Cheapest Liability Car Insurance in Michigan (2026)

What is liability car insurance?

Liability car insurance in Michigan can pay for damage you cause in a car accident, including medical bills, other personal injury damages, and repairing or replacing another driver’s damaged property.

Michigan requires liability coverage to make sure drivers receive compensation when they suffer damages. This protects drivers, passengers, pedestrians, cyclists, property owners, and anyone else harmed in a car crash.

Because Michigan is a no-fault state, your insurance company will cover your medical bills after an accident, regardless of fault.

To protect your own car, you’ll need Michigan full-coverage car insurance, which protects your car from vandalism, theft, and collisions with cars and other objects.

Cheapest liability car insurance in Michigan

Michigan car insurance costs $129 per month on average for liability coverage and $227 per month for a full-coverage policy. These rates are higher than the national average.

Companies use your driving history and information about your vehicle to set rates, but they’re prohibited from considering your ZIP code, marital status, and some other factors.

Below, you can compare average monthly liability quotes from the cheapest Michigan car insurance companies.

The below rates in Michigan are estimated rates current as of: Monday, August 10 at 5:00 PM PDT. 

Insurance Company	Average Monthly Quote: Liability Only
Auto-Owners	$68
USAA	$69
Chubb	$74
National General	$105
Safeco	$111
Progressive	$112
Liberty Mutual	$128
Allstate	$129
Bristol West	$137
Direct Auto	$138
State Farm	$141
GEICO	$163
Travelers	$163
Insurify Car	$170

Disclaimer: Table data sourced from real-time Michigan car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Michigan may vary based on the policy buyer's unique driver profile.

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Minimum liability car insurance requirements in Michigan

Car insurance laws in Michigan are complex compared to the rest of the country. Michigan operates under a “no-fault” system. The required minimum car insurance in Michigan has the following three components:^[1]

• Personal injury protection (PIP): PIP covers medical expenses you incur from a car accident, no matter who’s at fault. Michigan has tiered options for this “no-fault” insurance, and some drivers with Medicaid can opt out entirely.^[2]

• Property protection insurance (PPI): PPI can pay for damage you cause in Michigan to other people’s property, such as fences and buildings. This excludes coverage for cars, unless they’re properly parked.

• Residual liability insurance: If you cause damages or injury, this coverage includes bodily injury liability and property damage liability for accidents with severe damages in Michigan and accidents that occur out of state or with an out-of-state driver.

These coverage types have state-minimum limits, shown in the table below.

Required Coverage Type	Minimum Coverage Limit
Personal injury protection (PIP)	Unlimited coverage (default) $500,000 per person per accident $250,000 per person per accident $50,000 per person per accident (for drivers with Medicaid) or No medical PIP coverage (for drivers with Medicaid)
Property protection Insurance (PPI)	$1 million
Residual liability insurance	$250,000 per person and $500,000 per accident in bodily injury liability (default) or $50,000 per person and $100,000 per accident (minimum) $10,000 in property damage liability for out-of-state accidents and drivers

Car insurance laws in Michigan set “default” coverage limits for a standard policy that are higher than the state-minimum coverage limits. If you want to select the lowest possible limits, you’ll have to speak with an agent or fill out a form to select them for your policy.

Michigan’s minimum coverage leaves one important gap. If you’re in an accident, the other Michigan driver’s insurance won’t cover damage to your car — no matter who’s at fault. If you have only the minimum coverages, you’ll need to pay out of pocket to repair your car.

This means you need collision coverage if you want to protect your car from accidents involving Michigan drivers, even if the other driver causes the damage.

Is minimum liability coverage enough in Michigan?

Michigan’s minimum-coverage car insurance has good limits for property damage (excluding non-parked cars) and for personal injury protection. But the state’s minimum coverage leaves two critical gaps that you should evaluate carefully: out-of-state property damage liability and protection for your car in the case of any accident.

You should consider purchasing a full-coverage policy with Michigan’s default liability coverage limits for the most robust protection.

Here are a few instances in which having the state’s minimum coverage would fall short:

• You have vehicle damage from an in-state car accident with a fellow Michigan driver. No matter who’s at fault, neither driver’s Michigan insurance policy will cover damages to your car if you have only the minimum coverage. You’ll need collision coverage to avoid paying out of pocket to repair or replace your car.

• You’re in an at-fault accident outside of Michigan. The $10,000 minimum limit for residual property damage liability is relatively low. If you cause an accident outside of Michigan, it’s very possible that you’ll exceed $10,000 in damage to another person’s car and be responsible for the rest out of pocket.

• Vandalism, theft, or weather damage your parked car. Unless you have comprehensive car insurance, your policy won’t cover theft or damage to your parked car from a fire, hurricane, falling tree branch, or some other hazard beyond your control.

A full-coverage policy will include liability, comprehensive, and collision coverage.

Penalties for driving without liability insurance in Michigan

Uninsured drivers in Michigan can face a misdemeanor conviction under state law, with a maximum fine of $500 and a maximum jail sentence of one year. You may face a 30-day driver’s license suspension, unless you show proof of insurance within that time.

Additionally, Michigan’s car insurance laws protect people in the event of a lawsuit following an at-fault accident. But you have that protection only if you buy no-fault liability car insurance.

Uninsured motorists face more than legal penalties and financial responsibility for their own medical bills in a crash. If you cause an at-fault accident as an uninsured motorist, you’ll be vulnerable to lawsuits for other people’s damages, which could amount to hundreds of thousands of dollars.

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Average liability quotes start at $68/mo.

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How to find cheap liability car insurance in Michigan

Here are some important steps to make sure you’re getting the cheapest car insurance in Michigan for your situation.

• Always get multiple auto insurance quotes. Michigan’s insurance marketplace is highly regulated, and state laws systematically reduce car insurance rates.^[3] Make sure you shop around until you find the best possible premium.

• Bundle with home or renters insurance. If you have another active policy, you can usually get a bundling discount when you buy both policies from the same insurance company.

• Adjust your collision coverage. If you’re looking to save a bit on coverage, you can consider limited collision coverage to lower rates while remaining protected.^[4]

• Don’t take the Michigan default coverages. Recent Michigan auto insurance reform set “default” limits that you can lower if you ask an agent or fill out a form. Going from the default to the minimum coverage limits will lower your premium.

• Take a higher deductible. Because coverage limits are high in Michigan and you don’t have much choice over them, raising your deductible is a quick way to get cheaper insurance.

• Ask about Michigan car insurance discounts. Insurance companies offer a variety of discounts for good drivers, good students, and much more.

Liability car insurance in Michigan FAQs