Michigan’s Mandated Minimum Auto Insurance Coverage

Michigan drivers are required by law to carry specific types of auto insurance coverage under the state’s no-fault system. These minimums are designed to ensure that accident victims receive prompt medical care and compensation, while also protecting drivers from liability.

Here’s what’s required:

Personal Injury Protection (PIP): This covers medical expenses and lost wages for you and your passengers, regardless of who caused the accident. Michigan allows drivers to choose from several coverage levels, including unlimited, $500,000, or $250,000, depending on their health insurance status.

Property Protection Insurance (PPI): Michigan mandates $1 million in coverage for damage your vehicle causes to another person’s property (excluding vehicles), such as buildings, fences, or parked cars.

Bodily Injury Liability (BI): This protects you if you’re sued for injuries caused in an accident. The default minimums are $250,000 per person and $500,000 per accident, though drivers can opt for lower limits of $50,000/$100,000.

Property Damage Liability (PD): Michigan requires coverage for damage caused to another vehicle outside the state.

The state mandated minimums are often not adequate protection. Understanding the correct amount of coverage is why our clients appreciate working with a trusted advisor. Individual liability limits should be based on many personal factors. Many drivers choose higher limits and add optional coverages like collision and comprehensive to better protect themselves and their assets. With Michigan’s recent reforms, it’s more important than ever to understand your options and tailor your policy to your needs.