Michigan Car Insurance Regulations & Required Coverage

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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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

UPDATED: Sep 24, 2020

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Michigan insurance laws require all drivers to obtain liability insurance coverage before driving a vehicle. The state follows a no fault system and requires personal injury protection coverage in addition to standard bodily injury coverage. There are also other options available that you should consider when looking for a Michigan insurance policy.

Michigan is a no-fault state. When an accident occurs, each individual driver’s insurance policy covers their claims up to a specified limit regardless of who is found at fault in the accident. In a no fault state, drivers usually will lose some of their rights to sue the at fault driver but specific regulations vary from state to state.

Required Coverage

All personal vehicles in Michigan require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage

Additionally, the following coverage is required:

  • Property Protection Insurance
  • Personal Injury Protection (PIP)
Minimum Michigan Car Insurance Requirements
Bodily Injury Liability $20,000 / $40,000 Limit
Property Damage Liability $10,000 Limit
Property Protection Insurance $1,000,000 Limit
Personal Injury Protection Medical & Work Loss

Additional insurance coverage can include:

  • Uninsured / Underinsured Coverage
  • Comprehensive and Collision Coverage

Uninsured / Underinsured will provide coverage if you are in an accident with someone who is uninsured or underinsured. However, since Michigan is a no-fault state, uninsured coverage only comes into affect after you reach your PIP limits. In addition, if you have a good health insurance plan, you may not need this type of additional coverage since your health insurance will also help pay for damages. Nevertheless, uninsured / underinsured coverage will also help replace lost wages if you are unable to work so it can be beneficial to have.

Collision coverage pays for damages to your vehicle in the event that it is involved in an accident. Comprehensive covers damages not related to an accident such as a fire or having your car stolen. Each coverage has a deductible that you can set to keep costs low or to keep protection high. Visit our list of the most stolen vehicles in Michigan. If your car is more at risk than others, it would be smart to get comprehensive insurance.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card
  • Insurance Policy Certificate

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • After an accident
  • When renewing your license plates or registration unless your insurance agency participates in the State Department’s Electronic Insurance Verification program
  • Anytime you are operating a vehicle

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance when asked, you can face one of the following penalties:

  • Suspension of license
  • Suspension of license plates and vehicle registration
  • Minimum fees of $200

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