Photo: Michael Barera, CC BY-SA 4.0, via Wikimedia Commons
Michigan is a no-fault state. Your own policy’s personal injury protection (PIP) pays your medical bills after a crash, whoever caused it. Since the 2019 reform took effect in July 2020, each policy chooses its PIP medical level from six options, and liability limits default to $250,000 per person and $500,000 per crash. This guide explains each choice, the extra Michigan coverages, the crash reporting rule and what changes when a teen joins the household policy.
Key facts (as of November 2026)
- PIP medical options: unlimited, $500,000, $250,000, $250,000 with exclusions, $50,000 (Medicaid) and opt-out (Medicare). If you don’t choose, you get unlimited.
- Bodily injury liability: default $250,000 / $500,000. The lowest you can choose is $50,000 / $100,000, and only by signing a state form.
- Property protection insurance (PPI): required, up to $1 million for damage your car does to other people’s property in Michigan.
- Mini-tort: if you are 50% or more at fault, you can be sued for up to $3,000 of the other car’s uninsured damage.
- Report a crash to police immediately if anyone is hurt or killed, or damage is $1,000 or more.
The six PIP medical choices
PIP medical pays allowable expenses, such as medical care, after a crash. The choice is made on the state’s PIP selection form when you buy or renew a policy.
| Option | PIP medical limit (per person, per crash) | Who can choose it |
|---|---|---|
| 1 | Unlimited | Anyone (the default) |
| 2 | $500,000 | Anyone |
| 3 | $250,000 | Anyone |
| 4 | $250,000 with exclusions | Household members with qualified health coverage can be excluded from PIP medical |
| 5 | $50,000 | The named insured must be enrolled in Medicaid; others in the household need Medicaid, qualified health coverage or PIP medical from another auto policy |
| 6 | Opt out of PIP medical | The named insured must have Medicare Parts A and B (Medicare Advantage counts); others in the household need qualified health coverage or other PIP medical |
What counts as qualified health coverage?
DIFS describes qualified health coverage as Medicare Parts A and B, or other health and accident coverage with an annual individual deductible at or below the limit set by state law. TRICARE and CHAMPVA count. VA health care does not. Check the current deductible limit with DIFS before relying on Option 4.
How to think about the choice as a new driver
- Lower PIP means lower premium, but more risk. If crash injuries cost more than your limit, health insurance or your own savings must cover the rest.
- The choice covers the household. Options 4 to 6 depend on every household member having other coverage. A teen who joins the policy must fit the option you chose.
- Read the form. The insurer must give you the state form. It explains each option and what you give up.
Liability: what you owe other people
| Coverage | Michigan requirement |
|---|---|
| Bodily injury liability | Default $250,000 per person / $500,000 per crash. You may choose less, down to $50,000 / $100,000, by signing the state’s choice form |
| Property protection insurance (PPI) | Up to $1 million for damage your car does in Michigan to other people’s property, such as buildings, fences and properly parked cars |
| Property damage liability | $10,000, for crashes in other states |
Before July 2020, the bodily injury minimum was $20,000 / $40,000. Compare other states in minimum car insurance by state.
Damage to your own car: no-fault does not pay
PPI generally does not pay for damage to moving cars, so damage to your car is your problem unless you buy collision coverage. The mini-tort rule helps a little. If the other driver was 50% or more at fault, you can claim up to $3,000 of your uncovered repair costs from them, for crashes after July 1, 2020. The same applies in reverse if you cause the crash.
Michigan crash reporting duty
- Stop and check for injuries.
- Report to police immediately if anyone is injured or killed, or if property damage is $1,000 or more (MCL 257.622). Most crashes with real car damage reach $1,000.
- Swap details with the other driver: names, addresses and insurance.
- Let the officer file the report. Police complete the State of Michigan Traffic Crash Report (UD-10), which goes to the Michigan State Police. You can buy a copy later.
- Tell your insurer promptly. PIP claims go to your own insurer, even when the other driver was at fault.
Full step-by-step guide: what to do after a car crash in the US.
Teen drivers on a Michigan policy
- Tell the insurer when your teen gets a Level 1 permit, and again before they drive alone on Level 2. Ask how they are rated at each stage.
- Check the PIP option still fits. If you chose the $50,000, opt-out or exclusion options, your teen needs qualifying coverage of their own.
- Keep the record clean. Tickets and at-fault crashes raise premiums and also count on Michigan’s young driver rules. See Michigan point system and young driver rules.
- Know the levels. Supervision, night and passenger rules are in Michigan graduated licensing Levels 1, 2 and 3.
More on rating, discounts and timing: adding a teen driver to your car insurance.
Common questions
What is the minimum car insurance in Michigan?
PIP (at a level you choose), property protection insurance up to $1 million, bodily injury liability of at least $50,000 / $100,000 if you sign the form to go below the $250,000 / $500,000 default, and $10,000 property damage liability for out-of-state crashes.
What happens if I don’t pick a PIP option?
Your policy defaults to unlimited PIP medical coverage, and you pay the premium for it.
Can a teen get the Medicare opt-out?
No. The opt-out depends on the named insured having Medicare Parts A and B, and everyone else in the household needs other qualifying coverage.
Does no-fault mean nobody is ever at fault in Michigan?
No. Fault still matters for the mini-tort claim, for tickets and points, and for your premium.
Do I need to report a minor fender bender?
If no one is hurt and damage is under $1,000, the police reporting duty does not apply. Damage estimates often exceed $1,000, so when in doubt, report it.
Who can I ask about a PIP question?
The Michigan Department of Insurance and Financial Services (DIFS) answers consumer questions about auto insurance and the PIP forms.
Back to the complete Michigan learner guide.
Sources
- Michigan Department of Insurance and Financial Services, “Choosing PIP Medical Coverage” and “Frequently Asked Questions” (michigan.gov/autoinsurance)
- Michigan Department of Insurance and Financial Services, “Michigan Selection of Personal Injury Protection (PIP) Medical Coverage Level” and “Choice of Bodily Injury Liability Coverage Limits” forms (michigan.gov/difs)
- Michigan Department of Insurance and Financial Services, “Michigan’s Auto Insurance Law Has Changed” and “Brief Explanation of Michigan No-Fault Insurance” (michigan.gov)
- Michigan Legislature, “MCL 257.622, Accident reports” (legislature.mi.gov)
- Michigan State Police, “Traffic Crash Reporting Unit: Frequently Asked Questions” (michigan.gov/msp)