Last Updated on August 7, 2025 by The Insurance Pros
Michigan Car Insurance Uncovered: No‑Fault Rules & PIP Options
If you drive in Michigan, car insurance isn’t optional; it’s required by law. This guide breaks down the no-fault system, mandatory coverages, and optional add-ons, like PIP choices, to help you stay protected and compliant in 2025.
🚘 What Does Michigan’s No-Fault System Mean for Drivers?
Michigan’s no-fault insurance law ensures your policy pays for medical treatment and other benefits after an accident, regardless of who was at fault. The law was updated in 2020 to offer more flexibility, especially around medical coverage (PIP).
🛡️ Required Michigan Car Insurance Coverages
- Bodily Injury & Property Damage Liability (BI/PD): Minimum coverage is $50,000 per person and $100,000 per accident for injuries, plus $10,000 for property damage in another state. Higher limits, like 250/500/10, are recommended.
- Property Protection Insurance (PPI): Pays up to $1 million for damage you cause to other people’s property (e.g., parked cars, fences, buildings) within Michigan.
- Personal Injury Protection (PIP): Covers your medical bills, lost wages, and other care after an accident. You now have tiered coverage options—explained below.
🩺 PIP Medical Coverage Options (2025)
Michigan drivers now have several PIP options based on their medical coverage and eligibility. Here’s what you can choose:
- Unlimited medical coverage (default)
- $500,000 limit
- $250,000 limit
- $250,000 with medical exclusions (requires qualified health coverage)
- $50,000 limit (only for Medicaid-eligible individuals)
- Opt-out (only for those with Medicare Parts A & B and proof of coverage for all household members)
🔧 Optional Michigan Car Insurance Coverages
- Collision Coverage: Pays for repairs to your vehicle after a crash. Choose from standard, broad, or limited collision based on your risk tolerance and deductible.
- Comprehensive Coverage: Covers damage from non-collision incidents like theft, vandalism, hail, or animal strikes.
- Uninsured/Underinsured Motorist: Protects you if you’re hit by someone without enough insurance.
- Mini-Tort (Limited Property Damage): Covers up to $3,000 in vehicle damage if you’re partially at fault and the other driver doesn’t have full collision. How to file a mini-tort claim.
- Roadside Assistance & Rental Car: Optional add-ons that help with towing, emergency services, or providing a vehicle during repairs.
📌 Why Review Your Policy Regularly
Insurance laws change, and so does your lifestyle. Whether you recently changed jobs, added a teen driver, or paid off your vehicle, it’s important to review your car insurance in Michigan at least once per year. Adjusting your coverage could save money or protect you better.
💡 Tips to Save on Michigan Car Insurance
- Shop around at every renewal; rates can vary drastically.
- Ask about bundling discounts for home, renters, or life policies.
- Choose a higher deductible if you have emergency savings.
- Consider coordinating PIP with your health insurance, if you qualify.
- Raise your liability limits if you own a home or have significant assets.
📣 Take Action Now
Are you prepared to reevaluate your auto insurance? Please compare quotes or update your coverage below:
