Auto Insurance Coverage Requirements in Michigan

Minimum Liability Coverage

Michigan mandates a minimum of $25,000 for bodily injury per person, $50,000 for total bodily injury per accident, and $10,000 for property damage. These limits protect against lawsuits when you cause an accident. If you're at fault, you must pay the full amount up to these caps; higher limits are optional.

Uninsured/Underinsured Motorist Protection

Michigan requires all drivers to carry uninsured motorist (UM) and underinsured motorist (UIM) coverage. UM limits are $25,000 per person and $50,000 per accident for bodily injury, and $10,000 for property damage. UIM limits match UM limits. These cover damages when the at‑fault driver lacks sufficient coverage.

Personal Injury Protection (PIP)

PIP is optional in Michigan but highly recommended. It covers medical expenses, lost wages, and other injury costs regardless of fault. Policyholders can choose any amount, but many opt for $25,000–$50,000 per person.

Collision and Comprehensive Coverage

These cover damage to your own vehicle. Collision applies when you're in an accident, while comprehensive covers non‑collision events like theft or weather. Both are optional but can reduce out‑of‑pocket costs.

Exclusions and Limits

Coverage may exclude certain vehicles (e.g., motorcycles), high‑risk drivers, or specific events (e.g., racing). Some policies limit coverage for high‑value vehicles or impose deductibles that affect claim payouts.

How to Choose Adequate Coverage

• Assess personal risk: high traffic areas, expensive vehicle, or business use may warrant higher limits.
• Consider a higher deductible to lower premiums, balancing affordability against potential out‑of‑pocket costs.
• Review state law changes annually; Michigan may adjust minimums or add new coverage options.

Impact on Insurance Costs

Higher liability limits and optional coverages increase premiums. Insurers calculate rates based on risk factors such as age, driving record, and vehicle type. Bundling auto with other policies can provide discounts.