The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .
The average cost of insurance in Royal Oak, Michigan is $2,603 annually for full coverage, or about $217 monthly, and $1,076 annually for minimum coverage. Because the rates are significantly higher than the national average cost of car insurance, drivers may be interested in finding the best car insurance companies in Royal Oak with the cheapest rates.
The cheapest car insurance company in Royal Oak is USAA, according to Bankrate’s 2021 study of quoted annual premiums. While cost is very important to many drivers, insurance agents do not recommend just purchasing the least amount of coverage from carriers offering the cheapest rates. Rather, they recommend getting the best car insurance coverage for your circumstances that you can reasonably afford. To help you decide the best cheap insurer for you, Bankrate’s insurance editorial team looked at companies’ historical ability to pay out claims, customer satisfaction ratings, the variety of coverage options available, and digital policy management tools.
Best cheap car insurance companies in Royal Oak
USAA, Geico, Auto-Owners, Westfield and Farmers have the cheapest rates among Michigan insurance companies in Royal Oak, according to the Bankrate study of Quadrant rates. To find the best car insurance companies in the Royal Oak, Michigan area, Bankrate selected and compared companies based on multiple criteria, including quoted annual premiums, third-party industry ratings, coverage options and discounts. A weighted Bankrate Score has been assigned based on these and other characteristics, with a maximum possible score of 5 points.
|Insurance company||Bankrate Score||J.D. Power score (North Central)||Average annual premium for full coverage||Average annual premium for minimum coverage|
*Not officially ranked with J.D. Power due to eligibility restrictions
USAA is only available to military service members, veterans and their eligible family members, but it is still considered one of the best car insurance companies in Royal Oak. It offers the cheapest average rate in Royal Oak for full coverage on our list and scores the maximum Bankrate Score of 5 points. While USAA holds the highest score in the J.D. Power Auto Insurance Study, it is not eligible for ranking because not everyone can purchase USAA insurance products.
Learn more: USAA Insurance review
Geico may be the second-largest insurer in the country according to the Insurance Information Institute (Triple-I), but it falls below the industry average for customer service in Michigan, according to the 2021 J.D. Power Auto Insurance Study. Geico’s wide selection of insurance products for business and personal needs and competitive rates makes it one of the overall best car insurers in Royal Oak. Its range of digital insurance resources also contribute to its 4.7 Bankrate Score.
Learn more: Geico Insurance review
Based in Lansing, Michigan Auto-Owners provides auto, home and life insurance products to residents of this state and 25 others across the country. Auto-Owners has a lower-than-baseline complaint index ratio with the National Association of Insurance Commissioners, and has an A++ (Superior) financial strength rating from AM Best, reflecting an exceptional historical ability to satisfy financial obligations to shareholders.
Customers surveyed by J.D. Power earned Auto-Owners 842 customer satisfaction points, which is slightly above the 2021 industry average in the North Central region. While this feedback is largely positive, policyholders who prefer digital tools and resources may want to note that Auto-Owners does not allow claims to be filed through the mobile app.
Learn more: Auto-Owners Insurance review
Westfield Insurance is a smaller insurer, offering both personal car and home insurance products regionally in 10 states, and has the cheapest car insurance in Royal Oak for minimum coverage on our list, on average. Westfield is not one of the larger insurers in Michigan, but still earns an A (Excellent) financial strength rating. Additionally, it may offer the advantage of local expertise and customer service.
Learn more: Westfield Insurance review
Farmers insurance rates are not the most competitive compared to other insurers on our list, but its coverage is especially tailored to the unique needs of Michigan farmers and agricultural businesses. Farmers came in below average for the industry in the 2021 Auto Insurance Study, with 828 points from J.D. Power, which may mean there is room for improvement in this area. As for financial strength, Farmers has an A (Excellent) rating, showing it has historically done a good job of satisfying its financial obligations.
Learn more: Farmers Insurance review
How to get and keep the cheapest car insurance in Royal Oak
Finding, and keeping, the cheapest car insurance rates from insurance companies in Royal Oak can be done in a few simple ways. These tips may help you see a significant difference in savings on your cost of auto insurance in Royal Oak, Michigan.
- Carefully review coverage limits. While you won’t be able to purchase less than the minimum state required insurance limits, you should also purchase enough coverage to provide adequate financial protection. However, you do not want to overbuy either. Work with an insurance agent to make sure you have the right coverage limits for your financial situation.
- Maintain a clean driving record. Maintaining a clean driving record not only keeps you and others as safe as possible while on the road, but it can also help you keep the most affordable rates. Safe driving habits can also qualify you for additional discounts, such as accident-free or claims-free discounts, or discounts for when you enroll in a driver safety course.
Frequently asked questions
What is the best car insurance company?
Determining the best car insurance company is a personal choice based on what is most important to you as a policyholder. You may choose a company based on its customer service ratings, financial strength indicators, coverage options and discounts. On the other hand, you may choose an insurer that offers the best digital experience. These features may not reflect the cheapest car insurance company, but based on your priorities, you can find the best rates for the insurer features you care about most.
How can I get car insurance online?
Car insurance quotes and purchasing a policy can both be completed fully online with many of the best or cheapest car insurance companies. If this is your preference, narrow down your choices and then obtain a quote from the companies’ websites. Whether you quote or purchase a policy online, you will typically need to enter some personal information, including specific vehicle information and your address.
How much does car insurance in Royal Oak cost?
The average cost of car insurance in Royal Oak is $2,603 annually, or about $217 monthly, for a full coverage policy. Minimum coverage in Royal Oak averages $1,076 per year. Both of these rates are higher than the national average, which is currently $1,655 annually for full coverage and $480 per year for minimum coverage.
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 coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
National average rates reflect 2022 rate data from Quadrant Information Services.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.