Michigan Car Insurance Requirements for 2025 (MI Minimum Coverage)
According to Michigan car insurance requirements, drivers must carry a minimum of $50,000 in BIL per person, $100,000 in BIL per accident, and $10,000 in PDL coverage. Michigan car insurance rates are relatively affordable, starting as low as $51/mo, protecting MI drivers from high out-of-pocket costs.
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Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
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UPDATED: Jan 29, 2025
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Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Jan 29, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Michigan car insurance requirements mandate minimum coverage limits of 50/100/10, which includes $50,000 bodily injury liability per person, $100,000 per accident, and $10,000 property damage liability.
With rates starting as low as $51/month, companies like USAA, Progressive, and Travelers offer affordable options to help drivers meet these requirements. Proper coverage ensures compliance with state laws and financial protection for Michigan drivers.
Michigan Minimum Car Insurance Coverage Requirements & Limits
| Coverage | Limits |
|---|---|
| Bodily Injury Liability | $50,000 per person / $100,000 per accident |
| Property Damage Liability | $10,000 per accident |
Comparing quotes from these top providers can help you secure the best rates and coverage tailored to your needs. Understanding these requirements is essential for staying legally insured while safeguarding yourself and your assets (Read more: What states require car insurance?).
Start saving today by finding the cheapest Michigan car insurance that fits your budget. See if you’re getting the best deal on car insurance in MI by entering your ZIP code here.
- Michigan car insurance requirements mandate minimum coverage of 50/100/10
- USAA offers the cheapest rates for MI drivers, starting at just $51/mo
- Driving without MI insurance includes fines, license suspension, or legal penalties
Michigan Car Insurance Requirements & What They Cover
Car insurance laws in Michigan require all vehicle owners to carry a minimum of 50/100/10 coverage, including $50,000 bodily injury liability per person, $100,000 per accident, and $10,000 property damage liability.
These requirements ensure compliance with Michigan car insurance laws and provide basic protection for other drivers and property. While most insurance companies understand these requirements and can help customers stay legally insured, it’s ultimately the driver’s responsibility to maintain the appropriate coverage.
However, many find these minimums fall short of adequately protecting their vehicles and assets. To address this, some drivers opt for additional policies to meet Michigan’s full coverage requirements or explore how much third-party car liability insurance they need in Michigan for better peace of mind.
Ensuring compliance with car insurance laws in Michigan is essential for avoiding fines, penalties, and potential out-of-pocket expenses.
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Cheapest Car Insurance in Michigan
The cheapest car insurance in Michigan starts with USAA at $51/month, followed by Progressive at $73/month and Travelers at $88/month, making them the top choices for affordable coverage.
6,435 reviewsCompany Facts
Min. Coverage in Michigan
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13,128 reviewsCompany Facts
Min. Coverage in Michigan
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
1,731 reviewsCompany Facts
Min. Coverage in Michigan
A.M. Best Rating
Complaint Level
Pros & Cons
1,731 reviewsHowever, rates can vary significantly by city, with Detroit averaging $437/month, Grand Rapids at $188/month, and Lansing at $199/month for minimum coverage. Sterling Heights and Warren drivers pay higher averages at $264/month and $310/month, respectively.
Michigan Min. Coverage Car Insurance Monthly Rates by City
| City | Rates |
|---|---|
| Detroit | $437 |
| Grand Rapids | $188 |
| Lansing | $199 |
| Sterling Heights | $264 |
| Warren | $310 |
While car insurance is required in Michigan, comparing rates and taking advantage of Michigan car insurance discounts ensures drivers find the most cost-effective options to meet legal requirements and stay protected.
Other Coverage Options to Consider in Michigan
While Michigan liability car insurance fulfills the state’s legal requirements, it does not protect your own vehicle or property. Liability insurance coverage is designed to protect other drivers and pedestrians, shielding properly insured drivers from lawsuits.
However, Michigan’s minimum insurance requirements often fail to offer sufficient financial protection for drivers and their assets. Many drivers opt for additional coverage to enhance their protection and ensure peace of mind on the road.
The table below highlights various car insurance options available to Michigan drivers, detailing how each coverage works and its benefits:
Car Insurance Coverage Options in Nevada
| Coverage Considerations | Description |
|---|---|
| Liability | Most states require you set amount of liability coverage which protects other drivers in the case of an accident. |
| Comprehensive | This coverage and collision coverage are typically required by your lender or lease holder. If you own your vehicle outright, this is an optional coverage. It will pay for damage from non-accident related events such as hail, vandalism, and theft. |
| Collision | This provides financial protection for your vehicle. It will pay for damages after a crash. |
| Personal Injury Protection (PIP) | This coverage will pay for your own medical costs including lost wages. |
| Medical Payments (MedPay) | Similar to PIP, MedPay covers injury costs but doesn't cover lost wages like PIP does. |
| Uninsured/Underinsured Motorist Protection | Insurance companies are required to offer this coverage to you and it will pay for your own damages beyond what another's liability covers when they're responsible for an accident. |
| Guaranteed Auto Protection (GAP) | You may owe more on your vehicle than it's worth because of how quickly cars depreciate. This coverage will pay the difference between the value and what you owe if your vehicle is totaled. |
| Personal Umbrella Policy (PUP) | This option provides an "umbrella" of coverage over several types of insurance. |
| Rental Reimbursement | If your car is a total loss or needs repair, do you have another vehicle you can drive? If you'll need a rental, you should consider this option. |
| Emergency Roadside Assistance | You can purchase this option from your insurer or a driving club. |
| Pay-As-You-Drive or Usage-Based Insurance | This isn't a good choice for everyone, but if you drive few miles, it might be cheaper for you to purchase this kind of coverage. |
| Non-Owner Car Insurance | This option is for people who do not own a car but borrow one occasionally. |
| Modified Car Insurance Coverage | If you've made modifications to your vehicle, your regular full coverage won't take those changes into consideration when paying for damages. Adding special coverage for those modifications will protect the value of them. |
| Windshield Coverage | Windshield coverage will help you pay for the replacement of your broken glass (check state laws for specifics). |
| Mechanical Breakdown Insurance | This coverage is similar to a manufacturer extended warranty and you should weight the benefits of both a warranty and breakdown insurance to see which is best for you. |
If you own a new car, lease or finance your vehicle, or simply want maximum protection, additional coverages like comprehensive and collision can help fill the gaps left by liability insurance.
Comprehensive coverage protects against non-driving incidents such as vandalism or severe weather, while collision car insurance coverage safeguards against vehicle damage in an accident. Together, these options create a full coverage policy, offering drivers better financial security and peace of mind.
Michigan Operates as a No-Fault Insurance State
Michigan operates as a no-fault insurance state, meaning your insurance covers personal injuries, medical expenses, wage loss, and damage to others’ property, regardless of fault, provided you maintain proper coverage. However, the minimum required coverage may not suffice for all situations, prompting many drivers to consider additional protection.
Michigan’s no-fault system mandates Personal Injury Protection (PIP), available at several levels: unlimited, $500,000, $250,000, and $50,000 (restricted to Medicaid-eligible households). These PIP reforms, introduced in 2020, aim to lower insurance costs, but eligibility for the lowest limits requires all household members to have Medicaid or a qualifying health plan.
Additionally, drivers must carry no-fault property protection insurance (PPI) to cover property damage. Upgrading beyond the minimum ensures more comprehensive financial security and compliance with Michigan’s insurance laws.
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Penalties for Driving Without Auto Insurance in Michigan
Driving without auto insurance in Michigan comes with serious penalties, including fines of $500 for a first offense and up to $1,000 for repeat violations. You could also face jail time, have your car impounded, or lose your license for up to 30 days.
Penalties for Driving Without Auto Insurance in Michigan
| Penalty Type | Description |
|---|---|
| Fines | $500 / $1,000 for repeat offenses |
| Jail Time | 1 year for repeat offenders |
| Vehicle Impoundment | Vehicle may be impounded |
| License Suspension | License suspension up to 30 days |
| Registration Suspension | Vehicle registration suspended |
| Reinstatement Fees | Fees up to $125 for reinstatement |
| Court Costs | Additional court appearance costs |
| SR-22 Requirement | Proof of insurance for 3 years |
Your vehicle registration may be suspended, and you’ll need to pay reinstatement fees of up to $125, plus court costs. Drivers caught without insurance must also file an SR-22 form, proving they have coverage for the next three years.
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Michigan law requires all drivers, no matter their age, to carry at least the state’s minimum insurance coverage. Young drivers can save on premiums by taking advantage of discounts like a multi-policy car insurance discount or new driver savings while staying insured and avoiding these penalties.
Michigan Auto Insurance Costs Depend on Several Factors
Michigan car insurance requirements influence costs based on several key factors, including age, gender, the make and model of your vehicle, coverage amounts, credit score, occupation, and deductible choices. Michigan’s rates are among the highest in the nation, making it essential for drivers to explore all options (Read more: Occupation Car Insurance Discount).
Comparing quotes from top insurance companies is the best way to find coverage that fits your needs and budget. Whether you’re a young driver, a high-mileage commuter, or someone with a new vehicle, understanding these factors can help you make informed decisions.
By shopping around and considering discounts, you can ensure you get the coverage you need without overpaying. Protecting yourself and your vehicle starts with finding the right policy at the right price. Find cheap car insurance quotes by entering your ZIP code here.
Frequently Asked Questions
What are the requirements for car insurance in Michigan?
Drivers in Michigan must carry a minimum of 50/100/10 coverage, including $50,000 bodily injury liability per person, $100,000 per accident, and $10,000 property damage liability, along with Personal Injury Protection (PIP) and Property Protection Insurance (PPI). Explore different types of car insurance coverage.
What is the new law for car insurance in Michigan?
Michigan’s 2020 car insurance reform allows drivers to choose from various PIP coverage levels and aims to reduce overall insurance costs. The reforms also prohibit using certain non-driving factors, such as ZIP codes, to determine rates.
Need the cheapest car insurance possible? Enter your ZIP code into our free comparison tool to find the most affordable rates for your vehicle.
How much is car insurance in Michigan per month?
Car insurance in Michigan averages $51/month for minimum coverage, though rates vary based on factors like age, location, and coverage type.
What type of insurance do I need in Michigan?
At a minimum, you need liability coverage (50/100/10), PIP, and PPI. Many drivers also opt for comprehensive and collision car insurance coverage to better protect their vehicles.
Can I get car insurance without a license in Michigan?
Yes, you can get car insurance in Michigan without a license, but it may require listing a primary driver with a valid license.
Why is car insurance so expensive in Michigan?
Car insurance in Michigan is expensive due to its no-fault system, high PIP coverage costs, and fraud-related issues. Reforms are working to reduce rates over time.
Read more: What does car insurance cover?
Can someone drive my car if they are not on my insurance in Michigan?
Yes, most policies include permissive use, allowing someone not listed on your policy to drive your car occasionally, but it’s best to confirm with your insurer.
When did car insurance become mandatory in Michigan?
Car insurance became mandatory in Michigan in 1973 when the no-fault insurance system was introduced.
What is the cheapest car insurance in Michigan?
USAA offers the cheapest car insurance in Michigan, starting at $51/month for minimum coverage, followed by some of the best insurance companies like Progressive and Travelers.
Is there free insurance in Michigan?
No, Michigan does not offer free car insurance, but low-income drivers may qualify for reduced PIP coverage or other discounts.
Can I self-insure my car in Michigan?
Yes, Michigan allows self-insurance for vehicle owners who can prove financial responsibility and meet specific requirements set by the state.
What is full coverage car insurance in Michigan?
Full coverage in Michigan includes liability, PIP, PPI, comprehensive, and collision insurance, offering broader protection for your vehicle and medical expenses than the minimum required coverage.
Can my car insurance be in someone else’s name in Michigan?
No, car insurance must be in the name of the vehicle’s registered owner to meet Michigan’s requirements.
How do you qualify for state insurance in Michigan?
To qualify for state-provided health insurance in Michigan, such as Medicaid, you must meet income and residency requirements. For auto insurance, you must comply with Michigan’s mandatory coverage laws. See how much you’ll pay for car insurance by entering your ZIP code into our free comparison tool.
Compare The Best Insurance Quotes In The Country
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.