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Michigan Auto Insurance Requirements
The Michigan auto insurance requirements stipulated by law are:
Personal Injury Protection (PIP) – Personal injury protection (PIP) pays all necessary medical costs if you are hurt in an auto accident.
Property Protection (PPI) – Property protection (PPI) pays up to $1 million for damage your car does in Michigan to other people’s property, such as buildings and fences.
Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) – Residual bodily injury and property damage liability (BI/PD) pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy. The minimum limits of coverage that everyone must purchase are $20,000 for a person who is hurt or killed in an accident, $40,000 for each accident if several people are hurt or killed, and up to $10,000 for property damage in another state. These minimum limits are often referred to as 20/40/10. You can also purchase additional limits of BI/PD coverage.
You can learn more about each of these mandatory no-fault coverages in the publication Brief Explanation of Michigan No-Fault Insurance. You can also obtain additional information by reviewing A Consumers Guide to No-Fault Automobile Insurance in Michigan and the Buyers’ Guide to Auto Insurance in Michigan .
Please note that these are minimums required by Michigan state law, not suggested coverage amounts. The simple fact is, each state’s minimum requirements are typically inadequate to sufficiently cover your costs should you be involved in a major accident. The shortfall will have to be made up out of your own pocket. Obviously, having to pay this difference could easily destroy one financially. Therefore, it is highly recommended to get much higher coverage amounts. Consult pages elsewhere on this site for recommendations in this regard.
Michigan Auto Insurance Requirements – More Information
For more information regarding auto insurance requirements in Michigan, contact the state’s insurance regulatory agency:
MICHIGAN – DEPARTMENT OF INSURANCE
Ottawa Building, 611 West Ottawa, 3rd Floor
Lansing, MI 48933-1070 United States
Phone: 517-335-3167
FAX: 517-335-4978
Web: http://www.michigan.gov/ofis
Description: Linda A. Watters, Commissioner of Insurance
Note that this information is provided for as a general guide and is for reference purposes only and should in no way be considered legal advice. Contact the appropriate regulatory agency for the state in question for definitive answers that apply to that state.
