Michigan No-Fault Insurance Requirements

The Insurance Pros

14 years ago

🚗 What Are Michigan No-Fault Insurance Requirements?

Michigan requires all vehicle owners to carry no-fault auto insurance to legally register and drive a car. Under this system, your insurance company pays for your injury-related expenses, regardless of who caused the accident. Vehicle damage, however, may require additional coverage.

📋 Key Components of Michigan No-Fault Insurance

1. Bodily Injury & Property Damage Liability (BI/PD)

BI/PD coverage pays for injuries or property damage you cause to others in an auto accident. While Michigan’s No-Fault law limits lawsuits in many cases, you can still be sued if you cause serious injury or death.

$50,000 per person injured or killed
$100,000 per accident if multiple people are injured
$10,000 for property damage in other states

🚨 Recommended limits: The State of Michigan suggests carrying $250,000/$500,000 or higher. If you choose lower limits, you must sign a form acknowledging the risks.

2. Property Protection Insurance (PPI)

PPI covers up to $1 million for damage you cause to stationary property in Michigan, such as fences, buildings, or parked cars. This coverage only applies within the state.

3. Personal Injury Protection (PIP)

Regardless of fault, PIP covers medical expenses, lost wages, and other related costs if you sustain injuries in an accident.

🏥 Medical Coverage: Unlimited lifetime benefits available (or limited options to lower premiums)
💼 Lost Wages: Up to 85% of your income for up to 3 years (subject to state cap)
⚰️ Funeral Expenses: Coverage up to $5,000 depending on your policy
🧹 Replacement Services: Up to $20/day for 3 years for household help
👨‍👩‍👧 Survivors’ Benefits: Paid to family if the insured dies in an accident

🔗 Learn more about your PIP options under Michigan’s Auto Insurance Reform.

💼 Mini-Tort Coverage: A Key Protection for Michigan Drivers

Michigan’s no-fault system doesn’t cover damage to your car unless you have collision coverage. That’s why mini-tort coverage is essential.

Mini-Tort is optional insurance that allows you to recover up to $3,000 from an at-fault driver for damages not covered under your own policy. It’s especially useful if you have no collision or a high deductible.

If you’re sued under the Mini-Tort law, you could be responsible for paying out of pocket unless you have this coverage. We highly recommend adding Mini-Tort to your policy.

🔗 Learn how to file a Michigan mini-tort claim