Michigan Motor Insurance Laws | Bank rate


The law requires all Michigan drivers to purchase auto insurance. More specifically, drivers must have a minimum amount of insurance and certain types of insurance to comply with state laws. Driving without adequate insurance is illegal and has serious consequences for first-time offenders.

Whether you are a lifelong Michigan driver or a new Michigan driver, a solid understanding of Michigan auto insurance laws is important. Michigan recently changed the state’s auto insurance laws. Michigan auto insurance reform changed the laws surrounding PIP coverage, which affects all Michigan drivers.

Read on to learn about the latest Michigan auto insurance requirements.

Motor Insurance Laws in Michigan

Michigan drivers must obey several Motor Insurance Laws. Some of these laws are different from other states because Michigan is considered error-free. Here are the basic laws surrounding auto insurance in Michigan:

  • Insurance obligation: Michigan requires all drivers to have a minimum amount of auto insurance as determined by state law.
  • Proof of insurance: Michigan drivers must have proof of insurance in their vehicle at all times. Electronic proof of insurance is permitted.
  • No proof of insurance: Drivers who are unable to provide proof of insurance at the request of the law enforcement authorities may have their driving license withdrawn.
  • Minimum insurance requirements: Drivers must have at least 50/100/10 liability insurance, personal injury protection (PIP) and property protection insurance (PPI).

Liability Insurance in Michigan

Michigan requires all drivers to have personal injury liability insurance and property damage liability insurance. In Michigan, this coverage is often abbreviated as 50/100/10. Liability insurance covers a driver’s legal fees if they are sued after a collision with another driver or property damage. Here is something Liability Insurance in Michigan covers:

  • $ 50,000 Personal Injury Liability Insurance
  • $ 100,000 liability insurance per accident
  • $ 10,000 in property damage liability insurance per accident

Michigan drivers with minimum liability insurance typically pay the lowest rate. However, most insurance companies recommend that drivers get more liability insurance than is required. There is no guarantee that Michigan minimum liability insurance limits will cover the full cost of an accident.

For example, imagine a driver drives through a store front and causes $ 30,000 in property damage. If the driver had the minimum property damage insurance of $ 10,000, they would have to pay the remaining $ 20,000 out of pocket. In Michigan, insurance companies only have to pay up to the liability limit for a covered loss.

Is Michigan a Healthy State?

Michigan is one of 12 flawless states in the United States. Drivers in no-fault states usually pay more for their insurance coverage, but they also get more protection. The flawless law requires Michigan drivers to carry Personal Injury Protection (PIP). Property protection insurance (PPI) is also required. Here’s what these covers include:

  • Protection against personal injury: After an accident, PIP coverage pays medical costs and lost wages, regardless of which driver caused the accident. Under the new Michigan law, consumers have a choice of 6 options for medical PIP coverage. The standard coverage has no upper limit. If a driver dies in an accident, his insurance company pays his surviving dependents a death benefit.
  • Property protection insurance: If a driver causes property damage in Michigan, their PPI coverage will pay up to $ 1 million to repair the damage. This coverage applies to stationary objects such as another person’s buildings, fences, and parked cars. If the damage occurs outside of Michigan, your property damage liability insurance will cover the damage.

Penalties for driving without insurance in Michigan

Driving in Michigan without auto insurance is illegal and has consequences. Michigan drivers that cannot show proof of vehicle insurance their license can be suspended by the Foreign Minister. To regain your driver’s license, drivers may need to secure an SR-22 and pay a fine. If a driver fails to provide proof of insurance within a certain period, the Foreign Minister has the right to erase the license plates of his car.

Additional options for auto insurance coverage in Michigan

Although Michigan drivers only need to wear liability, PIP, and PPI covers, many drivers choose to purchase optional coverage. Purchasing optional coverage will increase your car insurance premium, but you will get more protection. Here are some of the most common supplemental plans available to Michigan drivers:

  • Accident insurance: Liability insurance pays for damage to your vehicle after an insured accident. Accident insurance doesn’t pay to fix another driver’s car if you cause an accident.
  • Fully comprehensive insurance: Fully comprehensive insurance pays to repair damage to your vehicle after non-accident accidents such as flooding and falling objects. This insurance also pays in the event of vehicle theft.
  • Uninsured / underinsured car insurance: Uninsured / underinsured motorist insurance pays for vehicle damage if you have an accident with a driver who is not or insufficiently insured to cover the damage.
  • Roadside Assistance: Roadside assistance includes certain vehicle repairs, towing, battery changes, and refueling when your car breaks down.

frequently asked Questions

What is the Best Auto Insurance in Michigan?

There are dozens of auto insurance companies in Michigan and each has its strengths and weaknesses. Based on our rating, some are the best auto insurance in michigan are Geico, USAA and Erie.

How much does auto insurance cost in Michigan?

In Michigan that average fully comprehensive car premium costs $ 2,375 per year. In comparison, the average premium in the US is only $ 1,738 per year. Michigan is one of the most expensive states for auto insurance for a number of reasons.

What is the cheapest auto insurance in Michigan?

Most motorists look for an affordable rate when purchasing Michigan insurance. Although auto insurance in Michigan is more expensive than average, there are several providers that are known to offer cheaper rates. Michigan drivers who are looking cheap insurance should consider Geico, Progressive and USAA.


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