What Auto Insurance Does Michigan Law Require?

Michigan law generally requires the owner or registrant of a motor vehicle required to be registered in the state to maintain no-fault automobile insurance. The coverage available under Michigan’s system changed significantly after the state’s 2019 no-fault reform, making it important for drivers to understand what coverage is required and what can happen when a vehicle is operated without it.

What Michigan Law Requires

Michigan’s no-fault insurance requirement is codified at MCL 500.3101. Under that statute, the owner or registrant of a motor vehicle required to be registered in Michigan must maintain security for payment of benefits under the no-fault act. For most vehicle owners, this security takes the form of a no-fault automobile insurance policy.

Michigan auto insurance policies generally include three required types of coverage: personal injury protection (PIP), property protection insurance (PPI), and residual bodily injury and property damage liability coverage.

The default residual bodily injury liability limits are $250,000 per person and $500,000 per accident. Michigan drivers may select lower limits of $50,000 per person and $100,000 per accident, or choose higher limits.

Michigan also offers several PIP medical coverage options, ranging from unlimited coverage to limited options available to people who meet specific eligibility requirements. Certain individuals with qualifying health coverage may be eligible for PIP medical exclusions, while an eligible named insured with Medicare Parts A and B may opt out of PIP medical coverage entirely if the applicable requirements are satisfied. Even when PIP medical coverage is excluded or opted out of, other PIP benefits, such as wage loss and replacement services, may remain part of the policy.

Penalties for Driving Without Insurance

Under MCL 500.3102, operating or permitting the operation of a motor vehicle without the security required by Michigan’s no-fault law is a misdemeanor. A violation may result in a fine of $200 to $500, up to one year in jail, or both. The court may also order the driver’s license suspended for 30 days or until proof of valid insurance is provided.

Beyond the criminal penalties, operating an uninsured vehicle can create substantial financial consequences. An uninsured owner involved in a crash may face personal liability for injuries and damages that otherwise could have been covered by insurance.

What This Means After a Crash

When an uninsured vehicle is involved in a crash, the source of PIP benefits for an injured person depends on the person’s insurance circumstances and Michigan’s applicable no-fault priority rules. In some situations, an eligible injured person may be able to seek benefits through the Michigan Assigned Claims Plan when no applicable insurer can be identified. Eligibility and available benefits depend on the circumstances.

Whether a civil liability claim may be pursued against an uninsured at-fault driver also depends on the specific facts and the nature of the injuries and damages involved. An attorney can evaluate available insurance coverage, applicable no-fault benefits, and any potential liability claims arising from the collision.

If you were injured in a crash in Macomb, Wayne, or Oakland County and have questions about insurance coverage or your legal options, our team may be able to help. To speak with a Michigan personal injury attorney, contact us today.

• • • MCL 500.3101
    • MCL 500.3102
    • MCL 257.518b
    • MCL 500.3172
    • Michigan Auto Insurance FAQ