Michigan Minimum Auto Insurance Requirements (2024)
Michigan requires a minimum of 20/40/10 of bodily injury and property damage coverage. The average rate of auto insurance is about $66.27/mo.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
UPDATED: Jun 3, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 3, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Drivers face up to one year in jail for driving without car insurance in Michigan
- In Michigan, driving without insurance can cause license suspension until you have proof of insurance
- Drivers must have full coverage if you finance or lease your vehicle in Michigan
Car insurance is mandatory in Michigan, which means that all drivers must carry automobile insurance. It’s vital to the financial safety of all drivers, and it’s often the only thing that prevents at-fault drivers from financial ruin.
Carrying Michigan’s state minimum car insurance on your vehicle protects you if you are involved in an accident if you are injured, and even if someone in your car is killed as a result of an accident.
The minimum insurance coverage in Michigan can cover the cost of your medical bills, lost wages, and funeral and burial expenses. It’s there to cover the cost of car repairs to get you back on the road.
Your insurance policy is not just another expense you are required to pay every month. It’s one of the most important forms of protection you have behind the wheel of a car, which is why finding a policy that fits your needs is imperative as well as a legal requirement.
Understanding the type of coverage you need and how to find the most affordable policy makes shopping for car insurance that much simpler for Michigan Residents. Use our free insurance comparison tool above to make sure you are getting the best rate!
Michigan Minimum Insurance Requirements
Michigan car insurance laws require all drivers to carry liability insurance in specific amounts. You must carry bodily injury coverage of at least $20,000 per person and $40,000 per accident.
You must also carry property damage coverage worth $10,000. You must also carry Personal Injury Protection (PIP) insurance to help you cover costs if you are injured in an accident.
This is just the state minimum car insurance in Michigan, and everyone must carry at least this kind of policy. If you live outside the state, you needn’t abide by Michigan car insurance requirements. You must, however, abide by insurance coverage laws in the state where you reside.
Anyone who moves to Michigan has 30 days from the date you move into your home to change your insurance policy.
While Michigan insurance agents are required to provide you with quotes for at least the minimum amount of car insurance in Michigan, you shouldn’t go into an insurance office without knowing what’s expected, what you need, and how you can find the best rates for insurance.
If you’re a new resident, you should educate yourself on Michigan auto insurance requirements. It’s too expensive to ignore this law.
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Do I need insurance if my car is paid off?
Before you go out and change your policy to meet only the Michigan’s state minimum auto insurance requirements, you should know how to handle a paid-off car. Most people pay car loans for at least 5 years on a brand-new vehicle, and depreciation is typically extensive.
Your car is not worth nearly what it was worth when you purchased it, which means you don’t always need full coverage.
While there are no specific Michigan full coverage requirements, you must have at least the minimum. Even if your car is not worth very much because of its age, it must be insured. Any car with active registration must carry insurance, and this is true of any car you’ve paid off.
Anyone who makes the mistake of assuming they can cancel their policy when their car is paid off is subject to fines and penalties.
Michigan Car Insurance Minimums for Leased/Financed Vehicles
Michigan auto insurance laws pose additional requirements for anyone who leases or finances a vehicle. A leased vehicle is a vehicle you essentially borrow from a car dealership for a pre-determined timeframe.
The average lease is anywhere from two to three years, which means you pay a payment to the lender during this time and turn the car in after you make the last payment. You get a new car to lease at this point, which means you never own your car.
If you finance a car, it simply means a bank or other financial institution lends you the money you need to purchase the car if you can’t afford to pay cash.
The lender then comes up with an agreement you must sign to repay the loan in the agreed upon time. Once you make the last payment, the car is officially yours.
When you lease or finance your car, you must carry full coverage until your car is paid off. If you do not carry full coverage, your lender sends you a notice requiring you get a policy in place immediately. If you fail to purchase full coverage insurance for your vehicle, your lender can do it for you.
You are required to pay the premiums, and they’re almost always more expensive from the lender than they are if you shop for your policy.
Penalties for Driving Without Insurance in Michigan
Driving without insurance is illegal, and law enforcement officers do not issue a warning for this crime.
You aren’t pulled over and given a lecture to purchase a policy. You are given a ticket, you are charged fines, and you are penalized.
The act of driving without insurance in Michigan is a misdemeanor crime punishable to the full extent of the law.
Fines range from $200 to $500 if you haven’t insurance. First-time offenders are usually given a $200 fine, and the fine increases each additional time you’re caught. Your license is automatically suspended for 30 days, and you cannot get it back without proving you purchased a Michigan auto insurance policy. You must also pay local reinstatement fees to get it back.
Most first-time offenders are not sentenced to jail for driving without insurance. However, if you’re caught more than once, a judge might determine you pay a fine and spend up to a year in jail.
You might also avoid a fine but spend up to a year in jail if that’s what a court of law decides when hearing your case. It’s too expensive to drive without insurance in Michigan.
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How to Get Car Insurance in michigan
Being sentenced to any time in jail means you now have a criminal record, which can affect your ability to find a job and/or support your family. It’s too expensive to drive without insurance, and it’s too affordable to put it off any longer.
Before you shop for a new policy, check your credit report to see if there are any mistakes in need of correction. The higher your score is the more likely you are to get a good insurance rate.
Discounts for retired drivers, drivers with more than one car on your policy, and drivers who live in a safe neighborhood are available with many companies.
Ask around for different discounts to see what kind of rates you can get with different companies. You can find affordable insurance; you must compare rates and know what you need to get a good rate. Use our FREE insurance comparison tool below! Just enter your ZIP and compare rates now!
Frequently Asked Questions
What is the minimum insurance coverage required in Michigan?
Car insurance requirements in Michigan are unique. The mandatory auto insurance in Michigan includes:
- Personal Injury Protection (PIP): Michigan requires drivers to have unlimited Personal Injury Protection coverage, which provides medical expenses, lost wages, and other related costs regardless of fault.
- Property Protection Insurance (PPI): Michigan drivers must also carry a minimum of $1 million in Property Protection Insurance, which covers property damage caused to others in the state.
Is PIP required in Michigan?
Yes, you have to have PIP insurance in Michigan. PIP coverage provides unlimited medical benefits, lost wages, and other related costs for injuries sustained in an auto accident, regardless of fault. However, as of July 2020, Michigan’s personal injury protection requirements have changed.
Drivers have the option to choose different levels of PIP coverage or opt out entirely, under certain conditions, if they have qualifying health insurance coverage that specifically covers auto accident injuries.
Can I opt out of Personal Injury Protection (PIP) coverage in Michigan?
Yes, as of July 2020, Michigan drivers have the option to opt out of Personal Injury Protection (PIP) coverage if they have qualifying health insurance coverage that specifically covers auto accident injuries. However, it’s important to carefully consider the implications of opting out, as it may impact your ability to receive comprehensive medical coverage for injuries sustained in an auto accident.
What is Property Protection Insurance (PPI) in Michigan?
Property Protection Insurance (PPI) is a mandatory car insurance coverage in Michigan that provides a minimum of $1 million in liability coverage for property damage caused to others in the state. PPI helps cover the cost of damages to buildings, fences, parked vehicles, and other types of property.
Can I get uninsured/underinsured motorist coverage in Michigan?
Yes, Michigan allows drivers to add uninsured/underinsured motorist (UM/UIM) coverage to their auto insurance policies. UM/UIM coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or has insufficient coverage to pay for your injuries or damages.
Can I choose my own auto insurance provider in Michigan?
Yes, as a resident of Michigan, you have the freedom to choose your own auto insurance provider. There are numerous insurance companies licensed to operate in the state, offering various coverage options and premiums. It’s recommended to compare quotes from multiple providers to find the best coverage and rates that meet your needs.
Is car insurance required in Michigan?
Michigan does require car insurance for drivers to be able to legally operate a vehicle.
Is comprehensive insurance required for Michigan?
Insurance laws in Michigan do not require comprehensive insurance, but it may be required by a lender if you have a car loan or lease.
How much third-party car insurance do I need in Michigan?
Third-party car insurance in Michigan generally follows Michigan’s liability insurance requirements. This means that you may need third-party liability car insurance with the minimum coverage limits required by MI auto insurance laws.
Can you insure a car you don’t own in Michigan?
Yes, you can insure a car you don’t own in Michigan. You’ll need to show an insurable interest in the vehicle.
How much car insurance do I need in Michigan?
The recommended car insurance coverage in Michigan is:
- Personal Injury Protection (PIP): Unlimited medical benefits or a choice of lower limits
- Property Protection Insurance (PPI): $1 million
- Residual Bodily Injury and Property Damage Liability (BI/PD): $50,000/$100,000 for bodily injury and $10,000 for property damage
Do you need insurance to drive with a learner’s permit in Michigan?
Yes, vehicles driven by individuals with a learner’s permit must be insured.
Is 7-day insurance legal in Michigan?
No, temporary car insurance is not legal in Michigan. Car insurance laws in Michigan require that vehicles are insured with a standard policy that meets the minimum requirements.
Is it illegal to drive without insurance in Michigan?
Yes, it is illegal to drive without insurance in Michigan. Drivers must carry at least the minimum auto insurance in Michigan at all times while driving.
Do you need third-party insurance if you have comprehensive coverage in Michigan?
According to Michigan insurance laws, third-party insurance (i.e, liability insurance) is still required even if you have comprehensive coverage.
Do you need insurance on a trailer in Michigan?
In Michigan, trailers do not typically require a separate insurance policy. However, they must be registered with the state. Any damage caused by the trailer while it is attached to an insured vehicle is usually covered by the vehicle’s liability insurance.
Is day insurance legal in Michigan?
No, day insurance or other short-term insurance policies are not legal in Michigan.
What are Michigan’s auto insurance laws for minors?
Auto insurance laws for minors in Michigan state that they are required to carry the mandatory coverages to be able to legally operate a vehicle. As mentioned above, the minimum insurance coverage required in Michigan is:
- Personal Injury Protection (PIP),
- Property Protection Insurance (PPI), and
- Residual Bodily Injury and Property Damage Liability (BI/PD).
Minors driving with a learner’s permit must also be insured.
What are the Uber insurance requirements in Michigan?
Driving for Uber requires insurance coverage to comply with state laws and Uber’s own requirements. This means that all Uber drivers must have a personal auto insurance policy that meets Michigan’s state minimum auto insurance coverage requirements.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Laura D. Adams
Insurance & Finance Analyst
Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...
Insurance & Finance Analyst
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.