Michigan Car Insurance Regulations & Required Coverage

The Michigan car insurance requirements consist of liability coverage, personal injury protection, and property protection insurance. The state specifies specific amounts of each type of coverage you need to drive legally.

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UPDATED: May 20, 2022

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Written By: Chris TepedinoReviewed By: Laura WalkerUPDATED: May 20, 2022Fact Checked

The Rundown

  • Car insurance laws in Michigan mandate that car owners carry no less than a 20/40/10 insurance policy
  • Michigan car owners must also have personal injury protection and property protection insurance
  • Michigan is a no-fault state

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.

Coverage ConsiderationsDescription
LiabilityMost states require you set amount of liability coverage which protects other drivers in the case of an accident
ComprehensiveThis coverage and collision coverage are typically required by your lender or lease holder. If you own your vehicle outright, this is an optional coverage. It will pay for damage from non-accident related events such as hail, vandalism, and theft.
CollisionThis provides financial protection for your vehicle. It will pay for damages after a crash.
Personal Injury Protection (PIP)This coverage will pay for your own medical costs including lost wages.
Medical Payments (MedPay)Similar to PIP, MedPay covers injury costs but doesn't cover lost wages like PIP does.
Uninsured/Underinsured Motorist ProtectionInsurance companies are required to offer this coverage to you and it will pay for your own damages beyond what another's liability covers when they're responsible for an accident.
Guaranteed Auto Protection (GAP)You may owe more on your vehicle than it's worth because of how quickly cars depreciate. This coverage will pay the difference between the value and what you owe if your vehicle is totaled.
Personal Umbrella Policy (PUP)This option provides an "umbrella" of coverage over several types of insurance.
Rental ReimbursementIf your car is a total loss or needs repair, do you have another vehicle you can drive? If you'll need a rental, you should consider this option.
Emergency Roadside AssistanceYou can purchase this option from your insurer or a driving club.
Pay-As-You-Drive or Usage-Based InsuranceThis isn't a good choice for everyone, but if you drive few miles, it might be cheaper for you to purchase this kind of coverage.
Non-Owner Car InsuranceThis option is for people who do not own a car but borrow one occasionally.
Modified Car Insurance CoverageIf you've made modifications to your vehicle, your regular full coverage won't take those changes into consideration when paying for damages. Adding special coverage for those modifications will protect the value of them.
Windshield CoverageWindshield coverage will help you pay for the replacement of your broken glass (check state laws for specifics)
Mechanical Breakdown InsuranceThis coverage is similar to a manufacturer extended warranty and you should weight the benefits of both a warranty and breakdown insurance to see which is best for you.
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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.

Average Annual Car Insurance Rates by State
StateAverage Annual Car Insurance Rates
District of Columbia$1,307.62
New Hampshire$777.98
New Jersey$1,353.96
New Mexico$896.58
New York$1,300.09
North Carolina$745.17
North Dakota$737.63
Rhode Island$1,219.29
South Carolina$910.51
South Dakota$717.73
West Virginia$1,015.57
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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.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Written by Chris Tepedino
Insurance Feature Writer Chris Tepedino

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent Laura Walker

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