Michigan car insurance requirements
Every driver in Michigan must carry at least this coverage. It’s a no-fault state: your own personal injury protection pays first for your injuries, whoever caused the crash.
| Coverage | Minimum required |
|---|---|
| Bodily injury liability | $50,000 per person / $100,000 per accident (default is $250,000/$500,000 unless you choose lower) |
| Property damage liability (outside Michigan) | $10,000 per accident |
| Property protection insurance (inside Michigan) | $1 million |
| Personal injury protection (PIP) | Choice of levels — see below |
State minimums protect other people, not you or your car. Most drivers choose higher limits, plus collision and comprehensive if their car is financed or worth repairing.
What Michigan drivers should know
- Michigan is a no-fault state. Since the 2020 reform you choose your PIP medical level — unlimited, $500,000, $250,000, or lower options if you qualify (for example with Medicaid or Medicare coverage).
- A lower PIP level reduces your premium but leaves you more exposed after a serious crash; check what your health insurance covers before choosing.
- Michigan’s “mini-tort” lets you recover up to $3,000 from an at-fault driver for vehicle damage your own policy doesn’t pay.
Home insurance in Michigan
- Winter is tough on Michigan homes — frozen pipes, ice dams and snow load cause many claims.
- Spring storms, basement flooding and sewer backup are common; flood and water backup need separate coverage or endorsements.
- The Michigan Basic Property Insurance Association (the state FAIR Plan) provides coverage when private insurers decline.
Ways to save in Michigan
- Compare several companies. Prices for the same driver and home can vary widely between insurers — comparing is the fastest way to find a better rate.
- Bundle auto and home. Many insurers discount both policies when you buy them together.
- Raise your deductibles if you could comfortably pay more out of pocket after a claim.
- Ask about discounts for safe driving, paying in full, home security devices and newer roofs.