Michigan car insurance laws and requirements: 2026 changes

Michigan car insurance laws

Michigan law requires drivers to maintain at least 50/100/10 in car insurance coverage. In Michigan, drivers are also required to carry PIP and Property Protection. This insurance helps pay for injuries and property damage when you cause an accident. However, if accident expenses exceed the policy limits, you will be responsible for paying the remaining costs yourself.

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, a serious crash can generate medical and repair bills that exceed the state minimum limits. Once the available coverage is exhausted, the at-fault driver will be personally responsible for the unpaid amount.

Michigan car insurance requirements

Drivers in Michigan must carry the coverage required by state law, including liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. and any other mandatory protections. The minimum liability limits are 50/100/10. These limits help pay for injuries, property damage, and other required accident-related expenses covered under Michigan law. In Michigan, drivers are also required to carry PIP and Property Protection

Michigan requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

Michigan liability minimums are 50/100/10.

Personal injury protection (PIP). Personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. pays medical costs, such as doctor visits, childcare expenses, and lost wages, for you or your passengers injured in an accident. PIP may be required for drivers who live in at-fault states.

Michigan PIP requirements are $250,000.

The average cost of a minimum coverage policy is $714. However, Travelers has the lowest minimum car insurance rates, averaging $368.

Travelers has the lowest minimum car insurance rates, averaging $368.

The table below shows the average rates of the top insurers for minimum coverage in Michigan.

Company	Average annual premium	Average monthly premium
Travelers	$368	$31
Auto-Owners	$531	$44
Auto Club Group - ACG (AAA)	$543	$45
GEICO	$555	$46
Progressive	$686	$57
Pioneer State Mutual	$768	$64
Michigan Farm Bureau	$882	$74
Frankenmuth Insurance	$920	$77
State Farm	$1,553	$129
USAA	$344	$29

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Michigan car insurance cost for minimum coverage limits

The average cost of minimum coverage car insurance in Michigan is $714. Travelers offers the cheapest average policy at $368 annually. However, your actual rate will depend on the company you choose and personal factors such as your age, address, and driving record.

State minimum coverage limit	50/100/10
Average annual premium	$714
Average monthly premium	$60

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Are the minimum coverage requirements changing in 2026 in Michigan?

Michigan car insurance requirements will not change in 2026. Drivers who already carry the state-required minimum coverage do not need to update their policies. If requirements change later, insurers will inform affected policyholders and explain any necessary coverage or premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. adjustments.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated coverage values and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in Michigan?

Minimum car insurance in Michigan covers certain accident-related expenses up to the limits required by law. Liability coverage pays for injuries and property damage you cause to others. These coverages pay for injuries, property damage, and other losses included under Michigan's minimum insurance requirements.

Michigan requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

Michigan drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

Michigan is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protection (PIP) to pay medical costs, such as doctor visits and prescriptions.

Uninsured and underinsured motorist coverageAn auto insurance coverage that pays for injuries or damage if you're in an accident with a driver who has no insurance or not enough insurance. is also required. Uninsured motorist coverage helps pay for coverage when the at-fault driver doesn't have car insurance, and underinsured coverage assists when the at-fault driver doesn't have enough car insurance to cover injury and property damage costs. Without these coverages, you would have to pay for medical and repair costs that the other driver's insurance didn't cover. You may be able to opt out of this coverage.

PEOPLE ASK:

Is Michigan minimum car insurance enough?

Minimum car insurance may not provide enough protection in Michigan. A serious accident can easily result in expenses above the required limit of 50/100/10, leaving you responsible for the remaining amount. Minimum liability insurance also does not cover damage to your vehicle, regardless of whether it is damaged in a collision, stolen, or affected by weather. You need to add comprehensive and collision coverage; collision coverage pays for crash damage to your vehicle, and comprehensive insurance covers non-collision losses such as theft, fire, hail, and falling objects.

How much car insurance is enough in Michigan?

The right amount of car insurance in Michigan depends on your income, savings, assets, vehicle value, and risk of being sued after an accident. Drivers with significant assets should consider higher liability limits, while drivers with financed or leased vehicles will generally need collision and comprehensive coverage.

For example, if you are financially stable and can afford to pay out of pocket for medical costs and repairs, you may keep insurance limits low. However, you may be sued for the cost difference if you have a sizeable net worth and don't carry enough insurance to cover expenses.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease, you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

Michigan penalties for driving without car insurance

Driving without required insurance in Michigan may lead to fines, license suspension, registration penalties and more expensive insurance in the future. Repeated violations may result in harsher consequences. If you cause an accident without coverage, you will also have to pay medical bills and property damage costs yourself.

Failing to carry Michigan car insurance has penalties, including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Fines	$500
Other penalties	License and registration suspension
Jail time	Possible

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Michigan minimum coverage cost by age group

Younger drivers tend to pay the most, and rates decline with age and experience. Auto-Owners is the cheapest option for teens, while Travelers has the lowest average adult rate

The table below breaks down the cost of car insurance for various age groups. Auto-Owners has the best rates for teens, with minimum coverage averaging $821. Travelers offers the cheapest coverage for adults at $350.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $714, and the average rate for a 40-year-old male is $714, a difference of equal.

Michigan minimum coverage cost by city

Minimum coverage is cheapest in Ann Arbor, where drivers pay an average of $587. Detroit has the highest average minimum coverage rate in Michigan at $1,927. Differences in traffic, accident claims, theft, and local repair costs can cause premiums to vary from one city to another.

The table below shows average minimum coverage rates for cities in Michigan.

City	Average annual premium	Average monthly premium
Ann Arbor	$587	$49
Dearborn	$1,435	$120
Detroit	$1,927	$161
Grand Rapids	$610	$51
Lansing	$695	$58
Livonia	$889	$74
Sterling Heights	$1,126	$94
Troy	$845	$70
Warren	$1,222	$102
Westland	$1,061	$88

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Optional car insurance coverage in Michigan

The minimum coverage required in Michigan does not protect your vehicle against most types of damage. Optional insurance, such as collision and comprehensive, will pay to repair or replace your car. Rental reimbursement, roadside assistance, and gap coverage can also help with costs that are not included in a minimum liability policy.

Drivers may choose optional coverages such as:

Collision coverage. Collision coverage pays for damage to your vehicle if you cause an accident.
Comprehensive coverage. This coverage pays for damage to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
Roadside assistance coverage. If you run out of gas, need a tire changed, or have a dead battery, roadside assistance will send someone to help.
Gap coverage. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Why do limits change?

State lawmakers increase minimum car insurance limits when existing requirements no longer reflect current accident expenses. Rising medical bills, repair costs and vehicle values can make current limits insufficient. Raising the required coverage gives accident victims access to more insurance money and reduces the amount drivers pay.

Methodology

Insurance.com partners with Quadrant Information Services to field average car insurance rates across all 50 states and Washington, D.C. National and state average rates are based on state minimum coverage and on the following parameters:

40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

State laws were gathered from state DMV and insurance department websites.

Learn more about our data and methodology.

Michigan car insurance laws and requirements: FAQs

Is it mandatory to have car insurance in Michigan?

Yes, drivers in Michigan must carry the minimum coverage required by state law. Required coverage includes 50/100/10, PIP and Property Protection, $250,000. Failing to maintain mandatory insurance can lead to fines, license or registration penalties, and higher insurance costs when you purchase another policy.

Will my bare minimum car insurance cover me in another state?

Yes, your car insurance will cover an eligible claim when you drive in another state. If the state where the accident occurs requires higher liability limits, your policy will automatically adjust to meet those limits for the claim. However, this does not add collision or comprehensive coverage to a minimum policy.

What happens if I drive without car insurance in Michigan?

Driving without car insurance in Michigan can lead to fines, license suspension, vehicle impoundment, and increased insurance premiums. Repeat offenses may carry more serious consequences, including jail time. You will also be personally responsible for medical bills, repairs, and other damages if you cause an accident while uninsured.