Michigan • No-fault car insurance
Michigan Auto Insurance: How No-Fault Coverage Works
Michigan auto insurance works differently from coverage in most states. Every policy must include personal injury protection, property protection insurance, and residual liability. Since the 2019 reform, drivers choose a PIP medical level, and liability defaults to 250/500 unless you sign a form choosing lower limits.
This guide explains each required coverage, PIP options, collision choices, the MCCA fee, and how to compare quotes. For saving strategies, see our low-cost Michigan auto insurance guide. Blake Insurance Group is an independent agency licensed in Michigan.
Compare Michigan car insurance
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Required Michigan coverages
| Coverage | What it does | Limits |
|---|---|---|
| Personal injury protection (PIP) | Medical expenses, lost wages, and replacement services after an auto accident | Choose a medical level; wage and service benefits also apply |
| Property protection insurance (PPI) | Damage your car causes to others' property in Michigan, such as buildings and parked cars | $1 million |
| Residual bodily injury liability | Injuries you cause that meet the threshold for lawsuits, and out-of-state accidents | Default $250,000/$500,000; minimum $50,000/$100,000 with signed form |
| Residual property damage | Damage you cause in another state | $10,000 |
Source: Michigan DIFS auto insurance FAQ.
PIP medical choices
| Option | Eligibility |
|---|---|
| Unlimited | Anyone |
| $500,000 | Anyone |
| $250,000 | Anyone |
| $250,000 with exclusions | Excluded people must have qualified health coverage (not Medicare) |
| $50,000 | Applicant enrolled in Medicaid; household members need qualified coverage |
| No PIP medical | Applicant has Medicare Parts A and B; household members need qualified coverage |
Source: Michigan DIFS. Review how your health plan treats auto injuries before choosing a lower level.
The MCCA fee
The Michigan Catastrophic Claims Association (MCCA) reimburses insurers for very large PIP claims and charges a per-vehicle assessment that appears on your premium. For policies effective July 1, 2026, through June 30, 2027, the assessment is $84 per vehicle for drivers with unlimited PIP and $19 per vehicle for all other PIP options, including opt-out.
Collision options and mini-tort
Michigan offers three types of collision coverage. Broad form collision pays regardless of fault and may waive the deductible when you are not mostly at fault. Standard collision pays regardless of fault, with your deductible. Limited collision pays only when you are not substantially at fault. Separately, the mini-tort allows a not-at-fault driver to recover up to $3,000 in vehicle damage not covered by insurance from a driver who is 50% or more at fault. Drivers with collision coverage can recover only their deductible this way.
What insurers can and cannot use
Michigan's reform restricted non-driving rating factors. Insurers cannot use credit information to set rates or to deny, cancel, or refuse to renew coverage, though it may be considered for installment payment options. Factors such as driving record, vehicle, coverage choices, and territory still matter.
How to compare Michigan quotes
Because PIP and collision choices vary so much, match them exactly on every quote, along with these coverages.
| Coverage | What it pays for | What to match |
|---|---|---|
| Bodily injury liability | Injuries you cause to others | Per-person and per-accident limits, such as 100/300 |
| Property damage liability | Damage you cause to others' property | Same limit on both quotes, such as $100,000 |
| Uninsured/underinsured motorist | Your injuries when the at-fault driver lacks enough coverage | Same limits; ideally equal to your liability limits |
| Collision | Damage to your car from a crash | Same deductible |
| Comprehensive | Theft, fire, hail, flood, animal strikes, glass | Same deductible; note any glass option |
| Medical payments or PIP | Medical costs for you and passengers | Same limit; PIP rules depend on your state |
| Rental and roadside | Transportation during repairs; towing | Same daily and total limits |
Limits shown are examples, not recommendations. State minimum requirements differ.
Coverage you should think twice about cutting
Some coverage cuts save very little and expose you to large losses. Be cautious about:
- Buying only the state minimum liability. Minimum limits can be exhausted by a single serious injury, leaving you personally responsible for the rest.
- Rejecting uninsured motorist coverage. It protects you when the at-fault driver has no insurance or too little. See uninsured and underinsured motorist coverage.
- Dropping collision on a financed car. Lenders and lessors usually require it.
- Letting the policy lapse between vehicles or during a move.
When an agent may help
Online tools work well for simple situations. A conversation with a licensed agent may be more useful when:
- You have a teen driver, several vehicles, or drivers with recent accidents or violations.
- You need an SR-22 or other state filing. See our SR-22 insurance page.
- You use a vehicle for rideshare, delivery, or other business purposes.
- You own a home, rental property, or significant savings and want liability limits that work with an umbrella policy.
- You have had a claim denied or a policy nonrenewed and need help understanding your options.
An agent can also explain differences in policy wording that are hard to see on a results page.
Switching insurers without a gap
If a new quote is lower, switch carefully so you are never uninsured:
- Confirm the final price after the insurer verifies your information.
- Set the new policy to start on or before the date the old one ends.
- Give the new insurer your lender or lessor information if the vehicle is financed.
- Save your new ID cards and declarations page.
- Cancel the old policy effective the same day, and ask about any refund of unused premium.
- If you have an SR-22, confirm the new insurer files it before the old filing ends.
Three coverage levels compared
| Level | Liability limits | Who it may fit | Trade-off |
|---|---|---|---|
| State minimum | 50/100 with signed form | Drivers with few assets who need the lowest legal price | Little protection after a serious crash |
| Middle | 100/300/100 | Many households with savings or a home | Moderately higher premium |
| Higher | 250/500/100 or more | Homeowners and drivers who want an umbrella policy | Highest premium, strongest protection |
Examples only, not recommendations. Add UM/UIM at matching limits where possible.
Moving from the minimum to a middle level often costs less than people expect, because liability premiums do not rise in proportion to limits. Ask for both prices before deciding.
How insurers set your price
Most insurers price a policy using your driving record, years licensed, age where allowed, the vehicle, where it is garaged, annual mileage, coverage limits, deductibles, prior insurance history, and, where state law permits, a credit-based insurance score. Each insurer weighs these factors differently, which is why quotes for the same driver can differ by hundreds of dollars. Improving the factors you control, especially your record and continuous coverage, pays off over several renewals.
Payment plans and fees
How you pay can change your total cost. Many insurers charge installment fees for monthly payments, and some offer discounts for paying the full term upfront, enrolling in automatic payments, or going paperless. If paying in full is not possible, ask which payment plan has the lowest fees. Missing a payment can cancel your policy and create a lapse, which raises future rates, so set up reminders or autopay.
After an accident in Michigan
Report injuries to your own auto insurer for PIP benefits, usually within a short notice period, and keep records of medical bills, lost wages, and replacement services. Vehicle damage is handled under your collision coverage according to the type you chose, and you may pursue a mini-tort claim of up to $3,000 against an at-fault driver. Damage your car causes to property such as a fence or a properly parked car is handled under PPI. If you are injured seriously enough to meet the threshold, you may also pursue a claim against the at-fault driver.
Adding a teen driver
Adding a newly licensed teen is one of the biggest premium increases most Michigan households face. To soften it, ask about good student and driver-training discounts, assign the teen to the least expensive car where the insurer allows, consider a telematics program that rewards safe habits, and keep higher liability limits, since inexperienced drivers are more likely to cause serious crashes. Compare quotes when the teen is added, because insurers price young drivers very differently.
What to have ready for a Michigan quote
These details help produce accurate quotes.
- Health coverage details. Medicare, Medicaid, or qualified health coverage for each household member.
- Driver details. License numbers and dates of birth.
- Vehicle VINs. And annual mileage.
- Current declarations page. Including PIP level and collision type.
- Driving history. Accidents and violations in recent years.
Michigan auto insurance FAQs
Is Michigan still a no-fault state?
Yes. PIP pays your own injury-related costs regardless of fault, and lawsuits are limited to injuries that meet the threshold.
What is the default liability limit in Michigan?
250/500 for bodily injury, unless you sign a form selecting lower limits, down to 50/100.
What is PPI?
Property protection insurance, which pays up to $1 million for damage your car causes to property in Michigan.
What is the MCCA fee for 2026-2027?
$84 per vehicle with unlimited PIP and $19 with other PIP options.
Can I opt out of PIP medical?
Only if you have Medicare Parts A and B and household members have qualifying coverage.
What is limited collision?
Collision coverage that pays only when you are not substantially at fault.
Can Michigan insurers use my credit?
Not to set rates or deny coverage, though it may be used for installment options.
What is the mini-tort?
A claim of up to $3,000 for uninsured vehicle damage against a driver who is 50% or more at fault.
Does Michigan PIP cover me in other states?
PIP generally follows you as a Michigan resident, and your residual liability applies to out-of-state accidents.
Related guides
Important information
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Legal requirements. State requirements summarized here are general information as of October 2026 and can change. This page is not legal advice; confirm current rules with your state's insurance regulator or motor vehicle agency.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Request a quote, and a licensed agent will compare Michigan options available to us using the PIP and collision choices you prefer.