Low-income car insurance in Michigan: What you need to know

Michigan government car insurance for low-income drivers

There is no government-run car insurance program for low-income drivers in Michigan. Only a handful of states (California, Hawaii and New Jersey) have such a program.

In Michigan, low-income drivers must still carry the minimum amount of car insurance. The best way to find it on a budget is to shop around.

Michigan minimum car insurance requirements

The minimum car insurance requirements in Michigan are as follows:

Minimum liability coverage limits	50/100/10
Average annual premium	$654
Other types of insurance required (if any)	PIP and Property Protection

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Remember that if you have a loan on your car, you're required to carry full coverage, which includes collision and comprehensive.

Best low-income car insurance in Michigan

Auto-Owners came out on top as the best pick for low-income car insurance.

People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in Michigan and compared them on rates for state-minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.

These are the best low-income car insurance companies in Michigan.

Company	Average annual premium	J.D. Power	AM Best	NAIC	Insurance.com score
Auto-Owners	$467	833	A++	0.5	3.85
Travelers	$106	806	A++	0.49	3.77
Geico	$620	831	A++	0.91	3.08
Progressive	$789	816	A+	0.65	2.98
State Farm	$1,334	837	A++	0.7	2.79
Automobile Club MI (AAA)	$507	786	A	0.77	2.63

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Cheapest low-income car insurance in Michigan

Based on state-minimum coverage, we found that the cheapest car insurance company in Michigan is Travelers at an average rate of $378 a year.

When you're working with a tight budget, price is the number one consideration. We gathered rates from car insurance companies in Michigan to find the cheapest options on average.

Company name	Average annual premium	Average monthly premium
Travelers	$378	$32
Auto-Owners	$469	$39
Auto Club Group - ACG (AAA)	$510	$42
Pioneer State Mutual	$591	$49
Geico	$620	$52
Frankenmuth Insurance	$715	$60
Progressive	$789	$66
Michigan Farm Bureau	$827	$69
State Farm	$1,398	$117
USAA	$320	$27

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PEOPLE ASK:

What can I do if I can't afford car insurance in Michigan?

If you can't find affordable car insurance in Michigan, try working with a local agent who knows the market and some of the smaller insurance companies available. Consider a usage-based program to reduce costs, reduce coverage, drive less and ask about additional discounts.

Car insurance discounts for low-income drivers in Michigan

Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in Michigan can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.

Discount type	% Discount
Years Licensed	22%
Years Insured	21%
Primary Use	14%
Profession	13%
Telematics	12%
Multi Policy	12%
Loyalty - Years Renewal With Company	11%
Daily Commute	11%
Days Per Week Driven	10%
Payment Type	9%
Electronic Signature	8%
Days Advanced Purchase	7%
Lower Annual Mileage	7%
Air Bags	5%
Electronic Funds Transfer	3%
Paperless/Electornic Documents	3%
Safety Devices	3%
Anti-Theft Device	1%

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Methodology

Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.

Low-income car insurance in Michigan: Frequently asked questions

What is the cheapest car insurance company for low-income people?

In Michigan, Travelers is the cheapest car insurance company with the average rate of $378. However, that's based on average rates and may differ for you, so it's important to shop around.

Does Michigan have car insurance for low-income individuals?

No, Michigan doesn't offer a car insurance program for low-income individuals or families.

What happens if I can't pay my car insurance?

If you don't pay your car insurance bill, your car insurance will be canceled and you won't have coverage. If you can't pay your car insurance bill, contact your insurance company before the bill is past due to see if you can make arrangements for payment.