The coverage Michigan requires
| Required coverage | Minimum | What it pays |
|---|---|---|
| Personal injury protection (PIP) | A medical level you choose (see below) | Your medical care, 85% of lost wages up to $7,455 per 30 days for up to three years, household help up to $20 a day, and attendant care, regardless of fault |
| Property protection insurance (PPI) | $1 million per accident | Damage your car does in Michigan to other people’s property, such as buildings, fences and properly parked cars |
| Bodily injury liability | $250,000 per person / $500,000 per crash by default; as low as $50,000 / $100,000 with a signed state form | Injuries you cause to others, when they can sue you |
| Property damage liability | $10,000 | Damage you cause to other people’s property in crashes outside Michigan |
A policy with only these coverages is often called PLPD. See what PLPD covers after a crash.
Your PIP medical choice
Since July 2, 2020, drivers choose how much PIP medical coverage to buy. The choice binds everyone in the household who has no policy of their own.
- Unlimited, $500,000 or $250,000: available to anyone.
- $250,000 with exclusions: when a household member has qualified health coverage other than Medicare.
- $50,000: when the named insured is on Medicaid and the rest of the household has other coverage.
- No PIP medical: when the named insured has Medicare Parts A and B and the rest of the household has other coverage.
Wage loss, household help and attendant care are part of every PIP policy. Lower medical limits have real risks after a serious injury. See choosing a PIP coverage level.
Optional coverage
- Collision repairs your car after a crash. Michigan offers broad form, standard and limited collision, and the type decides who pays your deductible. See reading your declarations page.
- Comprehensive covers theft, fire, hail, vandalism and deer hits. See deer crashes.
- Uninsured and underinsured motorist coverage pays you when the at-fault driver has little or no insurance. See uninsured motorist claims.
Without collision coverage, the Michigan mini tort can still recover up to $3,000 of your repair cost from a driver who was more than 50% at fault.
Who has to carry it
- The owner or registrant of any vehicle required to be registered in Michigan (MCL 500.3101).
- A nonresident who drives an out-of-state vehicle in Michigan for more than 30 days in a calendar year (MCL 500.3102(1)). See out-of-state drivers.
Whose insurance pays after a crash is a separate question from who had to buy it. See which insurer pays and whether insurance follows the car.
Driving without insurance
- Criminal penalty. An owner or registrant who drives or lets someone drive without required insurance commits a misdemeanor: a fine of $200 to $500, up to one year in jail, or both. A driver who knows the vehicle is uninsured is also guilty (MCL 500.3102(2)).
- No PIP for the owner. The owner of an uninsured vehicle involved in the crash generally cannot collect PIP benefits (MCL 500.3113).
- No lawsuit for your own losses. A person operating their own uninsured vehicle cannot recover damages from the at-fault driver (MCL 500.3135(2)(c)), and no mini-tort is paid for an uninsured vehicle.
For the details, including how passengers and pedestrians are treated, see driving without insurance.
If you were hurt while a passenger, pedestrian or driver of someone else’s car, an uninsured vehicle does not automatically end your claim. Benefits may come from another policy in your household or from the Michigan Assigned Claims Plan.
What changed in 2019
The 2019 reform created the PIP choices, raised default liability limits to $250,000 and $500,000, raised the mini tort to $3,000 and added a medical fee schedule. See the 2019 auto insurance reform.
Sources: MCL 500.3101; MCL 500.3102; MCL 500.3107; MCL 500.3107c; MCL 500.3009; MCL 500.3113; MCL 500.3121; MCL 500.3135.
Questions people ask us
Is Michigan a no-fault state?
Yes. After a Michigan crash, your own auto insurer (or a relative’s you live with) pays your medical care, lost wages and household help, regardless of who caused it. You can still sue the at-fault driver for pain and suffering if the injury meets Michigan’s threshold, and for losses above what no-fault pays.
What is the minimum car insurance in Michigan?
Every registered vehicle needs a no-fault policy with personal injury protection (PIP), property protection insurance ($1 million, for damage your car does in Michigan), and liability coverage. Liability defaults to $250,000 per person and $500,000 per crash for injuries you cause; you can sign a state form to choose as little as $50,000 and $100,000. Property damage liability for crashes outside Michigan is $10,000. A policy with only these coverages is often called PLPD.
What happens if I drive without insurance in Michigan?
It is a misdemeanor for the owner or registrant to drive or allow driving without required insurance, punishable by a fine of $200 to $500, up to a year in jail, or both (MCL 500.3102(2)). After a crash, the owner of an uninsured vehicle generally cannot collect PIP benefits (MCL 500.3113) and cannot recover damages for operating it (MCL 500.3135(2)(c)).
Does Michigan require uninsured motorist coverage?
No. Uninsured and underinsured motorist coverage is optional in Michigan. It is often the only way to be paid for pain and suffering when the driver who hurt you has little or no insurance.
Do I need collision coverage in Michigan?
Not by law, though a lender or lease usually requires it. Without it, nothing in your own policy pays to fix your car; the mini tort can recover up to $3,000 from an at-fault driver.
