Detroit, Michigan, is one of the most expensive locations for car insurance in the United States. As a major factor in the cost of car insurance, your specific location within the city can change how much you pay for your coverage. Other factors that can affect your insurance include your driving history, your gender, your age, and the cost of your vehicle. While insurance can be expensive in this area, there are ways you can find affordable insurance that meets your needs and your budget. Keep reading to learn more about cheap auto insurance in Detroit.
What Are the Requirements for Auto Insurance in Detroit?
If you’re someone who doesn’t drive very often or can’t afford an expensive insurance plan, then you might wonder whether Michigan has a minimum policy for auto insurance and, if it does, how much the insurance needs to cover. Like many other states, Michigan has a minimum level of coverage it requires drivers to have by law. As of July 2020, Michigan requires all drivers in the state to have the following level of coverage:
- $20,000 in liability coverage for bodily injuries per person
- $40,000 in liability coverage for bodily injuries per accident
- $10,000 in liability coverage for property damage per accident outside of Michigan
- $1,000,000 in liability coverage for property damage per accident in Michigan
- Up to $500,000 in personal injury protection (non-Medicaid), $50,000 in personal injury protection (Medicaid)
Liability coverage is how you protect yourself against claims for damage and injuries to people in the event of an accident. Personal injury protection (PIP) or no-fault insurance is a way you can cover expenses like medical bills, funeral coverage, or lost wages regardless of who is at fault in a car accident. This coverage is to help you and your passengers after an accident, while liability pays for damage to another vehicle and injuries to those inside it.
Additional Auto Insurance in Detroit
Even though Michigan requires all drivers to have a minimum level of insurance, you can find more coverage for you and your vehicle. When you consider your coverage, remember that the minimum doesn’t cover:
- Collision coverage
- Comprehensive coverage
- Motorists who are underinsured or uninsured
- Property damage for uninsured motorists
- Medical coverage beyond the necessities for an accident
- Roadside assistance if you become stranded because of damage or malfunctions with your vehicle
Adding other coverage to your insurance can help protect you in situations where you need coverage for one or more of the above factors. While it may be more expensive when you don’t need it or aren’t using it, it may save you money in the event of an accident or other vehicle-related challenges you may experience because it prevents you from paying the costs directly from your own money. When you decide if you want just the minimum, consider things like how often you drive and what makes the most sense in both the short-term and the long-term.
What’s the Cost of Auto Insurance in Detroit?
The cost of auto insurance in Detroit changes based on several factors. Different insurance companies make the calculation for their rates differently, but they often consider the same factors for insuring drivers. Below are the factors that companies consider when they give you a quote for their auto insurance policies:
- Your age: Most often, teens have the highest rates, while motorists between the ages of 30 and 60 have the lowest rates for their insurance. This is because teens and seniors are more often involved in accidents than other drivers and represent a larger risk to an insurance company.
- Your gender: Males, especially when they’re younger, represent a higher risk to insurance companies, so their rates are often higher, though females above the age of 60 often have higher rates than males of the same age.
- Your credit history: If you have a poor credit history, then the premium rates you pay for your insurance are often higher because you represent more risk to an insurance company. Conversely, a higher credit score can bring you lower rates on your auto insurance premiums.
- Your driving record: Your driving record represents any accident history or laws you’ve broken. If you have a history of speeding, DUI, or accidents, then a company may charge you higher rates than someone who doesn’t have those on their record.
- Your location: Location is a major factor for insurance companies because different areas have different numbers of drivers, crime rates, and other factors that put you and your vehicle at risk. Detroit has some of the highest insurance rates in Michigan.
- Your driving distances: If you hardly drive your vehicle and never leave the area around your home, then your rates can be significantly lower than someone who drives long distances regularly. This is because longer drives represent more risk of an accident and more wear on a vehicle than shorter and less frequent driving.
What’s the Best Way To Get Affordable Auto Insurance in Detroit?
The best way to get affordable auto insurance in Detroit is to look at different insurance companies and request quotes based on your specific information. To do this, you can contact the agencies that insure vehicles in your area. These include:
- Wolverine Mutual
- State Farm
Once you contact the companies for your area and collect quotes, you can make a comparison to decide what premium rate is best for you. Remember that these factors can change as you get older or experience accidents, so making comparisons every couple of years can help you get the best rates for your lifestyle, protect your car, and keep you safe.
Knowing where to look for cheap auto insurance in the Detroit area can keep you safe throughout your life and allow you to save money where possible. Remember that comparisons of different insurance companies can show you what your rates are with each one.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.