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Michigan has one of the most distinctive car insurance systems in the country. Under its no-fault law, every policy includes personal injury protection (PIP) medical coverage, and since July 1, 2020 drivers can choose from six PIP levels, from unlimited coverage to an opt-out for people with Medicare Parts A and B. Some of the lower options require proof of qualifying health coverage at each renewal. Policies must also carry property protection insurance of up to $1 million.

Michigan's 2019 reform changed the rest of the picture. Residual liability for injuries now defaults to $250,000 per person and $500,000 per accident, but you can choose lower limits down to $50,000/$100,000 in writing. Insurers are also barred from using credit scores, gender, marital status, home ownership, education level or occupation to set rates, and DIFS reviews rate filings before they are used. Because your PIP choice can limit what your own policy pays, it deserves careful attention.

Michigan at a glance
Minimum liability50/100/10 minimum (250/500 default)
Other required coveragePersonal injury protection (PIP) medical coverage: choose from unlimited, $500,000, $250,000, $250,000 with exclusions, $50,000 (limited to those with qualifying health coverage or Medicaid) or an opt-out (for those with Medicare Parts A and B); Property protection insurance (PPI): up to $1,000,000 for damage your vehicle does to others' property in Michigan
Fault systemNo-fault
Credit-based insurance scoresNot allowed

Michigan minimum liability limits

To register and drive a car in Michigan you need at least this much liability coverage:

The legal minimum in Michigan is 50/100/10 minimum (250/500 default).

Michigan's default residual liability limits are $250,000 per person and $500,000 per accident for bodily injury, but you may choose lower limits in writing, down to $50,000/$100,000. Property damage liability applies to damage in other states and is $10,000; damage to property in Michigan is covered by property protection insurance instead.

Tip: The minimum is a legal floor, not a recommendation. If a serious crash costs more than your limits, you could be personally responsible for the rest. See how much liability coverage you may need.

Other required and offered coverage

Besides liability, Michigan requires:

  • Personal injury protection (PIP) medical coverage: choose from unlimited, $500,000, $250,000, $250,000 with exclusions, $50,000 (limited to those with qualifying health coverage or Medicaid) or an opt-out (for those with Medicare Parts A and B)
  • Property protection insurance (PPI): up to $1,000,000 for damage your vehicle does to others' property in Michigan

Insurers must offer an attendant care rider to anyone who chooses a PIP limit of $50,000, $250,000 or $500,000. PIP options 4 through 6 require a signed selection form and proof of qualifying coverage at every renewal.

Learn more about uninsured motorist coverage and personal injury protection.

Is Michigan a no-fault state?

Michigan is a no-fault state. After most crashes, your own personal injury protection (PIP) pays your medical bills and some lost income first, whoever caused the accident. You can usually step outside the no-fault system and claim against the other driver only if injuries pass a legal threshold.

Michigan is a no-fault state: your own insurer pays PIP benefits up to your chosen level regardless of fault. Lawsuits against an at-fault driver for pain and suffering are limited by a verbal tort threshold, which requires a serious injury.

Read more: at-fault vs. no-fault states explained.

Can insurers use your credit in Michigan?

Status: Not allowed. Michigan's 2019 auto insurance reform bars insurers from using an individual's credit score to set auto rates or rating classes (MCL 500.2162). DIFS also says rates cannot use factors such as gender, marital status, home ownership, educational level or occupation.

See how credit affects car insurance for the bigger picture.

Penalties for driving uninsured in Michigan

Operating a vehicle without the required no-fault security, or knowingly driving one that is uninsured, is a misdemeanor punishable by a fine of $200 to $500, up to one year in jail, or both. Failing to show proof of security when cited creates a rebuttable presumption that the vehicle was uninsured.

If you are ordered to file proof of insurance, see what SR-22 insurance is.

Tips for Michigan drivers

  • Treat your PIP medical selection as the biggest decision on your policy. Unlimited coverage is generally the default if you do not choose, while lower options and the Medicare opt-out cut what your own insurer pays after a crash.
  • If you choose PIP options 4, 5 or 6, expect to sign a selection form and prove qualifying health coverage or Medicaid at every renewal. DIFS says TRICARE and CHAMPVA qualify as health coverage, but VA coverage does not.
  • Ask about the attendant care rider. Insurers must offer it if you choose a $50,000, $250,000 or $500,000 PIP medical limit, and it covers attendant care above your PIP limit.
  • Review your residual liability limits. The default is 250/500, and a lower choice has to be made in writing, with $50,000/$100,000 as the lowest allowed.
  • Michigan's property protection insurance covers damage your vehicle does to others' property in Michigan, up to $1 million, so do not confuse it with the $10,000 property damage limit that applies to out-of-state damage.

When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.

Official resources

Your state insurance department can answer questions about your rights and handle complaints about insurers.

Frequently asked questions

What car insurance does Michigan require?

Michigan requires PIP medical coverage at a level you choose, property protection insurance up to $1 million for damage you cause to others' property in Michigan, and residual liability for injuries. Residual liability defaults to $250,000 per person and $500,000 per accident, but you can choose lower limits in writing, down to $50,000/$100,000, plus $10,000 property damage in other states.

What are the PIP medical coverage choices in Michigan?

Since July 1, 2020, Michigan offers six PIP medical levels: unlimited, $500,000, $250,000, $250,000 with exclusions, $50,000 and an opt-out. The first three are open to everyone. Options 4 through 6 require other qualifying health coverage or Medicaid; the opt-out requires Medicare Parts A and B, with household members covered elsewhere.

Can Michigan insurers use my credit score for auto rates?

No. Under Michigan's 2019 reform, insurers cannot use an individual's credit score to set auto rates or rating classes, and DIFS also says rates may not rely on gender, marital status, home ownership, educational level or occupation. DIFS reviews rate filings to check compliance. Insurers still use factors such as driving record and vehicle type.

What are the penalties for driving uninsured in Michigan?

Operating a vehicle without the required no-fault security, or knowingly driving one that is uninsured, is a misdemeanor with a fine of $200 to $500, up to one year in jail, or both. If you cannot show proof of security when cited, the law presumes the vehicle was uninsured, though you can rebut that presumption.

What is property protection insurance?

Property protection insurance, or PPI, is a required Michigan coverage that pays for damage your vehicle does to other people's tangible property in Michigan, such as buildings and fences. Benefits under one policy for all property damage from one accident cannot exceed $1,000,000. It is separate from the liability coverage that applies to out-of-state damage.

Sources

General information only. State rules change. Confirm current requirements with the Michigan Department of Insurance and Financial Services (DIFS) or your insurer before you buy. This page is not insurance or legal advice.