The words “low-priced” and “insurance” really should not be used together, in particular when you are trying to find the lowest insurance rates for homeowners. To save some money, let’s take a look at some of the factors that help determine auto insurance premiums, and find a few ways to take a little off the next policy you buy.
For people who own their homes, one of the more important things that are looked at to determine the amount you pay for auto insurance is your address in Detroit. More populated areas tend to pay more, whereas more rural areas benefit from lower prices.
The table below rates the most costly cities in Michigan for homeowners to buy car insurance in. Detroit is ranked #1 having an annual price of $4,862 on average, which is around $405 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Detroit | $4,862 |
| 2 | Southfield | $3,980 |
| 3 | Dearborn | $3,961 |
| 4 | Pontiac | $3,675 |
| 5 | Flint | $3,473 |
| 6 | Warren | $3,322 |
| 7 | Dearborn Heights | $3,239 |
| 8 | Taylor | $3,210 |
| 9 | Sterling Heights | $3,014 |
| 10 | Westland | $2,850 |
| 11 | St. Clair Shores | $2,792 |
| 12 | Livonia | $2,688 |
| 13 | Farmington Hills | $2,676 |
| 14 | Troy | $2,562 |
| 15 | Saginaw | $2,557 |
| 16 | Royal Oak | $2,537 |
| 17 | Rochester Hills | $2,467 |
| 18 | Battle Creek | $2,450 |
| 19 | Novi | $2,439 |
| 20 | Lansing | $2,367 |
| 21 | Kalamazoo | $2,259 |
| 22 | Wyoming | $2,216 |
| 23 | Grand Rapids | $2,208 |
| 24 | Kentwood | $2,183 |
| 25 | Ann Arbor | $2,065 |
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Price information shown is estimated as specific Detroit zip code can impact premium rates substantially.
The vehicle model requiring coverage is one of the main factors that determines whether or not you find the cheapest car insurance for homeowners. Vehicles with lots of speed or power, poor safety features, or a track record of large liability claims will cost substantially more to insure than more modest models. The information below showcases insurance costs for a handful of the most cost-effective automobiles to insure in Michigan.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Jeep Wrangler Sahara 4WD 2-Dr | $4,831 |
| Ford Explorer XLT AWD | $4,836 |
| Honda CR-V LX 4WD | $4,930 |
| Ford Focus S 4-Dr Sedan | $4,996 |
| Toyota Tacoma 2WD | $5,002 |
| Toyota RAV4 Sport 4WD | $5,095 |
| Nissan Altima 2.5 4-Dr Sedan | $5,104 |
| GMC Sierra SLE Crew Cab 2WD | $5,095 |
| Dodge Grand Caravan Crew | $5,189 |
| Hyundai Elantra SE Touring Station Wagon | $5,345 |
| Ford Edge Sport AWD | $5,359 |
| Toyota Camry SE | $5,367 |
| Toyota Corolla XLE | $5,359 |
| Ford Escape XLT 4WD | $5,406 |
| Chevrolet Silverado LT Crew Cab 4WD | $5,453 |
| Chevrolet Equinox LT 2WD | $5,834 |
| Toyota Prius | $5,863 |
| Dodge Ram Quad Cab Laramie 2WD | $5,919 |
| Chevrolet Malibu LT | $5,947 |
| Ford F-150 XL Crew Cab 4WD | $6,037 |
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Data based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, multi-vehicle, claim-free, multi-policy, and homeowner. Price information does not factor in vehicle location which can increase or decrease prices greatly.
Looking at the data, makes and models like the Jeep Wrangler, Ford Explorer, Honda CR-V, Ford Focus, and Toyota Tacoma should be a few of the more affordable vehicles to insure for people who own their homes.
Deciphering which company has the cheapest car insurance rates for homeowners will involve more time in order to find the lowest price quote.
Every auto insurer has a proprietary method for establishing rates, so let’s take a look at the lowest cost car insurance companies in Detroit.
Find the Best Cheap Insurance for Homeowners
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $958 |
| 2 | GEICO | $1,033 |
| 3 | Safeco | $1,037 |
| 4 | MetLife | $1,350 |
| 5 | Chubb | $1,414 |
| 6 | Pioneer State Mutual | $1,444 |
| 7 | MEEMIC | $1,450 |
| 8 | Hastings Mutual | $1,579 |
| 9 | Frankenmuth | $1,696 |
| 10 | Auto-Owners | $1,702 |
| 11 | SECURA | $1,832 |
| 12 | Progressive | $1,847 |
| 13 | Wolverine Mutual | $2,212 |
| 14 | Grange Mutual | $2,253 |
| 15 | Allied | $2,332 |
| 16 | Hanover | $2,376 |
| 17 | Allmerica | $2,386 |
| 18 | Auto Club Group | $2,464 |
| 19 | Nationwide | $2,516 |
| 20 | Farm Bureau | $2,678 |
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USAA quotes some of the lowest car insurance rates in Detroit at around $958 each year. This is $1,435 less than the average policy premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb would also make the list of some of the best Detroit, MI car insurance companies.
In the above rates, if you are a customer of MetLife and switched to GEICO, you might realize savings of about $317. Drivers with Chubb could save as much as $381 a year, and Pioneer State Mutual customers might reduce prices by as much as $411 a year.
Bear in mind that those prices are averaged for all drivers and vehicles in Michigan and and are not figured with an exact zip code location for homeowners. So the car insurance company that fits your age and vehicle best may not even be in the top 30 companies in the list above. That helps illustrate why you need to compare prices as often as possible using your own driver and vehicle profiles.
Ending up with a high-quality company can be challenging considering how many companies sell coverage in Michigan. The ranking information shown below could help you choose which auto insurance companies you want to consider comparing rate quotes with. The ratings below are only comprised of large nationwide companies, so smaller companies will not be included in this list.
Top 10 Large Car Insurance Companies in Detroit Ranked by Claims Service
- Progressive
- USAA
- Liberty Mutual
- State Farm
- GEICO
- Nationwide
- Allstate
- The Hartford
- 21st Century
- Farmers Insurance
Top 10 Large Car Insurance Companies 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%
Full coverage or liability only
Paying a lower price for car insurance is important to the majority of drivers, and one of the easiest ways to buy cheap insurance for homeowners is to not buy comprehensive and collision coverage. The diagram below shows the difference between yearly insurance costs with full physical damage coverage and with liability coverage only. The premium estimates are based on no claims or driving citations, $100 deductibles, single marital status, and no discounts are applied.
As an average, physical damage coverage costs $5,275 per year more than just buying liability only. That touches on the question if buying full coverage is a waste of money. There isn’t a steadfast formula to delete comp and collision coverage, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it may be the right time to buy liability only.
How to find budget-friendly car insurance for homeowners
It’s not impossible to find cheaper rates, and here are some of the better money-saving ideas that can help drivers quote cheaper coverage.
- Pay cheaper rates with good credit scores
- Be a safe driver
- Bundle home or renters insurance to earn a discount on car insurance
- Raise your physical damage coverage deductibles
- Frequent claims may make car insurance unaffordable
- Being accident-free can lower rates significantly
- Look for cheaper rates once a year by shopping around
That final tip is remarkably crucial, as we noted in this write-up. Insurance rates can change significantly in a year, so drivers shouldn’t be reluctant to switch companies if a cheaper rate is available.
Being loyal to a particular company is commendable, but we do not recommend it if that loyalty ends up costing a wad of cash every year. If you have a few minutes, now is a great time to compare rates and find cheaper auto insurance for homeowners in Detroit.