CAR INSURANCE BY STATE

As a “No-Fault” state, Michigan mandates that every driver carries two no-fault policies:

1. Personal Injury Protection (PIP) – Michigan’s version of this standard auto insurance rider requires enough coverage for all medical expenses you may incur PLUS three years of compensation for your lost pay or services. As of Oct. 1, 2007 the maximum amount paid for lost income or death is $4,713 a month for up to three years. As you may imagine, the numbers could add up! You may be able to receive a reduced premium if you show that you have a good health insurance policy, or by asking for a deductible on your premium.

2. Property Protection Insurance (PPI) – This part pays up to one million dollars for damage to property within the state Michigan.

In addition to the above, a classic liability policy of 20/40/10 (see the chart below) is mandatory in order to protect yourself in the event that you are sued. Generally, “No-Fault” states are this way to reduce the number of people being sued. But in Michigan, the mandatory liability policy is to help out in the event of an out-of-state accident, or an in-state accident in which serious bodily injury or death occurs.

Options for Michigan auto insurance policy holders include collision, comprehensive, uninsured and under-insured bodily injury coverage.

Coverage Type Required? Minimum Coverage Amount Required
Bodily Injury Liability Yes $20,000 per person$40,000 per accident
Property Damage Liability Yes $10,000
Uninsured Motorist Bodily Injury No
Underinsured Motorist Bodily Injury No
Personal Injury Yes

Auto Insurance Requirements for Leased Vehicles in Michigan (MI)

Most leasing companies in the Michigan typically require drivers to maintain insurance coverage which exceeds the minimums set by Michigan law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:

  • Bodily injury liability coverage: $100,000 per person/$300,000 per accident
  • Property damage liability coverage: $50,000
  • Comprehensive and collision coverage: $500 maximum deductible

Insurance Agents By City/Town In Michigan

State Insurance Contacts

Michigan Department of State 
Lansing, MI 48918
www.michigan.gov/sos
Michigan Office of Financial & Insurance Services
PO Box 30220
Lansing, MI 48909
www.michigan.gov/lara