Michigan drivers are paying some of the highest auto insurance rates in the country, and it’s a swindle, plain and simple. For many low-income residents, insurance costs more than their car payments. That should be illegal. How can anyone survive financially when the system demandsthey pay more to insure a car than to own it? It does not protect the average person; it protects insurance companies’ profits while punishing the people who can least afford it.
I know this firsthand. At one point, I was told I would have to pay $6,000 for a six-month policy for full coverage on a car I had already paid off. How is that even remotely fair?
How is it not discriminatory when your rates are based on your race, where you live, your credit score, your age, your gender, and even whether you have health insurance? You can have a clean record, never been in a car accident, and your rates are still sky-high.
Michigan is a no-fault insurance state, meaning everyone must carry personal injury protection (PIP). In theory, this is supposed to make healthcare after car accidents easier and faster. In reality, it drives up premiums and keeps costs high, especially for lower-income drivers.
Michigan consistently ranks among the top states for the most expensive car insurance. For people already struggling to make ends meet, this is more than an inconvenience, it’s a systemic barrier to mobility, opportunity, and survival.
The state’s poverty statistics make this even worse. Michigan is one of the poorest states in the nation, yet insurance rates continue to climb. Many families must choose between paying insurance, covering rent, buying groceries, or keeping their car. Cars aren’t luxury items, they are lifelines for work, school, and family obligations.
When insurance costs more than the car itself, it creates an untenable cycle: no transportation, no work, no income, more debt. Low-income and marginalized communities feel this the hardest. People in these communitiesoften cannot afford full coverage, yet they are required to carry minimums that may still be unattainable. They get trapped in a system that penalizes them for simply needing to get to work, school, or appointments. Meanwhile, insurance companies profit from policies that are priced far beyond the ability of everyday Michigan residents.
The system is broken. No one should have to pay more for insurance than for the vehicle itself. The no-fault system, combined with rising premiums and discriminatory pricing based on arbitrary factors, makes Michigan a national outlier and not in a good way.
Policy changes are overdue: premium caps, stricter regulation of insurer practices, and real oversight are needed to protect residents from predatory pricing. Insurance is supposed to protect people, not punish them.
Michigan’s system is failing its residents, and low-income drivers are paying the highest price. Reform isn’t optional, it’s urgent. The state can and should ensure that owning and operating a vehicle is affordable, accessible, and fair.
Michigan drivers deserve an insurance system that serves them, not the insurance companies. Anything less is unacceptable.