Types of Car Insurance Coverage in Michigan: What You Need To Know
Michigan No-Fault Law requires drivers to carry No-Fault insurance. Below is a list of the four types of car insurance coverage you’re required to have by law.
4 Types of Car Insurance Coverage in Michigan That Are Mandatory Michigan
These four types of car insurance in Michigan that are mandatory and comprise what is commonly referred to as “personal liability and property damage” coverage or “PLPD.” PLPD insurance provides the minimum insurance coverage that is required by law and does not include optional coverages such as collision, comprehensive and/or UM/UIM.
- Personal Injury Protection (PIP): This coverage provides what are commonly known as “No-Fault PIP Benefits.” If you’re seriously injured in an auto accident, No-Fault PIP benefits provide reimbursement for medical expenses, a percentage of your lost wages, attendant care (in-home nursing services) and replacement services (help with household duties).
- Property Protection Insurance (PPI): This Michigan car insurance covers damage you cause to 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.
- Residual Bodily Injury Liability (BI): Protects you in the event you cause an auto accident that resulted in serious injuries to someone else. Prior to July 2, 2020, the law requires a minimum of $20,000 of BI coverage per person and $40,000 per accident. Starting on July 2, 2020, drivers will be required to have minimum BI coverage of $250,000 and $500,000 – unless they specifically choose lower limits of $50,000/$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 Damage (PD): This Michigan car insurance coverage protects you in the event you cause damage to another person’s vehicle outside the state of Michigan. The law requires a minimum of $10,000 of PD coverage. However, 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.
Here’s more information on the Michigan car insurance requirements
6 Types of Car Insurance Coverage in Michigan That Are Optional
There are also several other types of car insurance coverage in Michigan that are optional that you can purchase to protect yourself under various circumstances. Below is the list of optional coverage available:
- Collision Coverage: Broad, Standard or Limited. Here’s more about collision insurance.
- Comprehensive Coverage: Covers theft, fire, glass damage unrelated to a collision, etc.
- Uninsured/Underinsured Motorist Coverage: Uninsured and Underinsured Motorist Coverage (UM/UIM) covers you in the event you’re in a crash with a driver who does not have No-Fault insurance or has an inadequate policy. Here’s more information about underinsured motorist coverage and underinsured motorist coverage.
- Mini tort Coverage (also called Limited Property Damage): This covers up to the first $1,000 of damage to a motor vehicle not otherwise covered by insurance. For car accidents that occur after July 1, 2020, the maximum mini tort recovery amount will increase to $3,000. Take a look at our FAQs about Michigan mini tort.
- Gap Coverage: Covers difference in value between what a car is worth and what is owed on it.
- Accidental Death Coverage: This is essentially life insurance in the event you or a passenger is killed in an auto accident.