What Michigan requires
Michigan policies must carry residual liability (bodily injury and property damage), personal injury protection, and property protection insurance. The lowest bodily injury limits a Michigan driver may purchase are $50,000 per person and $100,000 per accident, with $10,000 of property damage - a liability floor well above the national norm, but only a slice of what a full Michigan policy covers.
| Coverage | Michigan requirement | Notes |
|---|---|---|
| Bodily injury liability | $50,000 / $100,000 minimum | Higher limits purchasable; default policy $250,000 / $500,000 |
| Property damage liability | $10,000 | Plus property protection insurance for property damage |
| PIP medical | Choose one of six levels | Unlimited if you make no selection |
| Property protection insurance | Required | Pays for damage you cause to others' tangible property |
| Uninsured motorist | Optional | Offered but not mandatory |
After a crash you can still be sued - Michigan's no-fault shield has explicit gaps: accidents causing death, serious injury or permanent disfigurement, crashes involving non-resident occupants or vehicles registered outside Michigan, out-of-state accidents, and small-property disputes up to $3,000 when you are 50% or more at fault for another driver's vehicle damage.
Six PIP medical choices, one default
| PIP level | Who can select it |
|---|---|
| Unlimited | Anyone - and the default if you select nothing |
| Up to $500,000 | Anyone |
| Up to $250,000 | Anyone |
| Up to $250,000 with exclusion | Named insured or household members with qualifying non-Medicare health coverage |
| Up to $50,000 | Named insured enrolled in Medicaid, with household coverage conditions |
| No medical PIP (opt-out) | Named insured with Medicare Parts A and B, household conditions met |
Each level represents the most your auto insurer pays per person per accident for allowable medical expenses - care, rehabilitation, and funeral costs - with wage loss and replacement services covered for up to three years. Health coverage used to exclude PIP must have a deductible under $6,579 and must not exclude auto-accident injuries, which is the paperwork your health plan has to produce before the discount is yours.
The 2019 reform: what actually changed
Michigan's reform took effect July 1, 2020 and rewrote decades of the most expensive no-fault system in the country. Premium reductions were mandated by coverage level - insurers had to cut statewide average PIP medical premiums by at least 45% for the $50,000 option, 35% for $250,000, 20% for $500,000 and 10% for unlimited - on a schedule running through 2028.
- Rate factors banned outright: sex, marital status, home ownership, credit score, education, occupation, and ZIP code.
- Prior approval - carriers must get rates approved before offering them to consumers.
- Guaranteed renewability and consumer protections against non-renewal for a 30-day PIP lapse.
- Audits of the Michigan Catastrophic Claims Association every five years.
- A fraud investigation unit with new fines, and managed-care PIP options.
Where Michigan rates land
Michigan historically ranked among the most expensive states for full coverage, and while PIP choice compressed premiums after 2020, the state remains costly: high medical utilization, generous benefits, severe-weather comprehensive claims, and Detroit-area repair density all press on the price. The 2019 law removed some non-driving factors from the equation, but it did not make Michigan cheap.
The single most effective lever is the PIP election itself - the difference between unlimited and a $250,000 limit sized to your actual health coverage is hundreds of dollars a year in some quotes. After that, the usual stack applies: vehicle safety ratings, higher comp and collision deductibles, bundling, and telematics where offered.
Shopping checklist for Michigan drivers
- Bring your health plan's accident-exclusion language to the quote - it determines whether PIP exclusion or reduction is available.
- If household members have their own auto policies, coordinate - duplicate PIP is pure waste.
- Verify whether the quote's PIP level matches what you actually selected; default unlimited is the expensive fallback.
- Price comp and collision against your vehicle's value annually.
- Use the Department of Insurance and Financial Services complaint line (833-ASK-DIFS) if a rate or claim feels off.
Michigan's DIFS publishes consumer guides for each coverage decision - PIP selection, bodily injury limits, and how to appeal a claim denial - and the department's rate-review posture after the reform is more aggressive than most state regulators.
Related pages
- How car insurance works
- How to get the cheapest car insurance rates
- Auto insurance in California
- Auto insurance in Florida
- Auto insurance hub
Frequently Asked Questions
Is Michigan a no-fault state?
Yes - one of the strictest. Your PIP pays your medical costs regardless of fault, but you can still be sued for pain and suffering when an accident causes death, serious injury or permanent disfigurement, or when the crash involves out-of-state vehicles.
What happens if I don't choose a PIP level?
Your policy is issued with unlimited PIP medical coverage and charged the corresponding premium. The default is deliberately expensive so drivers make an active choice.
What are Michigan's minimum auto insurance limits?
$50,000 bodily injury per person, $100,000 per accident, and $10,000 property damage - plus required property protection insurance and a PIP medical choice. Default full policies carry $250,000/$500,000 liability.
Can my insurer use my credit or ZIP code in Michigan?
No. Since the 2019 reform, Michigan prohibits auto rates based on sex, marital status, home ownership, credit score, education, occupation, or ZIP code.
What is Michigan's mini-tort?
When you are 50% or more at fault for damage to another person's vehicle that their insurance does not cover, you can be sued for up to $3,000. It is part of the residual liability that exists alongside no-fault.
Last updated: 2026-10-01