Finding reliable, cheap auto insurance is not the easiest thing to do, and deciding which companies offer the best car insurance rates for drivers under 21 calls for even more work.
Each auto insurance company uses slightly different criteria for determining rates in each state, so we’ll go over the car insurance companies with the overall cheapest rates in Detroit, MI.
Best Insurance Companies for Minors
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $987 |
| 2 | GEICO | $993 |
| 3 | Safeco | $1,037 |
| 4 | MetLife | $1,364 |
| 5 | Chubb | $1,386 |
| 6 | MEEMIC | $1,436 |
| 7 | Pioneer State Mutual | $1,444 |
| 8 | Hastings Mutual | $1,627 |
| 9 | Auto-Owners | $1,636 |
| 10 | Frankenmuth | $1,713 |
| 11 | SECURA | $1,796 |
| 12 | Progressive | $1,923 |
| 13 | Wolverine Mutual | $2,212 |
| 14 | Hanover | $2,305 |
| 15 | Allied | $2,309 |
| 16 | Allmerica | $2,316 |
| 17 | Grange Mutual | $2,345 |
| 18 | Auto Club Group | $2,416 |
| 19 | Nationwide | $2,541 |
| 20 | Farm Bureau | $2,651 |
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USAA may offer some of the most affordable car insurance rates in Detroit at around $987 a year. GEICO, Safeco, MetLife, and Chubb would also be considered some of the cheaper Detroit, MI car insurance companies.
In this example, if you buy coverage from Chubb and switched to GEICO, you may see yearly savings of in the vicinity of $393. Policyholders with MEEMIC may save as much as $443 a year, and Pioneer State Mutual insureds might reduce rates by $451 a year.
To get a quick, customized rate comparison, click here or visit any of the companies below.
It’s important to note that these policy rates are averages for all drivers and vehicles in Michigan and do not take into consideration a vehicle location for drivers under 21. So the car insurance company that has the cheapest price for you may not even be in the top 30 companies shown above. That point stresses why you need to get rate quotes from many companies using your own driver and vehicle profiles.
The vehicle needing coverage is probably the largest consideration when comparing cheaper insurance for drivers under 21. Vehicles with high performance features, a lack of modern safety features, or an increased likelihood of liability claims will cost substantially more to insure than more economical and safe models. The list below showcases auto insurance costs for a handful of the most affordable automobiles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $13,525 |
| Honda Accord EX 4-Dr Sedan | $13,531 |
| Honda CR-V LX 2WD | $13,525 |
| Jeep Wrangler Sport 4WD 2-Dr | $14,074 |
| Toyota Prius | $14,739 |
| Toyota Tacoma 4WD | $15,141 |
| Ford Explorer Eddie Bauer 2WD | $15,151 |
| Nissan Altima 2.5 4-Dr Sedan | $16,055 |
| Jeep Grand Cherokee Laredo 4WD | $16,061 |
| Toyota Camry LE | $16,055 |
| Toyota RAV4 Limited 4WD | $16,062 |
| Chevrolet Equinox LS AWD | $16,055 |
| Chevrolet Malibu LS | $16,064 |
| Dodge Grand Caravan Crew | $16,203 |
| Hyundai Elantra Blue 4-Dr Sedan | $16,816 |
| Ford Focus SEL 4-Dr Sedan | $16,822 |
| Toyota Corolla XLE | $16,969 |
| Ford Edge Sport AWD | $16,977 |
| Chevrolet Impala LTZ | $16,969 |
| Honda Odyssey EX-L | $16,977 |
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Prices above based on single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in specific garaging location which can decrease or increase rates considerably.
Looking at the data, models like the Ford Escape, Honda Accord, Honda CR-V, and Jeep Wrangler are likely to be the cheaper vehicles to insure for minors. Rates will be more expensive because of the fact that there is more inherent risk for drivers under 21, but overall those vehicles will most likely have the best insurance prices available.
For minors, one of the largest components that are used to help calculate auto insurance rates is where you call home. Areas with high crime rates or more dense population tend to have more expensive auto insurance rates, whereas areas with less congestion benefit from lower prices.
The following table lists the most costly cities in Michigan for drivers under 21 to buy car insurance in. Detroit makes the list at #1 having an annual price of $4,813 for coverage, which is around $401 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Detroit | $4,813 |
| 2 | Dearborn | $4,082 |
| 3 | Southfield | $3,862 |
| 4 | Pontiac | $3,675 |
| 5 | Warren | $3,390 |
| 6 | Flint | $3,371 |
| 7 | Dearborn Heights | $3,239 |
| 8 | Taylor | $3,210 |
| 9 | Sterling Heights | $2,954 |
| 10 | Westland | $2,821 |
| 11 | St. Clair Shores | $2,736 |
| 12 | Farmington Hills | $2,704 |
| 13 | Livonia | $2,688 |
| 14 | Troy | $2,640 |
| 15 | Saginaw | $2,557 |
| 16 | Rochester Hills | $2,542 |
| 17 | Novi | $2,514 |
| 18 | Royal Oak | $2,462 |
| 19 | Lansing | $2,391 |
| 20 | Battle Creek | $2,378 |
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Premium costs are estimated as the specific area where the vehicle is garaged can increase or decrease premium rates greatly.
The illustration below shows how choosing a deductible can change insurance rates when getting quotes for cheap insurance for drivers under 21. The costs are based on a single female driver, full coverage, and no other discounts are factored in.
A 50-year-old driver could cut expenses by $548 a year by changing from a $100 deductible to a $500 deductible, or save $828 by choosing a $1,000 deductible. Youthful drivers, like the 20-year-old, can cut as much as $1,388 every year just by choosing higher deductibles. If you make the decision to raise deductibles, it is important to have plenty of money set aside to allow you to pay the extra out-of-pocket expense that comes with higher deductibles.
Discount Detroit car insurance
Insurance companies that sell policies for drivers under 21 may have price discounts that could reduce prices by as much as 40% or more if you meet the requirements. A list of car insurance companies and a summarized list of policyholder discounts are included below.
- Progressive offers discounts including multi-policy, online quote discount, multi-vehicle, continuous coverage, online signing, good student, and homeowner.
- GEICO may have discounts that include military active duty, federal employee, multi-policy, driver training, and air bags.
- State Farm may offer discounts for good student, safe vehicle, accident-free, anti-theft, and good driver.
- Esurance has savings for safety device, emergency road assistance, multi-policy, claim free, homeowner, and renters.
- The Hartford discounts include vehicle fuel type, air bag, driver training, bundle, and anti-theft.
The diagram below compares auto insurance costs with and without discounts applied to the policy premium. The rate quotes are based on a female driver, no claims, a clean driving record, Michigan state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with good student, paperless filing, anti-theft, passive restraint, vehicle safety, and continuous coverage discounts applied. When discounts are factored in, theaverage amount saved on car insurance for drivers under 21 is 28% or $1,394.
Safe drivers Detroit pay cheaper rates
One of the best ways to earn the cheapest car insurance prices in Michigan for minors is to drive attentively and avoid accidents and keep your driving record clean. The information below illustrates how violations and accident claims can increase insurance costs for each age group. The premiums are based on a married male driver, full coverage, $1,000 deductibles, and no other discounts are factored in.
The data above shows the average cost of car insurance in Michigan per year with a clean driving record and no accidents is $3,253. Factor in one speeding ticket and the average cost swells to $3,753, an increase of $499 each year. Now get one accident along with the one speeding ticket and the annual cost of car insurance for drivers under 21 increases to an average of $5,145. That’s an increase of $1,892, or $158 per month, just for not driving attentively!
How to find more affordable insurance for drivers under 21
It is possible to find better rates, and here are many penny-pinching solutions that can help Michigan drivers get low-cost coverage.
- Do not pay for comprehensive and collision coverage on older vehicles
- Drive a car with a high safety rating
- Be a cautious driver
- Prevent price hikes by avoiding at-fault accidents
- Increase your credit score
- Increase the comprehensive and collision deductibles on your policy
- Compare rates regularly and switch companies to save money
That final tip is extraordinarily significant, as we emphasized in the article above. Auto insurance prices in Detroit fluctuate constantly, so don’t hesitate to change to a new company if a cheaper rate is available.
Brand loyalty is not necessarily bad, but we do not recommend it if it’s costing you big bucks every year. Take a couple minutes and shop around to find cheaper insurance for drivers under 21.
The professional agents shown below can help you determine which auto insurance policy fits you best, as many consumers aren’t sure which coverage to buy and prefer to have professional advice when comparing insurance rates for drivers under 21. It can be difficult to find the best coverage yourself, so using a licensed agent can bring peace of mind knowing you have adequate protection.
To locate a Detroit auto insurance agent close to you, click the button link following the list or click here to compare price quotes now.
- John Cash – State Farm Insurance Agent
19203 Grand River Ave – Detroit, MI 48223 – (313) 537-1200 - 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 - Diebold Detroit Insurance Agency
1420 Broadway St #101 – Detroit, MI 48226 – (313) 964-3750 - Allstate Insurance: Ago Benavides
3570 W Vernor Hwy – Detroit, MI 48216 – (313) 849-2000