Michigan Car Insurance Requirements (Updated for 2025)

Driving in Michigan requires proof of financial responsibility under a no‑fault system—including liability, PIP (Personal Injury Protection), and Property Protection Insurance (PPI). Coverage gaps or lapses can result in fines, suspension, misdemeanor charges, and significant financial risk.

🛡️ Mandatory Coverages & Minimum Limits

As of 2025, Michigan law mandates the following minimum auto insurance on every registered vehicle:

• Bodily Injury Liability: $50,000 per person / $100,000 per accident
• Property Damage Liability: $10,000 per accident
• Personal Injury Protection (PIP): Options include Unlimited, $500k, $250k, $50k (for Medicaid qualifiers), or full opt‑out with qualifying health coverage :contentReference[oaicite:1]{index=1}
• Property Protection Insurance (PPI): Up to $1 million per accident for damage to public or private property (e.g., fences, street signs) :contentReference[oaicite:2]{index=2}

No‑Fault System & Coverage Choices

Michigan is a pure no‑fault state. PIP covers medical bills and lost income regardless of fault. Depending on your health coverage, you can choose PIP limits from $50k to unlimited, or opt out entirely :contentReference[oaicite:3]{index=3}.

📄 Proof of Insurance Requirements

Drivers must carry proof of insurance (paper or electronic). If coverage lapses, registration is suspended until proof is back on file :contentReference[oaicite:4]{index=4}.

🚫 Penalties for Lapses or No Insurance

• Monthly fines: $200–$500 misdemeanor, up to 1 year jail, plus license suspension for ≥30 days :contentReference[oaicite:5]{index=5}.
• Registration: Suspended until coverage restored and reinstatement fee paid (~$125+) :contentReference[oaicite:6]{index=6}.
• Civil liability: Uninsured drivers lose no‑fault benefits and mini‑tort rights—may face full liability for others’ medical and property damages :contentReference[oaicite:7]{index=7}.

SR‑22 & High‑Risk Filing

A lapse-triggered restoration requires SR‑22 filing (certificate of financial responsibility); SR‑22 related rates average $1,939/year, and climbing to ~$3,025/year if tied to no‑insurance violation :contentReference[oaicite:8]{index=8}.

💰 Average Rates & Cost Impact

Minimum coverage averages around $999/year; full coverage averages $2,963/year :contentReference[oaicite:9]{index=9}. First no‑insurance violation can hike SR‑22 rates to ~$3,000+ annually :contentReference[oaicite:10]{index=10}.

📋 Optional Coverages to Consider

• Higher liability limits (e.g. 250/500/100 default)
• Uninsured/Underinsured Motorist BI and PD
• Collision & Comprehensive
• Rental Reimbursement & Roadside Assistance
• Umbrella liability

👥 Real-World Insights

“They wrote my ticket down to no proof of insurance … the lawyer … said ‘no, no one’s going to jail over that.’” :contentReference[oaicite:11]{index=11}

“Every ticket for driving without insurance … you are looking at paying around … $300 to $500 a month.” :contentReference[oaicite:12]{index=12}

Compare Auto Insurance Quotes in Michigan

Premiums vary based on PIP limit choice, driving record, and credit. Use comparison tools to find plan combos that balance coverage and cost.

🔍 Start Comparing Michigan Car Insurance Quotes →

FAQs

Is Michigan a no‑fault state?

Yes—PIP and PPI apply regardless of fault. You can sue for serious injury only.

Can I choose lower PIP limits?

Yes—you may opt for $50k, $250k, $500k, unlimited, or opt‑out (with qualifying health policy) :contentReference[oaicite:13]{index=13}.

What happens if I drive uninsured?

You’ll face $200–$500 fines, 30‑day+ suspension, SR‑22 requirement, and lose no‑fault benefits—leaving you personally liable for medical/property damages :contentReference[oaicite:14]{index=14}.