Michigan Minimum Coverage Car Insurance: Requirements and Costs (2024)

Michigan has minimum liability limits of 50/100/10. The average annual cost of minimum car insurance is $826, or about $69 monthly.

Updated: December 10, 2024

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Michigan's minimum car insurance requirements include bodily injury liability of $50,000 per person and $100,000 per accident, along with $10,000 for property damage liability per accident. Michigan operates under a no-fault insurance system, meaning your insurance covers your injuries and losses regardless of who caused the accident. Meeting minimum car insurance requirements is crucial for every driver.

The average monthly cost of minimum coverage auto insurance is $69. Choosing the cheapest car insurance in Michigan could benefit those seeking affordable options.

TABLE OF CONTENTS

Michigan Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Michigan
Cheapest Companies in Michigan for Minimum Coverage
Add-On Coverages in Michigan
Penalties for Driving Without Insurance in Michigan
FAQ

Why Trust MoneyGeek? We analyzed data from Quadrant Information Services and the Michigan Department of Insurance to get the most accurate cost data for various Michigan drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Michigan as of December 2024.

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Michigan Minimum Coverage Car Insurance Requirements

To operate a vehicle legally in Michigan, drivers must have minimum coverage auto insurance. The required minimum amounts are:

$50,000 for bodily injury liability per person
$100,000 for bodily injury liability per accident
$10,000 for property damage liability per accident
Unlimited personal injury protection (PIP) per person

The state's no-fault system influences insurance premiums. Your insurer pays for your injuries or property damage after an accident, regardless of who's at fault, up to your coverage limit. PIP is a significant part of your auto insurance policy, providing coverage for medical expenses.

ARE COLLISION AND COMPREHENSIVE COVERAGES REQUIRED IN MICHIGAN?

Michigan doesn't mandate that drivers carry collision or comprehensive coverages as part of their minimum coverage auto insurance. However, if you finance or lease a vehicle, lenders often require both coverage types to protect their investment in your car. As Michigan is a no-fault state, collision insurance helps cover vehicle repair costs regardless of fault, and comprehensive coverage protects against non-collision incidents.

While not legally required, collision or comprehensive insurance is crucial for drivers who finance their vehicles or seek added protection against diverse risks.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you're at fault in an accident	Your injuries
Damage to another person’s property if you're at fault in an accident	Damage to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased
	Repairs for weather-related accidents or if you were hit by an animal

The table reflects Michigan's minimum car insurance requirements, including bodily injury, property damage and personal injury protection. Coverage specifics depend on an individual's policy terms and conditions.

Average Cost of Minimum Coverage Car Insurance in Michigan

Age plays a significant role in the cost of minimum coverage car insurance. In Michigan, drivers aged 22 to 29 face the highest premiums because insurers view them as higher risk with less driving experience.

The table below shows Michigan's average minimum coverage car insurance costs for different age groups.


22-29	$910	$76
30-59	$826	$69
60 +	$822	$69

Cheapest Companies for Minimum Coverage Car Insurance in Michigan

Michigan residents seeking affordable minimum coverage auto insurance can find the lowest rates with the following providers:

Westfield: $416 per year; $35 per month
Travelers: $421 per year; $35 per month

While affordability is crucial, ensuring that coverage meets your specific needs is also important when looking for the best car insurance in Michigan.

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Age Group

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Age Group:30-59


Westfield	$416	$35
Travelers	$421	$35
Encompass	$577	$48
Chubb	$612	$51
Progressive	$614	$51
GEICO	$630	$52
Auto-Owners Insurance Co	$660	$55
Grange Insurance	$826	$69
Farm Bureau Ins of MI	$871	$73
Pioneer State Mutual Ins Co	$953	$79
Farmers	$1,295	$108
Hanover	$1,392	$116
State Farm	$1,473	$123

Optional Add-On Coverages in Michigan

Optional add-on coverages in Michigan include comprehensive, collision, uninsured/underinsured motorist coverage and roadside assistance. These extra protections benefit all drivers because they provide financial security against various unforeseen events like theft, accidents with drivers lacking sufficient insurance and vehicle breakdowns. Understanding how much car insurance you need helps determine the value of these additional options beyond minimum coverage.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured motorist coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance	Damage to your vehicle if you're at fault or damage that exceeds policy limits
Personal injury protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers, regardless of who's at fault	Vehicle damage or injuries to the other driver
Roadside assistance	Services like towing, flat tire changes and jump-starts when your car breaks down	Cost of parts or repairs needed after the tow
Gap insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen	Vehicle depreciation or overdue loan payments
Rental car reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event	Fuel, insurance or other rental extras
Collision coverage	Repairs to your car after an accident, regardless of fault	Damage due to theft, vandalism or natural disasters
Comprehensive coverage	Repairs to non-collision damage from events like theft, fire or hail	Damage from a collision or personal injuries
Towing and labor coverage	Towing and basic roadside assistance labor costs at the vehicle's breakdown site	More extensive repairs needed at a garage
Custom parts and equipment coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems	Original parts that came with your vehicle
Accidental death coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident	Non-accidental death or injuries
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars	Regular use, like your daily commute

Penalties for Driving Without Insurance in Michigan

The cost of a ticket for driving without insurance in Michigan depends on whether it's your first offense or you've been caught without coverage. If you're caught driving without minimum coverage car insurance for the first time, the fines can be substantial. However, penalties are often more severe for those with a history of driving uninsured.

Additional consequences for driving without insurance in Michigan include:

Vehicle impoundment: Your vehicle may be held somewhere, so you must pay fees to retrieve it.
Vehicle registration suspension: The state may suspend your car's registration.
License suspension: Your driving privileges may be taken away for a period.
SR-22 filing requirement: You could be required to carry this certificate as proof of future financial responsibility.

Driving without insurance carries significant risks, including legal penalties and financial vulnerability in case of an accident. Ensure your vehicle has at least the minimum coverage to stay legal and protect yourself and others on the road.

What to Do if Your Policy Is Canceled

If your car insurance policy is canceled in Michigan, secure new coverage immediately. Continuing to drive without insurance is illegal and risks significant penalties. Contact your insurance agent or another insurer promptly to discuss your options.

The Michigan Department of Motor Vehicles (DMV) will be alerted if your insurance lapses since insurance companies must report policy status changes. Expect a notification and possible penalties for not maintaining the minimum coverage.

Driving without at least state minimum car insurance in Michigan exposes you to the risk of severe legal consequences. To ensure you're legally covered, explore all options, including different insurance carriers who may offer state minimum policies to drivers with varied driving records or coverage histories.

Michigan doesn't have a specific program for hard-to-insure drivers. However, you can use the Michigan Automobile Insurance Placement Facility (MAIPF) as a last resort to secure necessary coverage.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Michigan may have been canceled for several reasons:

Non-payment: Your insurance provider can cancel your policy if you miss your premium payments.
Fraud or misrepresentation: Giving false information or hiding facts can lead to cancellation.
License suspension: If your driver's license is suspended, an insurer might cancel your policy.
Too many claims: Filing too many claims in a short period can result in cancellation.
High risk: If you're deemed too high risk due to traffic violations or accidents, your policy might be canceled.

FAQ: Michigan Minimum Coverage Car Insurance

We answered your most pressing questions about Michigan's minimum car insurance requirements.

What is the minimum car insurance coverage in Michigan?

In Michigan, minimum car insurance coverage includes $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $10,000 for property damage per accident. Michigan also requires personal injury protection with unlimited coverage. It doesn't mandate uninsured/underinsured motorist coverage or medical payments coverage as part of its state minimum auto insurance. The required limits ensure that drivers are adequately protected in case of an accident.

Why does Michigan require minimum automobile liability coverage for motorists?

Michigan mandates minimum coverage auto insurance to ensure that motorists can cover the costs of damage or injuries they may cause in an accident. This financial responsibility requirement protects the policyholder, other drivers, pedestrians and property owners from bearing the full brunt of expenses resulting from a collision.

Do you need comprehensive insurance in Michigan?

Michigan doesn’t require comprehensive insurance for drivers, but this optional coverage protects against non-collision events like theft, vandalism or natural disasters. It’s a smart choice to safeguard your vehicle against various risks.

What happens if you drive uninsured in Michigan?

Driving uninsured in Michigan results in significant penalties, including fines of up to $500, driver’s license suspension and possible vehicle impoundment. Repeated offenses can lead to even harsher consequences, like community service. Maintain at least minimum coverage to comply with the law and protect yourself against these risks.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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