Travelers offers the cheapest minimum coverage for low-income drivers with clean records in Michigan. Westfield and Chubb are often more affordable for those with driving violations.
Cheapest Low-Income Car Insurance in Michigan
Updated: February 5, 2025
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Key Takeaways
Although Michigan doesn't have a low-income car insurance program, affordable plans are available to meet state minimum coverage requirements.
The cheapest insurance options for most low-income drivers in Michigan are Travelers, Encompass, Progressive and Westfield.
Low-income drivers can maximize savings on car insurance by comparing different providers and looking for discounts.
Cheapest Car Insurance Companies for Low-Income Drivers in Michigan
| Travelers | Young Drivers | $37 |
| Travelers | Adults | $32 |
| Travelers | Seniors | $34 |
| Westfield | Drivers With a Speeding Ticket | $44 |
| Chubb | Drivers With a DUI | $56 |
| Westfield | Drivers With an Accident | $54 |
*All rates in this table, except for adults, are based on a modified profile of a 40-year-old driver with a clean record insuring a 2012 Toyota Camry. The age ranges are 22 to 29 for young drivers, 30 to 59 for adults and 60+ for seniors.
Compare Cheap Low-Income Car Insurance Providers
Use the table to find the most affordable provider for your driver profile.
Data filtered by:Results filtered by:
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Age Range:30-59
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Driving Record:Clean
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Credit Score:Good
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Coverage Level:State Minimum Liability Only
| Travelers | $32 | $388 |
| Westfield | $35 | $416 |
| Encompass | $48 | $577 |
| Progressive | $51 | $614 |
| GEICO | $52 | $630 |
Cheapest Car Insurance for Families With Low Income in Michigan
Travelers offers the cheapest monthly insurance rates for low-income families in Michigan: $36 for married couples with a teen, $46 for single parents with a teen and just $13 for those adding a spouse without a teen.
Data filtered by:Results filtered by:
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Family Type:Married Couple with Teen
| Travelers | $426 | $36 |
| Encompass | $1,167 | $97 |
| GEICO | $1,167 | $97 |
| Progressive | $1,303 | $109 |
| Auto-Owners | $1,314 | $110 |
| Farmers | $3,627 | $302 |
| State Farm | $5,233 | $436 |
*Rates for couples and single parents with teens apply to a 16-year-old driver. Those for a married couple without children are based on a 40-year-old male with good credit and a clean driving record.
Tips to Save On Car Insurance for Low-Income Drivers
Michigan residents can reduce their auto insurance costs with these simple steps:
- 1
Choose minimum coverage
Selecting minimum coverage is often the most affordable way to comply with legal requirements. However, it offers only basic protection, which won't cover all expenses in an at-fault accident.
- 2
Compare quotes
Gather quotes from various providers to identify the most affordable option. For a thorough evaluation, explore resources like provider websites, independent brokers, agents and online comparison tools.
- 3
Look for discounts
Insurers offer discounts for safe driving, good grades and military service. Taking a defensive driving course may lower premiums by up to 10%.
- 4
Increase your deductible
Raising your deductible on collision or comprehensive coverage may reduce your monthly premium. Ensure that you can cover it when a claim is necessary.
- 5
Consider pay-per-mile insurance
Pay-per-mile insurance is ideal for drivers with low mileage. It combines a low monthly base rate with per-mile charges, potentially saving money for those who drive infrequently.
- 7
Get a cheaper car
A vehicle's make, model and year directly impact insurance costs. Opting for a cheaper car to insure, like an older, reliable model, can significantly reduce your premiums.
Minimum Car Insurance Requirements in Michigan
Michigan residents must meet the state's minimum car insurance requirements:
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
- $10,000 for property damage per accident
If you're leasing or financing a vehicle, you need liability coverage of 100/300/100 and comprehensive and collision protection.
WHY MINIMUM COVERAGE MAY NOT BE RIGHT FOR YOU
Minimum car insurance covers only the other driver's expenses if you're at fault in an accident. You'll still be responsible for your car's damage and legal fees. If you drive often and can afford it, consider higher coverage.
Cheap Low-Income Car Insurance in Michigan: Bottom Line
Travelers provides the cheapest car insurance for most low-income drivers in Michigan. High-risk drivers can find affordable rates with Westfield for speeding tickets or accidents and Chubb for DUI. Compare multiple providers to secure the best deal.
Low-Income Auto Insurance in Michigan: FAQ
Low-income drivers often struggle to find affordable car insurance. Below are answers to common questions about saving money on premiums.
What is the cheapest car insurance for low-income drivers in Michigan?
Minimum coverage is typically the most affordable option for low-income drivers, though eligibility may depend on car financing or leasing terms. Travelers offers the lowest minimum coverage rate in Michigan at $32 monthly, and GEICO provides the cheapest full coverage at $86.
Does Michigan have a state-supported low-income car insurance program?
Michigan has no state-supported program assisting low-income drivers with car insurance.
Does your income affect the cost of car insurance in Michigan?
Income doesn't directly impact car insurance costs in Michigan. Factors like your driving record, vehicle type and location are more critical.
How We Chose the Cheapest Car Insurance for Low-Income Drivers
Study Overview
MoneyGeek analyzed Michigan auto insurance rates using data from the Michigan Department of Insurance and Financial Services and Quadrant Information Services.
Data Acquisition, Depth and Analysis
MoneyGeek reviewed 328,384 quotes from 14 companies across 370 ZIP codes to determine the average cost of car insurance for drivers with low income in Michigan.
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates for low-income drivers in Michigan:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
To determine rates for specific driver profiles, we adjusted factors such as age, family status and driving history.
Our study defines seniors as 60 or older, young drivers as 22 to 29 and adults as 30 to 59. Married couples with a child include 40-year-old male and female drivers with a 16-year-old teen. Single parents with children are 40-year-old male or female drivers with a 16-year-old teen.
Coverage Levels and Deductibles
Our data shows rates for minimum coverage, which follows the requirements set by Michigan law and offers affordable options for low-income drivers.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.