insurance. Collision takes care of damages to your car itself in case of an accident, and comprehensive pays for damages from certain natural disasters (like falling tree limbs), as well as theft and vandalism
With the high cost of hospital bills and medical treatment, it’s very easy to exceed the minimum coverage, which is why it’s a good idea to invest in a plan that gives you more coverage.
What You Can Expect to Pay for Detroit Car Insurance
How much you pay for your insurance depends on several factors, including the type and age of the vehicle. Details about the primary driver also affect how much you pay for insurance, so if you’re adding a teenager, you’re going to want to know about cheap car insurance in Detroit in order to help you save money. Even things like your gender, credit score and marital status can affect your insurance rates.
Insurance Rates by Your Insurance Credit Score
Did you know that how much you pay for auto insurance can depend on what your credit score is? Financial stability is a good indicator of one’s ability to pay their insurance premiums, so when you look at it that way, it’s easy to see how an evaluation of your credit score is one of many determining factors in helping you save money on car insurance.
However, it’s worth noting that every car insurer has a different formula for how they decide the rate you’ll pay. Below is a table comparing averages of what you can expect to pay based on your credit score.
| Credit Score | Cheapest Provider | Rate For State Minimum Coverage |
|---|---|---|
| Poor 300-579 | Nationwide | $5,419 |
| Fair 580-669 | AAA | $3,090 |
| Good 670-739 | AAA | $2,351 |
| Excellent 740+ | Progressive | $1,775 |
Insurance for Drivers With a Clean Record
If you have a clean driving record, you’re rewarded with better insurance rates. And when it comes to getting cheap Detroit car insurance, you want to save as much money as you can. But good driving habits are about more than just putting down your smartphone and staying 1-2 car lengths away from the car in front of you in case of sudden stopping.
Good driving habits are just as much about your ability as it is about the maintenance of your vehicle. That’s why it’s a good idea to regularly check your oil, tire pressure and water every time you fill-up the tank. As you continue to practice good driving habits and avoid having an accident, you may be able to save even more money and enjoy cheap Detroit car insurance.
See the table below for details on the average costs of Detroit car insurance including standard and full coverage compared to state minimum insurance:
| Insurance Agency | State Minimum Insurance | Standard Coverage | Full Coverage |
|---|---|---|---|
| USAA | $2,513 | $2,629 | $2,718 |
| Travelers | $2,683 | $2,783 | $2,856 |
| State Farm | $1,922 | $2,145 | $2,529 |
| Progressive | $1,699 | $2,071 | $2,423 |
| AAA | $1,822 | $2,220 | $3,040 |
Insurance with Driving Infractions
Even if you don’t have a perfect driving record, you may still be able to save money on your car insurance. While it’s true that driving infractions like speeding, running a red light or failing to use your turn signal appropriately can increase the cost of your car insurance, serious infractions like failing to stop for pedestrians crossing or for a school bus can increase your insurance rates, especially if you receive a ticket or citation for these violations. In addition, there are insurance agencies that work with high-risk drivers to provide them with the best coverage and rates.
So what could you expect to pay for car insurance in Detroit? See the table below for some examples:
| Insurance Agency | At-Fault Accident | Speed Violation | DUI |
|---|---|---|---|
| USAA | $3,633 | $3,174 | $4,761 |
| Travelers | $4,479 | $4,020 | $4,661 |
| State Farm | $4,586 | $3,970 | $4,710 |
| Nationwide | $3,975 | $3,569 | $4,372 |
| Progressive | $3,227 | $3,098 | $4,575 |
Choosing The Right Car Insurance
The best way to find cheap car insurance in Detroit is to get quotes from a number of top-rated, reputable and reliable insurers. We’ve profiled some of the best choices here, however, it’s a good idea to get your own custom quote by filling out specific details such as the make and model of your vehicle, and other demographic information.
You may even be able to save more money with certain insurers by enrolling multiple cars in a policy or bundling home and auto policies. Be sure to ask the insurer about any discounts or savings you may qualify for in order to save the most money on car insurance in Detroit.
Want to learn more about finding the best insurance coverage? Check out Benzinga's guides to the best homeowners insurance in Michigan, the best vision insurance in Michigan, best classic car insurance, the best commercial car insurance companies and the best no-fault insurance companies.
*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners' secure websites.
Read also: BEST FINTECHS IN DETROIT, RANKED
Frequently Asked Questions
Does auto insurance cover passengers?
If you have comprehensive auto insurance that covers medical payments, your passengers are protected.
Will auto insurance cover rental cars?
Your auto insurance will generally cover any cart you rent. Plus, you can purchase coverage for rental reimbursement if your vehicle is in for repairs.
