Michigan law requires a minimum of $20,000 per person for bodily injury, $40,000 per accident for bodily injury, and $10,000 per accident property damage liability for auto insurance. Property protection insurance is also required in an amount of $1,000,000. Personal injury protection is mandatory to cover medical expenses and loss of work wages. Check with your auto insurance company to understand the details of coverages they offer. All coverages are limited to any terms and liabilities of your auto insurance company.

If you are at fault in an accident, bodily injury coverage will cover the other party’s injuries, death, loss of wages, and pain and suffering costs. However, it does not cover the injuries, death, loss of wages, and pain and suffering costs of you or anyone else on your policy. You will need to purchase medical payment coverage for your policy or use your own health insurance if you want coverage for yourself and dependents. In the event you are sued by the other party, this coverage will also cover the expense of your auto insurance company representing you in court.

When you cause accidental damage to another person’s property, be it a car, fence, pole, wall, etc, with your vehicle, property damage liability will cover those costs. It will also cover any legal costs that may arise from the accident. Any additional costs over your coverage amount could leave you paying for repairs out of pocket.

Property protection insurance can cover the remaining expense of repairing property damage that your property damage liability didn’t fully cover, up to $1,000,000.

In the state of Michigan, personal injury protection (PIP) will pay your medical bills, as well as your lost wages for up to three years (to a maximum amount). PIP covers the medical expenses of you and your passengers when in an accident, regardless of who was at fault. You may consider using this coverage in conjunction with the coverage of your current health insurance policy. It also covers the medical expenses of any pedestrians struck by your vehicle. If you carpool regularly, you will want to consider increasing the limit of your personal injury protection beyond the minimum to provide monetary help to your passengers if they’re ever involved in your accident.

Michigan operates under a no-fault system, meaning the medical expenses of an individual’s injuries are the responsibility of that same individual’s auto insurance company (up to a specific limit), regardless of who was at fault for the accident. In other words, each person pays for their own medical expense. However, the driver at fault can be solely responsible for repairs of the vehicle and/or property damaged.

Driving without auto insurance is cause for penalties of $200 to $500 fees and can include time in prison. There is also a risk your license will be suspended.

Michigan Auto Insurance Requirement Chart:

• Bodily Injury Liability: $20,000/$40,000 Limit
• Property Damage Coverage: $10,000 Limit
• Property Protection Insurance: $1,000,000

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