Detroit, MI Car Insurance
How much does car insurance cost in Detroit?
Car insurance in Detroit costs an average of $2,363 for a six-month policy or $394 per month on average. In 2023, our data shows Chubb is the cheapest car insurance company in Detroit with rates at $770 for a six-month policy.
Car insurance rates in Detroit, Michigan tend to be higher than the national average. This is because car theft and other car-related crimes are much more common in this part of the country, which drives up the cost of insurance premiums for drivers. The biggest reason for the high coverage rates in Michigan has to do with the state's strict personal injury protection (PIP) requirements for even minimum coverage. Michigan also reports a high number of uninsured drivers as well as cases of insurance fraud, which also are responsible for increased premiums. In general, car owners can expect to pay somewhere between 3 and 5 times more for car insurance in Detroit compared to the average premium across the US. However, it is generally possible to find some cheaper options by shopping around and comparing quotes from different providers. Let's take a further look into car insurance companies, rates, and other statistics in Detroit.
|Car Insurance in Detroit vs. Michigan||Avg. 6 Mo. Premium|
The cheapest car insurance companies in Detroit
Chubb is the cheapest at $128 per month or $770 for a six-month policy.
In second place is USAA, which costs $133 per month.
Rounding out the list is GEICO as the third-cheapest insurance company. On average, a GEICO policy in Detroit costs $994 per six-month policy.
Are you paying too much for auto insurance?
Detroit car insurance rates by company
According to our data for 2023, the cheapest car insurance company for full coverage in Detroit is Chubb at $128 per month or $770 per six-month policy, while the second cheapest is USAA at $133 per month or $802 for a six-month policy.
Learn more about top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey.
Cheapest car insurance companies in Detroit, MI
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Shop around for the best rates
The only way to know which company is the cheapest coverage for you is to compare. Our comparison will do the leg work for you. Enter your ZIP code to see rates from State Farm, Farmers, GEICO and USAA (+ other top companies) to find the best and cheapest car insurance in Detroit.
Average car insurance in Detroit by rating factor
Car insurance costs are affected by a variety of rating factors, including things like your age, the number of accidents you have had in the past, and your history of traffic violations. In general, people who live in areas with high rates of crime or accidents tend to pay more for car insurance. This is especially true in cities like Detroit, where car insurance premiums are notoriously high.
In order to keep these rates down, many car insurance companies that operate in Detroit consider a number of rating factors when determining an individual's premium. The following tables highlight average premiums per rating factor for drivers living in this high-risk area.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings (revenue of premiums versus the cost of paying insureds’ claims) is also a major rating factor for how much you will pay for car insurance in Detroit. Even if you’ve had no claims with your insurance company, you could still be paying more with a particular insurance company because the price of doing business has increased in Detroit.
Auto insurance premiums by age in Detroit
Car insurance rates for drivers in Detroit vary widely depending on their age. Teen drivers are generally considered to be the most risky group, as they lack experience on the road and tend to engage in riskier behaviors than older drivers. As a result, teen drivers in Detroit often face some of the highest car insurance rates in the city. Conversely, older drivers tend to be seen as safer and less likely to cause accidents, resulting in lower premiums overall.
While there are numerous factors that can affect an individual's car insurance rate, age is one of the most important considerations when determining how much someone will pay for coverage. Regardless of your age, however, making a conscious effort to drive safely and minimize risk can always help you get the best possible rates.
Cheapest car insurance companies for teen drivers in Detroit, MI
Auto insurance premiums for minimum coverage in Detroit
More coverage on your vehicle typically means higher premiums. State minimum coverage is the least expensive, while opting for coverages like comprehensive and collision will make rates higher, but offer more protection for yourself and your vehicle. Drivers of leased or financed vehicles are typically required to carry "full coverage" (a policy that includes comprehensive and collision), while drivers of older and/or owned vehicles may choose to opt for the minimum coverage limits.
Our data indicates that 29% of Detroit drivers have the state minimum coverage. While coverage reqiurement may vary based on your situation, only carrying the state minimum coverage level leaves you at risk of being underinsured.
Some policyholders may also choose to add on roadside assistance or uninsured motorist coverage. With the high number of uninsured drivers in the city of Detroit, this may be a worthwhile option. Additional coverage options such as these will add to your overall car insurance premiums, but experts at The Zebra still recommend considering them, as they can go a long way in protecting both you and your vehicle.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In an analysis of our data, 53% of drivers in Detroit have owned vehicles. If you are not leasing or financing your vehicle, you should consider if dropping comprehensive or collision coverage is right for you. We recommend getting the actual cash value of your vehicle via Kelley Blue Book or another reputable source. The general rule of thumb is if your vehicle is worth less than $4,000, you probably don't need collision coverage. Bear in mind, however, that dropping these coverages means that you will have to pay for any repairs out of your own pocket.
Cheapest car insurance companies for minimum coverage in Detroit, MI
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in Detroit opt for the basic level of coverage, but this may not be the best option for everyone. While we understand state minimum coverage is a budget-friendly solution, it does leave you at risk for damages that exceed your liability limits. Michigan's 50/100/10 liability limits provide coverage for damage you cause up to $50,000 per person in bodily injury, $100,000 per accident in bodily injury and $10,000 for property damage.
Learn more about insurance laws in Michigan.
Detroit car insurance rates by credit score
In most states, including Michigan, credit score is a rating factor in determining premiums. Those with poor credit or credit in the lower tiers typically have to pay higher premiums than those with good credit or credit in the higher tiers. Additionally, credit score can also play a role in determining which types of car insurance coverage one is eligible for, since some providers may require credit checks as part of their underwriting process.
In fact, Detroit drivers with poor credit (300-579) pay 212% more than drivers with excellent credit (800-850). Our data tells us most drivers in Detroit have an "average (580-679)" credit score. In 2023, SECURA Insurance is the cheapest option for Detroit drivers for this credit range.
Cheapest car insurance companies for bad credit in Detroit, MI
Auto insurance rates with an at-fault accident
At-fault and collision-type accidents are the most common type of insurance claims. In 2023, an at-fault accident raised the average car insurance rates in Detroit from $394 to $584 per month. The cheapest insurance company in Detroit after an at-fault accident is Chubb.
Regardless of location, violations and at-fault citations will increase your insurance rates. Accidents, speeding tickets, and more serious charges like DUIs or DWIs will have a significant impact on your premium. These types of violations, if reported to your insurance provider, will remain on your insurance profile for three to five years (or more, if you have a DUI or more serious infraction) before you see your rates decrease. In Detroit and everywhere else, maintaining a clean driving record and avoiding accidents and tickets is the best way to keep your premium steady.
Cheapest car insurance companies after an at-fault accident in Detroit, MI
Detroit car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Detroit.
Car insurance rate increases after violations and citations in Detroit, MI
|Accident/Violation||Avg. 6 Mo. Premium||% Rate Increase||$ Rate Increase|
|One Med/PIP claim||$2,363||0%||$0|
|One comp claim||$2,547||8%||$184|
|Two Med/PIP claims||$2,554||8%||$191|
|Two comp claims||$2,686||14%||$323|
|Driving without lights||$2,837||20%||$474|
|Child safety restraint||$2,893||22%||$531|
|Failure to wear a seat belt||$2,900||23%||$538|
|At-fault accident - less than $1000||$2,922||24%||$559|
|Failure to show documents||$2,974||26%||$611|
|Driving with expired registration||$2,993||27%||$630|
|Speeding 6 - 10 MPH over limit||$3,049||29%||$686|
|Cell phone violation||$3,072||30%||$709|
|Texting while driving||$3,072||30%||$709|
|Wrong way/wrong lane||$3,083||30%||$720|
|Driving too slowly||$3,112||32%||$749|
|Failure to yield||$3,118||32%||$756|
|Speeding in school zone||$3,150||33%||$787|
|Speeding 11 - 15 MPH over limit||$3,153||33%||$790|
|Failure to stop at a red light||$3,181||35%||$818|
|Following too closely||$3,241||37%||$878|
|Operating a vehicle without permission||$3,337||41%||$974|
|At-fault accident - $1000-$2000||$3,416||45%||$1,053|
|Passing school bus||$3,421||45%||$1,058|
|Speeding 16 - 20 MPH over limit||$3,466||47%||$1,103|
|Speeding 21 - 25 MPH over limit||$3,499||48%||$1,137|
|At-fault accident - greater than $2000||$3,503||48%||$1,140|
|In 65 MPH zone||$3,546||50%||$1,183|
|Driving with a suspended license||$4,703||99%||$2,340|
|Refusal to submit to a chemical test||$6,441||173%||$4,078|
|Leaving scene of an accident/hit and run||$6,476||174%||$4,113|
Why is car insurance in Detroit so expensive?
Car insurance in Detroit, Michigan is notably expensive, due to a combination of factors. For one, car insurance laws in the state are particularly strict, with policies often requiring drivers to have high levels of coverage in order to protect themselves and others on the road. In Detroit especially, car insurance companies face higher risks when insuring vehicles due to high crime rates and reckless driving behavior.
Car insurance premiums are frequently increased to reflect these additional costs, making them even more expensive for residents of Detroit. Overall, there is no easy solution to this problem, but it is important for drivers in Detroit to work with their car insurance providers to keep their rates as low as possible.
Location is one of the most important factors that car insurance companies consider when assessing premiums. Typically, folks who live in larger metropolitan areas pay more. This is because of the high levels of congestion on the roads, crime rates, and volume of uninsured motorists.
Detroit is one of the most expensive cities in the country for auto insurance. Michigan's coverage laws are notoriously robust, with mandated PIP coverage and it's status of a "no-fault" state.
Expensive Detroit ZIP codes: 48227, 48214, 48205, 48213, 48206
Cheap Detroit ZIP codes: 48242, 48239, 48236, 48217, 48223
Michigan is a no-fault state, meaning that the law requires your own insurance to pay out in the event of an accident, regardless of who is at fault. This law means that every driver takes care of himself or herself; one notable perk of this is that each driver is guaranteed immediate medical treatment if needed after an accident.
PIP coverage in Michigan does not have a dollar-specific cap. Because of this and Michigan's no-fault status, a driver's right to sue is restricted to extreme situations involving death, permanent disfigurement or disability resulting from an auto accident. In July 2020, Michigan implemented a reform law that changed the amount of PIP coverage that drivers can select. However, the PIP selection depends on your health insurance coverage.
As the birthplace of automobiles, Detroit is a very driver-heavy city. There are more than 60 cars for every 100 people in the city, meaning that there is constant congestion and a high risk of accidents on the roads. The roads in Detroit are among some of the busiest in the country, with the percentage of drivers on the road far exceeding that of other major cities. This high volume puts a significant strain on the transportation infrastructure and poses a number of risks for both drivers and pedestrians alike. It is estimated that there are currently over 100,000 cars on the road at any given time, resulting in traffic delays, accidents, and unsafe driving conditions.
According to our data, about 37% of drivers in Detroit are not currently insured — the highest percentage in the state. If you’re hit by an uninsured driver in Detroit, you could be left paying for the damage yourself.
Bundling insurance policies in Detroit
One of the most common car insurance discounts available across providers is the multi-policy discount. By choosing the same insurance company for auto insurance and another product (most notably homeowners or renters insurance), you can save up to 10% on your combined premiums with this discount. Learn more about bundling home and car insurance.
If you currently have separate policies for your home and car, it's definitely worth shopping around and comparing quotes to see if you could save money by bundling them together. In many cases, you'll find that it's well worth the effort.
Cheapest car insurance companies for bundling home and auto insurance in Detroit, MI
Find the best rates for both auto and home insurance in minutes!
Frequently asked questions
How much is car insurance in Detroit?
The average for a six-month auto insurance policy in Detroit is $2,363 for a six-month policy or $394 per month. This is more expensive than the national and Michigan state averages.
Why is Detroit auto insurance so high?
A number of factors contribute to the above average rates in Detroit. Firstly, Michigan is one of a handful of no-fault states in the country, requiring drivers to carry personal injury protection (PIP) coverage in addition to the standard coverage suite. Michigan also has a higher-than-average number of uninsured drivers and astronomical minimum liability limits contributing to the high insurance rates. Detroit itself is particularly high due to high crime rates, number of drivers on the road, and reckless driving statistics, in addition to the state-wide laws.
How can I lower my car insurance in Detroit?
There are a few avenues you can take to lower your car insurance rates in Detroit. Shopping around at every renewal period is a great way to see rates offered by other companies. You can explore discount opportunities, maintain a good credit score, raise your deductibles and consider different coverage options for older, owned vehicles.
Find affordable rates in minutes!
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.