Best cheap car insurance in Detroit

1
peeterv/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

In Detroit drivers pay an average rate of $2,100 for minimum and $5,046 for full coverage car insurance, according to Bankrate’s 2021 study of quoted annual premiums. Although this is considerably higher than both the national and state averages, the prices are justified. In 2017, Detroit had 55,001 crashes, 147 of which were fatal. Detroit’s busy roads and congested traffic make it a necessity to have sufficient car insurance coverage to protect against accidents and other traffic violations that may arise.

To find insurance that is both adequate and affordable, we looked at a variety of factors to narrow down the best car insurance companies in Detroit. These included customer satisfaction scores, third party ratings, amount of discounts, as well as the average prices for both minimum and full coverage.

Best car insurance companies in Detroit

To determine the best cheap car insurance in Detroit, we looked at J.D. Power scores (an independent third party review company that tests customer satisfaction), average amount for premiums, as well as available discounts. Here are the companies we believe to be among the best car insurance in Detroit.

Insurance company J.D. Power customer satisfaction score Average annual premium for minimum coverage Average annual premium for full coverage
Auto-Owners 845 / 1,000 $1,502 $3,490
Geico 851 / 1,000 $1,854 $3,482
MetLife 821 / 1,000 $957 $3,240
Progressive 824 / 1,000 $1,453 $2,709
Travelers 828 / 1,000 $259 $3,586

Auto-Owners

Auto-Owners offers a whole list of coverage options to their customers (they currently offer 10 options for drivers to choose from). Auto-Owners also offers some unique benefits. If you get into an accident with another Auto-Owners member, Auto-Owners will wave your deductible. Driving a rental? Auto-Owners will cover you for the broadest coverages stated on your policy. Auto-Owners is also unique in that it also insures both classic and converted cars, which isn’t that common with national carriers.

Geico

Geico may not be the cheapest provider in Detroit on our list, but it has the strongest customer satisfaction scores in the North Central region. This means that when customers have an issue, they’re generally happy with the services Geico gave them.

However, Geico also offers its customers numerous ways they can save on their premiums. Out of all the companies operating in Detroit, Geico easily has the most discounts. Plus, the discounts offer significant savings, many of which can help drivers save up to 25%.

MetLife

MetLife is a great company to work with if you’re looking to bundle your car insurance with another product, such as home insurance or renters insurance. On average, customers who have both save on average $591 a year.

MetLife is also technologically current. A free app called MyJourney helps monitor your driving habits and prevent distracted driving. All in all, MetLife is a very well-rounded, forward thinking company.

Progressive

Progressive gives Geico a run for its money when it comes to discounts and states that 99% of its customers qualify for, at minimum, at least one discount. We like Progressive’s Name Your Price tool. With this tool, you can tell Progressive what your budget is for a policy, and Progressive will tell you what your options are. Not only that, Progressive will also tell you what rates you would get with another company if you’re shopping around.

Travelers

Travelers scores strong on customer satisfaction with J.D. Power, and it’s one of the few companies that gives you a discount for driving a hybrid. One of our favorite things about Travelers, however, is its IntelliDrive program. With IntelliDrive, you let Travelers analyze your driving habits via a smartphone app. If Travelers likes what it sees, you get a discount for driving safely.

The cheapest car insurance in Detroit

The average annual price drivers in Michigan pay for car insurance is $2,375 for full coverage and $995 for minimum. This is in stark contrast to drivers in Detroit who pay $5046 annually for full and $2100 for minimum coverage.

Based off of our research, the cheapest car insurance in Detroit can be found with the following companies:

Insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Travelers $259 $3,586
USAA $676 $1,741
MetLife $957 $3,240
Progressive $1,453 $2,709
Auto-Owners $1,502 $3,490

Though every company didn’t also make our list of top 5 for best providers in Detroit, they’re still exceptional car insurance companies.

USAA caters to active and retired military, and because of this they offer discounts aimed at this population. For example, you can save up to 60% on your premium whenever you have to garage your car for an extended period of time with USAA.

Travelers has a long list of coverage options, including accident forgiveness. Both Metlife and Progressive offer a long list of discounts, and Auto-Owners is a great provider for roadside assistance. All in all, each provider is a great option if you’re looking for the best car insurance quotes in Detroit.

Detroit insurance requirements

Michigan is a no-fault state, which means you are responsible for filing a claim with your own insurer for your injuries should you get into an accident.

Currently, Michigan law requires that all drivers have, at minimum, a 50/100/10 policy. This means that if you are in an accident your provider must cover up to:

  • $50,000 per person for bodily injury liability
  • $100,000 per accident for bodily injury liability
  • $10,000 for property damage liability

Michigan drivers must also carry property protection insurance (PPI). PPI pays up to $1 million for damage that you cause to someone’s property, including buildings and fences, as well as to damage you cause to parked vehicles within the state of Michigan. PPI does not pay for damage you cause to other moving vehicles.

Michigan drivers must also carry PIP coverage because it is a no-fault state. There are six different PIP levels to choose from in Michigan:

  • Unlimited coverage
  • Up to $500,000 in coverage
  • Up to $250,000 in coverage
  • Up to $250,000 in coverage with medical exclusion (for people whose non-Medicaid health insurance covers auto accident injuries)
  • Up to $50,000 in coverage (for policyholders enrolled in Medicaid, and whose household members have a health insurance or car insurance policy that covers accident-related injuries)
  • PIP medical opt-out (for policyholders enrolled in Medicaid, and whose household members have a health insurance or car insurance policy that covers accident-related injuries)

While you may have the option to opt out of PIP coverage, the requirements are strict, so most drivers typically carry this protection.

Whether this is enough for you depends on your unique situation. For example, if you are driving a leased or financed vehicle, the lender or finance company will require you to purchase full coverage, which includes comprehensive and collision coverage for damages to your vehicle. However, you may want to consider full coverage even if you are not leasing or financing, depending on your car.

Car insurance discounts in Detroit

Finding the perfect discounts in Detroit are definitely worth your time and energy. Here are the ones we recommend pursuing:

  • Defensive driving: Detroiters can save up to 15% for taking a defensive driving course. Depending on your provider, you can often do this online in an evening or two. The discount applies to your premium each month thereafter after you have completed the course.
  • Multi-car: If you drive multiple cars, or you and your spouse both own a vehicle, it’s usually always better to keep everything on the same policy. Many companies offer discounts up to 25% for insuring both with them.
  • Bundling: Most companies also offer discounts for also using them for homeowners, renters, or condo insurance. The amount you’ll save with each company varies, but you could see as much as 25% shaved off your premium.
  • Pay-in-full: If you can afford to do it, you can save as much as 10% on your premium for paying it all at once. You’re going to pay that amount anyway, so you may as well save some money if you can by paying everything upfront.

Frequently asked questions

What is the best car insurance company?

The best car insurance company is different for everyone, and will be based on your unique needs. Consider shopping around and getting quotes from multiple car insurance providers for the same coverage options to see which company is right for you.

Does Detroit have a high amount of uninsured drivers?

Though no information is available for Detroit by itself, Michigan is the fourth worst state for uninsured/underinsured drivers. As of the Insurance Information Institute’s latest study, 25.5% of drivers were driving uninsured.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Written by
Lauren Ward
Insurance Contributor
Lauren Ward has nearly 10 years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, and Reviews.com. She covers auto, homeowners, and life insurance, as well other topics in the personal finance industry.
Edited by
Insurance Editor