For people with poor credit, one of the more important factors that aid in calculating insurance cost is where your residence is in Detroit. More densely populated places tend to pay slightly more, whereas areas with fewer weather claims and lower vehicle theft rates get the luxury of paying less.
The next table rates the most expensive cities in Michigan for drivers with bad credit to purchase auto insurance in. Detroit ranks #1 with an annual cost of $4,862 for the average policy, which is around $405 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Detroit | $4,862 |
| 2 | Dearborn | $4,123 |
| 3 | Southfield | $4,020 |
| 4 | Pontiac | $3,639 |
| 5 | Warren | $3,390 |
| 6 | Flint | $3,337 |
| 7 | Dearborn Heights | $3,305 |
| 8 | Taylor | $3,178 |
| 9 | Sterling Heights | $2,924 |
| 10 | Westland | $2,821 |
| 11 | Farmington Hills | $2,786 |
| 12 | St. Clair Shores | $2,709 |
| 13 | Livonia | $2,608 |
| 14 | Rochester Hills | $2,567 |
| 15 | Royal Oak | $2,562 |
| 16 | Troy | $2,536 |
| 17 | Novi | $2,514 |
| 18 | Saginaw | $2,507 |
| 19 | Battle Creek | $2,450 |
| 20 | Lansing | $2,439 |
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Prices are comparative as the specific geographic location can lower or raise coverage rates considerably.
The make and model of vehicle requiring coverage is probably the largest consideration when trying to find the lowest-priced car insurance for drivers with bad credit. Vehicles with lower acceleration and performance, modern passenger safety features, or a low likelihood of having liability claims will cost quite a bit less to insure than fast, unsafe models.
The information below outlines auto insurance rates for a handful of the most affordable vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra SE Touring Station Wagon | $4,948 |
| Toyota Prius | $5,055 |
| Honda CR-V LX 2WD | $5,235 |
| Ford Escape XLS 2WD | $5,244 |
| Ford Focus SE 4-Dr Sedan | $5,298 |
| Toyota Tacoma Double Cab 4WD | $5,400 |
| Toyota Camry LE | $5,406 |
| Honda Odyssey EX-L | $5,681 |
| Chevrolet Silverado LTZ Extended Cab 4WD | $5,788 |
| Nissan Rogue S 2WD | $5,797 |
| Chevrolet Impala LT | $6,195 |
| Chevrolet Malibu Hybrid | $6,201 |
| Ford F-350 Super Cab Lariat Turbo Diesel 2WD | $6,278 |
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Premium data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include multi-policy, homeowner, multi-vehicle, claim-free, and safe-driver. Price estimates do not factor in vehicle garaging location which can increase or decrease auto insurance rates greatly.
Looking at the rates, we can tell that makes and models like the Hyundai Elantra, Toyota Prius, and Honda CR-V are most likely to be some of the cheaper vehicles to insure for people with poor credit. The cost of a car insurance policy will tend to be higher just because there is a higher risk for drivers with bad credit, but in general those specific models will probably have the lowest insurance prices that you are likely to find.
Determining which company offers the cheapest car insurance rates for drivers with bad credit will require a bit more work than just comparing a company or two. Each insurance company has their own formula for establishing rates, so we’ll go over the most budget-friendly car insurance companies in Michigan.
Cheap Insurance Rates with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $978 |
| 2 | GEICO | $1,023 |
| 3 | Safeco | $1,069 |
| 4 | MetLife | $1,364 |
| 5 | Chubb | $1,386 |
| 6 | Pioneer State Mutual | $1,430 |
| 7 | MEEMIC | $1,436 |
| 8 | Hastings Mutual | $1,627 |
| 9 | Frankenmuth | $1,662 |
| 10 | Auto-Owners | $1,686 |
| 11 | SECURA | $1,796 |
| 12 | Progressive | $1,847 |
| 13 | Wolverine Mutual | $2,212 |
| 14 | Grange Mutual | $2,276 |
| 15 | Hanover | $2,305 |
| 16 | Allmerica | $2,316 |
| 17 | Allied | $2,332 |
| 18 | Auto Club Group | $2,391 |
| 19 | Nationwide | $2,541 |
| 20 | Farm Bureau | $2,651 |
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USAA has some of the best car insurance rates in Detroit at around $978 each year. This is $1,415 less than the average premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb also qualify as some of the best Detroit, MI insurance companies.
In the rate table above, if you are insured with Chubb and switched to GEICO, you could see a yearly savings of upwards of $363. Drivers with Pioneer State Mutual may save as much as $407 a year, and MEEMIC insureds might realize rate reductions of up to $413 a year.
It’s important to note that these estimates are averages across all drivers and vehicles in Michigan and do not factor in an exact vehicle garaging location for drivers with bad credit. So the insurer that fits you best may not even be in the list above. That points out the importance of why you need to compare as many prices as possible using your own driver information and specific vehicle type.
Get discounts on Detroit auto insurance
Insurance companies that provide policies for drivers with bad credit may also give you special discounts that could reduce prices by as much as 30% if you meet the requirements. Popular car insurance companies and a summarized list of policyholder discounts are detailed below.
- Travelers may offer discounts for new car, hybrid/electric vehicle, multi-car, early quote, good student, and IntelliDrive.
- 21st Century offers premium reductions for driver training, early bird, 55 and older, homeowners, and defensive driver.
- State Farm may include discounts for good driver, driver’s education, multiple policy, safe vehicle, good student, passive restraint, and Steer Clear safe driver discount.
- GEICO policyholders can earn discounts including anti-lock brakes, good student, driver training, air bags, membership and employees, and seat belt use.
- SAFECO offers discounts including accident prevention training, teen safe driver, teen safety rewards, safe driver, bundle discounts, and multi-car.
- AAA has savings for good student, good driver, multi-policy, multi-car, and anti-theft.
The diagram below illustrates the comparison of auto insurance rates with and without discounts applied to the policy rates. The rate quotes are based on a female driver, no accidents, no driving violations, Michigan state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with multiple vehicle, anti-theft, claim-free, accident-free, defensive driving course, and marriage discounts applied. In this example, theamount saved on car insurance for drivers with bad credit is 28% or $1,034.
Michigan car insurance companies
Choosing the highest-rated insurer is difficult considering how many companies sell coverage in Detroit. The company rank data shown below could help you analyze which auto insurers you want to consider comparing price quotes from.
The rankings below are only comprised of large, nationwide insurance companies, so smaller companies that only insure vehicles in Michigan will not be included in this list. To check prices from these and other top-rated companies, click this link.
Top 10 Large Auto Insurance Providers Overall in Detroit
- The Hartford
- Progressive
- State Farm
- Farmers Insurance
- Safeco Insurance
- USAA
- GEICO
- 21st Century
- Liberty Mutual
- AAA Insurance
Top 10 Large Auto Insurance Providers in Detroit Ranked by Customer Satisfaction
- The Hartford – 93%
- Progressive – 90%
- 21st Century – 89%
- USAA – 87%
- State Farm – 87%
- Safeco Insurance – 86%
- AAA Insurance – 86%
- Farmers Insurance – 85%
- GEICO – 85%
- American Family – 85%
Why are you paying too much for Detroit car insurance?
Michigan car insurance rates are determined by lots of factors which can significantly increase or decrease the policy price. Turning one year older, buying a home instead of renting, or getting a DUI can cause premium changes resulting in some rates now being more affordable than before.
In addition, car insurance companies file new rates as often as every quarter to ensure their profitability. A period of higher than normal claims may cause higher rates, while profitable underwriting may produce cheaper Detroit car insurance rates.
For instance, the chart below demonstrates which company has the cheapest car insurance in Detroit, MI for a 35-year-old male driver with no accidents or violations, and excellent credit. If we estimate prices based on his current risk profile, USAA may have the cheapest car insurance rates in Detroit at $2,301 annually. This is $92 less than the average rate paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are also on the list of the cheapest Detroit, MI auto insurance companies.
The example below compares rates after we give the driver from the first example some claims, a lower credit rating, and a few traffic violations. Due to the fact that every auto insurer has a different process to determine rates, getting updated rate quotes could now result in a different set of companies as shown below.
Safeco now has the lowest price in Detroit with GEICO, USAA, Pioneer State Mutual, and Hastings Mutual now being in the top five. This demonstrates why it is crucial to do a thorough rate comparison to get affordable insurance rates for drivers with bad credit. Insurance rates can be altered by many risk factors and change frequently, so the cheapest option six months ago may now be costing you a lot of money.
The insurance agencies below can most likely answer your questions and help you decide which car insurance company is the best fit, as many consumers aren’t sure which coverage to buy and prefer to get help from a professional when comparing insurance rates for people with poor credit. It’s not always easy to find the best coverage on your own, so getting advice from a licensed agent can add peace of mind knowing your coverage gives you suitable coverage if you have an accident. To locate a Detroit insurance agent in your neighborhood, click the button after the list or click here to compare price quotes now.
- Dave Gilead Insurance Agency
18323 W McNichols Rd – Detroit, MI 48219 – (313) 533-3220 - Michelle Sims – State Farm Insurance Agent
24970 W Outer Dr – Lincoln Park, MI 48146 – (313) 928-1348 - Detroit Insurance and Services
7752 Vernor Hwy – Detroit, MI 48209 – (313) 843-2730 - Advasure
22824 John R Rd – Hazel Park, MI 48030 – (248) 398-5200 - Angela Hughes – State Farm Insurance Agent
14511 W McNichols Rd – Detroit, MI 48235 – (313) 862-7800
View more Detroit, MI insurance agencies
How to find more affordable car insurance for drivers with bad credit
The list below summarizes many money-saving suggestions that can help Detroit drivers get cheaper coverage.
- Higher deductibles mean lower rates
- Full coverage is expensive so only insure older vehicles for liability only
- Vehicles with good safety ratings are usually cheaper to insure
- Increase your credit score
- Drive attentively and avoid accidents
- Serious violations like DUI or reckless driving can increase rates dramatically
- Keep rates low by shopping around frequently
That last tip is certainly vital, as was noted in this piece. Insurance prices fluctuate constantly, so drivers shouldn’t be reluctant to switch companies if a more affordable price is available. Many drivers prefer to stick with one company, but it’s not a great idea if that faithfulness ends up costing you thousands of dollars over several years. Spend a few minutes and compare prices and find cheaper auto insurance for drivers with bad credit in Detroit.