Cheapest Car Insurance for Low-Income Drivers in Michigan (2025)
Auto-Owners has the cheapest liability car insurance in Michigan, with average rates of $67 per month.
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In 2020, Michigan underwent a major overhaul of car insurance laws that gave residents more control over their insurance costs. Now, you can opt to carry less insurance coverage if you meet certain requirements, like being enrolled in Medicaid.[?]
Although this helped to lower insurance rates for some people, premiums remain high for many low-income drivers — especially people earning less than the state’s median income of $64,000 per year. Michigan doesn’t have a state-sponsored auto insurance program for low-income drivers, but you still have other ways to save.
Here’s what you need to know about finding the most affordable car insurance in Michigan.
Quick Facts
On average, auto insurance in Michigan costs $174 per month.
Drivers in Michigan can opt in or out of personal injury protection (PIP) to save on their policy.
Michigan doesn’t allow insurers to use credit history when setting rates.
Cheapest car insurance in Michigan
In Michigan, the average driver pays $137 per month for minimum coverage. But the actual rate you’ll receive can vary among auto insurance companies. Insurers consider many factors when setting rates, including your driving history, location, age, gender, and more.
Michigan drivers can find the cheapest liability rate from Auto-Owners, with premiums averaging $67 per month.
Here’s a look at the cheapest insurers for minimum coverage in Michigan.
The below rates are estimated rates current as of: Friday, October 31 at 5:00 PM PDT.
Insurance Company  | Average Quote: Liability Only |
|---|---|
| Auto-Owners | $67 |
| USAA | $68 |
| Chubb | $73 |
| Safeco | $109 |
| National General | $114 |
| Bristol West | $134 |
| Nationwide | $136 |
| State Farm | $139 |
| Direct Auto | $140 |
| Liberty Mutual | $158 |
| Progressive | $158 |
| Travelers | $160 |
| GEICO | $178 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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Liability quotes start as low as $67 per month
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Best car insurance for drivers with a low income in Michigan
Michigan requires drivers to carry a minimum amount of liability insurance and a couple other additional coverages. You’ll need to purchase some amount of personal injury protection (PIP), property protection (PPI), and residual bodily injury and property damage liability (BI/PD).[?]
To find the cheapest rates, it’s important to compare at least three companies. Here are Insurify’s top picks to help you get started.
Auto-Owners: Best for cheapest premiums
USAA: Best for Michigan military and veterans
Chubb: Best for good customer service
Minimum car insurance requirements in Michigan
Things can get a bit confusing depending on your driver profile, so let’s break down the auto insurance requirements to stay on the right side of Michigan law.
Currently, the state requires drivers to have three different types of coverage:
Property protection (PPI): Everyone must carry $1 million in coverage to compensate people for damage you cause, like totaling their car.
Personal injury protection (PIP): Depending on your circumstances, you can choose from six PIP insurance options to cover you and your passengers, each offering a different level of coverage and affordability. You can opt out of the medical portion of PIP entirely if you’re on Medicare and meet other qualifications, or you can choose unlimited PIP coverage, which was the previous standard and remains as the default option.
Residual bodily injury and property damage liability (BI/PD): If you cause a crash and the damages exceed your coverage limits, this will pay out an additional $250,000 per injured person (up to $500,000 per accident) or $10,000 in property damage. But you can opt for a lower-level 50/100/10 policy if you want to.
You can save money by choosing the lowest-level coverage limits you qualify for, but be aware that this leaves you and your passengers unprotected in case of a bad accident. For example, if you drop your PIP coverage because you’re on Medicare, but your granddaughter is in an accident while she’s spending the weekend with you and using your car, your insurer won’t pay her medical bills.[?]
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Low-income car insurance FAQs
Here are the most commonly asked questions about getting affordable coverage for low-income drivers in Michigan.
Which company has the cheapest car insurance in Michigan?
Auto-Owners offers the lowest auto insurance rates in Michigan, according to Insurify data. Drivers typically pay $67 per month for minimum coverage and $108 for full coverage, although your insurance rates may vary.
How much is full-coverage car insurance in Michigan?
A typical full-coverage car insurance policy costs Michigan drivers $211 per month. Lenders generally require you to buy full-coverage insurance if you financed or leased your vehicle.
How can you get low-income car insurance in Michigan?
Michigan doesn’t offer government assistance programs for car insurance, but you have other ways to get cheaper coverage. Under the new Michigan auto insurance reform law, you can opt to carry less PIP and liability coverage, which can help you save. Comparing multiple companies and taking advantage of discounts can also help.
What is the lowest form of car insurance required in Michigan?
All Michigan drivers must carry three types of insurance coverage, including liability insurance for property damage, PIP coverage to protect you and your passengers, and residual liability coverage in case you cause a very serious accident. For property and bodily injury liability, you can choose the lower limit of 50/100/10. Additionally, some drivers are eligible for less PIP coverage.
Required coverage limits vary depending on your driver profile and individual circumstances.
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