Is Michigan a No-Fault State for Auto Insurance?

Michigan is a no-fault state for car insurance. This means Michigan drivers can file a claim with their own car insurance company, regardless of fault. Drivers must also carry personal injury protection (PIP) coverage to help pay for medical bills after an accident. For this reason, Michigan car insurance is more expensive than in other no-fault states.

Here’s what you should know about accident fault in Michigan.

Michigan is a ‘no-fault’ car insurance state

The state of Michigan has a no-fault insurance system. This means each driver’s insurance covers their own medical bills and damages after an accident, no matter who’s at fault. In July 2020, Michigan updated its minimum insurance requirements. Now, drivers need to carry more liability insurance and have a tiered choice of PIP coverage.

Fault is still determined in no-fault states. But each driver still submits a claim with their own insurance company after an accident.

What are shared fault rules in Michigan?

Unlike states that follow strict fault systems in which one driver is determined to have caused an accident, Michigan allows multiple parties to be at fault. Michigan follows the comparative negligence rule, which means drivers can get compensated even if they’re partially or mostly at fault for a crash.

When shared fault is determined, it may be a good idea to contact an accident attorney who can help navigate Michigan’s comparative negligence system, understand the degrees of shared fault, negotiate with insurers, or represent you in court.1

At-fault vs. no-fault car insurance

No-fault insurance is a system in which each driver’s insurance company pays for certain losses, regardless of who was at fault in an accident. In at-fault states, the insurance of the driver responsible for the accident pays for the damages.

Here’s a look at how at-fault and no-fault insurance systems compare:

Michigan is one of 12 no-fault states. No-fault systems are also used in Florida, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

Minimum car insurance requirements in Michigan

As a no-fault state, Michigan law requires drivers to carry more coverage than most states. As a result, the state has some of the highest average car insurance rates in the country.

The minimum requirements for Michigan drivers include bodily injury liability insurance, property damage liability insurance, personal injury protection (PIP), and property protection insurance.

For liability insurance, drivers need to carry $250,000 per person, $500,000 per accident, and $10,000 for property damage. In personal injury protection, insurers will pay out up to $1 million. Michigan has varying specifications for PIP, but drivers can carry either unlimited, $500,000 per person/per accident, $250,000 per person/per accident, or none if eligible.

Driving without proof of insurance in Michigan is illegal. So if you’re convicted, you could face up to $500 in fines, one year in jail, or both.

Optional car insurance coverages in Michigan

Michigan drivers aren’t required to have more coverage than the state minimum. But upping your coverage levels may be a good idea if you drive often or want coverage that can pay to replace or repair your vehicle if it’s damaged in an accident or a non-collision incident. 

Consider these optional car insurance coverages:2

What to do in case of a car accident in Michigan

If you’re in an accident in Michigan, it’s important to take immediate action — especially if someone is hurt or you need to file an insurance claim for injuries or damages.

Here’s what to do:

1. File a police report. Contact the police if someone is injured, then head to a safe location and wait for help to arrive. Provide the police with details about the crash and get a copy of the report number.

2. Gather details. You’ll need your policy number and information like the names of involved parties, the nature of the injuries, pictures and videos, and details about when and where the crash occurred.

3. File the claim. You can usually start the claim process over the phone, on an app, or through the insurer’s website.

4. Review your claim. An insurance adjuster may ask for additional details, such as an estimate from a repair shop or medical bills to support your claim. It can take a few weeks to settle a claim, so it’s important to respond to requests quickly.

Michigan car insurance FAQs