Average car insurance cost in Detroit, MI

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According to data from Insure.com, the average annual cost of car insurance in Detroit, Michigan is $3,280. The auto insurance rates in Detroit is $928 more than the state average and $1,385 more than the national average.

Car insurance premiums vary significantly based on where they are filed. Factors such as city demographics, population density and average resident age, accident rates, theft, and vandalism rates will influence the amount of premiums you pay.

This article talks in detail about the most affordable car insurance companies in Detroit, the average car insurance rates by age and gender, and how much car insurance cost in Detroit depending on coverage limits. Whether you’re a new driver or an experienced one, this article will help you to find the most affordable car insurance in Detroit. Keep reading to learn more.

Cheap car insurance companies in Detroit

Geico provides the best value for car insurance in Detroit with coverage limits of 100/300/100, costing $2,893 annually.

A close second is Auto Club Group – ACG (AAA), which offers car insurance at $3,107 per year.

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

The average car insurance rate for a female driver in Detroit, Michigan, is $3,280 per year.

While the rate for a male driver is $3,280 per year, which is equals to what female drivers pay, according to a rate analysis by Insure.com.

Women are considered to be safer drivers than men, and statistics have proved this, according to the Insurance Information Institute. They often pay less for auto insurance because of their lower rate of severe accidents than men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Detroit

Car insurance rates in Detroit, are highest for teens at $9,461 per year or $788 per month. According to the Insurance Information Institute, the rates are higher for teens (16- to 19-year-olds) as they are more prone to road accidents due to their lack of experience on the road. To address this, there are specific driving laws for teens to help them drive better. Additionally, parents can potentially reduce teen insurance rates by adding them to their existing auto insurance policy.

As teens age and build a positive driving history, it’s common for car insurance rates to decline. Young adults typically pay $4,781 annually for their car insurance, which is $4,680 less than what teens pay for their insurance coverage.

In Detroit, adult drivers pay an average of $3,199 per year for car insurance, while senior drivers pay $2,998 annually.

The rates for adults and seniors are notably lower compared to the rates for teens and young adults as they are more likely to obey the speed limits and follow the rules of the road, as per 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

Car insurance rates in Detroit are higher than the average rates in Michigan. Drivers in Detroit can secure affordable car insurance by shopping around and utilizing available discounts. Additionally, many insurance companies offer bundling discounts for customers who purchase multiple policies from the same provider.

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.