Michigan Car Insurance
In Michigan, not only can you help slow the rise of car insurance costs by reporting suspected car thefts and insurance fraud, you can even be rewarded for it. Read more about Michigan car insurance requirements and programs.
No-Fault Car Insurance
Michigan requires you to have no-fault car insurance, which covers injuries and damages caused in a car accident regardless of who is at fault. Michigan’s basic no-fault auto insurance includes:
- Personal injury protection.
- Property protection.
- Residual bodily injury/property damage liability insurance.
Personal Injury Protection (PIP)
Personal Injury Protection will pay your medical expenses from injuries that you might suffer from a car accident.
You have the option of coordinating your health insurance with your PIP coverage. If you do so, your health insurance will pay for your medical bills up to the limits of your health insurance policy first. Your PIP insurance will cover the rest.
If your injuries keep you from working your normal job, PIP will also pay up to 85% of what you would have earned in income if you weren’t hurt, with a current limit of $5,392 per month for a maximum of 3 years. Limits change annually, so be sure to check with your insurance company when applying.
Property Protection (PPI)
This coverage will pay up to $1 million for damages to other people’s property such as buildings. PIP will also cover damages to someone’s car if that car was legally parked, but will not cover a moving car that was involved in the accident.
Residual Bodily Injury/Property Damage Liability (BI/PD)
Michigan’s no-fault insurance requirements are meant to protect you from being sued after an accident UNLESS:
- You cause a car accident in which someone was seriously injured or killed.
- You are involved in an accident with someone who is not a resident of Michiganand is not driving a Michigan registered car.
- You are a Michigan driver involved in a car accident in another state.
- You are 50% or more at fault in an accident that causes uninsured damages to another car. You may only be sued up to $1,000 in this instance.
If you are sued after one of the above instances, Residual Bodily Injury/Property Damage Liability (BI/PD) insurance covers your defense costs and pays for damages and injuries you may have caused to others, up to the limits of your policy’s coverage.
The minimum amounts of BI/PD insurance you must carry in Michigan are:
- $20,000 for injuries or death to an individual.
- $40,000 for injures or death per accident to multiple people.
- $10,000 for property damage in another state.
Violation Fines and Penalties
If you are caught driving without car insurance in Michigan you may be convicted of a misdemeanor and face the following penalties:
- $200 - $500 fine and/or up to 1 year in jail.
- 30-day driver's license suspension, or until you can show proof of valid car insurance.
In addition to facing these penalties, you may be sued and held financially responsiblefor all the damages and injuries resulting from a car accident.
Optional Car Insurance Coverages
Michigan’s no-fault insurance requirements do not cover damages to your car. There are optional types of car insurance coverage you can buy that will cover damages to your car, such as collision car insurance.
The 3 Types of Collision Car Insurance
Michigan car insurance companies offer you 3 types of collision car insurance that will cover your car’s damages after a car accident.
The 3 types of collision coverage are:
- Limited Collision Coverage:
- If you are less than 50% at fault in a car accident, your insurance provider will pay for repairs after you have paid your deductible.
- If you are more than 50% at fault you will be completely responsible for your car’s repairs.
- Standard Collision Coverage:
- Your insurance company will pay for repairs after your deductible.
- Broad Form Collision Coverage:
- If you are less than 50% at fault for an accident your insurance company will pay for repairs. You will not have to pay the deducible.
- If you are more than 50% at fault your insurance company will pay for repairs.
Other Car Insurance Coverages
Collision insurance is a great optional car insurance to help protect your car against damages. Other types of optional car insurance include:
- Comprehensive coverage – This will cover damages to your car that do not come from car accidents, such as collisions with animals.
- Uninsured/underinsured driver coverage – Michigan has one of the highest rates of uninsured drivers in the country. Uninsured drivers insurance can help protect you from damages incurred from an accident with one of these drivers.
- Towing and labor coverage.
- Rental car coverage.
Note: While collision and comprehensive coverages are optional, your car loan lender willrequire you to have both collision and comprehensive car insurance on your financed car.
Michigan Auto Insurance Placement Facility (MAIPF)
The Michigan Auto Insurance Placement Facility (MAIPF) is a private non-profit organization established by the Michigan State Legislature to help assist people with car insurance issues, such as helping you get car insurance if you are having a hard time finding an insurance carrier.
While all licensed drivers and people who own Michigan registered cars are legally guaranteed car insurance eligibility, individual insurance companies do have the right to deny you car insurance coverage.
If multiple insurance companies are turning you down, for reasons such as your poor driving record, you have the option of getting your car insurance through MAIPF. You canapply to MAIPF through any licensed Michigan car insurance agent, including any of the agents that have turned you down.
The Michigan Assigned Claims Program
The Michigan Assigned Claims Program (MACP) helps injured victims of car accidents receive personal injury protection when no car insurance is available.
MACP will help you pay your medical costs after a car accident; however, you should keep in mind that the owners of the uninsured cars involved in the accident will be responsible for paying MACP back, even if the owner of the car is a family member.
To file a claim after an accident involving an uninsured driver, visit the MACP website.
Help Eliminate Auto Thefts (HEAT)
Help Eliminate Auto Thefts (HEAT) is an MAIPF-run program targeting car theft related crimes in Michigan, including auto insurance fraud.
Through the HEAT website or their tip line (1-800-242-HEAT), you can tip local police of suspected car theft issues.
Your tips can earn you the following rewards:
- Up to $1,000 if your tip results in an arrest and warrant of suspected car thieves and people involved in insurance fraud or any stolen car-related identity theft.
- Up to $10,000 if you tip results in the arrest of suspected members of car theft rings or chop shop operators.
- $2,000 if your tip results in the arrest and warrant of a suspected carjacker.
All car owners feel the impact of car theft and insurance fraud. Part of your insurance premium goes towards the money auto insurance companies have to spend on car theft and car insurance fraud related claims.
Cracking down on theft and insurance fraud could help lower insurance costs for everyone. Get your car insurance quotes online and see how much you could save.