Michigan Car Insurance

By Javier Marín, Editor·Last reviewed September 2026·How we check this

Michigan operates a unique no-fault auto insurance system that was overhauled in 2019. Drivers now choose their own Personal Injury Protection (PIP) medical limit at the carrier, and the state's bodily-injury minimums rose to 50/100 from the prior 20/40. Michigan also requires a $1 million Property Protection coverage that is unique to the state.

The 2019 overhaul

For decades, Michigan was the only state with mandatory Unlimited PIP — every Michigan policy paid unlimited lifetime medical benefits regardless of who caused the crash. This drove premiums to among the highest in the country. The 2019 reform allowed drivers to opt for lower PIP limits, dropping premiums for many households while preserving the no-fault structure.

Choice PIP coverage tiers

Michigan drivers now choose from these PIP medical-coverage levels:

$50,000 — available only to drivers enrolled in Medicaid; lowest cost.
$250,000 — basic level for working-age adults.
$500,000 — middle level.
Unlimited — historical Michigan default; covers lifetime medical care for catastrophic crash injuries.
Opt-out — drivers covered by qualifying Medicare can opt out of PIP entirely. The auto policy then carries no medical-benefit coverage.

Households with private health insurance often choose $250,000 or $500,000 for a meaningful premium reduction. Households without private health insurance or with chronic medical conditions typically retain Unlimited PIP because it's the most reliable long-term medical safety net for catastrophic injuries.

Bodily Injury (BI) minimums

Michigan's bodily-injury liability minimums rose to 50/100 in July 2020:

$50,000 per person bodily injury liability.
$100,000 per accident bodily injury liability.
$10,000 property damage liability (for damage outside Michigan; Michigan has its own PPI for in-state property damage).

Higher limits — 100/300 or 250/500 — are common upgrades, especially in higher-asset households.

Property Protection Insurance (PPI)

Michigan is the only state with a separate $1 million Property Protection Insurance requirement. PPI pays for damage the policyholder causes to property in Michigan — buildings, fences, parked cars, utility poles, and similar:

Coverage limit: $1,000,000 per accident.
Applies only within Michigan.
Required on every Michigan auto policy.
Pays without regard to fault for in-state property damage.

For property damage outside Michigan, the standard 10/10 (or higher) PD liability portion of the policy applies.

Uninsured/Underinsured Motorist

Michigan does not require uninsured/underinsured motorist (UM/UIM) coverage by statute, but most carriers offer it as an add-on. UM/UIM matches the BI limits the driver elects (typically 50/100, 100/300, or higher). Michigan has lower UM/UIM enrollment than many states because the no-fault PIP system handles most medical costs regardless of fault.

Comprehensive and collision

Comprehensive (other-than-collision) and collision are optional under Michigan law but typically required by lenders. Standard deductibles run $250-$1,000.

SR-22 filings

Drivers who have had an OWI, no-insurance suspension, repeat moving violation, or court-ordered insurance requirement must file financial responsibility documents:

SR-22 — for most Michigan post-suspension drivers, filed by the carrier with Michigan SOS. Maintained for 3 years from reinstatement.
SR-22 carriers in Michigan include the major carriers and several specialty markets.
SR-22 premiums run 20-50% higher than equivalent non-SR-22 coverage.
A lapse during the 3-year period triggers immediate license re-suspension.

See Michigan suspended license for the broader reinstatement process and Michigan OWI laws for the OWI-specific timing.

Premium drivers in Michigan

Michigan auto insurance premiums have historically been among the highest in the country. The 2019 reform reduced premiums for many drivers, but rates remain elevated due to:

Mandatory PPI on every policy.
High urban accident frequency in Detroit metro.
Catastrophic-claim costs in Unlimited PIP policies.
Repair costs in northern climates with winter conditions.

Discounts are available for multi-vehicle households, multi-policy bundling (home + auto), telematics enrollment, defensive-driving certificate completion, and good-student status for under-25 drivers.

The MCCA fee

Drivers electing Unlimited PIP also pay an MCCA assessment to the Michigan Catastrophic Claims Association, the reinsurance pool that pays Unlimited PIP claims above $625,000. The MCCA fee is reset annually by the MCCA board. In recent years it has ranged from approximately $86 to $220 per vehicle per year. Drivers electing lower PIP tiers do not pay the MCCA fee.

Pulling a current ID card

Michigan requires every driver to carry an insurance ID card in the vehicle. Most carriers issue digital ID cards through their app; both digital and printed cards are accepted by Michigan law enforcement. The ID card must show the policyholder, the vehicle by VIN, the policy number, and the effective dates.

The choice of PIP coverage level is the most consequential decision a Michigan driver makes at policy issuance. Households should review private health-insurance coverage, household assets, and long-term-care preferences before electing a lower PIP tier — see Michigan vehicle registration for the registration-side proof requirements.