Cheap Michigan Low-Income Car Insurance for Families and Individuals

Michigan does not offer a government car insurance program that assists low-income drivers. To help you find low-income car insurance in Michigan, MoneyGeek evaluated auto insurers in the state and found Nationwide has the cheapest car insurance rates for low-income families and individuals.

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Last Updated: 11/25/2022
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Your income is not a consideration when determining the cost of car insurance in Michigan. Other factors, like the inclusion of a teen driver on your policy, your driving record and age, do determine your premium.

MoneyGeek calculated the cheapest options for low-income individuals and families in Michigan to get car insurance.

Is There Car Insurance for Low-Income Families and Individuals in Michigan?

There is no government car insurance program in Michigan to help low-income families and individuals save on their car insurance costs. Some of the 25.5% of uninsured drivers in Michigan may be avoiding auto insurance because it is costly, even though the law requires it.

A traditional minimum coverage policy is likely the best option for low-income car insurance in Michigan. For low-income drivers who don’t put many miles on their car, pay-per-mile insurance may be a cost-effective alternative in Michigan.

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Does Michigan Have a Government Program to Support Low-Income Drivers with Insurance?

There is no government-funded program for low-income drivers in Michigan. To get low-cost auto insurance, the best option is to compare rates from several different insurers. MoneyGeek determined the cheapest car insurance companies for low-income drivers in Michigan to save them money.

The Cheapest Michigan Car Insurance Companies for Low-Income Drivers

In Michigan, car insurance companies cannot use income to determine how much to charge for car insurance. However, they do consider other criteria that may connect to income, such as age.

You can get the cheapest car insurance by buying a minimum coverage policy. MoneyGeek analyzed companies and found Nationwide offers the cheapest car insurance for low-income drivers in Michigan of various types.

MoneyGeek also looked into the lowest minimum auto insurance for low-income individuals and families in Michigan based on the age of the driver.

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The Cheapest Michigan Car Insurance Companies for Low-Income Families

Income is not a factor when determining car insurance rates in Michigan, nor is credit score, which makes insurance more affordable.

On average, MoneyGeek found the best price for a low-income couple with a child in Michigan is with:

  • Nationwide: $3,926 per year
  • GEICO: $7,727 per year

With an average yearly cost of roughly $3,931, USAA is a low-price option if you have a military history.

For a single parent with a child, MoneyGeek found the most affordable insurers in Michigan are:

  • Nationwide: $2,647 per year on average
  • Auto-Owners Insurance Co: $4,891 per year on average

USAA’s average annual cost of around $2,896 is an option for single parents with a military history.

Toggle the table below to discover more cheap car insurance for low-income families in Michigan.

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Single parent w/ a kid

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  • Company
    Annual Rates
  • Nationwide
    $2,647
  • USAA
    $2,896
  • Auto-Owners Insurance Co
    $4,891
  • GEICO
    $5,092
  • MetLife
    $6,542
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The Cheapest Michigan Car Insurance Companies for Low-Income Individuals

MoneyGeek found the following car insurance companies provide the lowest price in Michigan for low-income individuals:

  • Nationwide: $1,007 per year on average
  • Auto-Owners Insurance Co: $1,860 per year on average

USAA is a cheap option at around $916 per year if you have a background in the military.

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  • Company
    Annual Rates
  • USAA
    $916
  • Nationwide
    $1,007
  • Auto-Owners Insurance Co
    $1,860
  • GEICO
    $1,936
  • Progressive
    $2,216

The Cheapest Michigan Car Insurance Companies for Low-Income Students

Due to little driving experience, young student drivers in Michigan typically pay higher rates for car insurance. Young drivers in college do not pay more because of their income level, but many tend to have lower incomes, and auto insurance takes up a large part of their budget.

MoneyGeek found the most affordable companies for student drivers in Michigan are:

  • Nationwide: $2,137 per year on average
  • Auto-Owners Insurance Co: $3,948 per year on average

Students from a military family can consider USAA, costing around $1,943 yearly.

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  • Company
    Annual Rates
  • USAA
    $1,943
  • Nationwide
    $2,137
  • Auto-Owners Insurance Co
    $3,948
  • GEICO
    $4,110
  • Progressive
    $4,703

The Cheapest Michigan Car Insurance Companies for Low-Income Seniors

Compared to middle-aged drivers, seniors in Michigan usually pay slightly higher premiums.

On average, the following car insurance companies in Michigan offer the cheapest rates for seniors:

  • Nationwide: $1,062 per year
  • MetLife: $2,045 per year

USAA offers an affordable rate of around $1,021 per year if you are a veteran or have any background in the military.

Switch by Credit Score:

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  • Company
    Annual Rates
  • USAA
    $1,021
  • Nationwide
    $1,062
  • MetLife
    $2,045
  • Auto-Owners Insurance Co
    $2,285
  • Progressive
    $2,412

Does Income Affect Car Insurance Rates in Michigan?

Insurance companies can’t use your income as a basis when determining your car insurance premium. Other factors that may have a link to income, however, will impact your rates.

For example, people with lower incomes may make more claims since they may not be able to afford to pay for repairs out of pocket. Drivers with a history of claims face higher premiums from insurers.

MoneyGeek looked into the factors that might link to low income and how they impact Michigan car insurance rates. The top three most important factors are:

  • Adding a teen driver.
  • Driving record.
  • Age of driver.

Your car model and coverage levels are also important when determining rates.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver is a big factor in Michigan, making rates 2.8x as expensive.

  • Driving Record

    A violation on your record could cause you to pay 2.6x more for insurance.

  • Age of Driver

    Rates can be 2.1x higher for young drivers versus middle-aged drivers.

  • Car Model

    Depending on the model of your car, insurance could be 2x more expensive.

  • Coverage Levels

    In Michigan, a full coverage policy is 1.6x more expensive than the state minimum.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Michigan using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Michigan.

Costs for poor and good credit scores, when applicable to the state, were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.