How Much Does Car Insurance Cost in Detroit?

Whether or not you have cheap car insurance coverage is dependent on many factors, but the average price paid in Detroit is right around $2,200 every 12 months. Other states pay around $1,250, so Detroit residents pay roughly $980 more each year than drivers who live in other states.

Car insurance rates are calculated based on a lot of factors, and one of the larger determinants is the car, truck, or SUV you are insuring. The rate information below shows policy rates for the top-selling cars, trucks, and SUVs in Detroit.

Data based on married male driver age 30, no speeding tickets, no at-fault accidents, $250 deductibles, and Michigan minimum liability limits. Discounts applied include claim-free, safe-driver, multi-policy, homeowner, and multi-vehicle. Information does not factor in specific location which can affect insurance rates noticeably.

Data based on married male driver age 30, no speeding tickets, no at-fault accidents, $250 deductibles, and Michigan minimum liability limits. Discounts applied include multi-vehicle, homeowner, safe-driver, claim-free, and multi-policy. Rate information does not factor in specific location which can raise or lower auto insurance rates considerably.

Table data represents married male driver age 30, no speeding tickets, no at-fault accidents, $250 deductibles, and Michigan minimum liability limits. Discounts applied include multi-policy, safe-driver, homeowner, multi-vehicle, and claim-free. Rate quotes do not factor in Detroit location which can modify premiums greatly.

Compare cheap Detroit car insurance quotes

Detroit auto insurance pricing variables

The information and graphs displayed next highlight a few of the factors that can affect rate quotes in Detroit. Understanding how policy rates are formulated is important for you to make smart choices when buying a policy.

Car insurance premiums by gender and age

The illustration below compares insurance rates for male and female drivers in Detroit. The data assumes no violations or claims, comprehensive and collision coverage, $250 deductibles, marital status is single, and no discounts are applied to the premium.

Liability-only versus full coverage

The illustration below visualizes the comparison of car insurance rates with full coverage and liability only. The prices are based on no accidents, no driving violations, $500 deductibles, drivers are single, and no additional discounts are factored in.

Guidelines for dropping full coverage

There is no exact formula of when to phase out physical damage insurance, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than about 10% of the replacement cost minus the deductible, then you might consider buying liability only.

For example, let’s pretend your vehicle’s settlement value is $8,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would receive is $7,000 after paying your policy deductible. If premium cost is more than $700 a year for comprehensive and collision coverage, then it could be time to drop full coverage.

There are some situations where buying only liability insurance is not recommended. If you have an outstanding loan on your vehicle, you have to carry full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you don’t have enough money to buy a different vehicle if your current one is in an accident, you should not buy liability only.

Detroit insurance discounts

The information below shows the comparison of premium costs with and without discounts applied. The premiums assume a male driver, a clean driving record, no at-fault accidents, Michigan state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with multi-policy, safe-driver, homeowner, claim-free, multi-car, and marriage discounts applied.

How car insurance companies determine insurance rates

A large part of saving on insurance is knowing the rating factors that go into determining your premiums. When you understand what influences your rates, this allows you to make good choices that may reward you with lower premium levels. Lots of factors are part of the equation when premium rates are determined. A few of the factors are predictable like an MVR report, but other factors are not as apparent such as your credit history or how financially stable you are.

The items below are some of the factors used by insurance companies to determine your rate level.

• Commute or pleasure use – The more miles you rack up on your car in a year the higher your rate. A lot of insurance companies calculate prices based on how the vehicle is used. Vehicles that are left in the garage get more affordable rates than vehicles that are driven to work every day. Make sure your insurance coverage states the correct driver usage, because it can save money.
• Adjust comp and collision deductibles and save – Protection for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, covers your vehicle from damage. Some coverage claims are collision with another vehicle, vandalism, and having your car stolen. The deductibles you choose are how much you are required to pay in the event of a claim. The larger the amount you’re willing to pay, the less money you will pay for insurance.
• How old are your drivers? – Older people are proven to be safer behind the wheel, tend to file fewer claims, and tend to be get fewer driving tickets. Inexperience drivers have been known to be inattentive and easily distracted with other occupants in the car and because of this, their insurance rates are much higher.
• Save money by having high credit – Credit history factor in calculating your insurance rates. Insureds with excellent credit scores tend to be better risks to insure than drivers with lower credit ratings. So if your credit rating leaves room for improvement, you could be paying less to insure your vehicle by improving your credit score.
• Vehicle features impact rates – Choosing a vehicle with advanced anti-theft systems can help lower your premiums. Anti-theft features like OnStar, LoJack tracking, and tamper alarms all help prevent auto theft and help lower rates.
• Always have insurance – Having a lapse in insurance coverage is a guaranteed way to increase your renewal premiums. In addition to paying higher rates, getting caught without coverage could result in a fine, jail time, or a revoked license.
• Bundling policies can get discounts – Most major insurers give discounts to policyholders who consolidate policies with them, otherwise known as a multi-policy discount. Even with this discount applied, it’s always a smart idea to compare other rates to help ensure you have the lowest rates.
• High performance equals high prices – The performance level of the vehicle you are buying insurance for makes a significant difference in how high your rates are. The lowest performance passenger models generally have the cheapest insurance rates, but the final cost of insurance is determined by many other factors.