Last Updated on July 8, 2025 by The Insurance Pros
What Michigan Auto Insurance Covers: Complete Driver Guide (2025)
If you drive in Michigan, you must carry no-fault auto insurance. This guide outlines the included benefits and optional add-ons that can enhance your protection in 2025.
🛡️ Required No-Fault Coverages
1. Bodily Injury & Property Damage Liability (BI/PD)
It provides coverage for both injured parties and property in cases where you are at fault. The state minimum is $50K per person / $100K per accident / $10K out-of-state property. Experts often recommend $250K/$500K limits.
2. Property Protection Insurance (PPI)
Property Protection Insurance (PPI) covers damages to other people’s property within Michigan up to a maximum of $1 million.
3. Personal Injury Protection (PIP)
It provides coverage for your medical bills, lost income, funeral costs, and household assistance.
You can choose between
- Unlimited medical (default)
- $500K or $250K limits
- $250K with medical exclusions (needs qualifying health insurance)
- $50K option for Medicaid recipients
- Full opt-out if Medicare-qualified (with proof)
These changes stem from Michigan’s 2019 no-fault reforms to help reduce premium costs.
🔧 Common Optional Coverages
Collision Coverage
It provides coverage for any damage your vehicle may sustain in an accident. Types include:
- Standard: Covers all accidents (deductible applies at fault)
- Broad Form: Deductible waived if you’re less than 50% at fault
- Limited: Covers only if you’re less than 50% to blame
Comprehensive Coverage
It safeguards against non-collision losses such as theft, vandalism, hail, fire, or animal strikes. Lenders frequently mandate this coverage.
Uninsured/Underinsured Motorist (UM/UIM)
It compensates you for any injuries or wage loss incurred due to the at-fault driver’s lack of sufficient insurance, up to the limit of your coverage.
Mini-Tort / Limited Property Damage Liability
Eligible if you’re at fault (≤ 50%), it covers up to $3,000 in vehicle damage that exceeds the other driver’s deductible. Learn how to file a Michigan mini-tort claim in our step-by-step guide.
Rental & Roadside Assistance
You can opt for optional add-ons that provide coverage for rental car expenses and towing in the event of a breakdown.
📌 Why Review Your Policy Regularly
Michigan still ranks highest for average auto premiums. But smart adjustments—like opting for a buried deductible or adjusting PIP limits—can save you hundreds annually. Ask your agent how your current choices measure up.
Learn more: Visit Michigan.gov’s Auto Insurance page for official guidelines and up-to-date requirements.
📣 Take Action Now
Are you prepared to reevaluate your auto insurance? Please compare quotes or update your coverage below:
[…] These are the minimum coverage needed for no fault in Michigan. Click the link if you would like to see a comprehensive description of Michigan Auto Insurance coverage. […]