Car insurance in Detroit: Cheapest insurance and average rates

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Detroit’s average full-coverage car insurance costs $2,987 per year, or $249 per month. However, some companies offer better rates than others. In 2024, USAA offered the cheapest full-coverage car insurance policy at $2,124 per year.

Detroit boasts a population of around 620,000. Commuters in the city cover an average of 13 miles each way, and 88% of drivers making a weekday trip do it by driving alone. 

If you live in Detroit, car insurance will likely take a big bite out of your budget. For most drivers, seeking out the cheapest option is critical. We explore the most affordable options.

How to find the best car insurance in Detroit

Shop around to find the best car insurance option in Detroit. When you get quotes from at least three car insurance companies, compare costs to find the most affordable option. Before committing to a policy, ask the insurer if you qualify for discounts to lower your costs.  

Cheapest car insurance company in Detroit

On average, Travelers offers the cheapest state minimum car insurance in Detroit, with an average annual rate of $257 for a policy that meets the state’s minimum coverage requirements. In terms of full coverage, USAA offers the lowest rates, with an average of $2,214 per year. However, USAA only offers coverage to individuals with qualifying military connections and their family members. 

If you don’t have a military connection, Geico is a good choice  – an annual full coverage policy averages $2,893. Explore the other car insurance options in Detroit in the table below. 

Average annual rates from the largest U.S. insurers in Detroit

How much is car insurance in Detroit per month?

Since every driver has a unique situation, car insurance costs vary from driver to driver. But on average, Detroit drivers pay $249 monthly for full coverage car insurance. State minimum coverage car insurance costs an average of $69 per month. 

The table below breaks down average car insurance premiums by insurance company and coverage level. 

Monthly rates for car insurance in Detroit, MI

How do rates in Detroit compare to other large cities in the U.S.?

Car insurance companies take many factors into consideration when determining your auto insurance premiums. In general, urban drivers in large cities pay more for car insurance than drivers in rural areas. That’s because big cities tend to have higher rates of vandalism, theft, and accidents, all of which push car insurance costs higher. 

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Here’s what you need to know when driving in Detroit

Driving in Detroit isn’t always a smooth cruise through the walk. Here’s what to know about driving in Detroit for a smooth and safe experience. 

• Rush hour runs from 6-10 a.m. and 3-7 p.m. If possible, avoid the roads during these times. 
• While you might know where you are going, use a map app to help you skip any unnecessary traffic. 
• All passengers ages 4-16 must wear a seat belt.
• Motorcycle riders younger than 21 must wear a helmet.
• Detroit bans using a cell phone while driving unless you’re using a hands-free device.
• The max speed limit in Michigan is 75 mph.

As you navigate the city, keep these rules in mind:

• If passing a vehicle, you must return to your lane before getting within 200 feet of oncoming vehicles. 
• If parked, you must turn off the vehicle if you plan to leave it unattended. 

How much car insurance do I need in Detroit?

Drivers in Detroit must carry a minimum amount of car insurance. Below is a breakdown of the state’s minimum auto insurance requirements:

• $50,000 in bodily injury per for a person involved in an accident 
• $100,000 for bodily injury for two or more people in an accident
• $10,000 in property damage coverage per accident

You’ll need an auto insurance policy with these minimum coverage requirements. But depending on your situation, you may need more insurance coverage. For example, drivers who want help repairing or replacing their own vehicle after an incident might want collision and comprehensive coverage. 

Average cost of car insurance in Detroit

Drivers in Detroit pay an average of $823 for a yearly state minimum coverage policy. But drivers who want more financial protection pay an average of $2,987 for a full coverage policy. 

In contrast to the national average cost of $1,895 for a full coverage policy, Detroit drivers pay significantly more. The average cost of a full coverage policy in the state of Michigan is $2,266 per year, which means drivers in Detroit also pay more than drivers around the state. 

Annual average rates in Detroit, for state minimum coverage and full coverage

How much does car insurance in Detroit cost with violations?

Car insurance costs often increase after you receive a traffic violation. You should expect to pay more for car insurance if you receive a violation in the form of a speeding ticket, at-fault accident, or DUI conviction. 

For example, Detroit drivers see their rates increase by an average of 55% after an at-fault accident. If you are caught speeding, that ticket could push your car insurance rates up by an average of  47%. DUIs also lead to higher costs – average increases are 153% – and bad credit increases rates 147%. 

See rate increases in Detroit in the table below by violation. 

Cheapest car insurance in Detroit by age

Car insurance for teens in Detroit is very expensive – the annual rate for an 18-year-old is $6,545 per year for a full coverage policy. Rates start to head down at age 25 and back up in your late 60s.

Annual rates for state minimum and full coverage car insurance in Detroit by age. 

Compare auto insurance rates in Detroit by ZIP code 

Where you live within Detroit also has an impact on your car insurance costs. In Detroit, the cheapest ZIP codes for car insurance are 48243, 48233 and 48224. In contrast, the most expensive are 48204, 48211, and 48208.

See the tables below for the cheapest and most expensive ZIP codes in Detroit. 

Cheapest annual car insurance rates in Detroit, by ZIP code 

Most expensive annual car insurance rates in Detroit, by ZIP code 

Our recommendations: Car insurance for drivers in Detroit

On average, Detroit drivers get the cheapest coverage by purchasing a policy with USAA or Travelers. But the cheapest insurer for you will vary based on the details of your unique situation.

It’s worth noting that purchasing coverage based on pricing alone can be a mistake. A cheap policy isn’t worth much if it does not include the coverage you want and need. 

So, shop around and gather quotes from several insurance companies. This is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Detroit. 

Resources & Methodology

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.