All You Need to Know About Michigan Car Insurance Laws

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Michigan drivers are required by law to carry both liability coverage and no-fault insurance. Driving without this coverage—or proof of coverage—can result in significant fines and penalties, including having your license plates canceled by the state.
If you’re a law-abiding Michigander (and we know you are), it is easier than ever to buy robust car insurance at a great price.
With Jerry, all it takes is 45 seconds to sign up and then you’ll have the pick of the car insurance litter! Jerry is a car insurance broker and comparison shopping app that generates competitive quotes from more than 40 top insurers.
Just make your pick and let Jerry do the rest—no forms, no phone calls, and no hassles.
It doesn’t take much to follow the law and be insured on Michigan’s roads. Want to learn what the Michigan car insurance laws are? Read on!
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Car insurance laws in Michigan

In Michigan, all drivers are required by law to carry liability insurance. Since Michigan is a no-fault state, drivers involved in a collision go to their own insurers no matter who was at fault in the accident.
All drivers must also carry proof of insurance at all times when driving. Electronic proof of insurance is allowed—which Jerry provides (how handy!). If you’re caught driving without insurance, your license can be suspended.
In Michigan, drivers must carry the state’s mandated minimum 50/100/10 liability coverage and no-fault insurance, encompassing personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance. All will be explained in further detail below.

Liability insurance for Michiganders

Drivers must have both bodily injury liability coverage and property damage liability coverage to drive in the Great Lake State. Here’s how the split of 50/100/10 breaks down.
Bodily injury per person
Drivers must buy at least $50,000 worth of coverage for bodily injury per person in an accident.
Bodily injury per accident
Michigan drivers must purchase at least $100,000 in coverage for bodily injury per accident.
Property damage per accident
Drivers must purchase at least $10,000 of coverage for property damage per accident.
While drivers who buy the minimum amount of insurance do pay lower premiums, they are at greater risk if they’re in an accident. Medical bills and car repair bills can rise quickly, and you’ll be responsible for any bills exceeding your own coverage out of pocket.
For example, say you lose control of your car and crash it through the front window of a business. If the damage is assessed at $25,000, your insurer would pay out just $10,000 if you stuck with the state minimum. That means you’d be on the hook for another $15,000—not a good spot to be in.
Key Takeaway State-mandated minimums should be guidelines only. You should always consider buying more insurance than the minimums to boost your overall coverage.
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Michigan is a no-fault state

Michigan is one of 12 no-fault states, which means that each party in an accident goes to their own insurer—no matter who is to blame. While you pay more for no-fault insurance, the overall protection is better.
Under the umbrella of no-fault insurance you’ll find personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance. Here’s a breakdown of each.

Personal injury protection

PIP coverage pays for lost wages and/or medical expenses suffered due to an accident, no matter who is at fault. If a driver dies in a crash, PIP coverage will issue a death benefit to their next of kin. There is no max limit for this type of insurance.

Property protection insurance

In Michigan, PPI will pay up to $1 million for property damage caused by a driver in an accident. If the incident takes place outside the state, the driver’s own property liability coverage covers the damage. PPI does not pay for damage to other cars.

Residual liability insurance

This type of coverage shields drivers from being sued—but only in specific instances. This insurance is distinct from both property liability and bodily injury coverage.

Penalties for driving without insurance, Michigan-style

First off, driving without insurance in Michigan is illegal, so be a good Michigander and make sure you’re covered.
Be forewarned—if you embrace the dark side and drive without insurance, there will be consequences if you’re caught. Your license may be suspended if you’re pulled over and can’t hand over proof of insurance.
To reinstate your license, the state may require your insurer to file an SR-22 form on your behalf, indicating that you meet Michigan’s minimum liability requirements. You’ll also have to pay a fine upon reinstatement as well.
If you still can’t provide proof of insurance upon reinstatement within the state’s timeline, you’ll have more trouble on your hands. Michigan’s Secretary of State—that’s right, your file will go all the way up the chain of command—may cancel your car’s license plates. Ouch.
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More car insurance options for Michigan drivers

We here at Jerry don’t mean to beat a dead wolverine, but we can’t stress this enough—if you drive in Michigan without both liability and no-fault insurance, you are breaking the law. So, protect yourself and make sure you’re covered.
The following add-ons are optional, but they’re common in Michigan and will provide you with much more expansive coverage.
CoverageDescription
Collision insuranceCovers damages to your car from an accident with another vehicle or a fixed object
Comprehensive insuranceProtects your car if damaged by non-collision threats such as vandalism, theft, weather damage, or animal damage
Uninsured/underinsured motorist coveragePays for your medical bills if you’re injured in an accident caused by an uninsured or underinsured driver
Roadside assistance / towing and labor coverageTypically covers towing, fixing flat tires, breakdowns, and more
Key Takeaway While you must have liability and no-fault insurance to drive in Michigan, it’s a good idea to purchase greater coverage if you can afford it.

Insure yourself with Jerry

There really is no excuse for drivers in Michigan—or any other state, for that matter—to be driving along without car insurance Why? Because Jerry has made buying car insurance effortless!
Signing up with Jerry takes just 45 seconds, and then this car insurance broker and comparison shopping app does the rest. You’ll be able to pick a quote from more than 40 of the country’s top insurers.
Jerry will sign you up for your new policy and cancel your old one for you. The app will even search for better rates before every renewal period—unprompted!
Best of all, Jerry is 100% free to use!
“Lowest source prices I found! This app works great, it’s very user-friendly, they get you a quote and don’t call & bug you afterwards. They will send you a text and follow up and give you a phone number should you have questions. After using several apps to try to find the lowest insurance price I went back to Jerry because their rates were far lower than any other app. I got a great price, with a great insurance company with very little hassle. I highly recommend this app. You won’t be disappointed” —Jerry user

FAQs

Is it mandatory to have car insurance in Michigan?

Yes! It is illegal to drive in Michigan without at least the minimum mandatory insurance limits. If you get caught driving without insurance (or if you can’t provide proof), you may be subject to hefty fines and even license suspension.

What auto insurance is required in Michigan?

Michigan car insurance laws require that drivers carry both liability coverage and no-fault insurance.
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