Key Takeaways
- Michigan is a no-fault state with mandatory Personal Injury Protection (PIP) coverage
- The 2019 auto reform gave Michigan drivers PIP coverage choices: unlimited, $500K, $250K, $50K, or opt-out
- Michigan requires minimum liability limits of 50/100/10 for bodily injury and property damage
- Property Protection Insurance (PPI) covers damage to other people's property up to $1 million
- Michigan drivers can opt out of PIP if they have qualified health coverage
Michigan Auto Insurance Requirements
Michigan has a unique no-fault auto insurance system with significant reforms enacted in 2019.
Mandatory Coverage
Michigan requires all registered vehicles to have specific insurance coverage:
Minimum Liability Limits (50/100/10)
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $50,000 |
| Bodily Injury per Accident | $100,000 |
| Property Damage | $10,000 |
Memory Tip: Remember "50/100/10" for Michigan minimum liability limits.
Personal Injury Protection (PIP) - Reformed 2019
The 2019 Michigan No-Fault Reform gave drivers choices for PIP coverage:
| PIP Option | Coverage Level | Who Qualifies |
|---|---|---|
| Unlimited | No cap on medical | Anyone |
| $500,000 | Up to $500K medical | Anyone |
| $250,000 | Up to $250K medical | Anyone |
| $50,000 | Up to $50K medical | Those with Medicare |
| Opt-Out | No PIP medical | Those with qualified health coverage |
PIP Benefits (When Elected)
- Medical expenses (up to elected limit)
- Wage loss benefits (85% of wages, 3-year limit)
- Replacement services ($20/day for 3 years)
- Survivor's benefits
- Attendant care
Exam Tip: The 2019 reform was a major change. Before the reform, Michigan required unlimited PIP. Now drivers have choices based on their circumstances.
Other Required Coverage
Property Protection Insurance (PPI)
Michigan requires Property Protection Insurance:
| Feature | Details |
|---|---|
| Coverage | Damage to others' property |
| Limit | $1 million per occurrence |
| No-Fault Basis | Pays regardless of fault |
| Exclusions | Does not cover another vehicle |
Residual Bodily Injury Liability (Mini-Tort)
| Feature | Details |
|---|---|
| Purpose | Allows recovery beyond PIP |
| Threshold | Serious injury or death |
| Mini-Tort | Up to $3,000 for vehicle damage |
| Minimum | 50/100/10 required |
2019 No-Fault Reform Key Changes
The reform made major changes to Michigan auto insurance:
Key Changes
| Before 2019 | After 2019 |
|---|---|
| Unlimited PIP required | PIP options available |
| No fee schedule | Medical fee schedules apply |
| No cost controls | Cost controls implemented |
| Unlimited attendant care | Attendant care limits |
PIP Opt-Out Requirements
To opt out of PIP, you must:
- Have qualified health coverage
- Certify coverage to insurer
- Understand you may have out-of-pocket costs
- Choose this option in writing
Michigan Catastrophic Claims Association (MCCA)
The MCCA provides coverage for PIP claims exceeding $600,000:
How MCCA Works
- All insurers pay assessments to MCCA
- MCCA reimburses insurers for claims over threshold
- Threshold currently $600,000
- Funded by policyholder fee
Uninsured/Underinsured Motorist Coverage
Michigan requires insurers to offer UM/UIM coverage:
UM/UIM Requirements
| Coverage | Requirement |
|---|---|
| Offered | Must offer UM/UIM |
| Required | Not mandatory (can reject) |
| Rejection | Must reject in writing |
| Limits | Up to liability limits |
Michigan Auto Insurance Rating
Permitted Rating Factors
- Driving record
- Geographic territory
- Vehicle type and safety features
- Years of experience
- Annual mileage
Prohibited Discrimination
Under 2019 reform:
- Cannot use credit score as primary factor (with limitations)
- Cannot discriminate based on race, religion
- Territory rating regulated
- Gender rating permitted with actuarial support
Insurance Verification
Michigan verifies auto insurance:
Verification Methods
- Electronic insurance verification
- Random verification mailings
- Traffic stop verification
- Registration checks
Penalties for No Insurance
| Offense | Penalty |
|---|---|
| First offense | Up to $500 fine, up to 1 year plate suspension |
| Second offense | Increased fines, longer suspension |
| Driving without | License suspension, vehicle impoundment |
What are Michigan's minimum auto liability insurance limits?
Under the 2019 Michigan no-fault reform, which PIP coverage option is available to drivers with Medicare?