Minimum Car Insurance in Michigan

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.

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).

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.