Get Affordable Auto Insurance In Detroit: Tips And Tricks

Detroit has some of the most expensive car insurance rates in the U.S., with an average annual cost of $4,320. However, there are ways to find cheaper coverage.

Progressive has the cheapest car insurance in Detroit, with an average rate of $171 per month for minimum coverage and $291 per month for full coverage. USAA also offers affordable rates, but it is only available to those who have served in the military and their families.

Other cheap car insurance companies in Detroit include Chubb, Secura, and Geico.

Factors such as age, address, driving history, and credit score influence car insurance rates, so it is essential to compare quotes from multiple companies to find the best deal.

Compare quotes from multiple companies

Comparing quotes from multiple companies is a great way to find cheap auto insurance in Detroit.

Firstly, you'll need to decide what type of insurance you need. The two main types are liability-only insurance and full coverage insurance. Liability-only insurance is cheaper but covers less, while full coverage insurance is more expensive but covers more.

Once you know what type of insurance you're looking for, you can start comparing quotes. The cheapest companies for liability-only insurance in Detroit are usually Travelers, Progressive, and Auto-Owners. For full coverage insurance, the cheapest companies are typically Progressive, Chubb, and Auto-Owners.

However, it's important to keep in mind that insurance rates are highly individualized. This means that the cheapest company for one person might not be the cheapest for another. Insurance companies take various factors into account when calculating rates, including age, gender, marital status, driving history, credit score, and ZIP code. As such, it's always a good idea to get quotes from multiple companies and compare them before making a decision.

You can get quotes from insurance companies by visiting their websites or calling them directly. Additionally, some websites, like MoneyGeek, offer tools that allow you to compare quotes from multiple companies at once.

By comparing quotes from multiple companies, you can be sure that you're getting the best possible rate for your auto insurance in Detroit.

Choose a company that offers discounts

Choosing an insurance company that offers discounts is a great way to save money on your auto insurance. Here are some tips and strategies to help you find the best discounts:

• Compare Multiple Companies: Different insurance companies offer different types and amounts of discounts. By comparing rates and discounts from several companies, you can find the one that offers the best discounts for your specific situation.
• Look for Common Discounts: Many insurance companies offer common discounts such as good driver discounts, good student discounts, and discounts for having safety features in your car. Look for companies that offer these common discounts, as well as additional discounts that may apply to you.
• Bundle Your Policies: Many insurance companies offer discounts if you bundle your auto insurance with other types of insurance, such as home insurance or life insurance. Consider bundling your policies with the same company to take advantage of these discounts.
• Inquire About Special Discounts: Some insurance companies offer special discounts for certain groups or affiliations. For example, some companies offer discounts for military personnel, employees of certain companies, or members of specific organizations. Ask about any special discounts that may be available to you.
• Review Your Policy Regularly: Discounts may be added or changed over time, so it's important to review your policy periodically. Additionally, life changes, such as getting married, buying a home, or adding safety features to your car, may make you eligible for new discounts. Review your policy and contact your insurance company to ensure you're taking advantage of all the discounts available to you.
• Maintain a Good Driving Record: Insurance companies often offer discounts for safe driving practices, such as accident-free driving or taking a defensive driving course. Maintaining a clean driving record can help you qualify for these discounts and keep your insurance rates low.
• Consider Usage-Based Insurance: Some insurance companies offer usage-based insurance programs that track your driving habits through a mobile app or device installed in your car. These programs may offer discounts for safe driving behaviours, low mileage, or other factors. If you're a safe and low-mileage driver, consider enrolling in one of these programs to earn discounts.

Opt for minimum coverage

Opting for minimum coverage is a great way to save money on your car insurance. In Detroit, Michigan, the minimum coverage requirements are:

• $50,000 of bodily injury liability per person
• $100,000 of bodily injury liability per accident
• $10,000 of property damage liability per accident

Drivers in Detroit are also required to have a minimum amount of personal injury protection (PIP) and property protection insurance (PPI).

If you opt for minimum coverage, you will not be covered for damage to your own vehicle. However, this can be a good option if you have an older car or are looking to save money on your insurance premiums.

• Auto-Owners: $182 per month on average
• Progressive: $205 per month on average
• USAA: $91 per month on average (only available to military members and their families)

Improve your credit score

Improving your credit score can take time and consistency, but it's worth doing to ensure that you are earning the lowest possible rate for your insurance policy. Here are some ways to improve your credit score:

• Make on-time payments: Your debt payment history accounts for 35% of your FICO Score and is the most important credit score factor. Payment history includes on-time, late, and missed payments, all of which are reported to one or more of the national consumer credit bureaus (Experian, TransUnion, and Equifax). Always make payments on time to help improve your credit.
• Pay down revolving account balances: How much you owe accounts for 30% of your FICO Score, and your credit utilization rate—the percentage of available credit you're using on revolving credit accounts such as credit cards—is a major element. Aim to keep your credit utilization below 30%, but the lower, the better.
• Don't close your oldest account: The length of your credit history makes up 15% of your FICO Score and is influenced by the age of your oldest account and the average age of all your accounts. Closing a credit card can hurt your credit score, especially if it's one of your oldest ones.
• Diversify the types of credit you have: Credit mix accounts for 10% of your FICO Score and involves managing different types of credit, such as credit cards, auto loans, and mortgages.
• Limit new credit applications: Each time you apply for credit, the lender will perform a hard inquiry, which can knock a few points off your credit score. Only apply for credit when you need it to avoid too many hard inquiries.
• Dispute inaccurate information on your credit report: Inaccurate information on your credit report can negatively impact your credit score. You can dispute any errors with the credit reporting agencies to have them corrected or removed.
• Become an authorized user: If you're new to credit or have a low score, you can ask a parent or loved one to add you as an authorized user on their credit card. Make sure the account has a positive payment history and a low credit utilization rate.

Maintain a clean driving record

Maintaining a clean driving record is one of the most effective ways to keep your car insurance rates low. Incidents on your driving record, such as at-fault accidents, DUIs, reckless driving citations, and speeding tickets, will cause your insurance rates to increase. This is because insurance companies consider drivers with a history of traffic violations or accidents to be high-risk and more likely to file insurance claims.

In Detroit, a speeding ticket can result in a rate increase of $4,273 per year, while a DUI conviction can cost you an additional $13,069 per year in insurance premiums. At-fault accidents also have a significant impact on insurance rates, with average rates increasing by 34% after an accident in Detroit.

Therefore, if you want to keep your car insurance rates low, it is essential to focus on safe driving practices, such as wearing your seat belt, avoiding driving under the influence, and adhering to speed limits. By maintaining a clean driving record, you can save money on your insurance premiums and avoid the high costs associated with driving incidents.

Frequently asked questions