Minimum Driver Requirements for Michigan Car Insurance

Michigan is a no-fault state for car insurance, and residents of the “Wolverine State” must have Personal Injury Protection (PIP) coverage in place to drive legally. This type of insurance pays for the medical bills and lost wages incurred by the occupants of the policyholder’s own vehicle when an accident occurs. The minimum level of PIP required by the state is $1 million.

This may seen like a lot of coverage, but in the case of an accident that causes serious injuries requiring surgery and/or a lengthy hospital stay and rehabilitation services, it’s possible to incur a high level of expenses. Since the PIP coverage is also used to compensate the policyholder and the occupants of his or her vehicle for lost wages, being involved in an accident resulting in permanent disabilities will also make the total cost of damages higher.

Along with PIP protection, drivers in Michigan must also put third party liability protection in place. The minimum level of coverage required is $20,000 for the injuries and lost wages sustained by a single accident victim and $40,000 to pay for damages sustained by all victims of the same accident. Along with the bodily injury liability protection, at least $10,000 in property damage liability must also be put in place. This coverage pays for the cost of repairs to the other driver’s vehicle, as well as any public property damaged in the accident.

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