Best Cheap Car Insurance in Detroit, Michigan

Best Cheap Car Insurance in Detroit, Michigan

Find Cheap Auto Insurance Quotes in Your Area

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The rates on this page are based on policies issued after the enforcement of the state's new auto insurance system on July 1, 2020. For a detailed breakdown of the new laws, visit our Michigan insurance requirements page.

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Detroit is one of the most expensive cities in the United States for car insurance. The average rate for minimum coverage is $5,081 per year, and full coverage costs a staggering $8,494 annually. That makes it the most expensive major city in the U.S. and the third-most costly city of any size in Michigan for car insurance.

However, drivers can save up to 66% off the average price of car insurance by shopping around for the best price — we found that Progressive has the most affordable rates for most drivers, starting at just $1,817 for a minimum policy.

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Every driver will find different rates based on their driving history, where they live and what kind of car they drive, so the only way to guarantee that you're paying the best price for you is to get quotes from several insurers.

Cheapest auto insurance in Detroit: Progressive

The most affordable option for basic coverage in Detroit is Progressive, which offered our sample driver a full year of coverage for $1,817. That's 64% cheaper than the average of $5,081 across all insurers.

Auto-Owners had a comparable price for coverage, at just $1,853 per year. The absolute lowest rate we found was at USAA — it provided us with a typical rate of $808 per year. However, USAA is only available to people who've served in the military and their families.

Find Cheap Auto Insurance Quotes in Your Area

Currently insured?
Rank
Company
Annual rate
1Progressive$1,817
2Auto-Owners$1,853
3Frankenmuth$2,344
4State Farm$3,134
5Hanover$6,429
6AAA$8,000
7Allstate$16,261
N/A*USAA$808

*USAA is only available to current and former military members and their families.

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Cheapest full coverage car insurance in Detroit: Progressive

For drivers who want or need full coverage for their car insurance policy, we recommend Progressive. Its price of $2,908 per year was 66% less than the average of $8,494 and $1,304 cheaper than the second-most affordable option, Auto-Owners.

Rank
Company
Annual rate
1Progressive$2,908
2Auto-Owners$4,212
3Frankenmuth$4,771
4State Farm$5,370
5AAA$11,366
6Hanover$13,303
7Allstate$23,968
N/A*USAA$2,055

*USAA is only available to current and former military members and their families.

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In addition to the basic coverages required by Michigan law, full coverage also includes comprehensive and collision coverages, which pay for damages to your vehicle.

  • Comprehensive coverage:Covers damage to your car from things besides a crash, such as a house fire or theft.
  • Collision coverage: Covers damage that is the result of a crash with another car or any other object such as a building or tree. Pays for damage regardless of who is at fault.

Cheap car insurance for drivers with prior incidents

Insurance companies use your driving history to estimate how likely you are to make a claim in the future. Unfortunately, if you have an incident in the recent past, that means you're very likely to pay more for car insurance. Here are our recommendations for affordable options for drivers who have:

Cheapest car insurance in Detroit after an accident: Progressive

After a crash, we found that rates in Detroit go up by an average of 56%, to an average of $13,274 for a one-year full coverage policy. However, Progressive offered our sample driver a much more affordable rate of $3,794. That's 71% less than the average.

Rank
Company
Annual rate
1Progressive$3,794
2Auto-Owners$4,887
3Frankenmuth$6,267
4State Farm$6,376
5Hanover$21,247
6AAA$25,870
7Allstate$34,847
N/A*USAA$2,901

*USAA is only available to current and former military members and their families.

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Cheapest car insurance for people with a speeding ticket: Progressive

A speeding ticket tells insurers you're more willing to take risks behind the wheel, so your insurance company is likely to raise rates if you are caught speeding.

We found that car insurance rates in Detroit increase by 38% after a speeding ticket. Progressive had the best price for insurance after a speeding ticket — our sample driver got a quote for just $3,680 there.

Rank
Company
Annual rate
1Progressive$3,680
2Auto-Owners$4,887
3Frankenmuth$5,253
4State Farm$6,879
5Hanover$18,344
6AAA$25,870
7Allstate$26,149
N/A*USAA$2,620

*USAA is only available to current and former military members and their families.

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Cheapest car insurance for drivers with a DUI: Progressive

Driving while under the influence is a grievous infraction, and insurance companies tend to raise your rates very steeply if you're convicted of one. The typical rate we found was $29,182 for a full coverage policy after a DUI in Detroit, with one insurer charging over $100,000 for a policy.

However, Progressive has surprisingly affordable rates for our sample driver, with a typical price of just $3,444. That's only 18% more than what it charged a driver with a clean record.

Unfortunately, no other widely available insurer offered us a comparable rate: Auto-Owners gave us a typical price of $9,779 annually.

Rank
Company
Annual rate
1Progressive$3,444
2Auto-Owners$9,779
3State Farm$13,416
4Frankenmuth$21,043
5Hanover$25,017
6AAA$44,181
7Allstate$112,877
N/A*USAA$3,699

*USAA is only available to current and former military members and their families.

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Cheapest minimum car insurance for young drivers: Auto-Owners

Younger drivers are typically very expensive to insure as they don't have a lot of practice behind the wheel and tend to have poorer judgement than older drivers. As a result, we found that the typical 18-year-old can expect to pay about $10,580 for state-minimum car insurance.

However, Auto-Owners gave our sample driver a much more affordable price: just $3,848 per year. That's 64% less than the average across all the insurers we looked at.

Rank
Company
Annual rate
1Auto-Owners$3,848
2Frankenmuth$6,684
3Progressive$7,540
4State Farm$8,703
5AAA$13,714
6Hanover$14,571
7Allstate$28,121
N/A*USAA$1,459

*USAA is only available to current and former military members and their families.

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One of the best ways for teens to save on car insurance is to share a policy with an older family member, or by taking a driver's education class beyond what's required to get your license.

Best auto insurance companies in Detroit, Michigan

Besides finding the cheapest insurer in Detroit, we recommend looking for insurers with great service, too. Among the top companies we looked at in Michigan, Auto-Owners, USAA and State Farm have the best-rated customer service.

Auto-Owners was particularly well-liked in our national survey, with 100% of respondents saying they were "extremely satisfied" with their most recent claim.

For more on the best car insurance companies in Michigan, take a look at our full review of Michigan car insurance.

Average car insurance cost in Detroit, by neighborhood

The cost of car insurance can vary significantly by location, even within a given city. For example, you might pay more for car insurance if you live near a busy road or in an area with a lot of car theft. There was a 60% difference in price between the most and least expensive neighborhoods in Detroit.

ZIP code
Minimum coverage annual premium
Full coverage annual premium
48201$5,111$8,427
48202$5,022$8,336
48203$5,017$8,435
48204$5,213$8,985
48205$5,764$9,247
48206$5,448$9,170
48207$5,029$8,268
48208$5,277$8,676
48209$4,422$7,586
48210$5,086$8,498
48211$5,257$8,626
48212$5,186$8,597
Show All Rows

*USAA is only available to current and former military members and their families.

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Auto theft statistics in Detroit

Car theft is a significant issue in Detroit. Cars are stolen more often in Detroit than any other major city in Michigan, at an average rate of 10.4 thefts per 1,000 people in 2019. That's more than triple the rate in Lansing, which has the second-most theft of any major Michigan city, and nearly five times the statewide average of 2.3 thefts per 1,000 people.

Theft rank
City
Population
Motor vehicle thefts in 2019
Thefts per 1,000 people
1Detroit663,5026,88610.4
2Lansing118,9533673.1
3Dearborn93,9022662.8
4Warren134,6533562.6
5Grand Rapids201,7995012.5
6Flint95,2122072.2
7Clinton Township101,3081561.5
8Livonia93,6441121.2
9Ann Arbor122,8931381.1
10Sterling Heights133,377960.7

Motor vehicle theft data was pulled from the FBI 2019 Michigan Crime Report.

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Methodology

We collected data from eight of the largest insurers in Michigan. Our sample driver was a 30-year-old man who drove a 2015 Honda Civic EX. Unless otherwise stated, the driver had poor credit and received rates for a minimum coverage policy.

In instances where our sample driver was comparing rates for a full coverage policy, the following limitations were used:

Coverage
State minimum
Full coverage
Property protectionup to $1,000,000up to $1,000,000
Residual bodily injury and property damage liability (BI/PD)$50,000 per injury, $100,000 per accident$50,000 per injury, $100,000 per accident
Personal injury protection (PIP)$250,000 for people with qualified health coverage$250,000 for people with qualified health coverage
Collision coverage--Included/$500 deductible
Comprehensive coverage--Included/$500 deductible
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ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.

Source:

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.