Michigan is usually one of the most expensive states for auto insurance. But just because great Lake State drivers tend to pay more doesn’t mean they can’t find affordable coverage. Bankrate’s insurance editorial team has a strategy to save money on your next auto insurance policy. We also cover state insurance requirements so that you can make informed decisions when purchasing low-income car insurance.
Michigan Low Income Auto Insurance
Finding cheap car insurance in Michigan is a top priority for low-income drivers, as average car insurance rates are rising. If your budget is already expanding, getting a lower fee can free up resources and give you financial cushioning.
With full coverage at $3,161 per year and a minimum of $879 per year, Michigan’s average car insurance premiums are much higher than in many other states. This will be explained in detail in the next section, at least in part, as the state has robust minimum car insurance requirements, including personal injury protection (PIP) insurance.
Michigan’s catastrophic claims also contribute to the cost of car insurance. These fees will help drivers reimburse medical expenses in excess of $635,000 to the no-fall insurance company if they have 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 will fall for the third consecutive year in 2025. Drivers who choose unlimited coverage will charge between $90 and $82 per year starting July 1, 2025.
Michigan Minimum Auto Insurance Requirements
To register your car and legally allow you to drive in Michigan, you need car insurance with at least the minimum required coverage type and restrictions. Michigan’s minimum car insurance requirement is 50/100/10. This means:
- $50,000 per person bodily injury liability
- $100,000 for each accident
- Liability for property damages of $10,000 per accident (for damages in other states)
- $1,000,000 Real Estate Protection Insurance (due to damage caused by a state accident)
- 6 Forehead Personal Injury Protection
Michigan is in a state of disability free. This means your insurance covers medical expenses, regardless of negligence, up to the limits on insurance contracts after an accident. By July 2020, all Michigan drivers had to be responsible for unlimited lifetime benefits for personal injury protection (PIP) coverage. Perhaps the state relaxed its requirements to make car insurance more accessible. Currently, drivers can choose from six levels of PIP. This will allow low-income drivers to have more control over their premiums.
Minimum coverage car insurance provides sufficient coverage to legally drive and may be attractive based on lower premiums, but in the event of a serious accident, it may not provide adequate financial protection. Related expenses such as medical expenses and repairs may be added immediately, and in the event of insufficient coverage, you are responsible for covering excess costs out of your pocket that exceed policy limits.
For this reason, most insurance professionals recommend purchasing a higher liability insurance limit if they can afford it. If your car is leased or has a loan, you may need to be in charge of full coverage, including comprehensive and collision insurance. Full coverage can be a good option, especially if you don’t have savings to pay for unexpected repairs or damages.
How much does low-income car insurance cost in Michigan?
Michigan drivers pay an average of $3,161 for full coverage, while state-run minimum coverage is available at an average cost of $879. This is well above the national average. This is totally $2,678 and the lowest range is $798.
Shopping is one strategy that may help you save money when you’re looking for low-income car insurance in Michigan. Ask some companies for quotes and see which gives you the lowest rate. You may be surprised at the range of fees you receive. This is because individual valuation factors differ as all insurers have their own unique algorithms. When requesting a quote, make sure you request coverage of the same type and level of each. This will allow you to make a true comparison.
Below you can see the average car insurance rates from the largest insurance companies in Michigan. Please note that prices vary based on your location, vehicle type, age, etc., but Michigan carriers are not permitted to consider gender, marriage status, or credit history when assessing their policies.
Low-income drivers’ car insurance discounts
Taking advantage of car insurance discounts may be one of the easiest ways to lower your premiums. Most large companies offer at least some discounts, some of which can significantly reduce premiums.
Good driver discount
One of the most important factors that insurers use to determine premiums is their driving history. Those with clean driving records may earn lower fees than those with multiple marks on their licenses. If you fall into the latter category, taking a defensive driving course may be helpful. If you have a record of safe driving, and if you have an insurance company telematics program, consider joining the insurance company telematics program.
Military discounts
Some insurance companies offer discounts to current and former military personnel. Family members may also be eligible. Additional discounts may be available for military-related factors that reduce claim risk, such as garbing a base vehicle.
Anti-theft device discount
If you need to file a claim, stealing or breaking your car can be costly for a car insurance company. As a result, insurance companies may be happy to offer discounts if your vehicle has anti-theft devices, such as GPS trackers, vehicle recovery systems, hidden kill switches, and brake locks.
Bundle Discount
Bundle insurance like a home or car, or guarantee multiple vehicles with the same carrier is usually a huge discount for most carriers. If you’re considering switching careers, exploring bundle options might be a valuable movement.
Student discount
Auto insurance for young drivers is generally very expensive. If you have a teenager in your policy and live in Michigan, you may be trying to save money. Excellent student discounts, driver training discounts, and far-reaching student discounts can all help reduce the premium.
Senior Discount
Some insurance companies may offer potential discounts to drivers across certain ages, such as those over 50 years old. However, these discounts may come with certain requirements, such as no operators under the age of 25 and no violations or accidents in the past three years. Additionally, this discount may not be available in all states.
Employee discounts
You may be able to receive a discount on your car insurance due to your relationship with a particular employer. For example, University of Michigan employees can get discounts on auto insurance at Meemic Insurance, while Michigan State employees can get discounts on farmers. Employees in all states can also explore discounts with farmers and Liberty Mutuals. It’s worth asking as many private employers may also offer group discounts on auto insurance.
FAQ
Methodology
Using Quadrant Information Services, Bankrate analyzes all ZIP codes and carriers in all 50 states March 2025 rates, with Washington DC rates being weighted based on population density for each geographical region. The cited fees are based on 40-year-old male and female drivers with clean driving records, good credits and the following full coverage limits:
- $100,000 per person physical injury liability
- $300,000 for each accident
- Liability for property damages of $50,000 per accident
- Uninsured driver physical injury for $100,000 per person
- Uninsured driver’s physical injury for $300,000 per accident
- $500 collision deduction possible
- Comprehensive $500 deduction
To determine the minimum coverage limit, bank rates used minimum coverage to meet the requirements of each state. Our base profile driver owns a 2023 Toyota Camry, commutes five days a week and drives 12,000 miles a year.
These are sample rates and should be used for comparison purposes only.
