Can you get an outside loan (loan based on equity in house, life insurance, etc) ?
If yes, pay off the car with it and then you don't have to buy collision insurance (usually highest portion of your insurance bill) and just buy the minimum liability required by state of Michigan.
Since 1964, my method has been to keep driving the old jalopy until there are enough savings built up to buy the car with cash. With that I have never purchased collision insurance, and in 56 years have probably saved enough to buy 2 new cars for cash. When you save first, not only you save on interest paid