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Low-income car insurance in Michigan
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Low-income auto insurance in Michigan
With average car insurance rates on the rise, finding cheap car insurance in Michigan is likely a top priority for low-income drivers. If your budget is already stretched, getting a lower rate could help free up your resources or give you a financial cushion.
At $3,193 per year for full coverage and $901 per year for minimum coverage, average car insurance premiums in Michigan are much higher than in many other states. This is at least in part because the state has robust minimum car insurance requirements, including personal injury protection (PIP) insurance, which we discuss in more detail in the next section.
Catastrophic claims fees in Michigan also contribute to the cost of auto insurance. These fees help reimburse no-fault insurance companies for medical expenses that exceed $635,000 when a driver has unlimited lifetime PIP coverage. However, there is some good news in this department. The Michigan Catastrophic Claims Association (MCCA) announced at the end of 2024 that catastrophic claims fees would go down in 2025 for the third year in a row. The fee for drivers who select unlimited coverage will go from $90 to $82 annually beginning July 1, 2025.
Michigan requirements for minimum car insurance
To register your car and be legally allowed to drive in Michigan, you must have a car insurance policy with at least the minimum required coverage types and limits. The minimum car insurance requirements in Michigan are 50/100/10, which means:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $10,000 property damage liability per accident (for damage in other states)
- $1,000,000 property protection insurance (for damage from in-state accidents)
- Personal injury protection in one of six amounts
Michigan is a no-fault state, which means that your insurance covers your medical expenses up to your policy’s limits following an accident, regardless of fault. Before July 2020, all Michigan drivers had to carry unlimited lifetime benefits for personal injury protection (PIP) coverage, which contributed to even higher costs for coverage in the state. Perhaps in a bid to make car insurance more accessible, the state has relaxed that requirement. Now, drivers can choose from six levels of PIP, which could help low-income drivers have more control over their premiums.
While minimum coverage car insurance will provide enough coverage for you to legally drive and may be appealing based on lower premiums, it may not offer adequate financial protection in the event of a serious accident. Associated costs like medical expenses and repairs can quickly add up, and inadequate coverage may leave you responsible for covering the excess costs above your policy limits out of pocket.
For this reason, most insurance professionals recommend that you purchase higher liability insurance limits if you can afford it. If your car is leased or if you have a loan, you will likely be required to carry full coverage, which includes comprehensive and collision insurance. Full coverage may be a good option even if you own your vehicle outright though, especially if you don’t have the savings to pay for unexpected repairs or damage.
How much does low-income car insurance cost in Michigan?
Michigan drivers pay an average rate of $3,193 for full coverage, while state-mandated minimum coverage is available for an average cost of $901. This is considerably above the national averages, which are $2,677 for full and $807 for minimum coverage.
One strategy that may help you save money when you are looking for low-income auto insurance in Michigan is shopping around. Ask several companies for quotes to see which gives you the lowest rate. You may be surprised at the range of rates you receive. This is because every insurer has their own proprietary algorithm that weighs personal rating factors differently. When asking for quotes, make sure you are requesting the same types and levels of coverage from each, so you can do a true comparison.
Below you can see average car insurance rates from some of the largest insurers in Michigan. Keep in mind that your rates will vary based on your location, vehicle type, age and more, but carriers in Michigan are not allowed to consider your gender, marital status or credit history when rating your policy.
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---|---|---|---|---|---|
$2,402
|
$2,402
|
$541
|
$541
|
||
$3,050
|
$3,050
|
$1,419
|
$1,419
|
||
$3,527
|
$3,527
|
$730
|
$730
|
||
Donegal
|
Donegal
|
$3,406
|
$3,406
|
$762
|
$762
|
$4,105
|
$4,105
|
$1,466
|
$1,466
|
||
$2,690
|
$2,690
|
$478
|
$478
|
||
Frankenmuth
|
Frankenmuth
|
$3,463
|
$3,463
|
$963
|
$963
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$1,659
|
$1,659
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$680
|
$680
|
||
$2,826
|
$2,826
|
$1,300
|
$1,300
|
||
Hastings Mutual
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Hastings Mutual
|
$1,629
|
$1,629
|
$720
|
$720
|
Meemic
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Meemic
|
$2,508
|
$2,508
|
$503
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$503
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Pioneer State
|
Pioneer State
|
$3,740
|
$3,740
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$929
|
$929
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$2,604
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$2,604
|
$914
|
$914
|
||
N/A
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N/A
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N/A
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N/A
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||
$4,646
|
$4,646
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$2,155
|
$2,155
|
||
$8,831
|
$8,831
|
$1,352
|
$1,352
|
||
$2,389
|
$2,389
|
$425
|
$425
|
||
$1,730
|
$1,730
|
$426
|
$426
|
||
$3,978
|
$3,978
|
$610
|
$610
|
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Wolverine Mutual
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Wolverine Mutual
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$2,607
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$2,607
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$306
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$306
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Car insurance discounts for low-income drivers
Taking advantage of car insurance discounts could be one of the easiest ways to lower your premium. Most major companies offer at least a few discounts, some of which could lower your premium significantly.
Good driver discount
One of the most important factors that insurers use to determine your premium is your driving history. A person with a clean driving record is likely to earn a lower rate than someone with multiple marks on their license. If you fall in the latter category, it may be helpful to take a defensive driving course, which can improve your skills behind the wheel and may also earn you a discount. If you have a record for safe driving, consider participating in your insurer’s telematics program, if it has one.
Military discount
Some insurers offer discounts to current and former military members. Family members may also be eligible. Additional discounts may be available for military-related factors that reduce your claim risk, like garaging a vehicle on base.
Anti-theft device discount
Having your car stolen or broken into can be costly for auto insurers if you have to file a claim. As a result, insurers may be willing to give you a discount if your car is equipped with an anti-theft device, such as a GPS tracker, vehicle recovery system, hidden kill switch or brake lock.
Bundling discount
Bundling your insurance, like home and auto, or insuring multiple vehicles with the same carrier typically results in a large discount with most carriers. If you’re considering switching carriers, exploring bundling options may be a worthwhile exercise.
Student discounts
Car insurance for young drivers is generally quite expensive. If you have a teen on your policy and live in Michigan, chances are you are looking to save. Good student discounts, driver training discounts and distant student discounts could all potentially help you lower your premium.
Senior discounts
Some insurers may offer potential discounts for drivers over a certain age, such as 50 and over. However, these discounts may come with certain requirements, such as not having any operators under 25 and having no violations or accidents in the past three years. In addition, this discount may not be available in all states.
Employee discounts
You may be able to get a discount on auto insurance thanks to your association with a particular employer. For instance, University of Michigan employees can get a discount on car insurance with Meemic Insurance, and Michigan State University employees can take advantage of a Farmers discount. All state employees can also explore discounts with Farmers and Liberty Mutual. Many private employers may offer group discounts for auto insurance too, so it’s worth asking about.
Frequently asked questions
Methodology
Rates
Bankrate utilizes Quadrant Information Services to analyze July 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits with bundling and paperless billing discounts applied:

Bodily injury liability
$100,000 per person$300,000 per accident
Property damage liability
$50,000 per accidentPersonal injury protection
$100,000 per accidentUninsured motorist bodily injury
$100,000 per person$300,000 per accident
Collision deductible
$500Comprehensive deductible
$500To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.
If otherwise specified, the base profile has been modified with the following driver characteristics: