The type of vehicle requiring insurance is probably the most important factor when comparing quotes for the best cheap coverage for low income drivers. Vehicles with high performance engines, poor safety features, or high incidents of liability claims will cost substantially more to insure than more economical and safe models.
The next list features car insurance costs for a number of the cheaper automobiles to insure in Michigan.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $5,074 |
| Toyota Prius | $5,138 |
| Dodge Grand Caravan CV | $5,186 |
| Honda CR-V EX 2WD | $5,230 |
| Volkswagen Jetta S 2.5 Station Wagon | $5,526 |
| Ford Explorer Limited AWD | $5,589 |
| Honda Odyssey EX-L W/Rear Entertainment | $5,778 |
| Toyota Corolla XLE | $5,783 |
| Hyundai Elantra SE 4-Dr Sedan | $5,778 |
| Toyota Tacoma X-Runner 2WD | $5,786 |
| Jeep Grand Cherokee SRT-8 4WD | $5,885 |
| Ford F-150 Lariat King Ranch 2WD | $5,893 |
| Chevrolet Impala LS | $5,885 |
| GMC Sierra SLT Extended Cab 2WD | $5,894 |
| Toyota Camry LE | $6,006 |
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Price data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include homeowner, safe-driver, multi-vehicle, claim-free, and multi-policy. Price information does not factor in zip code location which can change coverage rates substantially.
Looking at the data, we can infer that vehicles like the Ford Escape, Toyota Prius, and Dodge Grand Caravan are likely to be some of the most economical vehicles to insure for poor drivers.
Determining which insurers offer the cheapest insurance rates for low income drivers involves a bit more work in order to find the best policy.
Each insurer has their own process to set premium rates, so let’s take a look at the most budget-friendly insurance companies in Detroit. It’s important to understand that Detroit insurance rates are influenced by many factors that may substantially change the price of your policy. Simply getting older, having a teen driver, or having an at-fault accident may generate price changes resulting in some companies being more affordable than before.
Best Insurance Companies in Michigan
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $978 |
| 2 | GEICO | $1,003 |
| 3 | Safeco | $1,069 |
| 4 | MetLife | $1,364 |
| 5 | MEEMIC | $1,394 |
| 6 | Chubb | $1,428 |
| 7 | Pioneer State Mutual | $1,430 |
| 8 | Hastings Mutual | $1,643 |
| 9 | Auto-Owners | $1,686 |
| 10 | Frankenmuth | $1,713 |
| 11 | SECURA | $1,796 |
| 12 | Progressive | $1,866 |
| 13 | Wolverine Mutual | $2,212 |
| 14 | Allied | $2,263 |
| 15 | Hanover | $2,305 |
| 16 | Allmerica | $2,316 |
| 17 | Grange Mutual | $2,345 |
| 18 | Auto Club Group | $2,416 |
| 19 | Farm Bureau | $2,599 |
| 20 | Nationwide | $2,618 |
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USAA has some of the lowest car insurance rates in Detroit at around $978 each year. This is $1,415 less than the average premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and MEEMIC are also some of the lowest-priced Detroit, MI insurance companies.
As depicted above, if you currently have coverage with MetLife and switched to USAA, you could earn a yearly price reduction of approximately $386. Insureds with MEEMIC might save as much as $416 a year, and Chubb customers might reduce prices by as much as $450 a year.
To compare your rates to other Michigan insurance companies, click here to start your custom quote or quote prices from the following companies.
Bear in mind that those policy prices are averaged for all drivers and vehicles and and are not figured with a specific vehicle garaging location for low income drivers. So the car insurance company that has the cheapest price for you may not even be in the top 30 companies shown above. That’s why you need to get quotes using your own individual information.
For poor drivers, one of the more important components that are looked at to help calculate the cost of insurance is your address in Detroit. More densely populated places are more likely to have higher rates, whereas areas with less congestion tend to receive cheaper rates.
The following table lists the most expensive areas in Michigan for low income drivers to buy an auto insurance policy in. Detroit makes the list at #1 costing $4,862 for the average insured, which is about $405 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Detroit | $4,862 |
| 2 | Dearborn | $4,002 |
| 3 | Southfield | $3,862 |
| 4 | Pontiac | $3,531 |
| 5 | Warren | $3,390 |
| 6 | Flint | $3,371 |
| 7 | Dearborn Heights | $3,207 |
| 8 | Taylor | $3,084 |
| 9 | Sterling Heights | $2,954 |
| 10 | Westland | $2,908 |
| 11 | St. Clair Shores | $2,819 |
| 12 | Farmington Hills | $2,676 |
| 13 | Livonia | $2,608 |
| 14 | Saginaw | $2,583 |
| 15 | Troy | $2,562 |
| 16 | Royal Oak | $2,562 |
| 17 | Rochester Hills | $2,542 |
| 18 | Novi | $2,514 |
| 19 | Lansing | $2,439 |
| 20 | Battle Creek | $2,378 |
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Price information shown is estimated as vehicle location can increase or decrease prices greatly.
Get discounts on Detroit auto insurance rates
Insurance providers that provide coverage for low income drivers may also offer discounts that can lower rates by 35% or more if you meet specific eligibility requirements. The best insurance companies and some of the discounts are outlined below.
- GEICO may include discounts for good student, federal employee, multi-policy, five-year accident-free, seat belt use, and anti-theft.
- Travelers has discounts for driver training, home ownership, new car, early quote, good student, IntelliDrive, and continuous insurance.
- Nationwide discounts include accident-free, defensive driving, good student, anti-theft, easy pay, business or organization, and multi-policy.
- Farmers Insurance offers premium reductions for bundle discounts, electronic funds transfer, alternative fuel, homeowner, distant student, pay in full, and mature driver.
- Esurance has savings for claim free, Pac-12 alumni, good driver, emergency road assistance, and good student.
- State Farm policyholders can earn discounts including multiple autos, passive restraint, Drive Safe & Save, accident-free, and student away at school.
- Progressive offers discounts including continuous coverage, good student, online signing, online quote discount, homeowner, and multi-vehicle.
- Mercury Insurance may offer discounts for annual mileage, professional/association, multi-car, location of vehicle, good student, multi-policy, and type of vehicle.
The information below compares insurance prices with and without discounts applied to the rates. The costs are based on a female driver, no claims, a clean driving record, Michigan state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with safe-driver, passive restraint, vehicle safety, anti-theft, accident-free, and multiple policy discounts applied. When these discounts are applied, the average savings per year on insurance for low income drivers is 28% or $1,033.
Drive safe and save
One of the best ways to earn low insurance rates in Detroit for poor drivers is to drive carefully and avoid getting tickets or having accidents. The diagram below demonstrates how traffic citations and accident claims can impact insurance premiums for different age groups of insureds. The premium estimates are based on a married female driver, full physical damage coverage, $100 deductibles, and no discounts are applied.
In the previous chart, the average cost of car insurance in Michigan per year with no accidents or violations is $4,043. Add in two speeding tickets and the average cost surges to $5,784, an increase of $1,741 each year. Now include one accident along with the two speeding tickets and the yearly cost of insurance for low income drivers increases to an average of $7,566. That’s an increase of $3,524, or $294 per month, just for a couple of infractions!
Tips for finding the cheapest car insurance for low income drivers
It is possible to find better rates, and here are some of the better penny-pinching solutions that can help Detroit drivers quote cheaper coverage.
- At-fault accidents can raise rates significantly
- Better credit scores save money
- Increase deductibles to save money
- Do not get tickets or violations
- Vehicles with good safety ratings are usually cheaper to insure
- Drop full coverage on older vehicles
- Shop around for cheaper prices
The last suggestion is notably significant, as was affirmed in this article. Car insurance rates can be modified anytime, so don’t be tentative to switch carriers if a better rate can be found. Sticking with a specific company is fine, but it’s not a great idea if it’s costing you hundreds of dollars a year. Take a few minutes and compare rates to find cheaper auto insurance for low income drivers in Detroit.
The agents listed below are willing to help you decide which is the best policy, as lots of people like to get some professional input when trying to find the best insurance rates for poor drivers. It’s not always easy to find the cheapest auto insurance company, so insurance agents can provide satisfaction knowing your coverage gives you enough coverage when you need it. To locate a Detroit insurance agent close to you, click the button at the bottom of the list or click here to get price quotes now.
- J Healan Baker Insurance
645 Griswold St # 2015 – Detroit, MI 48226 – (313) 963-0480 - L.A. Insurance Agency 150
14701 Mack Ave – Detroit, MI 48215 – (313) 884-8888 - Detroit Auto Insurance
620 Woodward Ave – Detroit, MI 48226 – (517) 618-1693 - Cosby Insurance Agy and Financial Services
10140 W McNichols Rd – Detroit, MI 48221 – (313) 864-3285 - Tony Massey – State Farm Insurance Agent
15 E Kirby St #112 – Detroit, MI 48202 – (313) 873-3334