Getting car insurance in Michigan
Located in the Great Lakes region of the United States, Michigan is the 11th largest and 10th most populous state in the country. Its largest city, Detroit, is among the largest and most populous in the country, as well. The state's upper and lower peninsulas are separated by the Straits of Mackinac between Lake Huron and Lake Michigan. Lakes Superior and Erie also border Michigan. The state frequently feels the lake's effects on weather, especially harsh winters with plenty of snow. While there are plenty of high-tech companies in the state, Michigan is well-known for its ties to the automotive industry. Big cities in the state include Grand Rapids, Ann Arbor and Lansing. It is also home to professional baseball, football, basketball and hockey teams. Interstate Highway 75 runs north to south through the state, while Interstate Highways 69, 96 and 94 run east to west.
When it comes to auto insurance, just like its landmarks, cuisine and culture, every state is different. See what coverage and coverage limits Michigan requires in the table below. These requirements are just a starting point – you may want to purchase additional car insurance or increase your coverage limits.
Michigan car insurance state minimums
Bodily injury liability
Minimum of $50,000 limit per person/$100,000 limit per accident.
Policyholders who request a limit less than $250,000 per person/$500,000 per accident will be required to provide a signature certifying that they want a lower coverage limit.
Property damage liability
Personal injury protection
Medical coverage options available range from no coverage to unlimited coverage. The options available for each person depend on the type of health coverage a person has, and what is best for their needs. Other non-medical coverage is available for work loss, necessary services, survivors’ loss and funeral expenses are still included in your auto policy, even if you choose no PIP medical coverage or limited PIP medical.
All coverages are subject to the coverage limits stated in your policy.
¹Although Michigan law does not require drivers to carry this coverage, it may be required by your lender if you are leasing or financing your vehicle.
Get answers to your Michigan auto insurance questions
No-fault insurance is a type of car insurance coverage that helps pay for covered person’s medical bills if injured in a car accident, regardless of who caused the accident. No-fault insurance is also called Personal Injury Protection, or PIP insurance.
You can select from six PIP coverage options based on your specific needs and what you can afford. Seniors also have the option of allowing Medicare to cover the health care expense from an auto accident. If you have Medicare or qualified health coverage, you may opt out of PIP medical benefits. The six options are:
- Unlimited PIP benefit
- $500,000 PIP Benefit
- $250,000 PIP Benefit
- $50,000 PIP Benefit (must be enrolled in Medicaid)*
- Medicare Opt-out (must be enrolled in Medicare Part A&B)*
- Qualified Health Coverage Exclusion to $250,000 PIP Benefit*
*Eligibility based upon the type of health coverage that you, your spouse and all resident relatives have.
You will need to select your PIP coverage limit by initialing and signing a selection document.
It is typically an employer-sponsored or private health plan that doesn’t exclude or limit coverage for injuries from an auto accident and has an annual individual deductible of approximately $6,500 and can be adjusted by CPI periodically.
You will need to seek this information from your health insurer and/or employer. Not all medical policies cover auto-related accidents. For your plan to be considered “qualified health coverage” it must cover you for all auto related injuries and have an individual annual deductible of $6,000 (adjusted by CPI annually) or less. You need to find out from your health insurer or employer whether your health plan is qualified health coverage and know the status of each household member's health coverage for the purpose of selecting your PIP coverage.
No. You will need to confirm your benefits with your health insurance provider or employer prior to making any decisions on selection of PIP coverage. Even if your health policy is qualified health coverage, you will want to take into consideration the differences between what your health policy covers and what PIP coverage provides, as well as your own needs before deciding which PIP coverage option is right for you and your family.
The person named on the policy and that person’s spouse are covered, as are relatives of the insured or spouse who live in their household.
Children or relatives who no longer live with you or call your home their residence, or partners of people who live together, but are not married, are not automatically covered under your PIP coverage. Talk to your Allstate agent about the options available if you have non-relative household members.
The Michigan Catastrophic Claims Association acts as a reinsurer for auto insurers that pay claims exceeding $635,000 (threshold amount is subject to change annually).
Drivers who choose unlimited PIP medical benefits will pay an assessment for the MCCA as part of their auto policy premium. Drivers with a different PIP medical benefit option will pay only the portion of the MCAA assessment that goes toward paying down MCAA deficit, if any exists.
If you do not make the mandatory selection of a PIP coverage limit by signing and providing your auto insurer with a PIP coverage selection form, by law your coverage will default to unlimited and you will be charged the applicable premium.
Generally, you will need to seek coverage from your health insurance or make a claim against the person at fault for causing the auto accident.
A PUP policy (commonly referred to as an umbrella policy) protects you if you are liable for causing injuries and damages to another person(s). This coverage does not pay for injuries and damages that you suffer, like PIP coverage does.
Some insurers may offer a discount if your health insurance agrees to pay for auto related injuries before PIP coverage has to pay, up to the health policy limits. This is called a ‘coordinated health plan.’ This saves expenses from the PIP coverage, and therefore if offered, you are eligible for ‘coordinated PIP coverage’ at an appropriately reduced rate. Not all auto insurers offer ‘coordinated PIP coverage’ under their policies.
If you are injured in an auto accident that is the fault of another driver, you will go to your PIP coverage, or your health coverage if you don’t have PIP coverage or have exceeded the limit of your PIP coverage. You will also have the ability to make a claim against the person who caused the accident. If your damages exceed your PIP, and the at-fault person’s BI coverage, then you may have Underinsured Motorist coverage on your own auto policy that would cover your unreimbursed damages up to the limit of that coverage.