Michigan Car Insurance Requirements (2024)
Michigan car insurance regulations and required coverage explained. Discover the minimum coverage requirements in Michigan, including liability, personal injury protection, and property protection insurance. Compare quotes from top insurance providers to find the best rates and ensure you're properly insured.
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Ty Stewart
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Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about life insurance when he got his first policy for his own family. He has been featured as a life insurance expert speaker at agent conventions and in top publications. As an independent licensed life insurance agent, he has helped clients nationwide to secure affordable coverage while making the...
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UPDATED: Dec 11, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Dec 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Are you aware of the car insurance regulations and required coverage in Michigan? Understanding the minimum coverage requirements is crucial for every car owner in the state. In this article, we delve into the key topics surrounding Michigan car insurance regulations, including liability, personal injury protection, and property protection insurance.
- Car insurance laws in Michigan mandate that car owners carry no less than a 20/40/10 insurance policy
- Michigan car owners must also have personal injury protection and property protection insurance
- Michigan is a no-fault state
We also explore comprehensive and collision coverage options, the no-fault insurance system, and additional optional coverages. To ensure you have the right coverage at the best rates, compare quotes from the top insurance providers. Enter your zip code now and take the first step towards protecting yourself and your vehicle.
Read more: What states require car insurance?
Do you need car insurance in Michigan?
Anyone who owns a car in Michigan must have car insurance. Michigan auto insurance minimum requirements state that all car owners must carry the following coverage:
- Bodily injury liability ($20,000 per person, $40,000 per accident)
- Property damage liability ($10,000)
- Personal injury protection (choice of level)
- Property protection insurance ($1,000,000 per accident)
Most auto insurance companies in Michigan will know Michigan car insurance requirements and ensure each customer carries the proper coverage to drive safely and legally in the state. But it is your responsibility as a car owner to ensure you maintain the appropriate coverage.
Because Michigan car insurance requirements are straightforward, it should not be difficult for you to find the coverage you need. But many drivers in the state find that Michigan auto insurance requirements leave a lot to be desired when it comes to coverage that protects themselves and their property.
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How does car insurance work in Michigan?
Michigan liability car insurance does not protect drivers or their property. Instead, the liability coverage required in the state protects other drivers and pedestrians, and it keeps properly-insured drivers from facing tedious and intimidating lawsuits.
Because the minimum auto insurance in Michigan does not offer extensive protection to drivers, many people choose to carry more than the minimum required coverage.
The table below shows different coverage options available to Michigan drivers.
Coverage Considerations Description
Liability Most states require you set amount of liability coverage which protects other drivers in the case of an accident
Comprehensive This coverage and collision coverage are typically required by your lender or lease holder. If you own your vehicle outright, this is an optional coverage. It will pay for damage from non-accident related events such as hail, vandalism, and theft.
Collision This provides financial protection for your vehicle. It will pay for damages after a crash.
Personal Injury Protection (PIP) This coverage will pay for your own medical costs including lost wages.
Medical Payments (MedPay) Similar to PIP, MedPay covers injury costs but doesn't cover lost wages like PIP does.
Uninsured/Underinsured Motorist Protection Insurance companies are required to offer this coverage to you and it will pay for your own damages beyond what another's liability covers when they're responsible for an accident.
Guaranteed Auto Protection (GAP) You may owe more on your vehicle than it's worth because of how quickly cars depreciate. This coverage will pay the difference between the value and what you owe if your vehicle is totaled.
Personal Umbrella Policy (PUP) This option provides an "umbrella" of coverage over several types of insurance.
Rental Reimbursement If your car is a total loss or needs repair, do you have another vehicle you can drive? If you'll need a rental, you should consider this option.
Emergency Roadside Assistance You can purchase this option from your insurer or a driving club.
Pay-As-You-Drive or Usage-Based Insurance This isn't a good choice for everyone, but if you drive few miles, it might be cheaper for you to purchase this kind of coverage.
Non-Owner Car Insurance This option is for people who do not own a car but borrow one occasionally.
Modified Car Insurance Coverage If you've made modifications to your vehicle, your regular full coverage won't take those changes into consideration when paying for damages. Adding special coverage for those modifications will protect the value of them.
Windshield Coverage Windshield coverage will help you pay for the replacement of your broken glass (check state laws for specifics)
Mechanical Breakdown Insurance This coverage is similar to a manufacturer extended warranty and you should weight the benefits of both a warranty and breakdown insurance to see which is best for you.
If you drive a new car, are financing or leasing a vehicle, or want to make sure you have the best coverage possible, you may consider carrying comprehensive and collision coverage on top of Michigan’s liability coverage requirements.
With comprehensive coverage, your car has protection against damage caused by vandalism, inclement weather, and other non-driving-related incidents. When drivers combine comprehensive coverage with collision coverage – which protects drivers and their vehicles from damages caused during a car accident – this is considered a full coverage policy.
Is Michigan a no-fault state?
Michigan is a no-fault state, which means that your insurance company will cover personal injuries, medical expenses, wage loss, and damage caused to other people’s property. But this is only the case if you carry proper insurance coverage.
With no-fault insurance, you may still find that the minimum required coverage is not enough to cover everything. If this is the case, you should consider adding extra coverage.
Personal injury protection (PIP) laws in Michigan require all drivers to carry this coverage, which is available at several levels:
- Unlimited (covers all reasonable expenses)
- $500,000 limited coverage
- $250,000 limited coverage
- $50,000 limited coverage (available only to specific households)
These changes, enacted in 2020, are designed to reduce the insurance cost in Michigan. To qualify for the lowest limits, the driver must have Medicaid, and all other household members must also have Medicaid or a qualifying health or PIP plan elsewhere.
Drivers are also required to carry no-fault property protection insurance (PPI) that will cover damage to property.
How much is Michigan auto insurance?
The amount people pay for car insurance in Michigan depends on several factors, including:
- Age
- Gender
- Car make and model
- Coverage amounts
- Credit score
- Occupation
- Deductible
Read more: Occupation Car Insurance Discount
The table below shows the average annual car insurance rates in each state.
Average Annual Car Insurance Rates by State
State Average Annual Car Insurance Rates
Alabama $817.95
Alaska $1,048.60
Arizona $932.10
Arkansas $869.37
California $926.79
Colorado $898.79
Connecticut $1,108.67
Delaware $1,186.33
District of Columbia $1,307.62
Florida $1,206.46
Georgia $964.70
Hawaii $856.33
Idaho $656.95
Illinois $833.44
Indiana $724.65
Iowa $672.01
Kansas $819.14
Kentucky $904.39
Louisiana $1,326.78
Maine $679.56
Maryland $1,077.97
Massachusetts $1,075.35
Michigan $1,252.27
Minnesota $826.64
Mississippi $935.08
Missouri $825.40
Montana $842.54
Nebraska $778.81
Nevada $1,057.63
New Hampshire $777.98
New Jersey $1,353.96
New Mexico $896.58
New York $1,300.09
North Carolina $745.17
North Dakota $737.63
Ohio $741.11
Oklahoma $941.34
Oregon $855.57
Pennsylvania $934.34
Rhode Island $1,219.29
South Carolina $910.51
South Dakota $717.73
Tennessee $823.74
Texas $1,025.64
Utah $832.24
Vermont $737.67
Virginia $807.71
Washington $923.16
West Virginia $1,015.57
Wisconsin $696.11
Wyoming $816.71
Countrywide $954.99
Michigan rates tend to be pretty expensive. So as you shop around for car insurance coverage, it’s a good idea to compare quotes from the best insurance companies to find one that offers the coverage you want at a price that fits your budget.
Read more: Arizona Car Insurance Discounts
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Are there specific Michigan auto insurance laws for minors?
Michigan car owners must carry the state’s minimum coverage regardless of their age. So a Michigan driver under 21 should not carry any less than the state’s minimum coverage amount.
Michigan car insurance discounts can be highly beneficial for teens looking to save on their premiums, particularly when they utilize specific coverage discounts like multi-policy, new driver, or paid-in-full options.
Michigan Auto Insurance: The Bottom Line
If you own a car in Michigan, you need to carry no less than a 20/40/10 liability insurance policy with personal injury protection (PIP) and property protection insurance (PPI). Proper Michigan proof of insurance will show at minimum the required liability, PIP, and PPI coverage.
If you are interested in better protecting your vehicle, you may want to add additional coverages, like collision and comprehensive.
Michigan car insurance rates are higher than in most other states. To save on car insurance premiums, you can compare quotes from multiple companies before making a final decision on coverage.
Frequently Asked Questions
What are the basic car insurance requirements in Michigan?
In Michigan, drivers are required to have no-fault auto insurance coverage. This means that regardless of who is at fault in an accident, each party’s own insurance company covers their medical expenses and other damages. The basic required coverage includes personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance.
What is Personal Injury Protection (PIP) coverage?
PIP coverage is a mandatory part of Michigan car insurance. It provides benefits for medical expenses, lost wages, and rehabilitation costs if you or your passengers are injured in an auto accident, regardless of fault. The minimum PIP coverage limit in Michigan is $50,000.
Are there any additional optional coverages in Michigan?
Yes, Michigan drivers have the option to purchase additional coverages such as collision coverage (for damage to your own vehicle in an accident) and comprehensive coverage (for damage caused by events other than accidents, such as theft or weather damage). These coverages are not mandatory but may be beneficial depending on your circumstances.
Can I use out-of-state car insurance in Michigan?
No, if you’re a resident of Michigan, you must purchase car insurance that meets the state’s requirements. Out-of-state insurance policies are not valid for Michigan residents.
Are there any exceptions to the no-fault system in Michigan?
Yes, there are some exceptions to the no-fault system. If the accident results in death, serious impairment of body function, or permanent disfigurement, you may have the right to sue the at-fault driver for additional damages beyond what is covered by your own insurance.
Where can I find licensed car insurance providers in Michigan?
The Michigan Department of Insurance and Financial Services (DIFS) provides a list of licensed car insurance companies in the state. You can also contact an insurance agent or broker who can help you find suitable coverage options.
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Ty Stewart
Licensed Insurance Agent
Ty Stewart is the founder and CEO of SimpleLifeInsure.com. He started researching and studying about life insurance when he got his first policy for his own family. He has been featured as a life insurance expert speaker at agent conventions and in top publications. As an independent licensed life insurance agent, he has helped clients nationwide to secure affordable coverage while making the...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.