One of the more important things that determine car insurance rates is where you normally keep your vehicle in Detroit. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of cheap car insurance rates.
The following table shows the most expensive places in Michigan for welfare recipients in which to purchase auto insurance. Detroit is listed at #1 with an annual cost of $5,009 for the average policy, which is approximately $417 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Detroit | $5,009 |
| 2 | Southfield | $4,020 |
| 3 | Dearborn | $4,002 |
| 4 | Pontiac | $3,675 |
| 5 | Flint | $3,371 |
| 6 | Warren | $3,322 |
| 7 | Dearborn Heights | $3,239 |
| 8 | Taylor | $3,084 |
| 9 | Sterling Heights | $3,044 |
| 10 | Westland | $2,821 |
| 11 | Farmington Hills | $2,786 |
| 12 | St. Clair Shores | $2,736 |
| 13 | Livonia | $2,634 |
| 14 | Saginaw | $2,583 |
| 15 | Troy | $2,562 |
| 16 | Royal Oak | $2,562 |
| 17 | Rochester Hills | $2,542 |
| 18 | Novi | $2,514 |
| 19 | Lansing | $2,439 |
| 20 | Battle Creek | $2,354 |
| 21 | Grand Rapids | $2,275 |
| 22 | Kentwood | $2,250 |
| 23 | Kalamazoo | $2,215 |
| 24 | Wyoming | $2,195 |
| 25 | Ann Arbor | $2,149 |
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Prices are comparative as vehicle location can raise or lower rates greatly.
Comparing quotes for cost effective car insurance is difficult, and deciding which company has the cheapest auto insurance rates for welfare recipients involves a little more work.
Each company uses a little different formula to set policy rates, so let’s begin by examining the auto insurance companies with the overall cheapest rates in Detroit.
Cheap Insurance Rates in Michigan
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $949 |
| 2 | GEICO | $1,033 |
| 3 | Safeco | $1,079 |
| 4 | MetLife | $1,324 |
| 5 | Chubb | $1,372 |
| 6 | Pioneer State Mutual | $1,430 |
| 7 | MEEMIC | $1,450 |
| 8 | Hastings Mutual | $1,627 |
| 9 | Auto-Owners | $1,636 |
| 10 | Frankenmuth | $1,713 |
| 11 | SECURA | $1,778 |
| 12 | Progressive | $1,866 |
| 13 | Wolverine Mutual | $2,126 |
| 14 | Grange Mutual | $2,322 |
| 15 | Allied | $2,332 |
| 16 | Allmerica | $2,386 |
| 17 | Hanover | $2,399 |
| 18 | Auto Club Group | $2,489 |
| 19 | Nationwide | $2,593 |
| 20 | Farm Bureau | $2,651 |
| Quote Your Rates Go | ||
USAA may offer some of the cheapest car insurance rates in Detroit at around $949 per year. GEICO, Safeco, MetLife, and Chubb also make the cut as some of the most economical Detroit, MI car insurance companies.
In the above example, if you are insured with Chubb and switched to GEICO, you might achieve annual savings of around $339. Drivers with Pioneer State Mutual could save as much as $397 a year, and MEEMIC insureds might reduce rates by $417 a year.
To compare your rates to other Michigan insurance companies, click here or visit any of the low-priced companies below.
Understand that those premium estimates are averages for all ages of drivers and types of vehicles and do not factor in an exact location for welfare recipients. So the auto insurance company that can offer you the best rate may not even be in the top 30 companies in the list above. That points out the importance of why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.
The car, truck, or SUV driven is one of the largest factors when shopping around for the best insurance for welfare recipients. Vehicles with higher performance characteristics, poor crash test ratings, or an increased likelihood of liability claims will cost substantially more to insure than safer, lower-performance models. The list below estimates car insurance costs for a number of the most economical vehicles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 2WD | $4,392 |
| Jeep Wrangler Sport 4WD 2-Dr | $4,463 |
| Ford Escape Limited 4WD | $4,661 |
| Toyota Prius | $4,759 |
| Toyota Tacoma 4WD | $4,821 |
| Chevrolet Equinox LS 2WD | $5,089 |
| Jeep Grand Cherokee Laredo 2WD | $5,095 |
| Dodge Grand Caravan Hero | $5,089 |
| Toyota Corolla XRS | $5,452 |
| Chevrolet Malibu LTZ | $5,460 |
| Nissan Rogue S 2WD | $5,456 |
| Dodge Ram Quad Cab TRX4 Off Road 2WD | $5,555 |
| Ford Edge SEL AWD | $5,720 |
| Honda Accord EX 2-Dr Coupe | $5,727 |
| Volkswagen Jetta S 2.5 Station Wagon | $5,729 |
| Hyundai Elantra SE Touring Station Wagon | $5,736 |
| Chevrolet Silverado 2500HD LT Crew Cab Diesel 4WD | $5,814 |
| Toyota Camry Hybrid | $5,819 |
| Toyota Camry LE | $5,828 |
| Toyota RAV4 Limited 4WD | $5,836 |
| Ford Explorer Eddie Bauer AWD | $5,936 |
| Ford F-150 XL Crew Cab 4WD | $6,035 |
| Honda Odyssey EX W/Rear Entertainment | $6,115 |
| Compare Cheap Rates Go | |
Premium data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, multi-policy, multi-vehicle, safe-driver, and homeowner. Information does not factor in specific zip code location which can revise price quotes significantly.
By looking at the data, we can infer that vehicles like the Honda CR-V, Jeep Wrangler, Ford Escape, Toyota Prius, and Toyota Tacoma are likely to be the most economical vehicles to insure for drivers on welfare.
Irresponsible driving raises your rates
The common sense way to receive the best auto insurance prices in Michigan for drivers on welfare is to drive safe and not get tickets or have accidents. The chart below highlights how traffic violations and accident claims increase premium costs for different age groups. The premiums are based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied.
In the previous example, the average cost of a car insurance policy per year with no violations or accidents is $3,731. Get written up for two speeding tickets and the average cost jumps to $5,153, an increase of $1,422 each year. Now add in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for welfare recipients increases to an average of $10,668. That’s an increase of $6,937, or $578 per month, just for not driving safely!
Best auto insurance company in Detroit
Finding a highly-rated auto insurance company can be a challenge considering how many companies sell coverage in Michigan. The company ratings in the next section could help you select which providers you want to consider purchasing coverage from. These rankings are for insurance companies that insure vehicles in the majority of U.S. states, so companies that focus mainly on Michigan business are not factored into the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| The Hartford | 88 | 96 | 91 | 93% | A+ | 92.6 |
| Progressive | 84 | 94 | 99 | 90% | A+ | 92.4 |
| State Farm | 84 | 93 | 95 | 87% | A++ | 91 |
| Farmers Insurance | 87 | 92 | 90 | 85% | A | 90.6 |
| Safeco Insurance | 85 | 91 | 87 | 86% | A | 88.4 |
| USAA | 71 | 93 | 98 | 87% | A++ | 88 |
| GEICO | 73 | 93 | 95 | 85% | A++ | 87.1 |
| 21st Century | 85 | 85 | 91 | 89% | A | 86.9 |
| Liberty Mutual | 72 | 91 | 97 | 83% | A | 86.4 |
| AAA Insurance | 85 | 85 | 88 | 86% | A | 85.8 |
| Nationwide | 71 | 90 | 93 | 83% | A+ | 84.9 |
| Allstate | 69 | 92 | 92 | 83% | A+ | 84.4 |
| American Family | 77 | 96 | 80 | 85% | A | 83.8 |
| Esurance | 70 | 80 | 89 | 77% | A+ | 79.2 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
A good deal can quickly turn bad
Detroit auto insurance rates are impacted by many factors that can increase the cost of having a policy. Simply turning a year older, buying another vehicle, or getting a driving violation can trigger rate changes that can now make some companies more affordable than competitors.
Not only may your situation change, but companies change premium rates as often as every quarter in order to maintain liquidity for claims. Heavier than normal losses may result in price increases, while lower claim levels may cause cheaper Detroit car insurance rates.
The graph below shows a variety of companies that have the cheapest car insurance in Detroit, MI for a 35-year-old male driver with a clear driving record, no claims, and a good credit rating. When quoting prices based on his personal risk profile, USAA might quote the lowest car insurance rates in Detroit at $2,301 each year. This is $92 less than the average rate paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb are the rest of the cheapest Detroit, MI auto insurance companies.
Now we will pretend the driver from the first rate comparison an at-fault accident, a lower credit rating, and a couple of points charged on his driving record. Because each insurer has a unique formula for setting rates, comparing insurance 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 price in Detroit, MI with GEICO, Safeco, Hastings Mutual, and USAA now rounding out the top five. This example shows why consumers need to take the time to perform an extensive rate comparison when trying to find the cheapest auto insurance rates for welfare recipients.
Prices can be determined by many risk factors and can decrease or increase without notice, so the best price three years ago may now be quite expensive.