Minimum Insurance Requirements in Michigan : Learn The Facts

According to a statistics website, there were a total of 7.07 million licensed drivers in Michigan back in 2016. By the end of 2017, the Michigan State Police reports that there were a total of 314, 921 car accidents with 937 of them ending fatally. This just goes to show why the state of Michigan takes its auto insurance requirements seriously.  It is required by Michigan law that every vehicle owner purchases an automobile insurance. They must also guarantee that the automobile insurance will be available to all eligible Michigan citizen. A person becomes eligible for automobile insurance if:

  • he/she is an owner or registrant of a car registered or to be registered in Michigan
  • he/she has a valid Michigan driver’s license

What are the Minimum Insurance Requirements in Michigan?

When it comes to driving in Michigan, it’s better to keep it safe and get a no-fault auto insurance policy. Michigan adopted the no-fault system back in 1973, and it resulted in the following:

  • increased level of benefits paid to the injured person
  • made sure payments to the injured person are made on time
  • reduced the proportion of premium dollars spent for legal and administrative costs

Michigan’s mandatory no-fault policy has three parts. These are the following:

  1. Personal Injury Protection (PIP): In the unfortunate event that you get hurt in a car accident, the PIP under your policy will pay all the necessary medical expenses with no maximum limit. It will also pay for the wages you would have earned if you were not hurt in an accident. However, you need to take note that payment will be up to a certain maximum amount and for up to three years only.
  2. Property Protection Insurance (PPI): This part of the policy provides $1 million for damages caused by your car to other people’s property like buildings and fences. This is provided that the injuries happened in Michigan. PPI will also pay for any damages caused by your car to other people’s car that is parked properly around the area.
  3. Residual Liability Insurance — Bodily Injury and Property Damage (BI/PD):

The no-fault policy protects an insured person from being sued due to a car accident. But, there are still some situations where one can be sued:

  • If you caused an accident in Michigan resulting to someone being killed or seriously injured.
  • If your accident happened in Michigan, but it was with a non-resident who is riding on a vehicle that’s not registered in Michigan.
  • If you got involved in an accident that’s outside of Michigan.

If it has been legally proven that any one of these events happened to you, the residual liability portion of your auto insurance policy will cover your expenses up to its identified amount.

For your guidance, the following are the minimum insurance requirements in Michigan:

  • For a person who is hurt or killed in an accident = Up to $20,000
  • If several people are hurt or killed = Up to $40,000 for each accident
  • For property damage outside of Michigan = Up to $10,000

Because these are just minimum insurance requirements, most people buy extra liability insurance to protect them further.

What Happens If You Don’t Have Auto Insurance in Michigan?

Being in an accident already causes a lot of stress to a person, do not add not having an auto insurance policy to the problem. Did you know that driving without auto insurance in Michigan can lead to the following?

  • You can be sued plus you can also be held personally liable.
  • You would not be paid for medical expenses, wage loss, loss of services, etc. in case you got involved in an accident using your uninsured vehicle.
  • You may be fined up to $500.
  • You may be jailed for up to a year.
  • You can both be fined and be imprisoned.

Michigan takes car ownership regulations seriously. If you don’t want to get into any trouble, it’s best to comply with the law and get auto insurance when you decide to own or drive a car in Michigan.

Make Sure You Have The Required Minimum Insurance Requirements

Michigan law may get complicated when it comes to owning a car. Should you get involved in a car accident in Michigan, it’s best to seek the advice of a reliable lawyer.  If you are unsure of what auto insurance you need to purchase, our car accident lawyers can help you explain your options and find the right fit for you.  We do not charge you with any fees unless you win your case. You may contact us today for a free consultation at (517) 347-6900.