Best cheap car insurance in Royal Oak

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Just outside of Detroit, Michigan is the city of Royal Oak, home to the Detroit Zoo and over 59,000 residents. Over 87%of those residents travel alone by car to work with an average commute time of just over 23 minutes and over 50% of households own two cars. Royal Oak drivers pay an average cost of $1,076 per year for liability coverage while those with full coverage pay an average of $2,603 each year.

Michigan has some of the highest rates for car insurance in the country. We compared quotes from some of the best car insurance companies in Royal Oak to find the cheapest rates available for drivers in this city. Coverages, discounts, financial strength and third party rankings were all considered to determine the best and cheapest car insurance companies and rates in Royal Oak.

Best car insurance companies in Royal Oak

The car insurance providers listed below are our top picks for the best car insurance companies in Royal Oak, based on available coverages, discounts offered, financial strength to pay claims and rankings by third-party surveys.

Insurance Company J.D. Power Score Average Annual Premium for Minimum Coverage Average Annual Premium for Full Coverage
Auto-Owners 845 / 1000 $967 $2,323
Farmers 831 / 1000 $1,873 $4,215
GEICO 851 / 1000 $846 $1,608
USAA 897 / 1000 $528 $1,338
Westfield 836 / 1000 $156 $2,497

Auto-Owners Insurance

Lansing, Michigan-based Auto-Owners Insurance provides auto, home and life insurance in Michigan and 25 other states across the country. Auto-Owners has a much smaller-than-average complaint ratio with the National Association of Insurance Commissioners and has superior financial strength rankings with an excellent ability to pay claims on time.

Survey participants gave Auto-Owners 845 points, putting it in fourth place, on the North Central region J.D. Power 2020 U.S. Auto Insurance Satisfaction Study. Auto-Owners is also the fourth largest insurer in Michigan, insuring around 11% of the market share.

Farmers

Farmers Insurance offers personal insurance as well as business insurance products, especially for farmers and other agricultural businesses. Farmers came in right at the average mark with 872 points in the Auto Claims Satisfaction Study. As for financial strength, Farmers has excellent ratings, showing it can pay out claims even when a disaster happens.

GEICO

GEICO may be the second-largest insurer in the country, but it doesn’t crack the top 10 for Michigan. Still, GEICO’s wide offering of insurance products for business and personal needs and 24/7 service combined with reasonable rates makes it one of the best car insurers in Royal Oak.

USAA

Though USAA is only available to military, veterans and their families, it is still one of the best car insurance companies offering coverage in Royal Oak. USAA holds the ninth position for highest market share in Michigan at 3% of the market.

USAA holds the highest score in the J.D. Power Auto Insurance Study, but is not eligible for the first place ranking because not everyone can purchase USAA insurance products. For those who are eligible, USAA has the cheapest rates for full coverage car insurance on our list.

Westfield

Westfield Insurance is a smaller insurer, offering personal car and home insurance in just 10 states. Westfield is not one of the top 10 insurers in Michigan, but it makes up for it with excellent financial strength and customer service from existing insureds. Out of all the companies on our list, Westfield has the cheapest car insurance prices for liability coverage in Royal Oak.

Cheapest car insurance in Royal Oak

Though Michigan rates are high compared to the average cost of car insurance in the rest of the country, Royal Oak rates are slightly higher. The average rates for the U.S. are $565 for liability and $1,674 for full coverage per year. In Michigan, average annual premiums are $948 for liability and $2,309 for full coverage.

Royal Oak residents pay on average $1,076 for liability coverage and $2,603 for full coverage car insurance. To help you save on insurance costs, we compared quotes from the most popular carriers based on market share to find the cheapest car insurance rates in Royal Oak. The factors we considered, besides price, are available technology, claims experience, customer service, discount offerings and financial strength.

We found Travelers to have the cheapest minimum coverage rates while Progressive has the cheapest full coverage car insurance rates in Royal Oak. Both companies have a long list of discounts and coverage options to meet most customer insurance needs, plus strong financials and customer service reviews. MetLife also offers 24/7 customer service with lots of optional coverages available on auto insurance, including identity theft protection on all policies.

Insurance Company Average Annual Premium for Minimum Coverage Average Annual Premium for Full Coverage
Travelers $111 $1,884
USAA $528 $1,338
Progressive $585 $1,199
MetLife $595 $1,594
Geico $846 $1,608

Royal Oak insurance requirements

Royal Oak drivers must meet the minimum insurance requirements put in place for all of Michigan:

  • $20,000 for one person, bodily injury
  • $40,000 for two or more persons, bodily injury
  • $10,000 for property damage
  • $1 million in property protection
  • Unlimited Personal Injury Protection

While these minimum liability requirements allow you to register and drive your car legally in Royal Oak, they may not be enough to protect you financially if you’re involved in an accident. If you have a financed or leased vehicle, you may also need higher liability limits and full coverage to satisfy the loan terms.

Car insurance discounts in Royal Oak

One way to get cheap car insurance prices for Royal Oak households is to take advantage of discounts. Discounts can be stackable, so they can really add up in savings if you qualify for several. Here are some discounts offering the biggest impact on reducing premiums:

  • Bundling discount: Insuring your car, home, life and other products with the same company makes it easy to keep track, but it also can help you save with multi-policy discounts for insuring them all with the same carrier.
  • Early purchase discount: If you shop before your previous policy expires, you can get a discount on your first term with a new insurance company.
  • Good student discounts: Teen drivers are among the most expensive to insure. Keep rates manageable with the good student discount which can be earned if your student maintains a certain GPA.
  • Usage-based discount: Having good driving behavior and lower-than-average miles driven can add up to big savings on your car insurance if you participate in a company’s programs. These programs track mileage and driving habits, rewarding good driving behaviors and low mileage.

Frequently asked questions

What is the best car insurance company?

Royal Oak residents will find the best car insurance company is one with needed coverages, discounts options you’re eligible for and fair prices compared to competitors. The best car insurance company is not always the cheapest, but it is the one you can depend on the most when you have a claim.

How much does car insurance in Royal Oak cost?

The amount you will pay for car insurance varies by your age, driving record, type of vehicle to insure and coverages you need. The average cost for car insurance in Royal Oak is $1,076 for minimum liability coverage and $2,603 for full coverage per year. Your rate may be higher or lower than the average based on your personal factors.

How much car insurance do I need in Royal Oak?

As long as you meet the minimum requirements for Michigan, you technically don’t need any more, unless you have a loan or lease on the vehicle and the bank requires it. However, you may find more coverage is better, as it gives you more financial protection if you’re involved in an accident or get sued.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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.