Last Updated on March 2, 2026 by The Insurance Pros
Michigan Bodily Injury Limits: 50/100 vs 250/500
Michigan drivers now choose their own bodily injury (BI) liability limits. The most common decision comes down to 50/100 or 250/500. The difference can determine whether your insurance company handles a lawsuit or whether your personal savings are exposed.
After Michigan’s no-fault reform, lawsuits for serious injury are more common than many drivers realize. That makes understanding your BI limits more important than ever.
What Do 50/100 and 250/500 Mean?
Bodily injury liability protects you if you cause an accident and someone sues you for medical costs, lost wages, or pain and suffering.
- 50/100 = $50,000 per injured person, $100,000 per accident
- 250/500 = $250,000 per injured person, $500,000 per accident
These limits do not cover your injuries. They protect you from paying out-of-pocket if you are at fault.
📊 Michigan BI Limits: Minimum vs. Recommended
Michigan law sets a minimum but also encourages drivers to carry higher limits for more protection. If you want to go below the default limit, you must sign a waiver.
| Coverage Tier | Per Person Injury | Per Accident Injury | Property Damage (out of state) |
|---|---|---|---|
| 🚫 Minimum | $50,000 | $100,000 | $10,000 |
| ✅ Default (State Recommended) | $250,000 | $500,000 | $10,000 |
| 🛡️ With Umbrella Policy | $250,000+ | $1,000,000+ | $10,000+ |
📝 Signing the Waiver for Lower BI Limits
Michigan requires you to sign a formal waiver if you choose anything below the $250,000/$500,000 default coverage. You can review the official form from the Department of Insurance and Financial Services (DIFS) at
DIFS Bodily Injury Waiver Form.
Is 250/500 required in Michigan?
No. Michigan law sets 250/500 as the default limit. However, drivers may choose 50/100 by signing a state-required waiver form.
You can review the official waiver form from the Michigan Department of Insurance and Financial Services here:
Michigan DIFS Auto Insurance Resources.
Choosing 50/100 does not reduce your risk of being sued. It only reduces how much your insurance company will pay on your behalf.
Real-World Example: Why Limits Matter
Imagine you cause a crash involving two injured drivers. Each driver has $80,000 in medical claims and lost wages.
If you carry 50/100:
- Your policy pays $50,000 per person
- You are personally exposed for $60,000 total
If you carry 250/500:
- Your policy covers the full $160,000
- No personal exposure in this example
That difference can determine whether a lawsuit affects your savings, wages, or home equity.
How No-Fault Reform Changed Lawsuit Exposure
Before reform, unlimited PIP medical coverage often reduced the size of liability claims. Today, drivers may choose lower PIP medical limits. When serious injuries exceed PIP coverage, liability lawsuits can follow.
If you are unfamiliar with how PIP selections work, review our guide to
Michigan No-Fault Reform.
When Should You Consider an Umbrella Policy?
Drivers with significant assets, high income, or teen drivers in the household may consider adding a
Michigan personal umbrella policy.
An umbrella policy provides liability protection above your auto limits, often starting at $1 million.
Michigan-Specific Risk Factors to Consider
- Higher medical costs following catastrophic injuries
- Multi-vehicle freeway accidents in metro Detroit corridors
- Interstate travel exposure (Ohio, Indiana, Illinois)
- Increasing jury verdicts in serious injury cases
Lower limits may save a small premium today but increase financial risk long-term.
Frequently Asked Questions
Can someone sue me even if I carry insurance?
Yes. Insurance provides defense and pays up to your limit. If damages exceed your limits, you may be personally responsible.
Is bodily injury the same as PIP?
No. PIP covers your medical expenses. Bodily injury liability protects you if you injure someone else.
Is 50/100 enough in Michigan?
It meets the legal minimum if properly waived. Whether it is sufficient depends on your assets, income, and risk tolerance.
Does 250/500 significantly increase the premium?
In many cases, the cost difference is smaller than drivers expect. Reviewing both options with an agent provides clarity.
Review Your Limits Before You Sign
Michigan bodily injury limits are one of the most important financial decisions in your auto policy. Make sure your coverage matches your lifestyle, assets, and future earning potential.
