Michigan Car Insurance Laws and Requirements (2023)

Michigan law states the minimum requirements for insurance coverage that all drivers must carry. All drivers in Michigan must hold 20/40/10 in liability coverage, as well as property protection insurance and personal injury protection (PIP). Note that PIP coverage has its own set of rules. Drivers can also pick from a long list of extra coverages for added protection.

Minimum Car Insurance Requirements in Michigan

The minimum car insurance requirements in Michigan^[1] are:

• $50,000 for bodily injury liability per person

• $100,000 for bodily injury liability per accident

• $10,000 for property damage liability per accident in another state

• $1 million for property protection insurance

• Unlimited for personal injury protection per accident

Michigan enforces a no-fault law. This means that you and your passengers are covered in the case of an accident or collision, no matter who caused it. If you find that you’re in need of help paying for medical bills, loss of income, or any other expenses related to injury, you should be covered by your insurance.

Also, know that you can coordinate your PIP coverage with your health insurance or disability insurance provider (with the exception of Medicaid, Medicare, or a Medicare Supplemental policy). This should help lower the insurance cost of your PIP premium.

Residual Liability Insurance: Bodily Injury (BI) Liability

Bodily injury liability is part of your liability car insurance coverage. If you cause an accident, this coverage will help cover the other party’s medical expenses. This type of coverage will not cover your own medical expenses for injuries sustained in a car accident you caused. Bodily injury liability coverage is required in Michigan but only applies in certain situations.

Residual Liability Insurance: Property Damage (PD) Liability

Property damage liability is the other half of your liability car insurance. It covers repair costs and damage expenses to the other cars involved in an accident you caused. This coverage does not cover damage to your own car in an accident you were at fault for. Property damage liability coverage is required in Michigan but only applies in certain situations.

Personal Injury Protection (PIP)

Personal injury protection, also known as PIP, covers medical bills, lost wages, and replacement services for you and other members of your household if you’re injured in a car accident. PIP provides coverage regardless of who is at fault for an accident. Personal injury protection is required in Michigan and provides coverage with no maximum limit.

Property Protection Insurance (PPI)

Similarly to property damage liability, this required coverage helps pay for damage you cause to other people’s property, but only in the state of Michigan. This protection pays up to $1 million for damage, like accidentally destroying a building, fence, or parked vehicle. Alternatively, property damage liability insurance covers up to $10,000 for damage in another state.

Is state minimum car insurance enough in Michigan?

The minimum required car insurance coverage in Michigan provides drivers with a solid foundation of auto insurance coverage, but it may not be enough for everyone. While Michigan’s no-fault policy has three parts, 1) PIP, 2) PPI, and 3) residual liability insurance (for both BI/PD), this still might not provide the full amount of coverage that some drivers need.

State laws require no-fault coverage options, as Michigan auto insurance requires that all drivers have protection, no matter who’s responsible for causing an auto accident. However, drivers might want to consider extra coverage and go past the minimum amount if they are worried about more serious injuries or don’t have enough health insurance.

Optional Car Insurance Coverage for Michigan

Michigan drivers who want to be protected in any situation should consider bolstering the minimum car insurance coverage with the following supplemental car insurance coverages:

Collision Coverage

Collision coverage covers damages to your car after a collision with another vehicle or object. If your vehicle is a total loss, collision coverage will reimburse you for the actual cash value of your vehicle. This is a great addition to the required property damage liability coverage in Michigan, which applies only to the damages to the other driver’s vehicle.

Comprehensive Coverage

Complementing your collision coverage, comprehensive insurance covers damage to your vehicle that occurs during an event that is not a collision with another vehicle or object. This may apply in situations of vandalism, theft, weather damage, or a run-in with an animal. Adding comprehensive and collision coverage together creates a full-coverage car insurance policy.

Uninsured/Underinsured Motorist Coverage

If an uninsured (or underinsured) driver causes an accident and you suffer bodily injury, uninsured motorist coverage will cover your medical expenses. If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will cover the rest of your medical expenses.

Other Supplemental Coverage

If you want more coverage on your auto insurance policy, know that you can customize your coverage to fit your exact and unique needs. While it might cost you more for your insurance premium, it may help give you peace of mind knowing you’re covered in the case of needing roadside assistance or getting a reimbursement for renting a car while yours is in the shop.

If you are worried about getting into or causing an accident, you can buy higher liability limits than the required 50/100/10. For those with driving records that show a history of collisions, extra property damage and bodily injury coverage might be worth it. Each policy has its own set of exclusions, so be sure to understand what’s offered and what you might need to add.

Penalties for Driving Uninsured in Michigan

It is illegal to drive in Michigan without the minimum car insurance coverage. Anyone who registers a car under their name or operates a motor vehicle needs to carry proof of insurance with them at all times. Owning a car and failing to purchase no-fault insurance puts you at risk of being sued and held personally liable, in addition to a number of other penalties, including^[2]:

• Being fined up to $500

• Facing jail time for up to one year

• A combination of both a fine and jail time

In addition to risking being sued, know that you would need to pay for a lawyer and court costs on your own. Uninsured drivers also run the risk of not being able to get paid for loss of wages, any medical costs, loss of services, or other no-fault benefits.

Minimum Requirements for High-Risk Drivers in Michigan

If you get caught driving under the influence (DUI) in Michigan, your license may be suspended or revoked. In this case, you would need to pay for its reinstatement and for all the necessary documentation to prove that you’re responsible enough to get on the road again. Check whether you are eligible for a restricted license before you can get a full reinstatement.

More Information for High-Risk Drivers in Michigan

DUI Insurance in Michigan

SR-22 Insurance in Michigan

Cheapest Minimum Car Insurance in Michigan

Car insurance companies weigh different factors to determine what to quote drivers on their car insurance policies. Minimum coverage generally means lower car insurance rates. It also means low coverage limits, which may cost you if you’re ever involved in an accident. Here are the cheapest car insurance quotes for minimum coverage in Michigan.

How to Find Cheap Car Insurance in Michigan

To get a quality car insurance policy you can afford, shop around first. Use Insurify to help you compare car insurance quotes without any hassle, giving you a side-by-side look at auto insurance rates from hundreds of different companies in just a matter of minutes.