Michigan Auto Insurance
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Michigan Auto Insurance Requirements
Don’t assume that the auto insurance regulations in Michigan are comparable to those in other states. They’re not and in fact, each state passes its own laws regarding auto insurance. That’s why you need to research the laws before making any assumptions and any auto insurance purchasing decisions.
Michigan is a “No-Fault” state
The first thing your research will reveal is that Michigan is one of the “No-Fault” states. In a no-fault state, a motorist gives away his or her right to sue after an accident. There is no need to dispute who was at fault since the insurer pays the claims of the insured regardless of which party caused the accident. The exception is when the accident causes loss of life or serious injury. Every car registered in Michigan must carry auto insurance.
Michigan auto insurance mandates
As a no-fault state, Michigan mandates that auto insurance policies contain three types of coverage: PIP, PPI and Bi/PD.
- PIP or Personal Injury Protection pays all of the insured’s medical costs for bodily injury caused by an accident and loss of wages for the insured, as well as passengers, pedestrians, bicyclists or motorists. Having other health or disability coverage can help reduce the insured’s PIP premium.
- PPI or Property Protection Insurance pays for any property damage that the insured’s vehicle causes in Michigan such as damage to a building, sign, fence, etc.
- BI/PD or Bodily Injury and Property Damage Liability pays to defend the insured in lawsuits when the accident the insured causes results in another person’s death or serious injury. It also covers property damage caused in another state.
Minimum amount of coverage
The minimum amount of coverage Michigan drivers are required to have is 20/40/10 or up to $20,000 per person when that person is injured or killed, up to $40,000 per accident involving injury or death of several people, and $10,000 coverage for property damage that occurred in another state.
Non-mandated insurance coverage
Other non-mandated coverage Michigan residents should consider is Collision and Comprehensive which pays for repairs or replacement when the insured’s car is damaged as long as the damage meets certain criteria.
Michigan Department of Financial and Insurance Services
If you’d like to learn more about Michigan’s laws regarding auto insurance, you can visit the Lansing office of the Department of Financial and Insurance Services in person or on the web: http://www.michigan.gov/ofis, or contact the Department at 877-999-6442 or 517-373-0220.