Is Michigan a No-Fault State for Auto Insurance?

Michigan is a no-fault state and requires all drivers to carry basic liability coverage plus personal injury protection and property protection insurance.

Sarah Archambault
Sarah Archambault
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  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Sara Getman
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Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.

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Michigan is a no-fault state for car insurance. This means Michigan drivers can file a claim with their own car insurance company, regardless of fault. Drivers must also carry personal injury protection (PIP) coverage to help pay for medical bills after an accident. For this reason, Michigan car insurance is more expensive than in other no-fault states.

Here’s what you should know about accident fault in Michigan.

Michigan is a ‘no-fault’ car insurance state

The state of Michigan has a no-fault insurance system. This means each driver’s insurance covers their own medical bills and damages after an accident, no matter who’s at fault. In July 2020, Michigan updated its minimum insurance requirements. Now, drivers need to carry more liability insurance and have a tiered choice of PIP coverage.

Fault is still determined in no-fault states. But each driver still submits a claim with their own insurance company after an accident.

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What are shared fault rules in Michigan?

Unlike states that follow strict fault systems in which one driver is determined to have caused an accident, Michigan allows multiple parties to be at fault. Michigan follows the comparative negligence rule, which means drivers can get compensated even if they’re partially or mostly at fault for a crash.

When shared fault is determined, it may be a good idea to contact an accident attorney who can help navigate Michigan’s comparative negligence system, understand the degrees of shared fault, negotiate with insurers, or represent you in court.[1]

At-fault vs. no-fault car insurance

No-fault insurance is a system in which each driver’s insurance company pays for certain losses, regardless of who was at fault in an accident. In at-fault states, the insurance of the driver responsible for the accident pays for the damages.

Here’s a look at how at-fault and no-fault insurance systems compare:

Insurance Factor
sort ascsort desc
At-Fault
sort ascsort desc
No-Fault
sort ascsort desc
Whose policy pays in case of an accident?The insurance company of the driver who caused the accidentYour insurer, regardless of who caused the accident
Is insurance coverage mandatory?Yes; all states except New Hampshire require drivers to carry basic liability coverageYes; minimum insurance may include bodily injury and property damage liability, personal injury protection (PIP), and  uninsured/underinsured motorist coverage (UM/UIM)
Are lawsuits allowed if you’re injured in an accident?You can generally sue the at-fault driver The ability to sue is limited and depends on state law
Do you need PIP coverage if you have health insurance?No; you can typically waive PIP coverageYou may be able to reduce or waive PIP coverage, but rules vary based on your driver profile in Michigan  

Michigan is one of 12 no-fault states. No-fault systems are also used in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

Minimum car insurance requirements in Michigan

As a no-fault state, Michigan law requires drivers to carry more coverage than most states. As a result, the state has some of the highest average car insurance rates in the country.

The minimum requirements for Michigan drivers include bodily injury liability insurance, property damage liability insurance, personal injury protection (PIP), and property protection insurance.

For liability insurance, drivers need to carry $250,000 per person, $500,000 per accident, and $10,000 for property damage. In personal injury protection, insurers will pay out up to $1 million. Michigan has varying specifications for PIP, but drivers can carry either unlimited, $500,000 per person/per accident, $250,000 per person/per accident, or none if eligible.

Driving without proof of insurance in Michigan is illegal. So if you’re convicted, you could face up to $500 in fines, one year in jail, or both.

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Optional car insurance coverages in Michigan

Michigan drivers aren’t required to have more coverage than the state minimum. But upping your coverage levels may be a good idea if you drive often or want coverage that can pay to replace or repair your vehicle if it’s damaged in an accident or a non-collision incident. 

Consider these optional car insurance coverages:[2]

  • illustration card https://a.storyblok.com/f/162273/150x150/0ee044afbd/car-and-driving-96x96-orange_039-car-accident.svg

    Collision coverage

    Collision insurance pays for damage to your vehicle after an accident with a vehicle or another object, like a fence or telephone pole.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Comprehensive insurance covers damage to your vehicle from non-collision events, like flooding, theft, or vandalism.

  • illustration card https://a.storyblok.com/f/162273/x/2d92436d68/protection-for-your-car.svg

    Gap coverage

    Gap insurance pays the difference between your auto loan amount and the compensation you receive from your insurance company if you total your vehicle.

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Uninsured/underinsured motorist coverage

    Uninsured/underinsured motorist insurance helps protect you financially if you’re in an accident with another driver who doesn’t have insurance or has insufficient coverage.

What to do in case of a car accident in Michigan

If you’re in an accident in Michigan, it’s important to take immediate action — especially if someone is hurt or you need to file an insurance claim for injuries or damages.

Here’s what to do:

  1. File a police report. Contact the police if someone is injured, then head to a safe location and wait for help to arrive. Provide the police with details about the crash and get a copy of the report number.

  2. Gather details. You’ll need your policy number and information like the names of involved parties, the nature of the injuries, pictures and videos, and details about when and where the crash occurred.

  3. File the claim. You can usually start the claim process over the phone, on an app, or through the insurer’s website.

  4. Review your claim. An insurance adjuster may ask for additional details, such as an estimate from a repair shop or medical bills to support your claim. It can take a few weeks to settle a claim, so it’s important to respond to requests quickly.

Michigan car insurance FAQs

If you’re shopping for car insurance in Michigan, check out the answer to some of the most frequently asked questions below.

  • What if an at-fault driver is uninsured in Michigan?

    If an at-fault driver hits you in Michigan, your no-fault insurance will cover the cost of your medical expenses, wage loss, and other expenses due to injuries.

    But Michigan doesn’t require full coverage, so you could be on the hook for damage to your vehicle unless you have uninsured motorist coverage. Options to sue are limited, but uninsured drivers may be hit with fines or jail time.[3]

  • Is Michigan a 50/50 state in car accidents?

    No. Michigan is a no-fault state, not a 50/50 state. This means your insurance will pay for your damages in an accident, regardless of who caused the crash — even if you’re both equally responsible.

  • Will your Michigan car insurance rate go up if you’re not at fault in an accident?

    It’s possible. Since Michigan is a no-fault state, your Michigan car insurance rate could go up if you’re not at fault and file a claim after an accident.

  • Should you hire a lawyer after an accident in Michigan?

    It depends. Michigan has restrictions on lawsuits after an accident, so you may not be able to sue the at-fault driver.

    But if your injuries are severe, or you didn’t get the settlement you were expecting from your insurer, an accident attorney may be able to advise you on the best course of legal action. You may also need a lawyer if you were the at-fault driver or the crash involved serious circumstances, like a DUI.[4]

Sources

  1. Michigan.gov. "Brief Explanation of Michigan No-Fault Insurance."
  2. III. "Auto insurance basics—understanding your coverage."
  3. Michigan.gov. "Michigan’s Auto Insurance Law Has Changed."
  4. III. "Background on: No-fault auto insurance."
Sarah Archambault
Sarah Archambault

Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare. 

Sarah has been a contributor at Insurify since December 2022.

Sara Getman
Edited bySara GetmanAssociate Editor
Sara Getman
Sara GetmanAssociate Editor

Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.

Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.

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