State‑mandated coverage types
Michigan law requires every driver to carry personal injury protection (PIP) with no deductible, which covers medical expenses, lost wages, and funeral costs regardless of fault. In addition, drivers must have property‑damage liability (PDL) insurance covering up to $20,000 for damage to another vehicle or property.
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Minimum liability limits
Unlike most states, Michigan does not impose a bodily‑injury liability (BIL) limit for third‑party injuries; however, insurers often offer optional BIL coverage that many drivers add for added protection. The only statutory liability ceiling is the $20,000 PDL limit.
Optional coverages that affect cost
While not required, drivers can select from several optional coverages that influence premium calculations: bodily‑injury liability, uninsured/underinsured motorist (UM/UIM) protection, and comprehensive/collision. Choosing a lower‑deductible PIP or adding unlimited medical benefits also raises the cost.
How requirements differ from other states
Most states mandate a combination of BIL and PDL limits, typically expressed as 25/50/25 or similar. Michigan's unique "no‑fault" system replaces BIL with mandatory PIP, and its PDL limit is fixed at $20,000, whereas other states allow higher or lower limits based on driver choice.
Key considerations for compliance
To stay compliant, ensure your policy lists both PIP (with the state‑mandated medical benefits you select) and PDL up to $20,000. Verify that the insurer's policy documents explicitly state coverage amounts, and keep proof of insurance in the vehicle at all times.
Quick comparison table
| Coverage | Minimum required | Typical optional limit |
|---|---|---|
| Personal Injury Protection (PIP) | Mandatory, no‑deductible, benefits vary by choice | Unlimited medical benefits (optional higher cost) |
| Property‑Damage Liability (PDL) | $20,000 | $25,000‑$50,000 |
| Bodily‑Injury Liability (BIL) | Not required | Varies, often $100,000 per person |