Michigan Car Insurance Requirements in 2026
You’ll need to purchase a no-fault auto insurance policy to legally drive in the state of Michigan.
Secure. Free. Easy-to-use.
4.7 / 516K reviews
)
Written bySarah Sharkey
)
Sarah SharkeyInsurance Writer
7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
Featured in
){kind=logo}
){kind=small}
){kind=small}
)
Edited byMacKenzie Korris
)
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
)
Reviewed byJohn Leach
)
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
){kind=small}
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Michigan car insurance requirements at a glance
Coverage | Minimum Requirement in Michigan |
|---|---|
| Bodily injury liability | $50,000 per person / $100,000 per accident |
| 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 |
| Property damage liability | $10,000 |
| Property protection (PPI) | $1 million |
Michigan car insurance requirements explained
As of July 1, 2020, the state of Michigan changed the rules surrounding minimum car insurance requirements.[1] The aim was to lower costs, strengthen consumer protections, and maintain high coverage options, according to a press release from the state.
Michigan is a no-fault state, so it has higher minimum requirements than neighboring at-fault states Wisconsin and Illinois.
Find Cheap Car Insurance in Michigan
Liability quotes start at $42/mo.
Excellent
4.7 out of 5 based on 16,010 reviews
Secure. Free. Easy-to-use.
Michigan bodily injury liability insurance requirements
Michigan drivers need bodily injury liability coverage with limits of at least $50,000 per person and $100,000 per accident.[2]
If you cause an accident, this coverage can help pay for the injured party’s medical bills.
When choosing a car insurance policy in Michigan, the default coverage limits are $250,000 per person and $500,000 per accident. But you can choose to lower this level of coverage to the minimum requirements.[3]
Michigan property damage liability insurance requirements
You’ll need at least $10,000 in property damage liability coverage, according to the Michigan Department of Insurance and Financial Services (DIFS). After an accident, this can help pay for repairs to another driver’s vehicle. Notably, this won’t help pay to repair or replace your own vehicle after an accident.
Michigan personal injury protection (PIP) requirements
PIP insurance can help you cover medical expenses and lost wages after sustaining an injury in an auto accident, regardless of who’s at fault. As a Michigan driver, DIFS lets you choose from the following coverage levels:
Unlimited coverage
Up to $500,000
Up to $250,000
Up to $50,000, for drivers enrolled in Medicaid
Opt-out, for drivers who have Medicare Part A and Part B
The default option is unlimited coverage, which isn’t the norm in other states. But you can choose to lower your coverage limits.
Michigan property protection (PPI) requirements
In Michigan, minimum car insurance policies include $1 million in property protection (PPI). If you damage someone else’s property, like a building or properly parked vehicle, this coverage can help pay for repairs.
Are Michigan’s car insurance requirements sufficient for most drivers?
Michigan has more robust minimum coverage requirements than many other states. With personal injury property, property protection insurance, and residual bodily injury and property damage liability, some drivers will be comfortable sticking to the minimum requirements.
Others might prefer to better protect their wallet with full coverage, which could help repair their vehicle after an accident.
Drivers with a loan who owe more than the vehicle is worth may want to consider gap insurance. This type of policy can help cover the remaining loan balance if your vehicle is totaled.
The table below illuminates when you might need more coverage.
Situation | Possible Coverage Needs |
|---|---|
| Driving an older vehicle with the financial resources to replace the vehicle without help | Minimum coverage |
| Driving a newer vehicle with limited financial resources to replace the vehicle after an incident | Full coverage |
| Driving a newer vehicle with limited financial resources to replace the vehicle after an incident, and a large loan balance | Full coverage + gap insurance |
Other car insurance requirements to be aware of in Michigan
If you finance or lease your vehicle, the lender may impose additional car insurance requirements. In many cases, lenders require drivers to carry a full-coverage policy that includes collision and comprehensive coverage on top of the minimum requirements.
When shopping for car insurance in Michigan, it’s helpful to note that the default policy options are sometimes quite a bit more than the required coverage amounts. If you want less than the default coverage amount, you’ll have to adjust that before finalizing your policy.
How Michigan’s car insurance requirements influence rates
Michigan drivers pay an average of $177 per month for car insurance, with an average of $129 for liability coverage and $225 per month for full-coverage policies. That’s significantly higher than the national average of $142 per month.
The relatively robust minimum coverage requirements in Michigan likely play into the state’s elevated car insurance costs. As the only state with unlimited PIP as an option, more coverage can help pay for more after an accident. But you’ll need to pay more up front for that higher level of protection.[4]
Cheapest state-minimum required car insurance in Michigan
The below rates in Michigan are estimated rates current as of: Thursday, July 9 at 5:00 PM PDT.
Insurance Company | Average Monthly Quote |
|---|---|
| Auto-Owners | $69 |
| USAA | $69 |
| Chubb | $75 |
| National General | $105 |
| Progressive | $111 |
| Safeco | $111 |
| Liberty Mutual | $127 |
| Bristol West | $136 |
| Direct Auto | $138 |
| State Farm | $142 |
| Travelers | $164 |
| Insurify Car | $165 |
| GEICO | $168 |
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.
Michigan car insurance laws and related programs
In 2020, Michigan’s changes to the law required auto insurance companies to reduce statewide average premiums for eight years. Additionally, the state had already banned insurers from using credit information to make insurance decisions.
Penalties for driving without insurance in Michigan
It’s illegal to drive without insurance on Michigan roads, according to the DIFS. If you’re caught driving without insurance, the penalties may include:
Misdemeanor
Fine of up to $500
Up to one year in jail
Suspended license for 30-plus days
In addition to buying an insurance policy, make sure to keep proof of insurance handy.
Shop for Car Insurance in Michigan
Save up to $1,100 per year on coverage
Excellent
4.7 out of 5 based on 16,010 reviews
Secure. Free. Easy-to-use.
Other car insurance coverages worth considering in Michigan
Beyond minimum car insurance coverage, you might choose to purchase extra protection. This might include:
Comprehensive coverage
Comprehensive insurance can help you pay for repairs to or a replacement of your vehicle after an incident, like theft or vandalism. With damaging storms each winter, this coverage may be especially critical.
Collision coverage
If you can’t afford to repair or replace your vehicle after an accident, collision coverage is especially important.
Gap insurance
Drivers with a financed vehicle who owe more than the vehicle is worth may need gap insurance. It can pay off the loan if your vehicle is totaled in an accident.
Rental reimbursement coverage
Rental reimbursement can help you get around Michigan after an accident leaves your vehicle in the shop.
Michigan car insurance requirements FAQs
If you have more questions about Michigan car insurance, the following answers may help.
What is the new law for car insurance in Michigan?
Michigan passed a law that changed the minimum car insurance requirements as of July 1, 2020. The goal was to lower costs, strengthen consumer protections, and maintain high coverage options.
Is Michigan a no-fault state?
Yes, Michigan is a no-fault insurance state.
Is 50/100/50 enough coverage?
It depends on your situation. While it’s enough for some drivers, others might opt for more robust financial protection. Your lender may require you to carry more coverage if you have a loan or a lease on a car.
What is Michigan’s mini-tort law?
Under the ‘mini-tort’ law, drivers who are 50% or more at fault in an accident may be sued for up to $3,000 in damages to cover the cost of the other driver’s deductible.[5]
What counts as attendant care?
As of July 1, 2021, car insurance companies will only be required to pay for 56 hours per week of in-home attendant care to help someone during recovery after an accident.[6]
How do the PIP options work under Michigan’s car insurance requirements?
As a default, Michigan car insurance comes with unlimited PIP coverage. But you have the ability to choose a lower amount to match your situation. For example, drivers enrolled in Medicare Parts A and B coverage can opt out of PIP coverage altogether, according to the DIFS.
Sources
- Michigan.gov. "Michigan Department of Insurance and Financial Services Quick Facts."
- Michigan.gov. "Insurance."
- Michigan.gov. "Michigan No-Fault Insurance."
- Michigan.gov. "Lowers Costs, Maintains Highest Benefits, Increases Consumer Protections."
- Michigan.gov. "Mini-Tort: An Exception to "No-Fault"."
- Michigan.gov. "Frequently Asked Questions."
Methodology
Insurify data scientists analyzed more than 250 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Related articles
)
Cheap Car Insurance for Senior Drivers in Michigan
USAA is the cheapest insurer for senior drivers in Michigan, with an average liability insurance quote of $56 per month.
)
Gap Insurance in Michigan
You can buy gap insurance from an insurance company, car dealer, or credit union in Michigan.
)
Best Car Insurance in Michigan
Liability car insurance rates start at $69 per month in Michigan.
)
Cheapest Car Insurance for Low-Income Drivers in Michigan
USAA has the cheapest liability car insurance in Michigan, with average rates of $69 per month.
)
Non-Owner Car Insurance in Michigan
Non-owner car insurance provides coverage for people who drive frequently but don’t own a car. Auto-Owners, USAA, and GEICO are the best options in Michigan.
)
Car Insurance for High-Risk Drivers in Michigan
High-risk drivers in Michigan usually pay higher car insurance rates than people with a clean record. See which companies have the cheapest rates for different violations.
)
Best Car Insurance for College Students in Michigan
State Farm, Nationwide, and GEICO are three of the best car insurance companies for college students in Michigan.
)
Temporary Car Insurance in Michigan: What Your Short-Term Options Really Are
Temporary car insurance in Michigan isn’t available, but Insurify Car lets you pay for coverage in seven-day increments.
)
Average Car Insurance Cost in Michigan
Drivers in Michigan pay an average of $177 per month for car insurance.
)
Cheap SR-22 Insurance in Michigan From $156
Michigan drivers with an SR-22 pay $156 per month for liability and $272 for full-coverage insurance, on average.
)
DUI Car Insurance in Michigan
Drivers in Michigan with a DUI pay an average of $285 per month for car insurance.
)
Cheapest Full-Coverage Car Insurance in Michigan
Michigan drivers can find the cheapest full-coverage car insurance from USAA, with rates starting at $69 per month.
)
Car Insurance Discounts for Michigan Drivers
Whether you’re a Detroit autoworker, a Traverse City teacher, or a Yooper RV nut, chances are Michigan insurers have a car insurance discount for you.
)
How Much Is Car Insurance for a 16-Year-Old in Michigan?
Michigan 16-year-olds pay an average monthly insurance rate of $278. But age isn’t the only factor insurers consider when determining rates.
)
How Much Is Car Insurance for an 18-Year-Old in Michigan?
The average monthly cost of car insurance for an 18-year-old Michigan driver is $278, but costs depend on driving record, coverage level, and more.
)
Cheapest Liability Car Insurance in Michigan
Michigan drivers can find the cheapest liability-only car insurance from USAA, with rates starting at $69 per month.
)
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.
)
Why Is Car Insurance So Expensive in Michigan?
On average, drivers in Michigan pay $2,124 per year for car insurance, which exceeds the national average.
)
What to Know About Personal Injury Protection Coverage in Michigan
Michigan insurers must include personal injury protection in all auto policies, but drivers can choose to opt out of the coverage in certain cases.
)
Uninsured Motorist Coverage in Michigan: What to Know
Uninsured motorist coverage is an optional insurance in Michigan that kicks in if you’re in an accident with someone who doesn’t have insurance.
)
Accident With a Borrowed Car in Michigan: What Happens?
The answer isn’t straightforward — it depends on whether you gave permission, who was at fault, and whether the vehicle was being used for work-related activities.
)
Cheapest Car Insurance Quotes in Michigan
USAA offers the cheapest car insurance in Michigan, at $69 per month for state-minimum coverage. Compare real car insurance quotes from top companies in Michigan with Insurify.
)
Cheapest Auto Insurance in Ann Arbor, Michigan
Auto-Owners offers the cheapest car insurance in Ann Arbor, with minimum-coverage policies as low as $61 per month.
)
Cheapest Auto Insurance in Dearborn, Michigan
Auto-Owners offers the cheapest car insurance in Dearborn, with minimum-coverage policies as low as $128 per month.
Cheap Car Insurance Quotes in Detroit (July 2026)
Auto-Owners offers Detroit drivers the cheapest car insurance, averaging $131 per month for liability-only coverage. Above-average car theft rates and heavy trucking traffic contribute to high car insurance rates in the Motor City.
Cheap Car Insurance Quotes in Flint, Michigan (July 2026)
Auto-Owners offers the cheapest insurance coverage in Flint, Michigan, with insurance premiums of $74 per month. More than 90% of Flint’s local streets are in poor condition, and a harsh 2026 winter has added a large number of new potholes, all of which can affect the cost of an insurance policy.
Cheap Car Insurance Quotes in Grand Rapids (July 2026)
Auto-Owners offers some of the cheapest car insurance in Grand Rapids, Michigan, with an average monthly liability premium of $59. Despite its large population, Grand Rapids remains one of the most affordable cities in Michigan for car insurance.
)
Cheapest Auto Insurance in Kalamazoo, Michigan
Auto-Owners has the cheapest car insurance in Kalamazoo, with monthly liability rates as low as $63.
)
Cheapest Auto Insurance in Lansing, Michigan
Auto-Owners offers the cheapest car insurance in Lansing, with minimum-coverage policies as low as $60 per month.
)
Cheapest Auto Insurance in Rochester, Michigan
Auto-Owners has the cheapest car insurance in Rochester, with an average liability rate of $68 per month.
)
Cheapest Auto Insurance in Warren, Michigan
Auto-Owners offers the cheapest liability coverage in the city, at $92 per month.
)
Sarah SharkeyInsurance Writer
7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
Featured in
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in