Cheap Auto Insurance for Low Income Drivers in Michigan

Wouldn’t this article be short if we could just tell you the company that has the best insurance prices for low income drivers? That is not the case, however, as there are a whole slew of unknown factors such as your age, if you have any prior insurance claims, if you are married or single, and your credit score, that all influence how much you pay for auto insurance. This article will detail the different ways you can keep rates low and will hopefully give you a good start to your coverage search.

Determining which company offers the cheapest auto insurance rates for low income drivers will involve a bit more work in order to find a policy that fits your budget. Each insurer has a different process for establishing rates, so let’s examine the auto insurance companies that tend to have lower prices in Michigan.

It’s important that you understand Michigan auto insurance rates are calculated based on many things that can increase the price you have to pay. Simply getting older, increasing deductibles, or getting a driving violation can trigger changes in premium that may make certain companies more affordable than the competition.

Best Auto Insurance Prices in Michigan

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USAA has some of the cheapest car insurance rates in Michigan at around $978 per year. GEICO, Safeco, MetLife, and MEEMIC also rank well as some of the cheaper Michigan car insurance companies.

As depicted above, if you buy coverage from Safeco and switched to USAA, you could realize yearly savings of in the neighborhood of $101. Customers with MetLife could save as much as $346 a year, and MEEMIC customers might lower prices by up to $430 a year.

If you would like to find cheap car insurance for low income drivers in Michigan, click here to start your custom quote or quote prices from the following companies.

These policy prices are averages across all drivers and vehicles and and are not figured with a price discount for low income drivers. So the car insurance company that has the cheapest price for you may not even be in the above rate chart. That point stresses why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.

The type of vehicle you are buying coverage for is a significant factor that determines if you can find the lowest-priced coverage for low income drivers. Vehicles with average performance, modern passenger safety features, or a positive history of liability claims will cost substantially less to insure than adrenaline junky models.

The information below shows car insurance premiums for a handful of the most affordable automobiles to buy insurance for.

Price data assumes married female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include safe-driver, multi-policy, multi-vehicle, homeowner, and claim-free. Rates do not factor in Michigan location which can revise auto insurance rates significantly.

By looking at the data, models like the Toyota Prius, Ford Escape, Ford Edge, and Honda CR-V are going to be a few of the less-costly vehicles to insure for poor drivers.

Discounts on cheap car insurance for low income drivers in Michigan

Insurers that offer coverage for low income drivers may additionally offer rate discounts that could potentially reduce rates by as much as 35% or more if you are eligible for them. The best auto insurance companies and some of the premium reductions they offer are included below.

The information below shows the difference between annual premium costs with and without discounts being applied to the rates. The data is based on a male driver, no claims or driving citations, Michigan state minimum liability limits, full physical damage coverage, and $250 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with accident-free, safe-driver, claim-free, defensive driving course, multiple policy, and homeowner discounts applied. When discounts are applied, the average amount saved each year on auto insurance for low income drivers is 16% or $193.

How accidents and violations affect rates

The easiest method to maintain cheap car insurance for low income drivers in Michigan is to drive safe and avoid accidents and keep your driving record clean. The illustration below shows how speeding tickets and fender-benders can impact insurance prices for different ages of insureds. The premiums are based on a single female driver, comp and collision included, $100 deductibles, and no discounts are applied to the premium.

The data charted above shows the average cost of a car insurance policy in Michigan per year with no violations or accidents is $4,994. Factor in two speeding tickets and the average cost increases to $6,735, an increase of $1,741 each year. Now add one accident along with the two speeding tickets and the yearly cost of auto insurance for low income drivers increases to an average of $8,519. That’s an increase of $3,526, or $294 per month, just for a couple of infractions!

Progressive vs State Farm vs Geico vs Allstate

When shopping around for auto insurance for poor drivers in Michigan, some of the first companies to look at are Progressive, State Farm, Geico, and Allstate. When added together, they make up almost 50% of all auto insurance policies in force. All four offer physical damage and liability coverage, but each has slightly different coverages and options that may steer you one way or another. The following table points out some of the different options and features that may be available in your state.