Is Michigan a No-Fault State for Auto Insurance?

Michigan is a ‘no-fault’ car insurance state

Michigan is a no-fault car insurance state. This means drivers file a claim with their own insurance company after a crash, no matter who’s at fault.

Michigan law requires drivers to have personal injury protection (PIP). But after a 2020 reform went into effect, drivers can choose how much PIP coverage to carry. Drivers must also carry both bodily injury liability and property damage liability insurance, along with property protection insurance (PPI).^[1]

Michigan also restricts your ability to sue another driver in smaller injury cases. You can only sue another driver if an accident results in death, permanent disfigurement, or serious impairment of bodily function.^[2]

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At-fault vs. no-fault car insurance

In a no-fault system like Michigan’s, each driver’s insurance pays for certain losses, regardless of fault. But in an at-fault system, the driver responsible for the car accident pays for damages.

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

Question	At-Fault State	Michigan: No-Fault State
Who pays first for injuries?	The at-fault driver’s insurer	Your own insurer
Is auto insurance required?	Yes, except in New Hampshire	Yes
Is PIP required?	Not usually	Yes, but rules vary based on driver profile in Michigan
Can you sue the other driver?	Yes, generally	Only for serious injuries and death

Michigan is one of 12 no-fault states. These states also have no-fault systems: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

How do accident claims work in Michigan?

After an accident, you’ll file an injury claim with your own insurer. Your PIP coverage will pay for your medical bills and any lost wages, no matter who’s at fault. For property damages, if the other driver is clearly at fault, their property damage liability insurance coverage will pay for your vehicle repairs.^[3]

For example, if you’re waiting at a red light and someone rear-ends you, your PIP coverage pays for your injuries, and the other driver’s insurance pays for your vehicle damages.

What are shared fault rules in Michigan?

Michigan allows multiple parties to be at fault after an accident. So drivers can get compensated for damages even if they’re partially at fault for a crash.

But under Michigan law, only drivers with 50% or less shared responsibility can sue for damages. And compensation is reduced by the percentage of shared fault.^[4] For example, if you’re found to be 30% at fault and awarded $100,000 in damages, you can only recover $70,000.

When shared fault is determined, an accident attorney can help you navigate Michigan’s complex comparative negligence system, understand the degrees of shared fault, negotiate with insurers, or represent you in court.

Minimum car insurance requirements in Michigan

Michigan’s minimum car insurance requirements are higher than those of most states. Drivers must carry 50/100/10 in liability protection, personal injury protection, and property protection insurance.

Coverage Type	Michigan Minimum Requirement	What It Covers
Bodily injury liability per person	$50,000	Injuries you cause to others
Bodily injury liability per accident	$100,000	Total injury payout per accident if multiple people are injured
Property damage liability	$10,000	Property damage you cause
Personal injury protection (PIP)	$250,000 to unlimited Or $50,000 for drivers who qualify for Medicaid Opt-out for drivers enrolled in Medicare Parts A and B	Medical bills and lost wages
Property protection (PPI)	$1 million	Damage your motor vehicle does to Michigan property

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What to do after 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