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Auto Insurance in Michigan

Michigan Car Insurance in 2023

Car insurance in Michigan is both a requirement by law and an excellent way to ensure your property is protected in case of auto accidents or theft. The average cost of full coverage auto insurance in Michigan is $3,500-$4,500 per year, while bare minimum coverage is typically around $100-$120 per month.
Here are some of the top insurance companies offering car insurance in Michigan:

Top Car Insurance Providers in Michigan
(in order of average customer satisfaction) Average Consumer Satisfaction Score
Amica 4.4
Cincinnati Insurance 4.2
Wolverine Mutual 4.2
State Farm 4.1
Pure 4.1
USAA 4.0
Auto-Owner Insurance 3.9
AAA / CSAA 3.9
Michigan Automobile Insurance Placement Facility 3.9
Electric Insurance 3.9
Meemic Auto Insurance 3.9
Nationwide 3.9
Grange Insurance 3.8
Secura 3.8
Frankenmuth 3.8
Hanover 3.8
Farm Bureau 3.8
Travelers 3.8
Hartford 3.7
Amerisure 3.7
Liberty Mutual 3.7
Sentry 3.7
Farmers 3.7
Freemont 3.6
Allstate 3.5
Hastings Mutual 3.5
Horace Mann 3.5
Westfield 3.5
National General 3.4
Pioneer State Mutual Insurance 3.4
Progressive 3.4
Northern Mutual 3.3
Foremost 3.3
Safeco 3.2
Ameriprise Financial 3.2
Geico 3.2
Philadelphia Insurance 3.2
State Auto 3.1
Bristol West 3.0
21st Century 2.9
Michigan Insurance 2.8
Kemper 2.7
Michigan Millers 2.6
American Modern 2.4
Infinity 2.1
Note: Average consumer satisfaction rating is the average aggregate score from multi-user (non-employee) review platforms, such as ConsumerAffairs, TrustPilot, WalletHub, Google, and others (based on availability).

Purchasing auto insurance in Michigan is a requirement for all drivers. This is particularly so because Michigan is a no-fault state, which means that insured must rely on their own insurance coverage irrespective of who is at fault. The Michigan Department of Insurance and Financial Services (DIFS) is the body that regulates auto insurance companies operating in the state.

Who Has The Cheapest Car Insurance in Michigan?

The following insurance companies tend to offer the cheapest auto insurance in Michigan:

Cheapest Car Insurance in Michigan
Auto-Owner Insurance
Hastings Mutual
Wolverine Mutual

Why Do We Need Auto Insurance in Michigan?

There are over 9 million registered vehicles in Michigan, and all of them require insurance. We need auto insurance in order to legally operate a vehicle and to protect it in case it gets damaged. Michigan auto laws require drivers and vehicle owners to get at least the state-required minimum liability auto insurance. This is done in order to safeguard the public from the possible damages that you, as a driver, can inflict on others.
Comprehensive (full coverage) auto insurance is the second layer of protection, which further protects your car if it gets damaged in an accident or stolen. Uninsured driver coverage gives you coverage in case your vehicle is damaged by an uninsured driver.
Driving without liability insurance is punishable by Michigan law and can result in a $500 fine, thirty-day suspension of your driver's license, and up to a one-year jail term.
Using an insured vehicle gives you peace of mind because you are in compliance with Michigan auto laws and do not have to worry about vehicle-related liabilities in case you cause damage. If you also have full coverage, you are no longer worried about repairing your vehicle - regardless of who was at fault in an accident.
In 2021, Michigan recorded 282,640 auto crashes, a 15% increase from the number recorded in 2020.
If you do not have auto insurance in Michigan and someone else runs into you - you can be in a lot of trouble. If you are struck by an at-fault insured driver, since you are uninsured, you lose the protection of the “No-Fault” benefits of Michigan’s car insurance, and your claim will be denied. Since you were uninsured during the accident, you also lose the ability to sue the at-fault driver for damages and will have to handle the cost of repairs of your own vehicle and taking care of your injuries out of pocket.
Around the mid-1980s, Michigan was ranked as the state with the highest number of automobile thefts in the U.S. This led to the formation of the Automobile Theft Prevention Authority (ATPA) to help curb the negative trend. Despite the successes of the Authority, there were still over 17,000 car thefts in the state in 2019. Buying comprehensive auto insurance to protect against financial losses caused by theft is necessary, especially if you reside in an area with a high car theft rate, such as the Detroit or Kalamazoo-Portage metro areas. Comprehensive auto insurance also covers losses caused by natural disasters, falling objects, vandalism, and other perils that do not involve collisions.
In 2019, approximately 25.5% of Michigan motorists were uninsured, which ranked the state second among the top 10 states with uninsured motorists. To mitigate this risk, Michigan residents can purchase uninsured/underinsured motorist coverage as add-ons on their auto insurance policies. This will provide coverage if an uninsured or underinsured driver or a hit-and-run driver hits them. Residents can get affordable auto insurance in Michigan through insurance agents licensed in the state. The agent can help assess your car insurance needs relative to where you reside and offer you options from various competing insurers. You only need to pick the one you like.

How Much Auto Insurance Coverage Do I Need in Michigan in 2023?

In order to legally drive on the roads of Michigan, you must have at least the state-mandated No-Fault minimum coverage of:

Minimum Requirements for Car Insurance in Michigan in 2023
Minimum Residual Liability


(for at-fault accidents)

Bodily Injury Default Coverage $250,000 per person
$500,000 total per accident
Lowest Possible Coverage

(with signed waiver)

$50,000 per person
$100,000 total per accident
Personal Property Insurance (PPI) Does not cover vehicles unless parked $1 million inside Michigan

per accident outside of Michigan

Personal Injury Protection


Five options for PIP coverage in MI

(lowest price option to highest)

If qualifying based on Medicare $0
With qualifying Medicaid health insurance coverage $50,000
Typical MINIMUM for No-Fault insurance coverage

(without extra qualifications)

Typical AVERAGE coverage for No-Fault insurance $500,000
Maximum NO-LIMIT PIP Coverage

According to Michigan auto laws, the standard minimum required coverage is:

  • Bodily injury: $250,000 per injured or killed person, or $500,000 combined for the entire accident. If you sign a waiver accepting the higher risks of liability - you can lower the coverage to $50,000 per person and $100,000 combined for the entire accident.
  • Property Damage: Standard Michigan PPI coverage protects from damages up to $1 million inside Michigan and at least $10,000 outside the state. Most insured drivers purchase more than $10,000 in coverage.
  • Personal Injury Protection: The minimum PIP coverage in Michigan is at least $250,000. Alternatively, you can get higher limits of $500,000 or No-Limit (unlimited coverage). If you have Medicare or Medicaid for health insurance, you may be able to lower the minimum required coverage to $50,000 or get rid of it entirely.
    NOTE ON SIGNING THE WAIVER: While lowering the cost of coverage by a few hundred dollars, you are giving up a lot of protection. Make sure to discuss your decision-making process and the possible repercussions of your waiver signing decision with a licensed insurance agent.
    If you are still paying your car off, you will need full coverage insurance. That adds Collision, Comprehensive, and Uninsured Driver coverages to the policy. The amount of coverage you need is determined by the replacement value of the insured vehicle.
    Contact a licensed Michigan agent to discuss affordable auto insurance in Michigan and to know the best Michigan auto insurance policy to purchase, including what limits and additional coverages you may need. Licensed agents can help you compare auto insurance quotes from multiple insurance companies to get you the best price.

How Does Auto Insurance Work in Michigan?

No-fault car insurance in Michigan is a legal requirement, and failure to obtain one is punishable under Michigan insurance laws (MCL 500.2103). Under this law, individuals with valid driver’s licenses and those with cars registered in Michigan are required to get at least the basic no-fault auto insurance in Michigan.
IMPORTANT: If you do not have car insurance in Michigan and you get into an accident - you cannot get paid for your damages and file a claim, even if you were not at fault.
No-fault Michigan insurance covers your and your passenger’s medical bills and income loss regardless of fault. It also covers the damage you cause to others. But it does not include coverage for repairing your own car. Collision coverage is extra.
The state-mandated Basic no-fault insurance in Michigan has three parts:

  • Personal Injury Protection (PIP): PIP is the main part of the No-Fault insurance. It guarantees that your and your passenger’s medical expenses are covered in case of an accident - regardless of fault. If the accident makes you unable to work, PIP coverage will ensure that you are paid for any wages you might have earned, up to a maximum amount stipulated in the policy, for a maximum of three years. (NOTE: Michigan PIP coverage works together with your health insurance. Typically, if you have good health insurance coverage, you may be able to choose a lower PIP limit)
  • Property Protection Insurance (PPI): This part of insurance coverage provides up to $1 million coverage for damages you cause to other people's properties in an accident inside Michigan. For possible damage you may cause out-of-state, you need to maintain at least $10,000 of PPI coverage.
  • Residual Liability Insurance - Property Damage (PD) and Bodily Injury (BI): If you are responsible for an accident, this coverage is paying the bills of the affected person and covers your legal fees if a court case arises. The minimum required residual coverage limits are:
    • Bodily Injury: $20,000 per person, $40,000 per accident
    • Property Damage: $10,000 for damage done outside Michigan.
      When looking to buy car insurance in Michigan, speak with a licensed insurance agent who can assess your needs and recommend a choice of coverage that will give you the most protection at the best cost from a reliable insurance company that is known to act efficiently and without cutting corners when the claim must be filed.
      Beyond the basic no-fault car insurance, most Michigan drivers get full coverage. Full coverage car insurance is typically required when there is a loan on the vehicle. This requirement comes from the lending institution.
      Full coverage Michigan car insurance typically includes:
  • Collision insurance - covers the repairs or replacement of your vehicle in an accident. In Michigan, there are three types of collision coverage that determine the amount of the payout depending on the level of fault: Limited, Standard, and Broad.
  • Comprehensive insurance - covers your vehicle in case of non-collision damage (hail, flood, theft, etc.).
    Since an average of 25% of Michigan’s drivers are uninsured, and in some areas with over 40%, Uninsured Motorist Coverage (UM) is also commonly added to the full coverage auto insurance policy. If you get hit by an uninsured driver, UM allows your insurance to cover your vehicle instead of the uninsured at-fault driver.
    The rest of the auto insurance policy can be configured with extra add-on coverages based on your specific needs. Some of the most popular add-ons to car insurance in Michigan are:
  • Towing and Roadside Assistance - coverage that will pay to tow your vehicle to a repair shop and possibly fix a flat on the side of the road.
  • Rental car - covers the cost of a rental vehicle while yours is being repaired after a covered accident.
  • New Car Replacement - increases the amount of the payout in case of a total loss claim, making it easier for you to afford a replacement vehicle.
    The total cost of your premium and deductible will depend on your insurance needs and the coverage you choose. Insurance companies use rating rules and underwriting to determine how much to charge you. You can compare car insurance quotes, premiums, limits, and deductibles of different insurance companies and get different car insurance quotes in Michigan before deciding on the coverage you want.

What Do You Do When Someone Hits Your Car in Michigan?

If your vehicle was parked when it was hit:

  1. Do not move it
  2. Try to find a guilty party
  3. Take pictures of the damage
  4. File a police report
  5. Contact your Michigan auto insurance company to file the claim.
    If you were driving the vehicle when you were hit:
  6. Check on your passengers to see if anyone needs medical attention.
  7. Move the vehicle out of the traffic (if possible)
  8. Call the police to report the traffic crash. If this is an emergency, call 911. If not, report it by contacting the nearest Michigan State Police post of the local law enforcement agency
  9. Take photos of the damage and the surrounding area,
  10. Exchange insurance information with the driver of the other vehicle. If the other driver shows signs of hostility, wait until the police arrive. Police officers will collect all the information from all the involved parties and will give it to you,
  11. File a claim by calling your current insurance agent. They will handle the whole process for you. (Without an agent: Call your insurance company and follow their instructions)

Can You Get Car Insurance Without a License in Michigan?

Although you can get car insurance without a driver’s license, auto insurance companies in Michigan are often hesitant to insure individuals without licenses because the license is an important factor in the car insurance process. Michigan auto insurance companies that offer coverage without a license will typically require you to list someone else with a license as the primary driver. Companies that offer this policy are limited.
Speak with a knowledgeable Michigan auto insurance agent to find you insurers that will issue car insurance without a license.

How Does Car Insurance Work in Michigan if I am Not at Fault?

If you are in an accident and sustain injuries, you need to file a claim with your auto insurance company, irrespective of whether you are at fault or not. Michigan is a No-Fault insurance state, where everyone uses their own insurance to pay for their own or passenger’s bodily injuries. Without insurance, even while not at fault, you will be paying for medical expenses out of pocket.
If you suffer any injuries in an accident, you will need to make a Personal Injury Protection (PIP) claim to your own Michigan car insurance company. Michigan auto laws give you a one-year grace period to file your claims for medical expenses associated with a covered crash. Your insurance provider will pay for any medical expenses and also provide you with compensation for any income you might lose due to the injuries sustained in the accident. However, the amount of funding your auto insurer will provide depends on your policy’s coverage limits.
The property damage coverage of your car will depend on the type and limits of the at-fault driver’s insurance policy and yours:

  1. If you and the at-fault driver are both insured, the at-fault driver’s Property Protection Insurance (PPI) will pay for the damages done to your vehicle. File the claim with your insurance company, and they will work with the other party’s insurer.
  2. If you have no insurance yourself, you are disqualified from seeking damages from the guilty driver in Michigan. Your repairs will be out of your own pocket.
  3. If you are struck by an uninsured driver, and you have UM coverage - it pays up to its limits. Without UM coverage - your vehicle is not covered, and you need to pay out of pocket.

Michigan Car Insurance Market

The Michigan auto insurance market has numerous insurance companies offering services to drivers and vehicle owners within the state. Although insurance companies nationwide offer financial relief to policyholders, Michigan's Auto Insurance Market has two distinct characteristics. One unique element is that the insurance firms operating within this market give policyholders unlimited coverage for medical payments incurred during an auto crash under the Personal Injury Protection component of the no-fault insurance policy coverage.
Michigan auto insurance companies calculate premiums based on various criteria. These include the age of the intended drivers, driving records, and the insured's location. Deductibles and additional coverage will also affect the cost of your premium.

What is Michigan Auto Insurance Reform?

Michigan’s auto reforms refer to the changes in Michigan auto insurance laws in 2019 to help reduce the high costs of auto insurance in the state. These reforms removed the mandatory unlimited personal injury coverage providing more coverage options for insured persons and ensuring that Michigan insurance companies could now offer less expensive insurance coverage to interested persons. The law also established a fraud unit to investigate criminal activity involving auto insurance and itemized fines and other penalties for breach of auto laws. The auto insurance reforms let Michiganders have more low-cost auto insurance in Michigan with a wider variety of choices.

Michigan Auto Insurance Reform Explained

The Michigan Catastrophic Claims Association (MCCA) was established by Michigan car insurance laws in 1978 to reinsure car owners in Michigan and manage excess Personal Injury Protection claims that exceed the set limit of $600,000. Prior to 2019, all Michigan drivers were required to purchase unlimited Personal Injury Protection (PIP), which proved costly for many Michigan homes and made car insurance rates in Michigan among the highest in the U.S.
The 2019 Michigan auto insurance reform led to the passing of a no-fault auto insurance reform legislation. Under the new law, you can now choose the amount of PIP insurance coverage that you need, while each insurance company was mandated to reduce the average medical premiums. Michiganders can now purchase no-fault insurance with varying levels of personal injury protection coverage, ranging from $50,000 to unlimited coverage. The Michigan auto insurance reform led to the availability of more affordable auto insurance plans in the state.

How Much is Car Insurance in Michigan?

The average cost of car insurance in Michigan is $1,200-$1,500 per year for basic no-fault coverage, while full coverage is typically between $3,500 and $4,500. Even though Michigan car insurance rates are regulated by the Department of Insurance, the final cost of car insurance in Michigan depends on various factors, including being an accident-free driver, the amount of coverage required, age of the insured drivers, number of vehicles owned, overnight parking zip codes, miles driven, driving history, and other specific vehicle details.
Some insurance companies also provide Usage-Based Insurance (UBI), wherein usage parameters of your daily driving, which are transmitted to the insurer for analysis, determine your auto insurance cost. UBI insurance can save you 10%-15% if you are a careful driver who never speeds.
Even within the same insurance company, different prices exist because various factors affect these prices. Some insurance companies can give Michigan car insurance discounts for existing customers or those that meet other set parameters.
These discounts will help you save money on your insurance:

Typical Car Insurance Discounts Available in Michigan
Safety Equipment Discounts Air Bag
Anti-Lock Brakes
Anti-Theft System
Daytime Running Lights
Good Driver Discount Accident-free and citation-free for 3 years more
Good Student Discount Full-time students with solid academic record may qualify
New Vehicle Discount For 3 years after production
Multi Use Discounts Multi-Policy
Usage-Based Insurance Discounts No Speeding
No Phone Use While Driving
Seat Belt Use

Although Michigan does not have any special low-income car insurance programs, you can get the cheapest car insurance in Michigan if you purchase your insurance with the help of a knowledgeable state-licensed auto insurance agent or broker who has access to a lot of competing insurance companies for quotes. They can help you get multiple accurate quotes for your preferred insurance coverage so that you can choose the best option.

How Much is Car Insurance for a Month?

The average monthly cost of auto insurance in Michigan is between $100 and $375, depending on the purchased coverage. The basic no-fault monthly average is $100-120, while full coverage is $290-$375.
The prices also differ amongst companies and car insurance coverage. In most cases, cheaper insurance will have lower auto insurance coverage or a higher deductible for property damage claims. Your monthly car insurance cost in Michigan will depend on the type of coverage you choose. You can purchase just the minimum auto insurance coverage, which will only provide the basic 40/20/10 coverage. Alternatively, you could opt for full coverage car insurance in Michigan, which would include unlimited Personal Injury protection and higher coverage for property protection and residual liability protection. You could save money on your insurance bill and find cheap car insurance in Michigan if you get proper advice before purchasing any auto insurance policy.
Speak with a licensed auto insurance agent to get accurate car insurance quotes for Michigan and more information on monthly car insurance bills.

How Much is Car Insurance for a 16-Year-Old?

Car insurance tends to cost more for teenagers than adults due to their relative inexperience and the belief that teenagers are more likely to engage in risky and dangerous driving. On average, a 16-year-old can get car insurance for between $5,200 and $9,300 per year. Your insurance might be more expensive if you include additional coverages, particularly collision or comprehensive insurance.
As a 16-year-old, you can ensure that you get cheap car insurance in Michigan by shopping for discounts or adding your car insurance policy to an already existing family auto insurance policy. Michigan parents with a 16-year-old on the policy typically pay $500-$700 for car insurance per month.
Get the lowest car insurance in Michigan for a 16-year-old by purchasing your insurance with the help of a Michigan-licensed auto insurance agent.

How Much is Car Insurance in Michigan for an 18-Year-Old?

The average auto insurance cost in Michigan for an 18-year-old is between $4,700 and $6,400 per year. An 18-year-old is still considered a teenager, and car insurance for teenagers tends to be more expensive than those for adults due to their inexperience. However, as an 18-year-old, you might be able to get cheaper car insurance in Michigan if you can demonstrate that you are a good driver or get added to your parent’s insurance policy. Michigan parents with an 18-year-old on the policy typically pay $450-$550 per month for auto insurance coverage.
Michigan is one of the states with the highest average cost of car insurance for 18-year-olds. Although car insurance is typically expensive for teenagers, you can find affordable auto insurance in Michigan with the help of a licensed auto insurance agent who knows which insurance companies offer favorable coverage locally for young drivers.

How Much is Car Insurance in Michigan for a 20-Year-Old?

As a 20-year-old, your car insurance in Michigan is still likely to be higher than those older than you. However, you are more likely to be seen as more responsible, and your actions could positively impact the cost of your insurance. For example, having no history of accidents or claims with four years of driving experience could result in a reduced cost. The average car insurance cost for a 20-year-old in Michigan is $5,200-$5,400 per year. However, any additional coverages or discounts you get could affect the cost of your insurance by increasing or decreasing it.
If you happen to live with your parents, the best way to lower car insurance costs is to get covered under their policy. You can stay on your parent’s policy as long as you reside together, regardless of your age.

What is the Average Cost of Car Insurance in Michigan?

In 2023, the average car insurance cost in Michigan is between $3,500 and $4,500 per year for full coverage and $1,200-$1,500 for minimum state-mandated insurance. Purchasing auto insurance in Michigan is more expensive compared with the majority of other states.

Why Did My Car Insurance Go Up in Michigan?

Car insurance companies in Michigan may increase your premiums for various reasons, some of which include:

  • Location Change: Although within the same state, moving from one city to another could lead to an increase in the cost of your auto insurance in Michigan. Additionally, moving out of the state would require you to get a new policy which might be cheaper or more expensive. (In some parts of Michigan, up to half of drivers are uninsured, thereby increasing the risk and costs)
  • Age: Teen drivers and seniors (over 65 years old) tend to be more prone to accidents. This is typically attributed to recklessness on the part of the teens and cognitive impairments for seniors, which could translate to higher insurance rates.
  • Adding a Driver: When you add a driver to your policy, you add more risk exposure for the insurer. The rate increase will depend on the additional driver’s data (age, driving record, claims history, etc.). Adding a teenager to a Michigan car insurance policy can more than double the premium cost.
  • Loss of Insurance Discounts: Insurance companies typically offer discounts to first-time policyholders. Insurance agents also provide policyholders with price cuts for new cars, bundling auto and multi-policy discounts. However, your insurance rate might increase once your insurer removes these auto insurance discounts. For example, if you move your homeowners or renters insurance coverage to another insurance company, the bundling discount will get lowered or completely disappear unless you have other policies connected to auto. Likewise, if it has been over 3 years since you bought your car, your new vehicle discount will go away.
  • Road Violations and Speeding Tickets: If you have a high amount of violations and speeding tickets on your driving records, most auto insurance carriers in Michigan would increase the cost of your car insurance. However, your car insurance rates in Michigan will not be affected by parking tickets or other non-moving tickets.
  • Comprehensive Claims: Your insurance provider may increase your premiums if you file expensive claims.
    In 2022, Michigan drivers saw an increase in car insurance rates at an average of 7.2 percent, with more increases waiting for approval by DFIS in 2023. If you see that your car insurance bill has gone up, speak with your car insurance agent to figure out the reasons for it.

At What Age Does Car Insurance Go Down?

Teen drivers are considered more reckless than older drivers, and it is believed that experienced and good drivers are less likely to have accidents. As drivers grow older, there tend to be reductions in the cost of auto insurance, and in Michigan, this reduction starts as soon as you turn 20. As the years go by, the insurance company will reduce your rates by a certain percentage. You will enjoy lower rates from Michigan auto insurance companies between ages 25 - 65 because individuals within this age range are likely to be better drivers overall.
As soon as you become a senior, you will face a slightly increased car insurance because it is believed that seniors are also prone to accidents due to cognitive failure and reduced strength.
Average annual car insurance premium for minimum liability coverage in Michigan based on age

Age Bracket Average Annual Premium
16+ $5,400 - $9,800
19 $4,400 - $5,800
20+ $3,350 - $4,600
25 $2,800 - $3,500
30+ $2,400 - $2,900
40+ $2,550 - $2,900
60 $2,200 - $3,000

What Types of Auto Insurance Are in Michigan?

Below are the most common types of car insurance in Michigan:

  • No-Fault Insurance
  • Comprehensive Auto
  • Collision Insurance
  • Roadside Assistance
  • Underinsured and Uninsured coverage
  • Limited Property and Mini Tort coverage
  • Auto Rental coverage
  • Additional Liability
    No-Fault Insurance in MI
    This is the mandatory auto policy required by Michigan’s insurance law. A driver without a basic no-fault insurance policy does not enjoy any form of accident forgiveness and could be found liable for a misdemeanor. The Michigan no-fault car insurance policy covers your entire family; as such, if a member of your family is involved in an accident as a passenger or pedestrian, the no-fault insurance will pay for their medical expenses, income loss, and other benefits. This mandatory insurance policy has three parts:
  1. Property Protection Insurance: When you damage a person’s parked vehicle or other people’s possessions in an accident in Michigan, this insurance covers the damage and can pay up to $1,000,000.
  2. Personal Injury Protection (PIP): If an automobile accident leaves you injured, your own PIP covers your medical expenses, post-hospital care, and lost income. While your medical expense coverage is unlimited, the coverage for lost income and attendant care is limited. PIP covers your lost income for a maximum of three years.
    Your PIP coverage can also pay you at least $20 daily for replacement service when injured. You can use the $20 to pay for services you can no longer help your family with due to your accident and injury. If the accident leads to your death, your dependents will get the income. In Michigan, you can coordinate your health insurer and PIP in such a way that your health insurance provider covers the major hospital expenses while PIP covers the rest.
  3. Residual Liability Insurance: This section of the no-fault insurance policy helps you avoid legal issues by compensating and replacing parties and properties you harmed during an accident. The coverage here is limited, and your insurance will cover the expenses if the law holds you responsible for either of the following:
  • The accident you caused killed or injured a person in Michigan.
  • You are responsible for an accident that damages a person's property in a different state.
  • You contributed to an accident that damaged another person's vehicle by 50% or more.
  • While in Michigan, the accident you caused affected someone who is not a Michigan resident.
    Comprehensive Insurance in MI
    Michigan no-fault car insurance does not protect your vehicle from any damages that may occur during an accident or any other unforeseen circumstances. To have protection for your vehicle, you will need to have comprehensive or collision insurance. Comprehensive insurance protects your vehicle from theft, accidents, or damages caused by natural disasters, floods, fires, vandalism, or falling objects (typically - hail).
    Collision Insurance
    This Michigan auto insurance policy provides coverage for your car if it is involved in a collision with another car or object and suffers damage. Collision auto insurance typically requires a deductible. A high deductible will result in a lower cost of collision insurance and vice versa. In Michigan, you can choose from the three types of collision insurance listed below;
  • Broad Form: With this type of collision coverage, your insurance provider pays for the car repairs when your fault is lower than 50%. However, you are mandated to pay deductibles when you have contributed to an accident by 50% or more. Deductibles are not required if your faults are less than 50%.
  • Standard: Your insurance covers the cost of your car repairs regardless of your faults, but you must pay your deductibles first.
  • Limited: With limited collision coverage, your Michigan auto insurance policy does not cover the cost of your car repairs when you have contributed to an accident by 50% or more. Your insurance provider only pays when your fault is less than 50%. You are also required to pay the deductibles before they cover the other damages.
    Roadside Assistance Coverage
    This Michigan car insurance policy type may be called different names by different insurance companies. It covers the expenses of car-related “roadside” assistance. These could include vehicle towing and jump starts, gas refills, and tire replacements.
    Underinsured and Uninsured Motorist Coverage
    Individuals with little or no auto insurance in Michigan are called underinsured or uninsured motorists. When these individuals harm you in an accident, their coverage can not adequately cover you, but you can use your underinsured and uninsured motorist coverage for such cases. UM/UIM policy is typically sold with the same coverage limit as collision coverage.
    Limited Property Coverage or Mini Tort Coverage
    This liability auto insurance type in Michigan covers damages when your actions have contributed to an accident by 50% or more.
    Auto Rental
    This Michigan auto insurance coverage ensures that you will have a car available for use while your insured car undergoes repairs or is replaced after a claimed loss.
    Additional Higher Liability (Umbrella)
    If needed, you can purchase more liability coverage than the Michigan state-mandated liability insurance limit.
    While no-fault insurance is mandatory, you can speak to a licensed auto insurance professional for advice on additional auto insurance coverages you can opt for.


Property damage includes destruction or harm to personal assets or properties. These damages could occur due to natural disasters or man-made changes. Flood, hail, and wind are examples of natural occurrences that lead to property damage. On the other hand, theft, vandalism, and negligence are man-made causes. Fortunately, insurance companies in Michigan could offer compensation in such cases. If you damage a person's property in a car accident, the residual liability segment of your no-fault insurance policy will cover the repair and replacement cost. Although your car is also considered property, it is only covered by comprehensive and collision insurance.

What Does Property Damage Liability Auto Insurance Cover?

Property damage liability auto insurance in Michigan compensates others for property damages from an accident you or your designated car driver caused to another person with your vehicle. Property damage liability insurance covers the following;

  • Cost of Property Repairs: Property, in this case, refers to buildings, mailboxes, fences, doors, etc. This liability insurance pays for the property your vehicle hits and damages.
  • Lost Income/profit: If the damaged property affects the victim’s income or profit, your insurance cover will replace the lost income or profit.
  • Cost of Auto-Repairs: If you damaged a person's vehicle during an accident you caused, your PD liability coverage would cover the vehicle replacement cost, mechanic services, and consultation fees.
    Your property damage liability auto insurance will also cover recurring expenses resulting from the damage you caused, but with a limit. Speak with your licensed agent about the various types of property damage coverage policies that Michigan auto insurance companies provide.

BODILY INJURY (BI) - Auto Insurance in Michigan

Bodily Injury Auto Insurance is a third-party auto liability insurance in Michigan that covers the cost of injuries that you cause to another individual. When you are responsible for an accident, your bodily injury insurance caters for the affected party but also covers your legal fees if a court case arises.
Michigan has a default bodily injury auto insurance coverage. It can be lowered if needed, but you will need to sign a form stating that you realize the involved risks. The default BI coverage is:

  • $250,000 per person
  • $500,000 per accident
    The lowest allowable limit by Michigan law is $50,000 per person, $100,000 total combined per accident.

What Does Bodily Injury Liability Cover in Michigan?

If you are responsible for an accident that causes injuries to an individual, the bodily injury liability coverage provided by auto insurance companies in Michigan will cover the following:

  • Funeral Costs: When the accident you caused results in the death of an individual, the bodily injury liability covers the funeral costs of the deceased.
  • Medical Bills: The bodily injury liability covers immediate hospital expenses, drugs, and other related health care expenses.
  • Lost Income: If the party you injured misses work and income for some time, your bodily injury liability will cover the wages they missed for up to three years.
  • Legal Fees: If the affected party decides to sue you, the liability covers the cost of your court fees, legal counsel fees, and other associated legal expenses.

LIABILITY - Auto Insurance in Michigan

Your liability insurance in Michigan covers the financial expenses of the affected party if you are responsible for an accident. It protects you from legal consequences by catering to the affected party when injured. However, this coverage is limited to whatever amount is specified in the insurance policy. Michigan’s basic no-fault insurance has residual liability insurance as one of its parts. The residual liability insurance also has two sections;

  • Bodily Injury: This segment of your insurance compensates the party that was hurt or killed during an accident you caused.
  • Property Damage: It covers houses, fences, mailboxes, and other people's properties that you damaged in an accident.
    Limited property damage liability insurance (LPI) is an additional liability insurance in Michigan that you can buy. It is also called the “Mini-tort,” and insurance companies in Michigan offer $3,000 coverage.


  • Mechanical Breakdown Coverage: This additional insurance covers mechanical expenses that were not based on accidents. It covers mechanical expenses and replacements arising from frequent car usage or wear and tear.
  • Gap Coverage: Gap coverage is also known as gap insurance or lease coverage. It is optional car insurance in Michigan that covers the disparity between the outstanding amount you owe on the vehicle and your car's current value at the time of accident or theft.
  • Classic Car Insurance: You need more than basic auto insurance for an antique car. Antique cars could be old cars with limited use and special features. In most cases, the cars appreciate in value. This car insurance coverage will include the special requirements and nature of such cars.
  • Sound-System Coverage: This additional insurance covers your vehicle's sound equipment. Your regular insurance will assist if your sound system is destroyed along with the rest of your car during an accident. But, when the malfunction is not a result of a covered accident, your sound system coverage can relieve you of the financial burden of repairing the sound equipment.
    These additional coverages bundled with your auto insurance in Michigan can help you save some money. Licensed Michigan insurance agents can answer questions about other coverage types you can opt for.

What is the Difference Between Private and Commercial Car Insurance in Michigan?

Private car insurance in Michigan covers a car an individual uses for personal purposes. It provides financial relief on damages to the car that might occur due to accidents, natural disasters, vandalism, etc. In some cases, private car insurance covers mechanical challenges and third-party liabilities. The private insurance coverage typically covers the owner-driver of the vehicle. When you drive your vehicle for everyday activities like driving to work, your private insurance will cover damages that ensue. But if you convert your personal car for business, your private insurance may not cover it, and you will need to get commercial auto insurance.
Commercial auto insurance in Michigan is also known as business car insurance and covers vehicles an individual or company uses for business. Cabs and official company cars are examples of commercial vehicles. Commercial car insurance covers a wider range of risks and damages. One protection it provides is the personal accident coverage of the driver. It also provides businesses and their owners with financial security, third-party liability, goods transportation, and passenger coverage.
Third-party liability coverage is mandatory for commercial vehicles in Michigan. Rideshare insurance is an example of a commercial auto policy. It is available to rideshare drivers and provides extra coverage for the driver and passengers in the case of an accident. This insurance policy can be used to cover medical expenses for yourself, passengers, or other third parties, as well as property or vehicle damage.
You need commercial auto insurance if the insured vehicle is:

  • Owned or leased by a business and/or
  • Operates in support of the business
  • Operated by employees
    The premium you pay for commercial auto insurance in Michigan is typically 10-20 percent higher than that required for private car insurance. However, it is a good way to save money as you can protect a larger group of people or vehicles at an affordable cost. Commercial vehicles are considered higher risk than private cars due to the distance covered and frequent usage, and this factor is responsible for the higher premiums that they charge.
    If you use multiple cars for your business, you can register them separately and select different coverage options for each vehicle. Insurance companies In Michigan use the Business Auto Coverage Form (BACF) as the standard insurance form to get all the necessary details and coverage required from policyholders. These insurance companies also provide you with a personalized service, depending on the nature of your business and insurance needs.
    Note that both private and commercial insurance in Michigan follow the state's no-fault insurance system and contain personal injury protection, bodily injury liability, and property damage liability insurance.

Does Auto Insurance in Michigan Cover the Driver or the Vehicle?

As a no-fault state, the Michigan no-fault car insurance policy covers the driver. The personal injury protection segment of the no-fault insurance covers medical payments and loss of income that the insured driver and their passengers experience due to the covered auto accident. Personal injury protection insurance covers the vehicle's driver and the passengers and pays for any medical bills needed.
Residual liability insurance and property damage insurance portion of the Michigan state-mandated no-fault car insurance help the driver pay for any properties damaged during the accident or for any legal fees associated with the covered accident.
Basic Michigan’s no-fault insurance DOES NOT cover the damage to the insured vehicle. If you want to insure your vehicle against damage, you must purchase collision auto insurance for collision damage and comprehensive coverage for any non-collision damage.

How Does Car Insurance Work When You Get Into an Accident in Michigan?

Although getting your insurance claim after an accident involves reaching out to your insurance provider, Michigan car insurance has different coverages, so the compensation you get differs:
IMPORTANT: If you do not have a minimum state-mandated coverage yourself - you cannot claim damages from others (even if they were at fault).
If you suffer an injury in a car accident in Michigan, irrespective of who is at fault, you will have coverage for any injuries, loss of income, and medical bills (as long as you have active no-fault car insurance). For accidents where you were responsible, your insurance will also pay for any damage you cause to other people’s property.
If the affected party decides to sue you, your residual liability coverage will cover legal and court fees.
If you need to file an auto insurance claim in Michigan:

  • Ask your Michigan-licensed auto insurance agent to handle it for you. The agent can tell you if this accident will be covered by your policy and can help you streamline the claim process. If you do not have an insurance agent - contact your insurer directly and follow the provided steps.
  • Start the claim over the mobile app (if your insurer provides it). The sooner you notify your insurance company of the accident - the better. If your insurer does not offer an app: check the insurance company's website for a way to submit the claim, or call customer service.
  • Collect and provide all the required claim information and documents per the instructions received from your agent or the insurance company representative.
  • Your insurance company assigns an adjuster to the case. An adjuster verifies the damages that occurred in the accident and confirms how much of those are covered by your insurance policy. If an adjuster needs more supporting information from you - they must ask you no later than 30 days after you file the claim.
    Per the Michigan Insurance Code, if Michigan auto insurance companies do not pay out the claim within 60 days after satisfactory documentation is provided, the claim is considered overdue. From this point on, the insurance company is considered to be borrowing money from the insured and owes the insured the claim payout plus 12% in annual interest.

Does MI Auto Insurance Cover:

See the most common questions about Michigan car insurance coverage below:

Does Michigan Car Insurance Cover Rental Cars?

Yes, the protection of your full coverage Michigan car insurance applies even if you have an accident in a rental car:

  • No-fault Personal Injury Protection (PIP) insurance takes care of bodily injury to you and your passengers.
  • Private Property Insurance (PPI) covers the damages you may cause to others while driving the rental.
  • Collision coverage protects the rented vehicle in case you cause the accident.
  • Uninsured driver coverage protects the rented vehicle and the car rental business in case the rental vehicle is hit by an uninsured driver.
  • Comprehensive coverage protects the rental in case of theft, fire, hail, vandalism, and other similar types of damage.
    If you do not have the full coverage of Michigan car insurance, you will need to purchase insurance offered by the rental company.

Does Car Insurance Cover Repairs?

Your Michigan auto insurance policy will not cover routine checks or repairs that arise from wear and tear. It only covers repairs associated with a covered peril. Car accidents, natural disasters, collisions with animals, fires, and thefts are examples of the covered perils that your insurance might compensate you for. You can also purchase an additional “mechanical breakdown insurance” to cover car repairs and electrical problems. If you choose not to opt for this, you will have to bear the cost of the car repairs.

Does Car Insurance Cover Windshield Replacement?

Yes and no. A basic no-fault Michigan auto insurance policy does not provide coverage for the insured vehicle, but it will pay for the windshield replacement of another car if you cause damage to their windshield in a car accident. The coverage is done using Private Property Insurance (PPI). There is no deductible for liability insurance.
Likewise, if someone causes damage to your vehicle’s windshield, the at-fault driver’s liability PPI insurance will cover your windshield replacement.
Collision and comprehensive car insurance will cover your windshield replacement. The damage you have experienced and the cause of the accident determine the coverage you use:

  • If your windshield cracks during a crash or accident where you were at fault, your collision insurance will cover it, and you need to pay the deductible.
  • Comprehensive car insurance would cover the cost of replacing your windshield if the damage was due to natural occurrences like hail or fallen debris.
  • Some insurance companies in Michigan also offer insurance policies strictly for auto glass coverage.
    If, instead of replacing, the windshield can be repaired, most Michigan car insurance companies will cover the repair and waive the deductible - as long as you use their approved glass repair facilities. Check with your agent for more details.

Does Car Insurance Cover Engine Failure?

Typically no, with some exceptions: The basic Michigan no-fault car insurance policy does not cover engine failure and replacement because this policy provides only liability personal medical protection. If the engine failure occurred due to an accident caused by a different driver, the at-fault driver's state-mandated liability insurance would cover your engine repair or replacement.
Comprehensive or collision insurance can cover engine failure of your vehicle if a natural or man-made accident leads to it. However, you will not be compensated if your car engine fails due to negligence or daily wear and tear.

Does Insurance Cover Stolen Car?

Comprehensive auto coverage protects you from car theft. Although the state mandates each driver to get car insurance, the basic no-fault auto insurance in Michigan does not cover damages or theft to your car. You will need to purchase comprehensive car insurance if you want protection against theft.

Does Car Insurance Cover Theft of Personal Items?

Although comprehensive Michigan car insurance covers vehicle theft and vandalism, it does not cover personal properties stolen from inside your vehicle. Your home insurance or renters policy provides protection for personal properties stolen from your car.

Does Car Insurance Cover Water Damage?

Although no-fault auto insurance in Michigan does not cover water damage to your car, if you have comprehensive car insurance coverage in Michigan, the policy will cover water damage resulting from floods, hail, and rain. With a valid comprehensive insurance policy, once you notice any water damage in your vehicle, you can file an auto claim to your insurance provider for the repairs. The repair will be subject to a deductible. Contact a licensed insurance professional to get more details on comprehensive insurance and water damage.

Will Insurance Cover You If You Don’t Wear a Seatbelt?

Michigan is a no-fault state; as such, your Michigan auto insurance policy will protect you irrespective of whether you are at fault for an accident, and even if you do not wear your seatbelt, you will still be entitled to compensation. However, not wearing your seatbelt could affect any claims you might want to make against another driver if you are not at fault for an accident. If you are involved in an accident caused by another driver, not using your seat belt could drastically reduce your proposed financial compensation. Although insurance will cover you, Michigan auto laws consider not wearing your seatbelt as a fault and will reduce your expected compensation. Therefore, your seat belt fault will be accrued a percentage, and your compensation will be reduced by that percentage. For example, if a court says that not wearing your seatbelt contributed to your accident by 15%, there will be a 15% reduction from your auto claim.
Always wear your seatbelt. It is the law.