Michigan Car Insurance Regulations & Required Coverage

If you own a car in Michigan, you may be curious about the requirements for auto insurance coverage. Michigan has strict laws concerning how much coverage a car owner must have to drive legally.

When you purchase a car insurance policy in Michigan, virtually every insurance company will ensure you are carrying proper insurance to meet Michigan’s car insurance requirements. But it’s a good idea to double-check your current insurance coverage to be sure you meet the Michigan insurance laws and regulations.

Do you need car insurance in Michigan?

Anyone who owns a car in Michigan must have car insurance. Michigan auto insurance minimum requirements state that all car owners must carry the following coverage:

• Bodily injury liability ($20,000 per person, $40,000 per accident)
• Property damage liability ($10,000)
• Personal injury protection (choice of level)
• Property protection insurance ($1,000,000 per accident)

Most auto insurance companies in Michigan will know Michigan car insurance laws and ensure each customer carries the proper coverage to drive safely and legally in the state. But it is your responsibility as a car owner to ensure you maintain the appropriate coverage. 

Because Michigan car insurance requirements are straightforward, it should not be difficult for you to find the coverage you need. But many drivers in the state find that Michigan auto insurance requirements leave a lot to be desired when it comes to coverage that protects themselves and their property. 

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How does car insurance work in Michigan?

Michigan liability car insurance does not protect drivers or their property. Instead, the liability coverage required in the state protects other drivers and pedestrians, and it keeps properly-insured drivers from facing tedious and intimidating lawsuits.

Because the minimum auto insurance in Michigan does not offer extensive protection to drivers, many people choose to carry more than the minimum required coverage. 

The table below shows different coverage options available to Michigan drivers.

If you drive a new car, are financing or leasing a vehicle, or want to make sure you have the best coverage possible, you may consider carrying comprehensive and collision coverage on top of Michigan’s liability coverage requirements. 

With comprehensive coverage, your car has protection against damage caused by vandalism, inclement weather, and other non-driving-related incidents. When drivers combine comprehensive coverage with collision coverage – which protects drivers and their vehicles from damages caused during a car accident – this is considered a full coverage policy.

Is Michigan a no-fault state?

Michigan is a no-fault state, which means that your insurance company will cover personal injuries, medical expenses, wage loss, and damage caused to other people’s property. But this is only the case if you carry proper insurance coverage.

With no-fault insurance, you may still find that the minimum required coverage is not enough to cover everything. If this is the case, you should consider adding extra coverage. 

Personal injury protection (PIP) laws in Michigan require all drivers to carry this coverage, which is available at several levels:

• Unlimited (covers all reasonable expenses)
• $500,000 limited coverage
• $250,000 limited coverage
• $50,000 limited coverage (available only to specific households)

These changes, enacted in 2020, are designed to reduce the insurance cost in Michigan. To qualify for the lowest limits, the driver must have Medicaid, and all other household members must also have Medicaid or a qualifying health or PIP plan elsewhere.

Drivers are also required to carry no-fault property protection insurance (PPI) that will cover damage to property.

How much is Michigan auto insurance?

The amount people pay for car insurance in Michigan depends on several factors, including:

• Age
• Gender
• Car make and model
• Coverage amounts
• Credit score
• Occupation
• Deductible

The table below shows the average annual car insurance rates in each state.

Michigan rates tend to be pretty expensive. So as you shop around for car insurance coverage, it’s a good idea to compare quotes from the best insurance companies to find one that offers the coverage you want at a price that fits your budget.

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Are there specific Michigan auto insurance laws for minors?

Michigan car owners must carry the state’s minimum coverage regardless of their age. So a Michigan driver under 21 should not carry any less than the state’s minimum coverage amount. 

In some cases, Michigan minors may be added to their parents’ auto insurance policies. This could help teens save on car insurance premiums, especially if they take advantage of specific coverage discounts, such as multi-policy, new driver, or paid-in-full.

Michigan Auto Insurance: The Bottom Line

If you own a car in Michigan, you need to carry no less than a 20/40/10 liability insurance policy with personal injury protection (PIP) and property protection insurance (PPI). Proper Michigan proof of insurance will show at minimum the required liability, PIP, and PPI coverage.

If you are interested in better protecting your vehicle, you may want to add additional coverages, like collision and comprehensive. 

Michigan car insurance rates are higher than in most other states. To save on car insurance premiums, you can compare quotes from multiple companies before making a final decision on coverage.