Michigan's Mandatory Auto Insurance Requirements

What Michigan Requires

Michigan is the only U.S. state that mandates no-fault personal‑injury protection insurance for every driver. The law requires each vehicle to carry a minimum of $25,000 in Personal Injury Protection (PIP) and $20,000 in Property Damage Liability (PDL). If you are uninsured or underinsured, you must obtain an Uninsured/Underinsured Motorist (UM/UIM) policy with the same limits as PIP.

Personal Injury Protection (PIP)

PIP covers medical costs, lost wages, and other injury‑related expenses regardless of fault. The $25,000 limit applies per person per claim. If injuries exceed that amount, you may file a supplemental claim against the driver's liability coverage. PIP also includes a small "safety net" that pays a nominal amount to cover costs that exceed the policy limits.

Property Damage Liability (PDL)

PDL protects you if you damage someone else's property. The $20,000 minimum applies per incident. It covers repairs or replacement of vehicles, buildings, and other property. Higher limits are available for added protection but are not required by law.

Uninsured/Underinsured Motorist (UM/UIM)

Michigan law requires UM/UIM coverage only if you have PIP. The minimum UM/UIM limits mirror PIP: $25,000 per person and $20,000 per incident. This coverage protects you if the at‑fault driver lacks sufficient insurance.

Proof and Enforcement

Drivers must display proof of insurance in the passenger compartment. The Department of State Police can issue a stop‑and‑check or a summons if proof is missing or expired. Penalties include a $75 fine, a 30‑day suspension of registration, and a mandatory 30‑day insurance period before registration is reinstated.

Optional Coverage

While the minimums are mandated, many drivers opt for higher limits or additional coverages such as collision, comprehensive, and medical payments. These options can reduce out‑of‑pocket costs in serious accidents but increase premiums.