Cheapest Car Insurance for Low-Income Drivers in Michigan (October 2024)

Travelers is the cheapest car insurance for individual drivers with low income and poor credit in Michigan, with a monthly rate of $67. It is also the most affordable option for families with low income, with a monthly rate of $36. Michigan doesn't provide state-backed car insurance programs for families and individuals with low income. Seeking out providers with the most affordable rates and exploring discount options can help manage the cost of car insurance.

Although minimum coverage allows you to drive legally, it has drawbacks. For instance, it may not cover all expenses in an at-fault accident, leaving you financially vulnerable.

Car insurance companies in Michigan do not consider your income when calculating rates. Instead, they look at factors like age, driving record, credit history and the type of car you drive. At-fault accidents and moving violations will increase your rates. To find the cheapest rates, it's best to compare quotes from several insurance companies.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. If you rarely drive, pay-per-mile insurance can be the best option to save. MoneyGeek rounded up the cheapest insurers for drivers in Michigan with low income to help you save.

To legally operate a vehicle in Michigan, you're required to carry car insurance that meets the state minimum car insurance requirements. Your policy should include at least the following coverages:

• $50,000 for bodily injury liability per person
• $100,000 for bodily injury liability per accident
• $10,000 for property damage liability per accident
• Unlimited personal injury protection (PIP) per person

Michigan residents have two main policy choices. A liability-only car insurance is more affordable and covers damages to other parties if you're at fault in an accident. However, it won't cover your own vehicle. To protect your car, you'll need full coverage car insurance, which includes collision and comprehensive coverages. These cover various incidents, including theft and natural disasters.

Understanding the risks and benefits of each option is crucial to choosing the right coverage for your situation.

Credit history is crucial for drivers with low income in Michigan as it can significantly affect car insurance premiums. A poor credit record may signal a higher risk to insurers, leading to higher premiums. Maintaining a good credit-based insurance score is essential to secure affordable car insurance rates.

The cheapest car insurance companies for drivers with low income and poor credit record in Michigan are:

• Travelers: $810 per year; $67 per month
• Encompass: $826 per year; $69 per month

Drivers with good credit can get the cheapest car insurance in Michigan from:

• Westfield: $409 per year; $34 per month
• Travelers: $421 per year; $35 per month

Driving without insurance in Michigan is considered a misdemeanor and can lead to suspension of your driver’s license and vehicle registration, fines ranging from $175 to $1,000 and other penalties.

Although your income doesn't impact your car insurance rates, your family situation does. For instance, in Michigan, a single parent's premium with Travelers is higher by $129 annually than that of a married couple with a teen. The difference is even starker monthly, with single parents paying an extra $10 with Travelers and $58 with GEICO compared to married couples without a teen.

The most affordable car insurance companies for a married couple with a teen in Michigan are:

• Travelers: $426 per year; $36 per month
• GEICO: $1,167 per year; $97 per month

For a single parent with a teen, the cheapest options are:

• Travelers: $555 per year; $46 per month
• GEICO: $1,854 per year; $155 per month

Single parents generally face higher premiums than married couples with a teen. This is due to insurers viewing single parents as having a higher risk profile. Maintaining a good credit score is essential, as it can significantly influence your eligibility for more affordable car insurance rates.

Car insurance premiums generally decrease as individuals reach their early senior years, typically around ages 55 to 65, especially if they maintain a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

• Encompass: $726 per year; $60 per month
• Travelers: $852 per year; $71 per month

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Michigan, there may be specific laws or guidelines for seniors obtaining car insurance.

Income doesn't directly affect car insurance rates in Michigan. However, low income can lead to a poor credit record, which can make your rates higher. On the other hand, good credit can help you get lower rates. Understanding the factors contributing to car insurance rates can help you make informed decisions when choosing the best car insurance for you.

Residents of the Great Lakes State have several strategies to find affordable car insurance, whether or not they qualify for state-sponsored programs for drivers with low income. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance in Michigan can be challenging for drivers with low income. Here are answers to some of your most common questions on low-income car insurance.