Michigan requires a no-fault policy with three parts: personal injury protection (PIP), property protection insurance (PPI) and residual liability coverage. Bodily injury liability defaults to $250,000 per person and $500,000 per accident, and you can go as low as $50,000 and $100,000 only by signing a state form.
Michigan’s 2019 no-fault reform, which applies to policies issued or renewed after July 1, 2020, also lets you choose how much PIP medical coverage to carry. That choice affects both your premium and how much of your medical care the policy pays for after a crash.
Key Takeaways
- Every Michigan policy needs PIP, $1 million of property protection insurance and residual liability. Bodily injury limits default to 250/500, and the lowest you can choose is 50/100.
- You pick your PIP medical level, from unlimited down to opting out. The three lowest options ($250,000 with exclusions, $50,000 and no PIP medical coverage) require qualifying health coverage, Medicaid or Medicare, and you get unlimited PIP if you don’t choose.
- If you’re hurt in a crash involving a car you own that isn’t insured, Michigan law bars you from collecting PIP benefits.
- Driving uninsured is a misdemeanor with a fine of $200 to $500, up to a year in jail or both, and it can lead to a license suspension of at least 30 days.
Michigan Minimum Car Insurance at a Glance
| Coverage | Requirement |
|---|---|
| Personal injury protection (PIP) | Required. You choose the medical coverage level. |
| Property protection insurance (PPI) | Up to $1 million for damage your car does to other people’s property in Michigan |
| Bodily injury liability | $250,000 per person and $500,000 per accident by default. You can sign a form to choose as low as $50,000 and $100,000. |
| Property damage liability | $10,000 for damage in another state |
| Uninsured and underinsured motorist | Optional |
| Collision and comprehensive | Not required by law, but usually required by lenders and lessors |
The state’s auto insurance FAQ says you have to sign, complete and return the forms for lower bodily injury limits or a PIP option, along with any required proof of health coverage, for your choice to take effect. Under MCL 500.3009, insurers have to show you the options and their prices before you pick lower limits.
Bodily Injury Liability in Michigan
No-fault limits most lawsuits over car crashes, but you can still be sued if you cause a crash that seriously injures or kills someone. People you injure can also sue you for medical bills, lost wages and similar costs above their own PIP limits, even if their injuries aren’t serious. Residual bodily injury liability pays for these claims, up to your limits. According to the state’s bodily injury coverage page, the default is up to $250,000 for one person and up to $500,000 per accident. The lowest limits you can buy are $50,000 for one person and $100,000 per accident. RateFrog’s guide to liability limits explains how those numbers work.
Choosing Your PIP Medical Coverage
PIP pays your medical bills and other benefits after a crash, no matter who caused it. Since the reform, you choose how much PIP medical coverage to carry:
| PIP medical option | Who can choose it |
|---|---|
| Unlimited | Anyone. This is the default if you don’t choose. |
| $500,000 per person per accident | Anyone |
| $250,000 per person per accident | Anyone |
| $250,000 with exclusions | A named insured with qualifying non-Medicare health coverage that covers auto accident injuries. Household members can be excluded if their health insurance covers auto accident injuries. |
| $50,000 per person per accident | A named insured enrolled in Medicaid, if household members have other auto or health coverage for crash injuries |
| No PIP medical coverage | A named insured with Medicare Parts A and B, if household members have other auto or health coverage for crash injuries |
The state’s PIP coverage page explains the eligibility rules. Qualified health coverage means Medicare Parts A and B, or a health plan that doesn’t exclude or limit auto accident injuries and has an individual deductible below a limit the state sets and adjusts over time. Check the current figure with your health plan and insurer before choosing a lower PIP level.
The choice also affects the Michigan Catastrophic Claims Association assessment on your policy. The state’s FAQ says that if you carry unlimited PIP, you pay the assessment for anticipated claims and any current deficits. With a lower PIP level, you pay only a deficit fee. RateFrog’s guide to PIP and no-fault insurance explains how PIP works in other states.
Property Protection and Mini-Tort
Property protection insurance (PPI) pays up to $1 million for damage your car does in Michigan to other people’s property. Damage to another vehicle usually works differently, because PPI pays for damage to another vehicle only if it was properly parked. Under MCL 500.3135, if you cause a crash, the other driver can sue you for up to $3,000 of damage to their vehicle that their insurance doesn’t cover, for crashes after July 1, 2020. This is often called the mini-tort.
Uninsured Motorist Coverage Is Optional
Michigan doesn’t require uninsured or underinsured motorist coverage. It can still matter, because it helps when you’re seriously injured by a driver with no insurance or too little bodily injury coverage. RateFrog’s guide to uninsured motorist coverage explains what it pays for.
Proof of Insurance in Michigan
Under MCL 257.328, drivers and owners have to show proof of insurance when a police officer asks. Your certificate of insurance can be on paper or on your phone. If you show it on a device, the officer may view only the certificate and can’t go through anything else on the device. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.
Penalties for Driving Without Insurance in Michigan
| Situation | Penalty |
|---|---|
| Driving an uninsured vehicle, or letting someone else drive it | A misdemeanor with a fine of $200 to $500, up to 1 year in jail, or both |
| Failing to show proof, or driving without insurance | A civil infraction |
| License suspension | The court can order a suspension of 30 days or until you give the Secretary of State proof of insurance, whichever is later |
| Knowingly showing false proof of insurance | A misdemeanor with up to 1 year in jail, a fine of up to $1,000, or both |
The misdemeanor penalty comes from MCL 500.3102, and the civil infraction and suspension rules come from MCL 257.328. If you show the court that you were insured when you were stopped, the court won’t charge a fine or costs, though it may charge a fee of up to $25. If your license is suspended, you’ll pay a $25 service fee when you submit proof to the Secretary of State.
You Can Lose PIP Benefits
Under MCL 500.3113, you aren’t entitled to PIP benefits if you owned or registered a vehicle involved in the crash that didn’t have the required insurance. After a serious crash, that can cost far more than any fine, because you could be left paying your own medical bills. The Michigan Assigned Claims Plan won’t cover you either, because state law bars people excluded under this rule from its benefits. RateFrog’s guide to what happens when insurance lapses covers the broader risks of a gap in coverage.
Does Michigan Use SR-22 Filings?
RateFrog didn’t find an official Michigan page describing SR-22 filings. The Secretary of State’s page on financial responsibility restricted licenses refers to “financial-responsibility insurance,” which it describes as Michigan no-fault insurance that meets the special requirements of that situation, and it says an insurance application isn’t acceptable proof. If the Secretary of State asks you for proof of insurance, ask exactly what it needs. For how SR-22 filings generally work, see RateFrog’s SR-22 guide.
If You Can’t Find Coverage
Michigan law guarantees that auto insurance will be available to anyone who can’t get it through ordinary methods. Under MCL 500.3301, that coverage comes through the Michigan Automobile Insurance Placement Facility (MAIPF). The Department of Insurance and Financial Services suggests asking your agent to apply for you, and coverage through the facility can cost more than coverage in the regular market.
If you’re injured in a crash and no auto policy covers your PIP benefits, you may be able to apply through the Michigan Assigned Claims Plan. Eligibility rules and benefit limits depend on your situation.
How Michigan Insurers Set Rates
Michigan limits the factors insurers can use. The state’s FAQ says the law bars insurers from using your sex, marital status, home ownership, credit score, education level, occupation or ZIP code to set your auto insurance rates. Under MCL 500.2111, insurers can still group risks by territory, so where you live still matters, just not by ZIP code. RateFrog’s guide to the factors that affect car insurance rates covers the rest. If you’re comparing insurers, see RateFrog’s article on whether GEICO covers Michigan.
If your insurer cancels for nonpayment, Michigan law requires at least 10 days’ notice. RateFrog’s guide to car insurance grace periods explains what usually happens when a payment is late.
How Much Coverage Makes Sense in Michigan?
The two biggest choices are your bodily injury limits and your PIP medical level. Dropping bodily injury to 50/100 lowers your premium, but it leaves more of your savings and income exposed if you injure someone, including claims for medical costs above the injured person’s own PIP limit. Choosing a lower PIP level can also save money, but only works well if your health coverage really does cover auto accident injuries. RateFrog’s guide to how much car insurance you need can help you weigh those choices, and you can compare car insurance quotes at several coverage levels.
Where to Get Help
The Michigan Department of Insurance and Financial Services takes calls at 877-999-6442, Monday through Friday from 8 a.m. to 5 p.m., and accepts complaints online through its complaint page. Its auto insurance page has more consumer guides.
Frequently Asked Questions
What Is the Minimum Car Insurance in Michigan?
A no-fault policy with PIP, $1 million of property protection insurance, bodily injury liability of at least $50,000 per person and $100,000 per accident, and $10,000 of property damage liability for crashes in other states. The bodily injury default is 250/500 unless you sign a form to lower it.
Can I Opt Out of PIP Medical Coverage in Michigan?
Only if the named insured has Medicare Parts A and B and household members have other auto or health coverage for crash injuries. The opt-out covers only PIP medical benefits, not other PIP benefits such as wage loss. Other lower PIP options have their own eligibility rules.
What Happens If I Don’t Choose a PIP Level?
You get unlimited PIP medical coverage, which is the default.
What Is the Mini-Tort in Michigan?
If you cause a crash, the other driver can sue you for vehicle damage their insurance doesn’t pay, up to $3,000 for crashes after July 1, 2020.
Sources
- Michigan Auto Insurance: Frequently Asked Questions
- Michigan Auto Insurance: Choosing PIP Medical Coverage
- Michigan Auto Insurance: Choosing Bodily Injury Coverage
- Michigan DIFS: Auto Insurance
- MCL 500.3009
- MCL 500.3102
- MCL 500.3113
- MCL 500.3135
- MCL 500.3173
- MCL 500.2111
- MCL 500.3301
- MCL 257.328
- Michigan Secretary of State: Financial Responsibility Restricted Licenses
- Michigan Assigned Claims Plan
- Michigan DIFS: File a Complaint