Michigan will not let you register a car without insurance, and the coverage it requires looks different from almost every other state. Michigan runs a no-fault system, so your own policy pays your medical bills after most crashes no matter who caused them.1 That one fact shapes everything you are required to buy.
Here is what the law actually demands, what the 2020 reform changed, and what happens if you skip it.
The three coverages every Michigan policy must carry
Under the no-fault act, the owner or registrant of a vehicle has to keep "security" in force whenever the car is driven or moved on a public road.1 Every auto policy sold in the state has to combine three coverages: personal injury protection, property protection insurance, and residual bodily injury and property damage liability.1 You cannot legally register a vehicle without all three, and the Secretary of State will not issue a registration for an uninsured car.
Residual bodily injury and property damage liability
This is the coverage that pays other people when you can still be held liable, which in a no-fault state is a narrower set of situations than most drivers expect. Since July 1, 2020, the default limits are $250,000 for the injury or death of one person, $500,000 for the injury or death of two or more people in a single accident, and $10,000 for damage to someone else's property.2 Those figures apply automatically unless you actively choose something lower.2
Michigan does allow a reduced option of $50,000 per person and $100,000 per accident, but only after you sign a state-issued form confirming you understand the risk of carrying less.2 The $10,000 property damage limit mostly comes into play for crashes in other states and for Michigan's mini-tort, since no-fault bars most in-state lawsuits over vehicle damage.
Property protection insurance (PPI)
PPI is close to unique to Michigan. It pays up to $1,000,000 for damage your vehicle does to other people's tangible property inside the state, such as buildings, fences, and legally parked cars.3 The statute caps benefits from one policy at $1,000,000 for all property damage arising from a single accident.4 PPI does not cover damage to another moving vehicle, which falls under the mini-tort described below.
Personal injury protection (PIP)
PIP is the core of no-fault, and it is where the 2020 reform gave drivers real choices for the first time. Before the reform, every policy carried unlimited medical benefits. Now you select a level. Unlimited coverage still applies by default if you make no selection.5 You can also choose $500,000 per person per accident, or $250,000 per person per accident.6 A $50,000 level exists, but only if you are enrolled in Medicaid and everyone in your household has Medicaid or other qualified health coverage.6 A full opt-out is available only if you have Medicare Parts A and B and your spouse and resident relatives carry qualified health coverage or their own PIP.7
Whatever level you pick, PIP still pays for crash-related medical care and covers a share of lost wages and replacement services. It replaces up to 85 percent of the income you lose while you cannot work, subject to a monthly maximum that state regulators adjust every October. For crashes between October 1, 2025 and September 30, 2026, that cap is $7,201 a month.8
The mini-tort, a small window to recover vehicle damage
Because no-fault shuts down most lawsuits over car damage, Michigan keeps a narrow exception called the mini-tort. For accidents on or after July 1, 2020, you can recover up to $3,000 from an at-fault driver for damage to your vehicle, up from the old $1,000 cap.9 You can use it only when the other driver was more than 50 percent at fault, and only for out-of-pocket damage your own collision coverage did not pay, often your deductible. If your vehicle lost market value after being repaired, that is a separate issue covered by our guide to diminished value claims in Michigan.
When you can still sue for injuries
The required coverages are shaped the way they are because no-fault limits injury lawsuits. You can recover pain-and-suffering damages from an at-fault driver only if your injury meets one of three thresholds: death, serious impairment of body function, or permanent serious disfigurement.9 Below that line, your own PIP is generally your only source of recovery for a crash injury.
What Michigan does not require
Some coverages drivers assume are mandatory are optional here. Uninsured and underinsured motorist coverage is not required. The state Department of Insurance and Financial Services lists it as coverage you may add, not coverage the law forces on you.10 Collision and comprehensive coverage are also optional under state law, though a lender or lessor will almost always require them while you are still paying off the vehicle.
Penalties for driving without insurance
Driving or letting someone else drive your uninsured vehicle is a misdemeanor in Michigan. The fine runs from $200 to $500, and a conviction can carry up to one year in jail.11 The costs do not stop there. If you are the uninsured owner and get hurt in a crash, you generally forfeit your own PIP benefits, and the Secretary of State will not register or renew a vehicle without proof of insurance. A conviction also tends to push your future premiums sharply higher.
After a crash in Michigan
Get the paperwork started early. You will need the official police report for any insurance or injury claim, and you can request it through our Michigan crash report page. Tell your own insurer promptly, since PIP claims run on strict deadlines. If your injuries are serious or an insurer is fighting your claim, it is worth talking to a lawyer who handles Michigan no-fault cases, and you can start with our legal directory.
Treat these minimums as a starting point rather than a goal. The default $250,000 and $500,000 liability limits, and an honest PIP level, exist because Michigan crashes can produce very large bills, and the cheapest policy the law allows is often not the one that protects you.
This article is general information, not legal advice.
Sources
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Michigan Legislature, MCL 500.3101 (no-fault security required). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3101
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Michigan Legislature, MCL 500.3009 (residual liability limits). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3009
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Michigan Department of Insurance and Financial Services, Auto Insurance FAQ. https://www.michigan.gov/autoinsurance/frequently-asked-questions
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Michigan Legislature, MCL 500.3121 (property protection insurance, $1,000,000 cap). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3121
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Michigan Department of Insurance and Financial Services, Choosing PIP Medical Coverage. https://www.michigan.gov/autoinsurance/choosing-coverage/choosing-pip-med-coverage
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Michigan Legislature, MCL 500.3107c (PIP coverage level choices). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3107c
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Michigan Legislature, MCL 500.3107d (Medicare PIP opt-out). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3107d
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Michigan Legislature, MCL 500.3107 (work-loss benefits); Michigan DIFS Bulletin 2025-18-INS (annual adjustment, maximum work-loss benefit October 1, 2025 to September 30, 2026). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3107
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Michigan Legislature, MCL 500.3135 (tort threshold and $3,000 mini-tort). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3135
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Michigan Department of Insurance and Financial Services, Purchasing Auto Insurance FAQ. https://www.michigan.gov/difs/news-and-outreach/faq/insurance/info-purchasing-auto-insurance
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Michigan Legislature, MCL 500.3102 (penalty for operating without security). https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-500-3102