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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Written byLindsay VanSomeren
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8 years in insurance and personal finance writing
Former data scientist for U.S. Geological Survey
Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.
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Edited bySara Getman
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Table of contents
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.[1]
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: Saturday, November 1 at 12:00 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.
Find Cheap Car Insurance in Michigan
Liability quotes start as low as $67 per month
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4.8/5
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).[2]
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
| User Reviews | 4.3 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.2 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $67/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $108/mo |
4.3
Best choiceBased on 259 verified guest reviews and ratings
How drivers feel about Auto-Owners
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners
Customers appreciate the friendly service and quick claims process but dislike the constant rate increases and perceived inflexibility in pricing.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (131)
Eugene
Verified Review
Insurance Company Issues
Reviewed in Iowa on November 2025
Cannot get information from the company. You go through an agent, and they don't get back to you. If you ask for a change on the policy, they start a new policy, which increases the cost you have to pay.
Chick
Verified Review
Disappointed! Would rather have TALKED to an actual person!
Reviewed in Wisconsin on November 2025
It has been excellent! I just wanted to compare prices, but unfortunately, I insure 6 vehicles and your website doesn’t allow me to include them all!
Ron
Verified Review
For now, USAA is too far away
Reviewed in Georgia on November 2025
My current insurance is through a broker in the next town, and although they are higher than USAA, I like that I can go into their office, sit, ask questions, and look at the person giving me the answers. I'm not comfortable dealing online with a company far away. I haven't made my final decision, but if USAA was significantly cheaper, I would consider them, even though my current insurance is higher. I like that I can go into their office and talk face-to-face, so I need to make my decision quickly. I'm leaning towards staying with my current insurance so I have more time to research and see if I can get comfortable with USAA, which is miles away and requires doing everything online. Even if they have offices, like in Atlanta, it's 2.5 hours away, and Nashville is 4.5 or 5 hours away. My insurance broker is currently 9 miles from my house.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
654NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.46A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
Auto-Owners has origins dating back to 1916 in Mt. Pleasant, Michigan. With headquarters today in Lansing, it offers the lowest insurance rates overall and a wide range of coverage options for popular Michigan motor hobbies, like recreational vehicles, classic cars, boats, and all-terrain vehicles.
Pros
AM Best financial strength rating of A++ (Superior)
Special coverage for classic cars and modified vehicles
Single-loss deductible for bundled home and auto policies
Cons
Below-average J.D. Power claims satisfaction rating
Not widely available if you move out of state
Low customer satisfaction ratings from J.D. Power
USAA: Best for Michigan military and veterans
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $68/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $109/mo |
4.9
Best choiceBased on 2,433 verified guest reviews and ratings
How drivers feel about USAA
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
How drivers feel about USAA
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
AI-generated from the text of verified reviews collected by Insurify
Best For
Members of the military community
Outstanding customer service
Competitive rates
Reviews (1,320)
Dennon
Verified Review
Top Notch Company
Reviewed in Florida on December 2025
Excellent in all respects. I've been with USAA for over 5 years and haven't had a single issue.
Richard
Verified Review
Really good
Reviewed in Kansas on December 2025
The cheapest insurance I can find. Others are over 100 bucks a month more.
Marcus
Verified Review
Expanded Customer Base Affected Rates
Reviewed in Florida on December 2025
Average. Ever since they expanded to all military members, the rates have increased from $100 per month for my three cars to $400 a month.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
739NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.31A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
USAA is a well-regarded and cost-effective insurer, but it’s available only to military members and their families. In Michigan, active-duty and veteran military folks make up a smaller-than-average chunk of the population, but those who are eligible can secure very reasonable rates and benefits.
Pros
Discounts of up to 60%
AM Best financial strength rating of A++ (Superior)
High J.D. Power score for quality customer service
Cons
Low Better Business Bureau (BBB) customer ratings
Not available to most Michigan residents
No in-person office locations
Chubb: Best for good customer service
| User Reviews | 3.7 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $73/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $119/mo |
3.7
A solid optionBased on 9 verified guest reviews and ratings
Best For
High net worth drivers
Customer service
Classic car coverage
Best For
High net worth drivers
Customer service
Classic car coverage
Reviews (5)
Frances
Verified Review
Too Costly
Reviewed in Illinois on June 2025
The price is too high.
Cynthia
Verified Review
Excellent!
Reviewed in North Carolina on August 2024
Absolutely great!
Alexander
Verified Review
I have submitted all the information about my two cars to you and I still don't have a quote. You sent me an email saying you have a quote for me, but when I enter the field, it keeps asking me for the same information about my cars. Your service has been disappointing. Perhaps, your team needs to reassess its efficiency.
Reviewed in Florida on June 2024
I have submitted all the information about my two cars to you and I still don't have a quote. You sent me an email saying you have a quote for me, but when I enter the field, it keeps asking me for the same information about my cars. Your service has been disappointing. Perhaps, your team needs to reassess its efficiency.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.83A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
Chubb traditionally caters to high-income homeowners, but it also offers affordable car insurance, according to Insurify data. Plus, you can bundle your home and auto policies. And for people with cross-border ambitions, you can continue with the same coverage if you move to Canada.
Pros
Up to 20% off via telematics app
Few customer complaints
Also offers policies in Canada
Cons
Relatively few discounts
Cheaper rates available from other insurers
Difficult online shopping experience
Car insurance discounts for low-income drivers in Michigan
Discounts are one of the best ways to save money on your car insurance. Some of the most common ones include:[3]
Low mileage
Michigan is a big state with a lot of rural residents, and it’s not always possible to take public transit. But if you can, or if you work from home, many companies offer car insurance discounts. You’ll save on gas and car repairs, too.
Safe driving
Many insurers offer discounts if you’ve gone a certain period of time without filing any claims or having any driving infractions show up on your record. As a bonus, avoiding accidents means you won’t have to pay any deductibles, either.
Buying multiple policies
Most insurers offer bundling discounts for purchasing a home or renters insurance policy with your auto insurance coverage.
Defensive driving course
For a small fee, you can learn safe driving habits that’ll help you avoid car crashes. If you get a certificate from an insurer-approved defensive driving course, you may even qualify for a discount.
Telematics program
Another way that safe drivers can benefit is by downloading their insurer’s telematics app or installing a small, temporary device in their car that lets their insurer track their driving habits. You can qualify for a good discount just for signing up, with even bigger discounts at renewal.
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.[4]
Shop for Car Insurance in Michigan
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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.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- Michigan.gov. "Choosing Bodily Injury Coverage."
- Michigan.gov. "Purchasing Auto Insurance FAQ."
- III. "Nine ways to lower your auto insurance costs."
- Michigan.gov. "Michigan Department of Insurance and Financial Services Quick Facts."
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Lindsay VanSomeren
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
Lindsay has been a contributor at Insurify since October 2022.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.