Wouldn’t it be so easy if you could know instantly the company that has the cheapest rates for retired military? Unfortunately, it’s not that simple as there are a whole bunch of unknown factors like the amount of liability insurance you need, your date of birth, and whether you want full coverage, that all factor into the price you pay. This article will discuss the best ways to avoid overpriced car insurance and will give you a good start to your coverage search.
Locating low-cost auto insurance is not the easiest thing to do, and determining which insurers offer the cheapest insurance rates for retired military may require even more perseverance.
Every auto insurer uses slightly different criteria to set premium rates, so first let’s look at the rankings for the overall cheapest insurance companies in Detroit, MI. Keep in mind that Detroit insurance rates are calculated based on many things that can increase the cost of having a policy. Taking a driver safety course, buying a home instead of renting, or getting a DUI can produce rate changes resulting in some rates now being cheaper than competitors.
Lowest Insurance Price Quotes for Vets
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $987 |
| 2 | GEICO | $1,033 |
| 3 | Safeco | $1,047 |
| 4 | MetLife | $1,310 |
| 5 | Chubb | $1,414 |
| 6 | MEEMIC | $1,450 |
| 7 | Pioneer State Mutual | $1,488 |
| 8 | Auto-Owners | $1,636 |
| 9 | Hastings Mutual | $1,643 |
| 10 | Frankenmuth | $1,696 |
| 11 | SECURA | $1,796 |
| 12 | Progressive | $1,923 |
| 13 | Wolverine Mutual | $2,147 |
| 14 | Allied | $2,309 |
| 15 | Hanover | $2,328 |
| 16 | Grange Mutual | $2,345 |
| 17 | Allmerica | $2,362 |
| 18 | Auto Club Group | $2,464 |
| 19 | Nationwide | $2,593 |
| 20 | Farm Bureau | $2,599 |
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USAA normally has some of the most affordable car insurance rates in Detroit at around $987 annually. This is $1,406 less than the average premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb also are some of the cheapest Detroit, MI auto insurance companies.
In the above example, if you currently buy coverage from Safeco and switched to USAA, you might realize savings of upwards of $60. Customers with MetLife may save as much as $323 a year, and Chubb customers might lower prices by up to $427 a year.
Understand that those estimates are averages for all types of drivers and the different vehicles they drive and do not factor in an exact location for retired military. So the company that is most affordable for your situation may not even be in the list above. That point stresses why you need to get rate quotes using your own personalized driver profile and vehicle information.
For veterans, one of the more important considerations that determine the cost of insurance is where your car is garaged in Detroit. Areas with high crime rates or more dense population will most likely have higher rates, whereas less populated areas have the enjoyment of a little cheaper coverage.
The information below rates the priciest cities in Michigan for retired military to purchase car insurance in. Detroit shows up at #1 with an annual cost of $4,960 for the average insured, which is approximately $413 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Detroit | $4,960 |
| 2 | Dearborn | $4,123 |
| 3 | Southfield | $3,902 |
| 4 | Pontiac | $3,567 |
| 5 | Flint | $3,337 |
| 6 | Warren | $3,289 |
| 7 | Dearborn Heights | $3,207 |
| 8 | Taylor | $3,084 |
| 9 | Sterling Heights | $3,044 |
| 10 | Westland | $2,908 |
| 11 | Farmington Hills | $2,786 |
| 12 | Livonia | $2,714 |
| 13 | St. Clair Shores | $2,709 |
| 14 | Rochester Hills | $2,567 |
| 15 | Troy | $2,562 |
| 16 | Saginaw | $2,507 |
| 17 | Royal Oak | $2,487 |
| 18 | Novi | $2,464 |
| 19 | Battle Creek | $2,450 |
| 20 | Lansing | $2,367 |
| 21 | Kentwood | $2,250 |
| 22 | Kalamazoo | $2,215 |
| 23 | Grand Rapids | $2,208 |
| 24 | Wyoming | $2,130 |
| 25 | Ann Arbor | $2,086 |
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Premium amounts are comparative as zip code location can raise or lower rates greatly.
Get discounts on Detroit auto insurance
Insurers that provide policies for retired military may provide discounts that could reduce prices by as much as 40% or more if you meet specific criteria. A list of insurance companies and their possible discounts can be read below.
- GEICO may have discounts that include defensive driver, driver training, anti-theft, emergency military deployment, five-year accident-free, and daytime running lights.
- Mercury Insurance has savings for multi-car, multi-policy, type of vehicle, annual mileage, ease of repair, location of vehicle, and anti-theft.
- Farmers Insurance offers premium reductions for electronic funds transfer, pay in full, distant student, alternative fuel, and teen driver.
- Auto-Owners Insurance may include discounts for multiple vehicles, good student, company car, paid in full, and anti-lock brakes.
- Liberty Mutual includes discounts for teen driver discount, multi-car, exclusive group savings, new vehicle discount, safety features, newly retired, and newly married.
- SAFECO offers discounts for homeowner, bundle discounts, safe driver, accident prevention training, anti-lock brakes, and drive less.
- Progressive offers discounts including online signing, multi-vehicle, homeowner, online quote discount, and good student.
- USAA has discounts for vehicle storage, multi-policy, defensive driver, family discount, annual mileage, and military installation.
The information below illustrates the comparison of auto insurance costs with and without discounts applied to the premium. The rates are based on a female driver, no accidents, no driving violations, Michigan state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with safe-driver, defensive driving course, passive restraint, accident-free, homeowner, and marriage discounts applied. When these discounts are applied, theaverage amount saved on insurance for retired military is 28% or $1,395.
The example below highlights how deductible selection can increase or decrease insurance costs when getting quotes for cheap insurance for retired military. The data is based on a married female driver, comprehensive and collision coverage, and no policy discounts are applied.
In the chart above, a 40-year-old driver could cut expenses by $636 a year by switching from a $100 deductible up to a $500 deductible, or save $958 by switching to a $1,000 deductible. Even younger drivers, such as the 20-year-old example, can save $1,578 or even more by using higher deductibles when buying full coverage.
If you do raise deductibles, it is important to have plenty of discretionary funds to enable you to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Don’t make the mistake of not shopping around
Michigan insurance rates are based on many factors that may substantially change the price you have to pay for coverage. Simply having another birthday, having a teenage driver, or having an at-fault accident can trigger changes in premium that can cause some rates to be cheaper in comparison to the competition.
Not only may your situation change, but insurers change prices multiple times each year to adjust for gains or losses. Heavy losses can result in price increases, while profitable underwriting can cause lower-priced Detroit car insurance rates.
As an example, the data below compares the cheapest car insurance in Detroit, MI for a 45-year-old female driver with no accidents, a clean driving record, and good credit. If we look at prices based on her personal risk profile, USAA quotes the lowest car insurance rates in Detroit at $2,234 per year. This is $159 less than the average policy premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are the remaining cheapest Detroit, MI auto insurance companies.
The next chart shows rates after we give the driver from above some claims, a little lower credit rating, and a few traffic violations. Because each insurer uses a different method for setting rates, getting updated rate quotes most likely will result in a different ranking of the cheapest car insurance companies in Detroit as shown below.
Pioneer State Mutual now has the cheapest rate in Detroit, MI with GEICO, Safeco, Hastings Mutual, and USAA also being competitive. This demonstrates why Detroit drivers need to shop around with many companies to find the most economical car insurance rates for retired military.
Prices are made up of many different factors and change substantially, so the most affordable company the last time you shopped around may now be quite expensive.