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Last updated: December 21, 2023

Car Insurance for Seniors in Michigan

And how Medicare recipients can save money by dropping coverage

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Shopping for auto insurance as a senior in Michigan is a bit different from shopping for other age groups, especially if you’re a Medicare recipient. Michigan is known for its no-fault insurance system, which requires personal injury protection (PIP) for most drivers in addition to liability coverage. But Medicare recipients can save money by dropping PIP. Even if you’re not on Medicare, you can still save money on car insurance in Michigan, which is the second most expensive in the country on average.

Car Insurance for Seniors in Michigan

If you’re buying car insurance as a senior in the state of Michigan, first make sure you’re fulfilling the state’s minimum coverage requirements.

Minimum Coverage in Michigan

Michigan requires liability coverage, which is made up of bodily injury coverage and property damage coverage, plus PIP. You must get these liability limits at a minimum to drive on Michigan’s public roads legally:

Coverage Bodily injury per person Bodily injury for everyone involved in the accident Property damage per accident Personal injury protection per person
Minimum limit you must get in Michigan $50,000 $100,000 $1 million for accidents that occur within Michigan
$10,000 for accidents outside of Michigan”
None required: Named insured has Medicare Parts A and B, spouse/resident relatives have qualified health coverage or another car insurance policy with PIP
$50,000: Named insured enrolled in Medicaid, spouse/resident relatives have qualified health coverage or another car insurance policy with PIP
$250,000 (excludes named insured): Named insured ha qualified non-Medicare coverage, everyone else has qualified health coverage

Coverage Types

Let’s explain what those insurance coverages actually mean, along with some other coverages you should consider adding to your policy.

  • Bodily injury coverage: Bodily injury coverage pays for other people’s medical expenses in accidents you caused. On the other hand, if you were injured when someone hit your car, their bodily injury coverage would pay your medical bills through a third-party claim.
  • Property damage coverage: Property damage coverage works the same as bodily injury coverage, but it covers physical damage to someone’s vehicle or property, like a mailbox, rather than injuries.
  • Personal injury protection: PIP covers not only medical expenses but also lost wages and child care costs you incur as a result of a car accident. Since Michigan is a no-fault state, each party is responsible for their own medical costs, regardless of who caused the accident.
  • Uninsured motorist coverage: Did you know that an estimated 26 percent of Michigan’s drivers were uninsured in 2019?1 As with its expensive car insurance, Michigan has the second-highest rate of uninsured drivers in the U.S. after Missouri. So what happens if someone without insurance hits your car? If you lack uninsured motorist coverage, you’d be responsible for your property damages and bodily injuries out of pocket, which is why we recommend getting coverage equal to your liability limits.
  • Collision coverage: If you cause an accident, you’ll be responsible for your own property damage costs unless you have collision coverage.
  • Comprehensive coverage: Comprehensive coverage covers damages to your vehicle from events other than collisions, including vandalism, theft, and weather incidents like hail.

NOTE

Collision coverage isn’t necessary for a car that doesn’t run or is in storage. You also don’t need comprehensive coverage on old cars.

Our Recommendations

If you drive a relatively new car, we recommend getting full-coverage car insurance, which includes all of the above coverages. Get liability limits around $500,000, or as much as you can afford. For collision and comprehensive coverage, the limit will be your car’s actual market value.

Cost of Car Insurance for Seniors in Michigan

The average annual cost of car insurance in Michigan for seniors is $2,060, about 45 percent higher than the state average across all age groups. Michigan has pricey car insurance in general, with costs 35 percent higher than the national average.2

You can expect to pay anywhere from $94 to $5,621 for car insurance annually in Michigan. Auto insurance rates will be the lowest for those with a clean driving record — free of DUIs, accidents, and tickets. ZIP codes also affect rates; for example, car insurance is more expensive in a densely populated city like Detroit than in suburban or rural areas.

DID YOU KNOW?

Michigan is one of only four states to ban auto insurance companies from basing premiums on credit scores and gender — good news for men and those with bad credit.

Best Auto Insurance Companies in Michigan

These are the best car insurance companies for seniors in Michigan:

  • Auto-Owners
  • Chubb
  • GEICO
  • Hastings Mutual
  • MetLife
  • Nationwide
  • Progressive
  • Secura
  • Travelers
  • USAA
  • Wolverine Mutual

Do You Need PIP Insurance if You Have Medicare?

If you have Medicare Parts A and B, you can opt out of PIP and have Medicare pay for injuries from car accidents.3 This wasn’t always true: Before July 2020, the state of Michigan wouldn’t apply Medicare to car accident injuries, only PIP.

Ways to Save

Michigan’s car insurance prices are up there to begin with, but being older than 60 makes them even higher. Here’s how to get the lowest rates, especially if you’re a senior driver living on a fixed income:

  1. Get discounts. Some companies offer discounts for seniors. Direct Auto, for example, will take up to 5 percent off for people 55 and older who have successfully completed a motor vehicle accident prevention course. Aside from senior discounts, ask your insurance agent about discounts for paying annually, taking a defensive driving course4, or enrolling in automatic billing.
  2. Find the cheapest company. Certain auto insurers in Michigan are cheaper than others. The cheapest car insurance companies in Michigan, especially for drivers with bad records, are Chubb, Frankenmuth, Hastings Mutual, Secura, and Wolverine. Learn more about how to find cheap car insurance companies with the lowest average rates around, or try comparing rates yourself.
  3. Get rid of coverages you don’t need. You can drop optional coverages, like rental car coverage or collision coverage on a car that doesn’t run or is in storage. You also don’t need comprehensive coverage on an old car, as it’ll most likely be declared a total loss after an accident. If you have Medicare, you can also drop PIP.
  4. Lower your limits. Lower limits mean lower prices, but think about the long-term effects before you reduce your limits; if you get into an accident, you may have to pay more out of pocket.
  5. Increase your deductibles. Raising your insurance deductible will also result in lower premiums; just remember that you’ll have to pay it before your coverage kicks in. In other words, make sure your deductible isn’t so high that you couldn’t meet it if you were in an accident tomorrow.
  6. Bundle your insurance. Do you have another type of insurance policy, like homeowners, renters, condo, or life insurance? If so, you might be able to save money by getting it from the same provider as your car insurance.
  7. Get pay-per-mile insurance. If you don’t drive often, you could save by choosing a pay-per-mile insurance policy. This is a great option for someone who is retired and only uses their car a few times a week.

What Is Car Insurance for Seniors?

Car insurance for seniors is any car insurance policy for those 55 and older. Normally in Michigan, these policies aren’t too different from regular car insurance policies, except for senior discounts and the dropping of PIP in some cases.

How Is Car Insurance Different for Seniors?

Car insurance in Michigan can look different for seniors in a few ways.

Senior Discounts

You may be eligible for discounts just for being an older driver, as we saw with Direct Auto.

Option to Drop PIP Coverage

Medicare Parts A and B recipients could drop PIP coverage, depending instead on their health insurance for the cost of injuries resulting from car accidents.

Higher Rates

In general, car insurance rates are highest for teenage drivers with little to no experience. They tend to decrease by the time drivers turn 25, as they gain more driving experience and are less likely to have covered claims. But by the time they reach 60 or 70, car insurance rates start to increase again.

Age Annual car insurance rate in 2022
16 $4,368
17 $3,925
18 $3,952.75
19 $2,758.33
20 $2,931.25
21 $1,909.67
22 $1,670
23 $1,550.50
24 $1,456
25 $1,727.80
26 $1,688
27 $1,664
28 $1,648
29 $1,630
30 $1,715.67
31 $1,548
32 $1,546
33 $1,540
34 $1,540
35 $1,449
36 $1,520
37 $1,518
38 $1,514
39 $1,514
40 $1,709.83
45 $1,366.33
50 $1,489
55 $1,276
60 $1,425
65 $1,320.67
70 $1,584
75 $1,887
80 $1,933
85 $2,416

As people age, health issues like hearing loss, glaucoma, and cataracts can make driving more difficult. As you can see below, there are more traffic fatalities by population percentage for those 75 and older than in any other age group.

Age group Number of motor vehicle deaths in 2019 Population in 2019 Percentage higher than the rest of the U.S. population
All ages 39,107 328,239,523 -1%
Younger than 5 435 19,576,683 -445%
5-14 847 40,994,163 -471%
15-24 6,031 42,687,510 15%
25-44 12,204 87,599,465 14%
45-64 11,091 83,323,439 10%
65-74 4,132 31,483,433 8%
75 and older 4,3675 22,574,8306 38%

The more risky insurance companies determine a person to be, the higher their rates will be, which is why, as a senior, you’ll pay more for car insurance than a 40-year-old, if all else is equal. Learn more senior driving statistics.

Safety Tips for Older Drivers

Here are some tips to drive safely, avoid accidents and tickets, and keep your rates low as an older driver.

  1. Adjust your equipment or vehicle. You may want to get a steering wheel cover to make driving more comfortable. If you’re shopping for a new car, look for cars with large dials that are easy to read, backup cameras, and other safety features that make driving much easier.
  2. Stay active. Keep yourself strong and flexible so you can check your blind spots and turn your steering wheel comfortably. Go on walks, stretch, and practice sitting and standing repeatedly.
  3. Drive defensively. Defensive driving means leaving a safe distance between you and the vehicle in front of you, scanning the road ahead, and leaving the road rage at home.
  4. Drive in good conditions. Ideally, you’ll only drive during the daytime and in good weather. If you can help it, avoid driving at night or in bad weather with low visibility.
  5. Get regular hearing and vision checks. Ask your doctor how often to schedule checks for your hearing and vision, looking out for signs of macular degeneration and other ailments.
  6. Stay focused. Avoid distracted driving, like texting and driving or using any handheld device. Keep your eyes on the road.
  7. Drive sober. Staying sober doesn’t just mean avoiding recreational drugs or alcohol before driving; you also have to avoid medications that cause dizziness or drowsiness before driving. Ask your doctor or pharmacist if you’re not sure how a medication will affect your driving.
  8. Take a refresher course. Taking a refresher course is not only a good way to brush up on the laws of the land, but may even get you a discount on car insurance.7 Look for programs from AAA8 and AARP.9

Conclusion

For more information on Michigan or any other states, read our state driving guide. More specifically for you snowbirds, view our guide to car insurance in Florida for seniors. As long as you take precautions and drive safely, you should be able to find car insurance you can comfortably afford.

Citations

  1. One in Eight Drivers Uninsured. Insurance Research Council. (2021, Mar).
    https://www.insurance-research.org/sites/default/files/downloads/UM%20NR%20032221.pdf

  2. 2019/2020 Auto Insurance Database Report. NAIC. (2023, Jan).
    https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf

  3. Automobile Insurance for Seniors. Michigan.gov.
    https://www.michigan.gov/documents/autoinsurance/FIS-PUB_8000_693085_7.pdf?1#

  4. Senior Citizen Discount. Direct Auto Insurance. (2022).
    https://www.directauto.com/why-direct/get-discounts/senior-citizen-discount

  5. Deaths by Age Group. NSC. (2022).
    https://injuryfacts.nsc.org/motor-vehicle/historical-fatality-trends/deaths-by-age-group/

  6. 2019 Population Estimates by Age, Sex, Race and Hispanic Origin. United States Census Bureau. (2020, June).
    https://www.census.gov/newsroom/press-kits/2020/population-estimates-detailed.html

  7. Older drivers: 7 tips for driver safety. Mayo Clinic. (2020, June).
    https://www.mayoclinic.org/healthy-lifestyle/healthy-aging/in-depth/senior-health/art-20046397

  8. AAA RoadWise Driver. AAA. (2022).
    https://exchange.aaa.com/safety/senior-driver-safety-mobility/aaa-roadwise-driver/

  9. Refreshing your driving skills could reduce your auto insurance costs. AARP. (2022).
    https://www.aarpdriversafety.org/