Mandatory Auto Insurance Coverages in Michigan

The mandatory auto insurance coverages in Michigan under the No-Fault law include personal protection insurance which provides PIP benefits to car accident victims, bodily injury liability insurance in the event that a driver causes a car crash and property protection insurance.

Is auto insurance mandatory in Michigan?

It is required in Michigan if you own – or if you have registered in your name – a motor vehicle that you drive regularly in this state. The mandatory coverage under the No-Fault law pays for a car accident victim’s medical bills and lost wages and provides liability coverage in at-fault car crashes.

Why is it required?

It is required in Michigan so that anyone injured in a car accident would have access to the coverage they need to pay for their accident-related medical bills and lost wages. It also ensures that at-fault drivers have liability coverage to pay compensation to the people they injure.

What are the mandatory auto insurance coverages in Michigan?

The mandatory auto insurance coverages in Michigan include: (1) personal protection coverage that pays for a car accident victim’s medical bills and lost wages; (2) bodily injury liability in case a driver injures someone in a car; and (3) coverage for damage to tangible property.

Here is more detail about these coverages that are required under the No-Fault law:

• Personal Protection Coverage (which is also known as Personal Injury Protection (PIP)): This coverage provides No-Fault PIP benefits to seriously injured car accident victims, which reimburses them for medical expenses, a percentage of their lost wages, attendant care (in-home nursing services) and replacement services (help with household duties).
• Bodily Injury Liability (BI) or Residual Liability Coverage: This coverage protects you in the event you cause an accident that resulted in serious injuries to someone else. The law requires minimum coverage limits of $250,000 of BI coverage per person and $500,000 per accident, but drivers may choose to purchase lower limits of $50,000 and $100,000. However, our attorneys recommend that you never carry less than $500,000 per person and $1,000,000 per accident to fully protect yourself. The difference is usually only a few dollars more.
• Property Protection Coverage (PPI): This mandatory auto insurance coverage covers damage you cause to “tangible property” such as parked cars or other property (i.e. buildings, fences, trees, lawns, etc.) within the state of Michigan. Every Michigan auto policy has a mandatory $1 Million of PPI coverage.

Additionally, as part of a driver’s liability coverage, he or she is required to purchase $10,000 of property damage coverage to protect them in the event they cause damage to another person’s vehicle outside the state of Michigan. Importantly, our attorneys recommend that you carry a minimum of $100,000. For example, if you travel to Ohio, which is a tort state (Michigan is a No-Fault state) and you cause a crash, you would be responsible for all of the other driver’s car damage.

Are you required to have coverage?

You have a duty to buy the mandatory auto insurance required under Michigan’s No-Fault law when both of the following two circumstances exist:

• When your “motor vehicle” is “required to be registered” in Michigan. (MCL 500.3101(1))
• When you plan on driving or moving your “motor vehicle … upon a highway.” (MCL 500.3101(1))

Registration consists of getting license plates and a registration certificate from the Michigan Secretary of State.

Driving without the mandatory auto insurance coverages in Michigan is very dangerous both from a medical and health perspective as well as from a legal perspective. There are serious penalties if you do not carry No-Fault insurance. Plus, you leave yourself vulnerable if you’re injured in an accident and you’re uninsured. Read about the penalties for driving uninsured here.

Injured and need a lawyer? Call Michigan Auto Law

If you have been injured in a car accident and you have questions about your legal rights to Michigan PIP benefits, you can call toll free anytime 24/7 at (800) 968-1001 for a free consultation with one of our experienced auto accident attorneys. You can also get help from an experienced accident attorney by visiting our contact page or you can use the chat feature on our website.