Michigan car insurance laws

All Michigan drivers must have car insurance. To comply with state laws, drivers must have minimum car insurance coverage and certain types of insurance. Insufficient insurance coverage can be illegal, and it can lead to severe consequences for even first-time offenders.

It doesn’t matter if you’re a Michigander for a long time or a new driver in Michigan, it is crucial to have a good understanding of Michigan’s car insurance laws. Michigan recently changed its car insurance laws. Michigan’s auto insurance reform changed the law regarding PIP coverage. This affects all Michigan drivers.

Continue reading to find out more about Michigan’s latest requirements for car insurance.

Michigan laws regarding car insurance

Michigan drivers must follow several car-insurance laws. These laws may differ from those in other states, as Michigan is considered a no fault state. These are the Michigan laws that govern car insurance:

  • Insurance requirement. Michigan mandates that all drivers have a minimum amount in car insurance as required by law.
  • Proof that insurance is required: Michigan drivers are required to have proof of insurance with them at all times. It is possible to provide electronic proof of insurance.
  • Inability to provide proof of insurance: Drivers who are unable to produce proof of insurance can have their license suspended.
  • Minimum insurance requirements for drivers: Drivers need to have at least 50/100/10 liability insurance. Personal Injury Protection (PIP), and Property Protection Insurance(PPI) must all be in place.

Michigan Liability Insurance

All drivers in Michigan must have bodily injury liability coverage. This coverage is commonly abbreviated to 50/100/10 in Michigan. If a driver is sued for hitting another driver, or causing damage to property, liability insurance pays the legal fees. Here’s what liability coverage in Michigan includes:

  • $50,000 bodily injury liability coverage per individual
  • $100,000 bodily injury liability coverage per accident
  • $10,000 per accident in property damage liability coverage

Michigan drivers who have the minimum liability coverage will typically pay the lowest rates. Most insurance companies recommend that drivers buy more liability coverage than they need. It is not guaranteed that Michigan’s minimum liability coverage will cover all costs of an accident.

Imagine a driver running through a storefront, causing $30,000 worth of property damage. The minimum property damage insurance that a driver needs, which is $10,000 would cover the $20,000 remaining. Drivers without this coverage would need to pay out-of-pocket the $20,000 remainder. Michigan law only allows insurance companies to cover the maximum liability coverage for covered losses.

Is Michigan an example of a state that isn’t at fault?

Michigan is one 12 state that does not have to pay for insurance. No-fault drivers pay less for insurance, but get more coverage. Michigan law requires that Michigan drivers carry Personal Injury Protection (PIP) under no-fault. Property Protection Insurance (PPI), is also required. These coverages are described below:

  • Personal injury protection: PIP coverage covers medical expenses and lost wages after an accident. The new Michigan law gives consumers six options for PIP medical coverage. There is no maximum limit on the default coverage. In the event that a driver is involved in an accident and dies, their insurance company will pay their dependents a funeral benefit.
  • Property Protection Insurance In the event that a driver causes property damages in Michigan, their PPI insurance will cover up to $1,000,000 to repair the damage. This coverage covers stationary objects such as buildings, fences and parked vehicles. If the damage is outside Michigan, the property damage liability coverage will cover the costs.

Michigan drivers without insurance face severe penalties

It is illegal to drive without Michigan car insurance coverage. The Secretary of State may suspend the license of Michigan drivers who can’t show proof of their car insurance. Drivers may need to obtain an SR-22 in order to have their license restored. They also might be required by the Secretary of State to pay a fine. The Secretary of State can cancel a driver’s license plates if they fail to show proof of insurance within the prescribed timeframe.

Michigan offers additional auto insurance options

Michigan drivers must have liability, PIP and PPI coverages. However, many drivers opt to buy optional coverages. You will receive more protection, even though your car insurance premium will go up. These are the most popular add-on coverages for Michigan drivers:

  • Collision insurance is Insurance that covers the cost of repairing your vehicle after an accident. If you cause an accident, collision insurance will not cover the cost of repair for another driver’s vehicle.
  • Comprehensive Insurance: Comprehensive Insurance covers your vehicle for damages caused by non-accidental events, such as floods or falling objects. This coverage covers vehicle theft.
  • Uninsured/underinsured motorist insurance: Uninsured/underinsured motorist coverage pays for vehicle damages if you get into an accident with a driver who does not have insurance or does not have enough insurance to cover the losses.
  • Roadside Assistance: Side assistance covers certain vehicle repairs, towing and battery replacement, as well as fueling, if your car is inoperable.

Questions frequently asked

Which Michigan car insurance company is best?

There are many Michigan car insurance companies. Each one has its own strengths and weaknesses. Our review revealed that Geico, USAA, and Erie are the top-rated car insurance companies in Michigan.

What is the cost of Michigan car insurance?

The average full coverage car insurance premium in Michigan is $2,375 annually. The average premium in the United States is $1,738 annually. Michigan is the most expensive state for car insurance, due to a number of factors.

Which Michigan car insurance company is the most affordable?

Michigan insurance is expensive. Most Michigan drivers want to find affordable rates. While car insurance in Michigan can be more expensive than the average, there are many providers who offer lower rates. Michigan drivers looking for affordable insurance in Michigan should look into USAA, Progressive and Geico.