The Cheapest Auto Insurance in Detroit in 2024

Michigan drivers must purchase no-fault auto insurance to drive legally in the state, which drives up the cost of insurance. Detroit drivers can expect to pay an average premium of $385 per month, according to Compare.com data.

Though Michigan’s auto insurance rates can be high, you have more options to look into. Auto-Owners is just one insurer offering affordable coverage in the city. Use this guide to find out where and how to get cheap car insurance in Detroit.

Key Takeaways:

• Auto-Owners is Detroit’s cheapest auto insurer, at $124 per month on average.
• The average Detroit driver pays around $95 per month for liability insurance and $154 for full coverage.
• Michigan requires drivers to have a least 50/100/10 in liability limits plus personal injury coverage and property protection insurance.

In This Article:

• Average Price for Car Insurance in Detroit
• Cheapest Detroit Car Insurance Companies
• Best Detroit Car Insurance Companies of 2024
• Detroit Rate Breakdowns by Driver and Coverage Type
• Michigan Auto Insurance Requirements
• Frequently Asked Questions

How Much Is Car Insurance in Detroit?

The average cost of car insurance in Detroit is $385 per month. But this is just a guidepost, and your personal rate may be higher or lower depending on your unique driving profile and coverage needs.

Fortunately, several car insurance companies offer affordable rates and a range of benefits — let’s take a closer look.

Detroit’s Cheapest Car Insurance Companies

Though average car insurance rates are expensive in Detroit, you can save in several ways. For example, looking into discounts, comparing car insurance quotes, and choosing the right car insurance company based on your coverage needs can lead to lower rates.

Below are five of the cheapest car insurance companies and each company’s average premium in Detroit, according to Compare.com data.

Auto-Owners has the cheapest car insurance in Detroit, with average rates of $124 per month.

Next, we’ll explore the best auto insurance companies in Detroit for different demographics.

Top 3 Best Detroit Insurance Companies of 2024

Car insurance needs vary, so the “best” company for you may not be the best for someone else. We selected the insurance companies below based on average rates, discounts, coverage types, and customer ratings and reviews.

Best for teens: Auto-Owners

• Average premium: $203 per month
• Compare.com Rating: 4.43 out of 5

Pros:

• Offers gap insurance
• Various discount options available
• Below average rates

Cons:

• Low customer ratings on Better Business Bureau (BBB)
• Must work with independent insurance agent
• Frequent complaints about claims

Teen drivers pay the highest car insurance rates of any age group, but Auto-Owners is our top choice for young drivers in Detroit. Auto-Owners’s average rate of $203 per month is among the lowest in Detroit.

But Detroit teens can save even more. Auto-Owners offers a good student discount of up to 20% for a B average or higher, a student away at school discount, and a teen driver monitoring discount.

Best for discounts: GEICO

• Average premium: $190 per month
• Compare.com Rating: 4.65 out of 5

Pros:

• Competitive car insurance rates
• Mechanical breakdown insurance available
• AM Best financial strength rating of A++ (Superior)

Cons:

• Higher-than-average number of complaints
• Gap insurance not available
• Low customer ratings with BBB

GEICO is our top pick for Detroit drivers looking for the best discounts. Not only does GEICO offer affordable coverage, but the company also has among the highest number of discounts in the industry. It offers discounts for safety features, good students, military service, defensive driving, and more.

Best for military: USAA

• Average premium: $126 per month
• Compare.com Rating: 4.91 out of 5

Pros:

• 10% bundling discount
• Highly rated mobile app
• AM Best financial strength rating of A++ (Superior)

Cons:

• Many complaints on BBB
• Low ratings on Trustpilot
• Only available to military members and their families

USAA offers numerous financial products to the military and veteran community. If you live in Detroit and qualify for USAA membership, the company offers some of the lowest auto insurance rates and various discounts. Members can get more savings through USAA’s SafePilot telematics program and process auto claims through its highly rated mobile app.

Cheapest Company for Liability Insurance: Auto-Owners

Your total car insurance costs will depend on your coverage levels. The cheapest insurance policy available is liability insurance that meets your state’s minimum requirements. In Detroit, this type of policy costs an average of $338 per month, according to our research.

Liability insurance covers any injuries or damage to another driver’s vehicle — but it doesn’t help if there’s damage to your vehicle.

The table below shows Detroit’s cheapest companies for liability-only insurance.

Auto-Owners has the cheapest liability car insurance in Detroit, at $95 per month.

For added benefits, you can consider full-coverage car insurance. With that in mind, let’s take a look at which insurers offer Detroit residents some of the best full-coverage rates.

Cheapest Company for Full-Coverage Insurance: Auto-Owners

Full-coverage car insurance goes beyond state-minimum requirements and includes additional coverage such as collision insurance and comprehensive coverage for further protection. It comes with a higher price tag — $432 per month in Detroit, on average — but has a wider reach when it comes to protecting you and your property.

A full-coverage policy protects you when you cause injury or damage to others. It also protects you if you have a car accident or if events like theft, fires, or floods damage your vehicle.

This table shows the cheapest car insurance options in Detroit for full coverage with average monthly costs.

Auto-Owners offers the cheapest full-coverage insurance in Detroit, at $154 per month, according to our data.

Compare Detroit Auto Insurance Rates by Driving Record

Your driving record — which shows your driving history and any traffic incidents — also influences your insurance costs. Once you have an incident on your record, insurance companies consider you a higher risk and charge you higher rates.

The table below highlights the average monthly premium in Detroit based on different driving records. It also lists the cheapest insurance company and its average rates for each record.

Though these incidents can raise your risk profile and lead to higher rates, the effect isn’t the same. Here’s a further breakdown of different incidents and the cheapest car insurance insurer in Detroit.

Cheapest car insurance in Detroit after a ticket: Auto-Owners

If you drive over the speed limit in Detroit and get a ticket, your rates will increase. Speeding is considered a high-risk behavior that endangers you and others on the road. After one speeding ticket, average rates go up by 27% nationwide, according to Compare.com data.

The cheapest auto insurance coverage in Detroit after a speeding ticket is through Auto-Owners. The company’s average monthly premium is $185 per month.

Cheapest car insurance in Detroit after an accident: Auto-Owners

An at-fault accident can have a major influence on your car insurance premiums because of the potential for injuries and property damage. We found that average rates increase by 34% after an accident.

If you have an accident on your record, Auto-Owners has the most affordable rates in Detroit. Its average monthly premium is $188 per month.

Cheapest car insurance in Detroit after a DUI: Auto-Owners

A DUI conviction has the most significant effect on your auto insurance rates. Driving intoxicated affects your decision-making, cognition, and coordination, which puts you and others on the road at serious risk. Just one DUI increases average premiums by 50%, according to Compare.com data.

Drivers with a DUI conviction can look into Auto-Owners for cheap car insurance in Detroit. It offers the lowest rate on average, at $219 per month.

Compare Detroit Auto Insurance Rates by Age

Your age is another factor that affects your car insurance rates. Young adults generally pay higher premiums because they lack experience and tend to get into more accidents. But premiums tend to decline as you age. Drivers in their 60s qualify for lower rates, but there’s an uptick once your reach your 70s, as coordination and cognition may be in decline.

The table below shows how age can influence your auto premiums in Detroit, according to Compare.com data.

Insurance companies look at a 16-year-old getting their driver’s license much differently than a senior with decades of experience. Let’s take a closer look at why.

Cheapest car insurance for Detroit teens: Auto-Owners

Teenagers are the most expensive demographic to insure. For example, adding a teen driver to your policy raises costs by an average of nearly $1,200 per year, according to our research. Teenagers have higher crash rates, and they’re one of the top causes of death among this group, according to the Insurance Institute for Highway Safety (IIHS).

Auto-Owners offers the cheapest average car insurance policy for teens in Detroit, at $203 per month.

Cheapest car insurance for Detroit seniors: Auto-Owners

As you approach retirement age, you can take advantage of lower car insurance rates. Older drivers have more experience and may drive less once they’ve stopped working. Senior drivers don’t have the same risk factors and have fewer accidents, according to the Insurance Information Institute (Triple-I).

Detroit seniors in their 60s can find the cheapest car insurance with Auto-Owners, at an average monthly premium of $136. While rates slightly increase for drivers in their 70s, Auto-Owners provides the most affordable coverage, at $154 per month.

Michigan Auto Insurance Requirements

Michigan overhauled its car insurance laws after July 1, 2020. The new law prohibits insurance companies from limiting coverage, charging reinstatement fees, or increasing premiums if you’re uninsured for a period of time. That said, Michigan is a no-fault state, which means each driver’s insurance company pays for injuries and medical bills, regardless of fault.

Here are the state’s minimum requirements:

• $50,000 residual bodily injury liability coverage per person
• $100,000 residual bodily injury liability coverage per accident
• $10,000 residual property damage liability coverage in another state
• Choose the level of personal injury protection (PIP), which pays for medical bills (unlimited, $500,000, $250,000, $250,000 with medical exclusions, $50,000, and medical opt-out)
• $1 million in property protection insurance (PPI)

Default BI and PD coverage is much higher than this, but the lowest default BI and PD coverage limit you can purchase is 50/100/10, according to the Michigan Department of Insurance and Financial Services.

If you go with the default coverage, the limits are:

• $250,000 residual bodily injury liability coverage per person
• $500,000 residual bodily injury liability coverage per accident
• $10,000 residual property damage liability coverage in another state

How to Get Cheaper Car Insurance in Detroit

Getting car insurance in Detroit can be costly — Michigan has some of the highest auto insurance premiums in the country, according to our research. While your exact rate will depend on your driving history, ZIP code, and coverage options, Detroit drivers have access to several ways to get cheaper coverage.

Here’s how to get cheaper car insurance in Detroit:

• Play it safe. Any incidents on your driving record can drive up prices. Focus on safety — wear your seat belt, put your cell phone out of reach, and avoid driving while intoxicated — to lower your rates long-term. Maintaining a clean driving record is the best way to save.
• Bundle policies. Insurance companies offer a multi-policy discount when you buy two or more insurance products with the company. So if you have renters or home insurance, you may stand to save more if you insure them under one roof.
• Review car insurance discounts. Many car insurers offer discounts. Call your agent and ask what you qualify for to get the greatest savings.
• Compare quotes. To find the cheapest car insurance in Detroit, compare multiple insurance companies. Get quotes and review coverage options to get the best rates.

Detroit Auto Insurance FAQs

If you’re looking for car insurance in Detroit, here are some common questions and answers to help you lower your costs.

Which company has the cheapest car insurance in Detroit?

Auto-Owners currently has the cheapest car insurance in Detroit with an average rate of $124 per month, according to Compare.com data. Remember that insurance rates vary by person, driving history, and coverage levels.

How much is car insurance in Detroit?

Car insurance rates are an average cost of $385 per month in Detroit, according to our analysis. The average Detroit driver pays $338 per month for liability insurance and $432 for full coverage. But your rates could be lower or higher based on your driving history and the insurance company you choose.

How much car insurance does Michigan require?

Michigan requires drivers to purchase $50,000 per person and $100,000 per accident in residual bodily injury liability insurance, and $10,000 in property damage liability in other states. You must also have personal injury protection (PIP) coverage and $1 million in property protection insurance (PPI).

What happens if you get caught driving without insurance in Detroit?

If you drive without insurance in Detroit, Michigan you may face license suspension for 30 days, have a misdemeanor, pay a fine of up to $500, and serve a jail sentence of up to one year.

What is the cheapest full-coverage car insurance in Michigan?

Auto-Owners offers the cheapest car insurance in Michigan for full coverage, at $154 per month, according to Compare.com data. But the exact premium you get will depend on the level of coverage, driving history, and more.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. State of Michigan Department of Insurance and Financial Services, “Consumer Protections,” accessed June 11, 2024.
2. State of Michigan Department of Insurance and Financial Services, “Choosing Bodily Injury Coverage,” accessed June 11, 2024.
3. Michigan Legislature, “MCL – Section 500.3009,” accessed June 11, 2024.
4. State of Michigan Department of Insurance and Financial Services, “Choosing PIP Medical Coverage,” accessed June 11, 2024.
5. Insurance Information Institute, “Auto insurance basics—understanding your coverage,” accessed June 11, 2024.
6. State of Michigan Department of Insurance and Financial Services, “Brief Explanation of Michigan No-Fault Insurance,” accessed June 11, 2024.
7. Insurance Information Institute, “What determines the price of an auto insurance policy?,” accessed June 11, 2024.
8. Insurance Information Institute, “Facts + Statistics: Auto insurance,” accessed June 11, 2024.
9. The Insurance Institute for Highway Safety, “Teenagers,” accessed June 11, 2024.