Michigan Car Insurance Laws & Requirements (2023)


WRITTEN BY: Julia Matseikovich

UPDATED: DECEMBER 29, 2022 | 1 MIN READ

Car insurance laws in Michigan require you to have a mandatory 20/40/10 no fault insurance policy. You must carry car insurance in Michigan if you drive a motor vehicle.

In Michigan, you face serious consequences if you’re driving without insurance. We’ll walk you through car insurance laws in Michigan and their requirements.

Michigan car insurance minimum requirements

Car insurance laws in Michigan determine how much car insurance is required. The minimum requirements for auto insurance are as follows:

  • $20,000 bodily injury per person
  • $40,000 bodily injury per accident
  • $10,000 for property damage

Michigan car insurance laws require drivers to have PIP coverage (personal injury protection), and property protection insurance (PPI). Failure to comply with auto insurance requirements in Michigan, drivers, face consequences such as jail sentences, $500 fines, or both.

Liability coverage in Michigan

Michigan car laws require drivers to have liability coverage. It covers property damage for others harmed in an at fault accident, and bodily injuries. The other party receives compensation for lost wages, and pain and suffering.

Michigan is a no-fault state, so the coverage is only for if you are in an at-fault accident out of the state. Property damage liability doesn’t cover damage caused in the state of Michigan.

State-mandated auto insurance limits you should know

Car insurance limits are the amount your insurance provider pays in the event of a claim. Liability coverage limits vary depending on the state you live in. The coverage is split into three categories: bodily injury per accident, bodily injury per person, and property damage. The minimum listed for Michigan is 50/100/10 as the following:

  • $50,000 bodily injury coverage per person is the maximum your insurer pays for a single person.
  • $100,000 bodily injury coverage per accident is the maximum your insurer pays for all injuries in an accident.
  • $10,000 property damage coverage for accidents caused outside of Michigan.
  • Property protection insurance limits are $1 million.

Are Michigan’s minimum requirements providing enough coverage?

Probably not. Michigan insurance rates are typically high due to robust state minimum insurance requirements. Getting more than the minimum liability insurance required from your insurance company is always best to ensure you’re protected. 

You’re still financially responsible in an accident, even in a no-fault state. You want to ensure you’re able to cover the medical expenses and costs and not have to pay out of pocket.

Penalties for driving without proof of insurance in Michigan

For Michigan drivers, you must have proof of insurance if an officer pulls you over. If you’re found driving with no insurance, you’ll be charged with a misdemeanor and face the following penalties:

  • License suspended for up to 30 days plus a reinstatement fee
  • A fine between $200 and $500
  • A “driver responsibility” fee of $500 for two years
  • Court costs
  • Up to one year in prison

Michigan’s optional car insurance coverage

Michigan drivers must carry PIP coverage, PPI coverage, and liability coverage, but many drivers choose to purchase additional coverage. Buying additional auto insurance increases your insurance premium, but you get more protection. The most common add-on coverage options available for Michigan drivers:

  • Comprehensive coverage: Pays to repair vehicle damages after non-accident incidents, like natural disasters. It also covers vehicle theft and has a claim deductible.
  • Collision insurance: Pays to repair vehicles after an accident. It doesn’t cover another driver’s car and has a collision deductible.
  • Roadside assistance: Covers incidents such as battery replacement, towing services, and refueling your car if it breaks down.
  • Uninsured/underinsured motorist coverage: Pays for injuries and damages to your vehicles after an accident where the other driver is an uninsured motorist.

Why it’s important to follow Michigan car insurance laws and requirements

Michigan auto insurance tends to be higher than in other states, but car insurance is still required. Not all coverage is mandated, but carrying more than you need is recommended to protect you adequately in the event of a car accident. 

If your auto insurance premiums are high, start calling around to check for cheaper coverage elsewhere.

How much does the minimum car insurance cost in Michigan?

Many factors come into play when determining car insurance rates in Michigan. Factors include driving history, credit score, age, where you live, and the insurance company you choose.

USAA is the cheapest Michigan auto insurance policy at $889 yearly. It’s only available for current military members and their families. Nationwide is the second most affordable at $977 yearly.

Cheapest minimum liability car insurance in Michigan

The following five insurance providers have the cheapest Michigan car insurance.

CompanyMonthly
USAA$59
Nationwide$65
Auto-Owners Insurance Co$119
GEICO$124
Progressive$142

Minimum car insurance requirement in Michigan when leasing a car

The leasing company you use in Michigan might require you to have more than the minimum coverage. Most leasing companies require a full coverage car insurance policy with at least 100/300/50 coverage limits. It’s best to contact your leasing company to determine how much auto insurance you need.

Michigan has 25.5% of uninsured motorists in the country as of 2019. That means you’re at a high risk of being in a car accident with an uninsured motorist.

FAQs

Is Michigan a no-fault state and what does this mean?

Michigan is a no-fault state for auto insurance. Regardless of who is at fault for an accident, your insurer pays for any medical expenses resulting from the accident. You’re also compensated for lost wages and other costs incurred due to the accident.

Can you get car insurance without a license in Michigan?

Michigan auto insurance is available without a license, but you must provide details of a licensed person who is the primary driver. Michigan insurance laws state that you’re eligible for car insurance if you have a registered car, have a Michigan driver’s license, or want to register a car.

What is the best car insurance company in Michigan?

There are many car insurance companies in Michigan with many pros and cons. The best car insurance companies are GEICO, USAA, Auto-Owners, Travelers, and Progressive.

Why is insurance so expensive in Michigan?

You must have no-fault insurance in Michigan, and it’s more expensive than at-fault insurance. Michigan drivers also have high PIP coverage limits, which causes insurance companies to pay more. A high percentage of uninsured drivers contributes to the high cost of car insurance in Michigan.

Can you sue an uninsured driver in Michigan?

You’re able to sue uninsured drivers, but you typically file a claim with your own insurance first. The PIP coverage pays for medical expenses from the accident, and your collision coverage pays for damages to your car. It’s up to your insurer to sue the uninsured motorist for the money paid to you.

Get Coverage That Meets Michigan’s Car Insurance Requirments

It’s easy to purchase cheap car insurance in Michigan. You want to have the minimum coverage legally required in Michigan to protect you and your assets. Having the minimum amount of bodily injury liability coverage is important to avoid paying out-of-pocket costs.

If you’re ready to purchase Michigan car insurance, you should compare rates. We have a helpful tool to find the cheapest car insurance.