Average car insurance cost in Detroit, MI

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The average car insurance cost in Detroit, Michigan is $3,280 per year, according to Insure.com data. This is $928 more than the average auto insurance cost in Michigan and $1,385 more than the national average, as analyzed by Insure.com.

The rates can vary wildly depending on where they are filed. City demographics, including population density and average resident age, will affect how much money you spend on premiums which could make it cheaper or more expensive than other areas with different factors like accident rates, theft and vandalism rates, etc.

The article covers information on – the cheapest car insurance providers in Detroit, the average car insurance rates by age, gender and how much is car insurance in Detroit based on coverage limits. Whether you’re a new driver or have been driving for years, this article can help you find the best deal on cheap car insurance in Detroit. Read on to learn more.

Cheap car insurance companies in Detroit

At an average of $2,893 per year with full coverage limits of 100/300/100, Geico provides the most affordable car insurance in Detroit.

Ranked as the second most affordable company in Detroit, Auto Club Group – ACG (AAA) provides car insurance at $3,107 per year.

As previously noted, car insurance rates differ among companies due to variations in the factors used for calculating the rates. So, it is best to compare quotes from several insurers to secure affordable car insurance rates in Detroit that align with your needs before selecting a policy.

The table below lists the average annual and monthly costs for the various car insurance companies providing coverage in Detroit, Michigan:

Read about the best car insurance companies.

Average car insurance cost in Detroit by coverage limits

The average car insurance rates in Detroit based on coverage types are as follows:

• State minimum coverage: $994 per year (limits are 25/50/25)
• Liability only coverage: $1,050 per year (limits are 50/100/50)
• Full coverage: $3,280 per year (limits are 100/300/100)
• Non-owners coverage: $796 per year

In many states, it’s a legal requirement for drivers to maintain the state minimum coverage, although these requirements vary by state. The state minimum coverage does not cover vehicles listed on your policy in an at-fault accident.

To avoid the risk of insufficient coverage and out-of-pocket expenses, it’s advisable to opt for full coverage or non-owner coverage, especially if you frequently borrow or rent vehicles and don’t own one yourself.

Average car insurance rates by gender in Detroit

Based on an analysis by Insure.com, female drivers in Detroit, Michigan pay an average annual car insurance premium of $3,280. In comparison, male drivers pay $3,280 annually, which is equals to what female drivers pay.

According to the Insurance Information Institute, statistics indicate that women are generally considered safer drivers than men. Also, women pay less for car insurance due to the lower rate of severe accidents.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Detroit

In Detroit, car insurance rates are the highest for teens, at $9,461 per year or $788 per month. The rates are higher for teenagers (16- to 19-year-olds) as they are more prone to road accidents due to their lack of experience on the road, according to the Insurance Information Institute. There are driving laws for teens to help them drive better. Also, teen insurance rates can be lowered by adding teens to a parent’s auto insurance policy.

Car insurance rates are bound to decrease as teens grow older and earn a good driving record. Young adults pay $4,781 per year for their car insurance which is $4,680 less than what the teens pay for their insurance policy.

The car insurance rates in Detroit for adult and senior drivers are $3,199 and $2,998 per year respectively.

The car insurance rates for adults and seniors are lower than those for teens and young adults. “This is because they are more likely to obey the speed limits and follow the rules of the road,” says the Insurance Information Institute.

Read more on auto insurance for seniors.

The table below depicts the average annual rates for drivers of different age groups:

Car insurance rate trends in Detroit

Examining the trends in car insurance rates in Detroit, Michigan, there was an downward trend from 2022 to 2023. Between 2022 and 2023, rates decrease overall by 37% or $1,945.

The table below illustrates the trend over the three years:

Conclusion

In conclusion, Detroit’s car insurance rates are higher than the average insurance rates in Michigan. Drivers in Detroit can find affordable car insurance options by shopping around and taking advantage of available discounts. Moreover, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

• Insurance Information Institute. “What determines the price of my auto insurance policy,” Accessed September 2024.
• Insurance Information Institute. “Auto insurance for teen drivers,” Accessed September 2024.
• Insurance Information Institute. “Senior driving safety and tips,” Accessed September 2024.

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Prachi Singh

Contributing Researcher

 

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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.