The Best Car Insurance in Michigan 2025

Web Desk November 21, 2025

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No-fault car insurance in Michigan

Michigan is a no-fault state, which means each driver’s own car insurance policy pays for their medical expenses, lost wages and funeral expenses, regardless of who was responsible for the accident. The part of your car insurance policy that pays for these expenses is personal injury protection.

Michigan’s no-fault laws generally prohibit drivers from suing one another for medical expenses. However, if you hit someone and they are seriously injured or the crash is fatal, they (or their next of kin) can sue you for medical expenses and/or pain and suffering.

Liability insurance. Auto liability insurance is made up of two parts: Bodily injury liability and property damage liability.

Bodily injury liability. Pays for others’ injuries if you cause an accident, as well as your legal defense if you’re sued over the accident.

While Michigan is a no-fault state, you can still be sued for accident injuries and pain and suffering if the other person has “serious impairment of body function.”

Property damage liability. Pays for repair bills if you cause an accident and damage someone else’s property. However, in Michigan, property damage liability insurance will only pay out if you cause an accident in another state. If you hit another Michigan driver in Michigan, this coverage does not apply.

How to read liability limits in Michigan:

Michigan liability coverage limits are 50/100/10. Liability limits are written in a split format:

First number: Up to $50,000 in bodily injury liability coverage for one person injured or killed in an accident.
Second number: Up to $100,000 in bodily injury liability coverage for each accident.
Third number: Up to $10,000 in property damage liability if you cause property damage in another state.

Personal injury protection. PIP pays for medical expenses for you, your passengers and members of your household if any of you get into an accident. Personal injury protection can also cover lost wages if you can’t work due to your injuries, and additional at-home care that you might need, for up to three years.

There are six levels of personal injury protection available in Michigan:

Unlimited per person per accident.
$500,000 per person per accident.
$250,000 per person per accident.
$250,000 per person per accident with medical exclusions. Available if you or a member of your household has qualifying health insurance that includes coverage for car accident injuries.
$50,000 per person per accident. Enrollment in Medicaid is required. To qualify, members of your household must also either be on Medicaid, have their own health insurance that covers car accident injuries or their own auto insurance policy.
PIP opt-out. Only available if you are enrolled in Medicare Parts A and B. Members of your household must have their own car insurance policy or health insurance that covers car accident injuries.

Property protection insurance. Property protection insurance pays for repairs to another person’s property that you cause with your car, like if you hit their fence or gazebo. It also covers damage if you strike someone’s parked car, as long as it was parked legally. It does not cover damage to other people’s vehicles.

Michigan has peculiarities when it comes to property damage coverage after an accident. Generally, there are three strategies you have if someone crashes into your vehicle:

Use your collision coverage.
File a mini tort lawsuit to recoup out-of-pocket expenses from the at-fault driver. The maximum mini tort settlement you can receive is $3,000, according to Michigan law. If you have collision coverage, the settlement will only pay out for costs not covered by collision insurance, like your deductible.
Pay for the vehicle repairs yourself.

Additional coverage to consider in Michigan

You might also want consider going beyond what the state requires, such as choosing:

Higher liability limits. Raising your coverage limits past Michigan state requirements is a good idea. Going with only the minimum requirements could mean being underinsured if you get into an expensive accident.
Collision insurance. Collision car insurance pays to repair or replace your car if you get into a collision with another vehicle, or object, like a building or pole. Because Michigan has some unique quirks in how it handles property damage coverage, we recommend you purchase collision insurance so you can file a claim for repairs to your car after an accident or collision. Collision coverage requires a deductible and is usually necessary if you have a loan or lease on your car.
Comprehensive insurance. Comprehensive coverage pays to repair or replace your car if it is stolen or damaged by a non-collision event, like weather-related damage or falling objects. It also has a deductible and is typically required by lenders.
Rental reimbursement coverage. Rental reimbursement covers the cost of a rental car for a set period while your vehicle is being repaired after a covered claim.
Uninsured/underinsured motorist coverage. Underinsured and uninsured motorist coverage pays for your medical bills and vehicle repairs if you’re hit by a driver who has no insurance. Because Michigan is a no-fault state, uninsured motorist coverage can be triggered after you’ve exhausted your PIP limits.