State guide
Car Insurance in Michigan
Updated August 2026
No state's auto insurance looks like Michigan's. Since the July 2020 reform, Michigan drivers choose their own PIP medical level — from unlimited lifetime benefits (still the default) down to $250,000, $500,000, a $50,000 option for Medicaid enrollees, or a full opt-out for some Medicare beneficiaries. Two policies from the same carrier can differ by hundreds of dollars a year purely on that one selection.
Liability works differently here too. The legal floor is $50,000 per person and $100,000 per accident of bodily injury coverage, but policies default to $250,000/$500,000 unless you sign a form choosing less. Add Property Protection Insurance — $1 million for damage your car does to buildings, fences, and parked vehicles in Michigan — and a $10,000 property damage limit that only applies out of state, and comparing Michigan quotes means comparing configurations, not just prices.
| Coverage | Required minimum |
|---|---|
| Bodily injury liability (per person) | $50,000 minimum ($250,000 default unless a lower limit is selected) |
| Bodily injury liability (per accident) | $100,000 minimum ($500,000 default) |
| Property damage liability | $10,000 (applies to accidents outside Michigan) |
| PIP / medical | PIP medical required — six coverage levels, unlimited by default |
| Additional requirements | Property Protection Insurance (PPI): $1 million for property damage caused in Michigan |
| No-fault state | Yes |
| SR-22 used | Yes |
Source: MCL 500.3009, 500.3107c; Michigan Department of Insurance and Financial Services (DIFS)
Average annual expenditure for auto insurance in Michigan was $1,319 in 2022, per the NAIC. (NAIC 2022 Auto Insurance Database Average Premium Supplement)
The PIP medical choice — Michigan's biggest price lever
Under Michigan's no-fault system, your own policy pays your medical bills after a crash regardless of fault. Before 2020, unlimited medical coverage was mandatory for everyone; now it's a menu. Unlimited coverage remains the default — if you don't actively select a level, that's what you get, along with its price.
The trade-off is real: lower PIP levels cut premium, but medical costs from a serious crash can outrun a capped benefit, and where coverage ends, your health insurance and personal assets pick up. Drivers with qualified health coverage have exclusion options that others don't. Because carriers price each PIP tier differently, the same person can see meaningfully different totals for identical selections across insurers — which is the comparison worth running.
Why Michigan liability has two sets of numbers
Michigan policies are written at $250,000/$500,000 bodily injury by default; you can select down to the $50,000/$100,000 statutory minimum only by signing a state form acknowledging the choice. That structure exists because Michigan's no-fault system still allows serious-injury lawsuits, and minimum limits leave more of a judgment uncovered.
Property damage is split in a way that surprises newcomers: inside Michigan, damage your car does to other people's property is paid by your $1 million PPI coverage (vehicle-to-vehicle damage largely runs through each driver's own collision coverage instead). The familiar per-accident property damage liability limit — minimum $10,000 — applies when you crash outside Michigan.
After a suspension: SR-22s in Michigan
Michigan's Secretary of State can require proof of financial responsibility — commonly an SR-22 filing from your insurer — after serious violations such as alcohol-related offenses or driving uninsured. The filing typically must stay in force for three years, and a lapse restarts the clock. Carriers treat SR-22 risks very differently, so drivers in this situation usually see the widest quote spreads in the state.
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Frequently asked questions
What car insurance is required in Michigan?+
Three mandatory pieces: PIP medical coverage (you choose the level; unlimited is the default), Property Protection Insurance of $1 million for damage caused in Michigan, and bodily injury liability of at least $50,000/$100,000 (policies default to $250,000/$500,000 unless you select less) plus $10,000 of property damage liability for out-of-state accidents, per MCL 500.3009.
Is Michigan still a no-fault state?+
Yes. After a crash, your own PIP coverage pays your medical costs regardless of fault. The 2020 reform didn't end no-fault — it added PIP medical choice levels and new liability defaults.
What PIP levels can Michigan drivers choose?+
Six options: unlimited coverage (the default), $500,000, $250,000, $250,000 with exclusions for those with qualified health coverage, $50,000 for Medicaid enrollees, and an opt-out available to some drivers with Medicare.
Why is Michigan's property damage minimum only $10,000?+
Because it only applies to accidents outside Michigan. Inside the state, damage your vehicle causes to others' property is covered by the mandatory $1 million Property Protection Insurance, and vehicle damage generally runs through each driver's own collision coverage.
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