Michigan’s Statutory Liability Minimums
Michigan uses a no-fault auto insurance system. This means that your own insurance covers your injuries and related costs, regardless of who caused the accident.
As of 2025, these are the required minimums:
- Bodily Injury Liability (BI): $50,000 per person / $100,000 per accident
- Property Protection Insurance (PPI): $10,000 per accident (for damage within Michigan)
- Personal Injury Protection (PIP): Choice of unlimited or capped medical coverage
Michigan is the only state where unlimited medical PIP remains an option.
Optional Add-On Coverages
Drivers can enhance their protection with optional coverage such as:
- Collision Coverage: Covers damage to your car after a crash
- Comprehensive Coverage: Covers theft, fire, weather damage
- Uninsured/Underinsured Motorist (UM/UIM): Protection if the at-fault driver doesn’t have enough coverage
- Mini Tort Coverage: Up to $3,000 in recovery for out-of-pocket expenses if you’re not at fault
Full coverage is often required for leased or financed vehicles.
No Insurance In Michigan Has Consequences
Driving without insurance in Michigan can lead to:
- License suspension for up to 30 days or until proof is shown
- Vehicle registration cancellation
- Fines up to $500
- Jail time up to one year for repeat or serious violations
Note: Michigan does not allow payment plans or community service in place of insurance fines.
Michigan Proof Of Insurance Explained
Michigan uses electronic insurance verification during vehicle registration, plate renewals, and traffic stops.
- You must carry proof of insurance in the vehicle or have it accessible digitally
- The Secretary of State cross-checks active insurance policies with insurer databases
Failure to provide valid proof can result in immediate suspension of your vehicle registration privileges.
- PIP medical coverage (unlimited or capped option)
- BI Liability: $50,000 per person / $100,000 per accident
- PPI: $10,000 for Michigan-only property damage
- Proof of insurance required at all times
- Electronic verification used by Secretary of State
Frequently Asked Questions About Michigan Car Insurance
Is car insurance mandatory in Michigan?
Yes. All drivers must carry a no-fault insurance policy with PIP, bodily injury liability, and PPI.
What is Personal Injury Protection (PIP)?
PIP pays for your medical bills and lost wages, no matter who caused the accident. Michigan allows drivers to choose capped or unlimited coverage.
Does Michigan still use a no-fault system?
Yes. As of 2025, Michigan remains a no-fault state. Your insurer pays for your medical expenses even if you didn’t cause the accident.
Is Michigan’s insurance system expensive?
Michigan’s insurance costs are higher than most states, largely due to the availability of unlimited PIP and historical medical claims volume.
Does Michigan verify insurance electronically?
Yes. The Secretary of State conducts real-time electronic verification of insurance during renewals and registration.
Helpful Resources
- Michigan Secretary of State – Licensing and insurance laws
- Michigan DIFS (Department of Insurance and Financial Services) – Official insurance regulatory agency