# Michigan car insurance and the no-fault law

> Michigan car insurance guide: PIP medical levels, property protection, default and minimum liability limits, mini-tort, uninsured penalties and costs.

Canonical page: https://statecover-guide.com/location/michigan/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Michigan is a no-fault state where every vehicle must carry three coverages: personal injury protection (PIP), property protection insurance (PPI) and residual bodily injury and property damage liability. Drivers choose a PIP medical level, from unlimited down to lower options for people with qualifying health coverage, and liability defaults to $250,000 per person and $500,000 per accident unless they pick lower limits, which can go no lower than $50,000 and $100,000.

## Key facts

| Fact | Michigan |
|---|---|
| Insurance required | Yes |
| Minimum liability | 50/100/10 (default 250/500/10) |
| Fault system | No-fault |
| PIP medical | Required: choose a PIP medical level (unlimited by default; $500,000; $250,000; $50,000 for Medicaid enrollees; opt-out for Medicare enrollees) |
| Property protection insurance | Up to $1,000,000 for damage your car does to property in Michigan |
| Mini-tort | Up to $3,000 for damage to the other driver's vehicle |
| Uninsured motorist | Optional |
| Average spent per insured vehicle (2023) | $1,444.01 a year (U.S. $1,281) |
| Average premium with collision and comprehensive (2023) | $1,572.77 a year (U.S. $1,438) |
| Uninsured drivers (2023) | 22.3% (U.S. 15.4%) |
| Regulator | Michigan Department of Insurance and Financial Services, 1-877-999-6442 |

## Michigan's no-fault system in one table

Michigan's law works differently from most states, so it helps to see each required piece side by side. The Department of Insurance and Financial Services (DIFS) describes three basic coverages that must be carried on every vehicle.

| Coverage | What it pays | Amount |
|---|---|---|
| Personal injury protection | Your own medical costs and other no-fault benefits after a crash, whoever caused it | The PIP medical level you choose |
| Property protection insurance | Damage your car does in Michigan to other people's property, such as buildings and fences | Up to $1,000,000 |
| Residual bodily injury and property damage liability | Lawsuits over serious injuries you cause, and damage you cause in other states | Default $250,000/$500,000; lowest $50,000/$100,000 and $10,000 out of state |

Notice what is missing: damage to your own car. In Michigan, the at-fault driver's insurance generally does not pay to fix your vehicle beyond the limited mini-tort amount described below, so [collision coverage](https://statecover-guide.com/coverage/collision/) carries more weight here than in many states.

## Choosing a PIP medical level

Since the state's insurance reform, Michigan drivers pick from 6 PIP medical options instead of receiving unlimited coverage automatically. If you do not choose, unlimited coverage applies.

| PIP medical option | Who can choose it |
|---|---|
| Unlimited | Anyone |
| $500,000 per person per accident | Anyone |
| $250,000 per person per accident | Anyone |
| $250,000 with exclusions | Named insureds with non-Medicare health coverage that covers auto injuries; covered household members can be excluded |
| $50,000 | Named insureds enrolled in Medicaid, if household members have other coverage |
| No PIP medical | Named insureds with Medicare Parts A and B, if household members have other auto or health coverage for crash injuries |

Lower levels cost less, but if crash injuries cost more than the level you chose, the rest falls to your health plan or to you. The lower options also require proof, such as a statement from your health insurer or proof of Medicaid or Medicare enrollment. The Michigan Catastrophic Claims Association (MCCA) also charges a per-vehicle fee; with unlimited PIP you pay both the claims and deficit parts, while lower PIP levels pay only the deficit part. The [personal injury protection guide](https://statecover-guide.com/coverage/personal-injury-protection/) explains PIP in other no-fault states for comparison.

## Liability limits: the default and the floor

Residual liability protects you if you seriously injure someone and they sue beyond no-fault benefits, or if you cause a crash in another state. Michigan's default is $250,000 per person and $500,000 per accident. You can sign a form to choose lower limits, but not below $50,000 and $100,000.

Choosing the floor lowers the premium, but it also lowers the amount standing between a serious lawsuit and your personal assets. Before going down, read [what liability insurance covers](https://statecover-guide.com/coverage/liability/) and consider whether you also need an [umbrella policy](https://statecover-guide.com/glossary/umbrella-insurance/).

## Mini-tort and damage to your own car

The [mini-tort](https://statecover-guide.com/glossary/mini-tort/) rule fills a gap in no-fault. According to DIFS, if you are 50% or more at fault in a crash, the other driver can sue you for up to $3,000 for vehicle damage that their insurance does not cover. Drivers with collision coverage can recover only their deductible this way, while drivers without collision can seek the full amount.

Limited property damage coverage is an optional add-on that pays what you owe under mini-tort. Example: if you cause a crash and the other driver has a $500 collision deductible, mini-tort lets them recover that $500 from you or your limited property damage coverage.

## Penalties for driving uninsured in Michigan

About 22.3% of Michigan drivers were uninsured in 2023, well above the national rate of 15.4%. The penalties are serious:

- A misdemeanor charge with a fine of up to $500.
- Up to 1 year in jail.
- A possible license suspension of 30 days or until you show proof of insurance.

Uninsured motorist coverage is optional in Michigan. Given the share of uninsured drivers, many policyholders weigh it carefully, especially if they chose a lower liability limit. If you regularly drive cars you do not own, the [non-owner insurance guide](https://statecover-guide.com/drivers/non-owner/) covers a Michigan rule about when you count as an owner.

## What Michigan drivers pay

NAIC data show Michigan drivers spent an average of $1,444.01 per insured vehicle in 2023, above the national average of $1,281. The average premium with collision and comprehensive was $1,572.77, also above the U.S. average of $1,438. These figures cover the whole state, so prices in [Detroit](https://statecover-guide.com/location/detroit/) and other cities can differ.

IIHS counted 1,098 crash deaths in Michigan in 2024, or 10.8 per 100,000 people, below the national rate of 11.5 per 100,000 people. Neighbors use different systems: [Ohio](https://statecover-guide.com/location/ohio/), [Indiana](https://statecover-guide.com/location/indiana/) and [Wisconsin](https://statecover-guide.com/location/wisconsin/) are at-fault states.

## FAQ

### What happens if I do not pick a PIP level in Michigan?

Unlimited PIP medical coverage applies. Lower levels require you to choose them, and some require proof of qualifying health coverage or Medicaid or Medicare enrollment.

### Does Michigan no-fault pay to fix my car?

No. No-fault PIP covers injuries, and PPI covers damage your car does to other people's property. Repairs to your own car come from your collision coverage or, for a limited amount, from the at-fault driver under mini-tort.

### How much can I recover under Michigan's mini-tort rule?

Up to $3,000 from a driver who was 50% or more at fault. If you have collision coverage, you can recover only your deductible.

### Is uninsured motorist coverage required in Michigan?

No. DIFS lists it as optional. It can pay the injury damages you could have claimed from an at-fault driver who has no insurance.

### Who regulates car insurance in Michigan?

The Michigan Department of Insurance and Financial Services handles questions and complaints at 1-877-999-6442. Registration and driver records are handled by the Michigan Department of State (Secretary of State).

## Sources

- [Michigan DIFS, Auto Insurance Frequently Asked Questions](https://www.michigan.gov/autoinsurance/frequently-asked-questions) — required coverages, PPI, liability defaults, mini-tort, MCCA fee, penalties
- [Michigan DIFS, Choosing PIP medical coverage](https://www.michigan.gov/autoinsurance/choosing-coverage/choosing-pip-med-coverage) — PIP medical options
- [Michigan DIFS, Choosing bodily injury coverage](https://www.michigan.gov/autoinsurance/choosing-coverage/choosing-bodily-injury-coverage) — liability limits
- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance) — fault system
- [NAIC, Auto Insurance Database Report](https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf) — average costs
- [IIHS, Fatality Facts: State by state](https://www.iihs.org/research-areas/fatality-statistics/detail/state-by-state) — crash deaths
- [Michigan Department of Insurance and Financial Services, auto insurance shopping guide (FIS-PUB 0201a)](https://www.michigan.gov/autoinsurance/-/media/Project/Websites/autoinsurance/PDFs/FIS-PUB_0201a.pdf), as of October 28, 2026
- [Insurance Information Institute, Facts + Statistics: Uninsured motorists](https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists), as of October 28, 2026
- [Michigan Department of Insurance and Financial Services, Home page](https://www.michigan.gov/difs), as of October 28, 2026
- [Michigan Department of State (Secretary of State), Home page](https://www.michigan.gov/sos), as of October 28, 2026
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/article/naic-releases-20222023-auto-insurance-database-report), as of February 13, 2026
- [Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release)](https://www.businesswire.com/news/home/20250220231032/en), as of February 20, 2025