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Table of Contents:
- Car Insurance: Detroit Rates vs. Michigan + National Averages
- Detroit Auto Insurance Costs by Insurer
- Detroit Auto Insurance Premiums by Driver Age
- Detroit Car Insurance Premiums by Gender and Marital Status
- Average Detroit Insurance Rates After a Violation or Accident
- Detroit Auto Insurance Premiums by Credit Tier
- Expensive Detroit ZIP Codes
- Cheaper Detroit ZIP Codes
- List of Insurance Companies in Detroit
- No-Fault Insurance in Detroit Information
Are you shopping for the cheapest car insurance in Detroit? Some of the factors that affect your policy cost include your exact local ZIP code, marital status, vehicle make and model, and your age. Insurance companies use these factors to determine the risk of offering you coverage and set your premium cost accordingly. Here’s what you need to know about finding affordable Detroit auto insurance.
Car Insurance: Detroit Rates vs. Michigan + National Averages
According to the website The Zebra, $6280 is the average annual auto policy cost for a Detroit motorist. This amount far exceeds both the U.S. average premium of $1548 per year and the state average of $3096 per year.
Detroit Auto Insurance Costs by Insurer
Shopping around for a car policy will probably save you money. The Zebra notes that most drivers who live in Detroit find the lowest rates from Progressive.
NerdWallet found that while USAA offers the most affordable policies for Detroit drivers, they write insurance exclusively for military members and families. The website recommends GEICO as an alternative and recommends that drivers steer clear of Farmers Insurance, the most expensive car insurer in the city.
Detroit Auto Insurance Premiums by Driver Age
The Zebra reports that as in most of the U.S., teenagers have the most expensive auto insurance costs in Detroit. Once drivers turn 20, they save more than $10,000 per year on average compared to the price for auto insurance as an adolescent. No other location has a price gap this large between age 19 and 20.
Detroit drivers in their 50s have the lowest car insurance rates. They pay an average of $5953 annually. The average increases just slightly to $6050 per year for drivers in their 60s.
Detroit Car Insurance Premiums by Gender and Marital Status
The Zebra reports that single drivers pay about $51 more for auto insurance than married drivers who otherwise have similar characteristics. Widowed drivers also have lower rates than single drivers. Insurance companies find that single drivers file more claims than their counterparts who are married or widowed.
Male drivers get a price break of about $180 annually on auto insurance compared to female drivers. Statistically speaking, female drivers represent a higher risk for Detroit insurance providers.
Average Detroit Insurance Rates After a Violation or Accident
You can significantly lower your auto insurance premium prices by avoiding accidents and claims. Some of the incidents that raise policy costs the most include speeding tickets, reckless driving tickets, arrests for driving under the influence, and at-fault accidents. Insurance companies take on a much higher risk when insuring drivers who have spotty records, according to MoneyGeek.
The Zebra reports that your rates could increase by an average of $13,502 per year with a reckless driving ticket, $4273 with a speeding ticket, and $13,069 after a DUI.
Detroit Auto Insurance Premiums by Credit Tier
The Zebra reports that boosting your credit score also has a positive impact on your insurance premium. The lower your score, the more you’ll pay for auto coverage. In fact, the website found that you will pay 81 percent more for coverage if you have a credit score in the very poor (300 to 579 category) compared to drivers in the highest category of Exceptional with scores of more than 800. However, you can save almost $13,000 per year on auto insurance if you improve your score from very poor to fair.
Expensive Detroit ZIP Codes
The Zebra reports that you will pay much more for auto insurance in neighborhoods considered high-risk by your insurance provider. If you live near lots of uninsured motorists, frequent crime, or common car thefts, you could pay as much as 103 percent more than a similar driver who lives in a lower-risk neighborhood. Based on data collected by the website, Detroit drivers who live in 48227, 48204, 48206, 48202, and 48201 pay the most for auto insurance.
Cheaper Detroit ZIP Codes
Lower risk for insurance companies translates to lower insurance costs for you. You’ll pay the lowest Detroit average premiums if you live in 48243, 48233, 48239, 48242, or 48236.
List of Insurance Companies in Detroit
NerdWallet reports that some of the most affordable companies offering auto insurance in Detroit include Secura, Wolverine Mutual, GEICO, Chubb, and insurance. Other options for drivers in the city include Westfield, Progressive, Frankenmuth, MetLife, Pioneer State, and Hastings Mutual Insurance.
No-Fault Insurance in Detroit Information
Detroit residents must follow Michigan laws about auto insurance. This is one of the 12 states that require personal injury protection (PIP) coverage, designed to prevent driver lawsuits by funding medical costs for the policyholder after an accident according to ValuePenguin.
Minimum coverage to drive legally in Michigan must include:
- $10,000 in property damage liability for out-of-state accidents
- Unlimited property damage liability for in-state accidents
- $250,000 in PIP coverage
- $50,000 for bodily injury per person liability
- $100,000 for bodily injury per accident liability
- $1 million for personal property insurance (PPI)
PPI coverage pays for damage to parked cars, fences, and other property if you cause an accident. In addition to medical bills, PIP coverage pays for three years of lost wages if you cannot go back to work after experiencing auto accident injuries. You can potentially reduce your premium costs if you have health insurance that overlaps with PIP. However, this is not an option if you receive Medicaid or Medicare coverage.
If you live in this part of Michigan, finding the cheapest car insurance in Detroit will require careful comparisons to look for price breaks and discounts based on your personal and driving history.
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