Question 1

What is the minimum car insurance required in Michigan?

Accepted Answer

Every Michigan auto policy must include personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance. For policies issued after July 1, 2020, default bodily injury liability limits are $250,000 per person and $500,000 per accident, with $10,000 for property damage (250/500/10). A policyholder may choose lower bodily injury limits, but not below $50,000 per person and $100,000 per accident (50/100), by signing a state-approved form after receiving a price for each option. PPI pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings, fences and properly parked vehicles.

Question 2

Is Michigan a no-fault car insurance state?

Accepted Answer

Michigan is a no-fault state. For policies issued or renewed after July 1, 2020, the policyholder must choose a PIP medical coverage level on a state-approved form: unlimited, $500,000, $250,000, or $50,000 per person (the $50,000 option only for Medicaid enrollees whose household members have qualifying coverage); people with qualified health coverage may have other options. Tort liability is largely abolished for insured vehicles; an injured person can sue for noneconomic loss only for death, serious impairment of body function, or permanent serious disfigurement. A driver 50% or more at fault can also be sued for up to $3,000 of vehicle damage not covered by insurance (the "mini-tort," for accidents after July 1, 2020).

Question 3

Is uninsured motorist coverage required in Michigan?

Accepted Answer

Uninsured and underinsured motorist bodily injury coverages are optional in Michigan; they are available from insurers for purchase. They compensate you or a family member for bodily injury and excess wage loss when seriously injured by an at-fault driver who was uninsured or whose liability limits are less than the damages.

Question 4

Can you show proof of car insurance on your phone in Michigan?

Accepted Answer

The owner or driver must produce evidence of insurance when a police officer asks. A certificate of insurance in paper or electronic form is accepted; when an electronic copy is shown on a phone or other device, the officer may view only the certificate and showing it is not consent to search the device. Failing to produce proof, or not having the required insurance, is a civil infraction; if the driver shows the court before the appearance date that the vehicle was insured, no fine or costs are assessed (a fee of up to $25 may apply). Proof of Michigan no-fault insurance is required to register a vehicle.

Question 5

What is the penalty for driving without insurance in Michigan?

Accepted Answer

An owner or registrant who drives, or allows driving of, a vehicle without the required no-fault security is guilty of a misdemeanor punishable by a fine of $200 to $500, up to 1 year in jail, or both; a driver who knows the owner has no insurance is also guilty. If found responsible for the civil infraction of failing to have insurance, the court may require the driver's license to be surrendered and order it suspended unless proof of insurance is submitted. An uninsured vehicle owner also cannot collect damages under the mini-tort provision for damage to that vehicle.

Question 6

How much notice must an insurer give before canceling car insurance in Michigan?

Accepted Answer

Under Michigan's Essential Insurance Act, an insurer must mail or deliver written notice at least 30 days before terminating an auto policy, stating the effective date and each specific reason. A termination notice sent within the first 55 days after a policy is first issued may take effect 20 days after it is mailed or delivered, and a termination for nonpayment takes effect as provided in the policy. The reasons must conform to the insurer's underwriting rules. Casualty policies, including auto, must also allow cancellation by the insurer only with at least 10 days' written notice mailed to the insured.

Question 7

Can car insurance companies use your credit score in Michigan?

Accepted Answer

For policies issued or renewed after July 1, 2020, Michigan law prohibits auto insurers from using sex, marital status, home ownership, credit score, educational level, occupation, and ZIP codes in setting auto insurance rates. The statute specifically bars using an individual's credit score to establish or maintain auto insurance rates or rating classifications.

Question 8

When is a car a total loss in Michigan?

Accepted Answer

When an insurer acquires a vehicle in a claim settlement, or the owner keeps it, the insurer must handle branding by repair cost: if the estimated repair cost (parts and labor) is at least 75% but less than 91% of the vehicle's pre-damage actual cash value, a salvage certificate of title is required; at 91% or more, a scrap certificate of title is required. The insurer may not sell the vehicle without first receiving a salvage or scrap title.

Question 9

How do you transfer a car title in Michigan?

Accepted Answer

The buyer has 15 days after the sale to transfer the title; a $15 late fee applies after that. The title must be filled out and signed by the buyer and seller, with an accurate odometer reading. The transfer can be done online (if eligible) or at a Secretary of State office. Fees include a $15 title transfer fee, a $10 to $15 plate transfer fee (or registration fee for a new plate), and 6% sales tax. Proof of Michigan no-fault insurance is required to register the vehicle.

Question 10

How long do you have to register your car after moving to Michigan?

Accepted Answer

Once you establish Michigan residency, you need to get a Michigan driver's license (converting your out-of-state license at a Secretary of State office with proof of legal presence, Social Security number, identity and two proofs of Michigan residency) and get a Michigan license plate for your vehicle. To title and register, bring your previous state registration (if possible, expired less than 90 days), the original title, proof of Michigan no-fault insurance, your license or ID, and payment for fees.

Question 11

How do you file a complaint against a car insurance company in Michigan?

Accepted Answer

If you cannot resolve a problem with your auto insurer or agent, file a complaint with the Michigan Department of Insurance and Financial Services (DIFS) using its online complaint form (difs.state.mi.us/Complaints/FileComplaint.aspx); a printable form can be mailed, emailed or faxed. DIFS will contact the company, agency or agent for a written response. Phone: 877-999-6442 (toll free, Monday to Friday, 8 a.m. to 5 p.m.).

Minimum coverage required	Every Michigan auto policy must include personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance. For policies issued after July 1, 2020, default bodily injury liability limits are $250,000 per person and $500,000 per accident, with $10,000 for property damage (250/500/10). A policyholder may choose lower bodily injury limits, but not below $50,000 per person and $100,000 per accident (50/100), by signing a state-approved form after receiving a price for each option. PPI pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings, fences and properly parked vehicles. Required coverages: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3101 . PPI amount: DIFS Comprehensive Guide to Auto Insurance (michigan.gov/difs). Source: MCL 500.3009; MCL 500.3101; DIFS Comprehensive Guide to Auto Insurance
At-fault or no-fault	Michigan is a no-fault state. For policies issued or renewed after July 1, 2020, the policyholder must choose a PIP medical coverage level on a state-approved form: unlimited, $500,000, $250,000, or $50,000 per person (the $50,000 option only for Medicaid enrollees whose household members have qualifying coverage); people with qualified health coverage may have other options. Tort liability is largely abolished for insured vehicles; an injured person can sue for noneconomic loss only for death, serious impairment of body function, or permanent serious disfigurement. A driver 50% or more at fault can also be sued for up to $3,000 of vehicle damage not covered by insurance (the "mini-tort," for accidents after July 1, 2020). Tort threshold and mini-tort: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3135 Source: MCL 500.3107c; MCL 500.3135
Uninsured motorist coverage	Uninsured and underinsured motorist bodily injury coverages are optional in Michigan; they are available from insurers for purchase. They compensate you or a family member for bodily injury and excess wage loss when seriously injured by an at-fault driver who was uninsured or whose liability limits are less than the damages. Source: DIFS, Comprehensive Guide to Auto Insurance (glossary)
Proof of insurance	The owner or driver must produce evidence of insurance when a police officer asks. A certificate of insurance in paper or electronic form is accepted; when an electronic copy is shown on a phone or other device, the officer may view only the certificate and showing it is not consent to search the device. Failing to produce proof, or not having the required insurance, is a civil infraction; if the driver shows the court before the appearance date that the vehicle was insured, no fine or costs are assessed (a fee of up to $25 may apply). Proof of Michigan no-fault insurance is required to register a vehicle. Registration requirement: https://www.michigan.gov/sos/all-services/title-transfer-and-vehicle-registration Source: MCL 257.328

Cancellation and nonrenewal	Under Michigan's Essential Insurance Act, an insurer must mail or deliver written notice at least 30 days before terminating an auto policy, stating the effective date and each specific reason. A termination notice sent within the first 55 days after a policy is first issued may take effect 20 days after it is mailed or delivered, and a termination for nonpayment takes effect as provided in the policy. The reasons must conform to the insurer's underwriting rules. Casualty policies, including auto, must also allow cancellation by the insurer only with at least 10 days' written notice mailed to the insured. General 10-day rule: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3020 Source: MCL 500.2123; MCL 500.3020(1)(b)
What insurers can use to set rates	For policies issued or renewed after July 1, 2020, Michigan law prohibits auto insurers from using sex, marital status, home ownership, credit score, educational level, occupation, and ZIP codes in setting auto insurance rates. The statute specifically bars using an individual's credit score to establish or maintain auto insurance rates or rating classifications. Credit score ban: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-2162 Source: DIFS, Consumer Protections (Michigan's auto insurance law changes); MCL 500.2162
Total loss rules	When an insurer acquires a vehicle in a claim settlement, or the owner keeps it, the insurer must handle branding by repair cost: if the estimated repair cost (parts and labor) is at least 75% but less than 91% of the vehicle's pre-damage actual cash value, a salvage certificate of title is required; at 91% or more, a scrap certificate of title is required. The insurer may not sell the vehicle without first receiving a salvage or scrap title. Source: MCL 257.217c
Complaints about an insurer	If you cannot resolve a problem with your auto insurer or agent, file a complaint with the Michigan Department of Insurance and Financial Services (DIFS) using its online complaint form (difs.state.mi.us/Complaints/FileComplaint.aspx); a printable form can be mailed, emailed or faxed. DIFS will contact the company, agency or agent for a written response. Phone: 877-999-6442 (toll free, Monday to Friday, 8 a.m. to 5 p.m.). Auto complaint page: https://www.michigan.gov/autoinsurance/file-a-complaint Source: DIFS, How to File a Complaint; Auto insurance: File a Complaint

Michigan Car Insurance Laws: Minimum Coverage, Penalties and SR-22

Quick answers for Michigan

Required coverage

Driving without insurance and SR-22

Your rights with insurers

Title and registration

Car Insurance & Vehicle Laws FAQ

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