Car Insurance Requirements in Michigan (2025)
Because it’s a no-fault state, Michigan requires all drivers to carry personal injury protection and property protection insurance in addition to basic liability coverage.
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Michigan requires more car insurance coverage than most states and has some of the highest average car insurance rates in the country. Michigan is a no-fault state, which means your insurance will pay for your damages in an accident, regardless of who caused the crash.
In Michigan, you must carry personal injury protection, property protection insurance, bodily injury liability, and property damage liability insurance.
Here’s what you need to know about minimum car insurance requirements in Michigan.
Michigan car insurance requirements
Michigan has some of the most stringent car insurance requirements in the nation. It’s a no-fault state, so each driver’s car insurance pays for their own damages and medical bills in a motor vehicle accident, no matter who’s at fault.
This means you must carry the following coverages to drive legally in Michigan:1
Personal injury protection (PIP)
PIP coverage pays for your medical costs (and resulting loss of income) that you incur because you’re injured in an auto accident, no matter who’s at fault. Michigan drivers can choose from the following coverage levels for PIP insurance:2
Unlimited coverage, which is the default option unless the insured driver chooses a different coverage level
Up to $500,000 in coverage
Up to $250,000 in coverage
Up to $50,000 in coverage, for drivers enrolled in Medicaid
PIP medical opt-out, for drivers who have both Medicare Part A and Part B health insurance
Property protection insurance (PPI)
PPI coverage will pay for up to $1 million in damage that your vehicle does to another person’s property in the state of Michigan (but not to other cars involved in the accident, unless they were parked).
Bodily injury liability
Bodily injury liability coverage will pay for damages you cause as well as your legal defense if you injure or kill someone in an accident and their own coverage isn’t enough to pay for their medical care.
The minimum requirements for bodily injury liability are $50,000 per person and $100,000 per accident. Michigan has set the default coverage much higher, at up to $250,000 for a person hurt or killed in an accident and up to $500,000 for each accident if several people are hurt or killed.
This means you’ll get the higher coverage limits with your bodily injury liability coverage unless you request lower limits.
Property damage liability
Property damage liability insurance will pay for the property damage you cause with your vehicle, but only in another state. The minimum coverage requirement for property damage liability is $10,000.
Michigan car insurance laws
Michigan’s car insurance requirements changed in July 2020 in an attempt to lower the cost of auto insurance.
The old law had the following requirements:
Mandatory comprehensive lifetime no-fault personal injury protection
Minimum bodily injury coverage of $20,000 per person and $40,000 per accident3
Under the new law, these are the current requirements:
Drivers must have a tiered choice of PIP coverage instead of comprehensive lifetime PIP
Minimum bodily injury coverage of $50,000 per person and $100,000 per accident
Do you need more than state-minimum coverage in Michigan?
The average cost of liability-only car insurance that meets state-minimum requirements in Michigan is $142 per month.
The Wolverine State has more minimum coverage requirements than many other states since you must have personal injury protection, property protection insurance, and residual bodily injury and property damage liability.
Together, these state requirements pay for your damages — including medical bills — in a car accident, no matter who’s at fault. They’ll also cover the other driver if their damages exceed their own personal injury protection coverage.
While you aren’t required to purchase more than the state-minimum insurance, you may want to consider increasing your coverage levels if you drive frequently because damages could cost more than the minimum limits. You may also be interested in purchasing collision and comprehensive coverage, which will pay to repair or replace your vehicle if it’s damaged in a collision or by another event.
If you drive an older vehicle or you can afford to pay out of pocket to repair or replace your damaged car, you may only need liability insurance.
But if you can’t afford to pay to replace your car out of pocket, you may want to get full-coverage insurance. And if you lease or finance your vehicles, your lender will probably require you to carry full coverage.
The average cost of full-coverage auto insurance in Michigan is $214 per month.
Penalties for driving without proof of insurance in Michigan
The penalties for driving without proof of insurance in Michigan can be severe. If you’re convicted of driving without insurance, driving someone else’s uninsured vehicle, or allowing someone to drive your uninsured vehicle, you may face up to $500 in fines, one year in jail, or both.
If you cause an accident while driving uninsured, the other driver may also sue you and hold you personally liable for any damages.
And if you’re hurt in an accident while uninsured, you won’t be eligible for the benefits insurance normally provides after an accident. You won’t receive help with medical expenses, lost wages, or damage to your car.
Cheapest liability-only car insurance in Michigan
Liability-only car insurance in Michigan includes all the coverages required by law:
Personal injury protection (PIP)
Property protection insurance (PPI)
Residual bodily injury and property damage liability (BI/PD)
Because Michigan requires a relatively robust list of liability coverages, the average monthly cost of liability-only car insurance is the highest in the nation, at $142 per month. This is significantly more expensive than the national average for liability coverage, which is $103 per month.
The following insurers offer the cheapest liability-only coverage in Michigan.
Cheapest full-coverage car insurance in Michigan
Full-coverage car insurance in Michigan is the most expensive in the nation, at an average of $214 per month. For comparison, the national average cost for full-coverage car insurance is $182 per month.
Full-coverage auto insurance isn’t a requirement in Michigan or anywhere else, but some drivers may want to purchase it for the additional coverage it provides.
A full-coverage insurance policy provides you with collision coverage, which pays for damage to your car from an accident, and comprehensive coverage, which pays for damages to your car caused by anything other than an accident, such as severe weather or theft.
Here are some of the cheapest full-coverage insurers in Michigan.
Optional car insurance coverages to consider
While all Michigan drivers must carry the legally required coverages outlined above, you may also be interested in the following optional coverage types:
Michigan car insurance requirements FAQs
If you’re shopping for car insurance coverage as a Michigan driver, check out the answers to some of the most frequently asked questions below.
Does Michigan require car insurance?
Yes, Michigan requires car insurance. It’s illegal to drive, or to allow someone to drive your car, without valid car insurance that meets at least the state’s minimum requirements.
Does Michigan require full coverage?
No. Full-coverage insurance generally refers to insurance that includes the state-minimum liability requirements plus collision and comprehensive coverages. While Michigan’s required minimum coverage is more robust than the liability-only coverage other states require, it doesn’t include collision or comprehensive coverage.
Do you need car insurance to register a car in Michigan?
Yes. Michigan state law requires drivers to maintain basic levels of auto insurance in order to register a car with the state.
Does insurance follow the car or the driver in Michigan?
Michigan is a no-fault insurance state, which also means that insurance generally follows the driver, rather than the car. If you’re in an accident while driving someone else’s car, your insurance will generally pay for damages, rather than the car owner’s insurance. That said, the owner of the car must have insurance in order for you to legally drive it, even if you’re insured.
What happens if you get pulled over without insurance in Michigan?
If you get pulled over without insurance in Michigan, it’s punishable as a misdemeanor. You could face a fine of up to $500 and up to one year in jail, and your license could also be suspended for 30 days or until you have proof of valid insurance.
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