What Michigan Auto Insurance Covers: Complete Driver Guide

If you own a vehicle in Michigan, you’re required to carry auto insurance under the state’s No-Fault system. This guide explains exactly what Michigan auto insurance covers—so you can make smart choices, stay legal, and protect yourself financially.

Mandatory Michigan Auto Insurance Coverage

Your basic No-Fault policy includes three essential coverages:

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

  • Protects you from lawsuits if you cause an injury to someone else.
  • Covers legal defense and payouts up to your policy limit.
  • Minimum limits: $50,000 per person / $100,000 per accident for injury; $10,000 for out-of-state property damage (shown as 50/100/10).

Tip: Michigan recommends limits of $250,000/$500,000, though you may sign a waiver to keep them at the lower required minimum.

2. Property Protection Insurance (PPI)

  • Pays up to $1 million for damage you cause in Michigan to buildings, fences, or parked vehicles.

3. Personal Injury Protection (PIP)

PIP covers unlimited medical costs (if selected), lost wages, funeral expenses, and replacement services after an injury in a crash.

PIP Options:

  • Unlimited medical (default)
  • $500,000 or $250,000 limits
  • $250,000 with medical exclusions (requires qualified health coverage)
  • $50,000 for Medicaid recipients
  • Opt-out (must prove qualifying health coverage)

Additional PIP Benefits

  • Lost wages: Up to 85% of income for 3 years (capped annually)
  • Survivor’s benefits if a policyholder dies in an accident
  • Funeral expense coverage up to $5,000
  • Replacement services: Up to $20/day for household help

Optional Michigan Auto Insurance Coverage

Collision Coverage

Repairs or replaces your car after a crash. Three types:

  • Standard: Covers damages regardless of fault (you pay deductible if at fault)
  • Broad form: You pay deductible only if more than 50% at fault
  • Limited: Only pays if you’re less than 50% at fault

Comprehensive Coverage

Covers non-collision damage: theft, vandalism, fire, hail, animal strikes, and more.

Uninsured Motorist (UM) Coverage

Pays for pain, suffering, and excess wage loss if an uninsured driver injures you or a family member. Usually matches your BI/PD limits.

Limited Property Damage (Mini Tort)

Pays up to $3,000 if you’re 50% or more at fault and the other driver sues you for vehicle damage not covered under their policy.If you are hit and need to know how to get your deductible back, go to How to file a mini-tort claim.

Rental Car Reimbursement

Covers daily rental costs while your vehicle is in the shop due to a covered claim. Limits apply.

Emergency Roadside Assistance

Pays for towing or emergency help if your car breaks down.

Get a Michigan Auto Insurance Quote

Now that you know what Michigan auto insurance covers, it’s time to review your policy or get a quote.

Visit Michigan.gov/autoinsurance for full details and legal language.