Guide to car insurance in Michigan

Car insurance quotes for Michigan requires the following three types of insurance coverage at a minimum

  • Personal Injury Protection (PIP) – pays all necessary medical costs if you are hurt in an auto accident
  • Property Protection (PPI) – Up to $1 million of coverage for damage your car does in Michigan to other people’s property, such as buildings and fences.


  • Residual Bodily Injury and Property Damage Liability Insurance (BI/PD) – this coverage pays your defense costs and any damages you are found liable for as the result of an auto accident, up to the limits of the policy. The minimums of the required coverage are as follows:
    • 20/40/10– This is shorthand for the liability policy limits required which means you need a minimum coverage of:
    • $20,000 for death or injury to one person;
    • $40,000 for death or injury to two or more people; and
    • $10,000 for property protection insurance.

Nearly all car insurance policies have a provision that will adjust your coverage from the minimums required in your state to the minimum insurance or proof of financial responsibility in another U.S. state. So you do not need to get a new insurance policy for each state you are driving through. However, if you buy a policy in a low limits state (like Michigan or Massachusetts) but live in a high limits state (like Maine), insurers will only write a policy where your car is principally garaged. So if your home is in Alaska, you should buy the minimum limits for Alaska.

Michigan’s required insurance limits are low, considering the cost of repair and damages likely to occur in an accident. If you are in a serious collision and the damages you caused are greater than the coverage limits you purchased, you may be personally liable to pay for those damages that exceed your insurance coverage. You should consider buying additional coverage to protect you against the risk of being under-insured.

Michigan Auto Insurance Laws

Michigan is a no-fault, respectively a modified comparative fault state with a 51% rule. This is a legal defense that means that a plaintiff can recover for an injury, reducing the amount that the plaintiff can recover based on the percentage of which the plaintiff is at fault if it is determined that his or her fault in causing the injury is less than 51%. If the plaintiff’s fault level reaches 51% or more, he or she cannot recover any damages resulting from the accident. If the damage caused is less than 51%, the claimant can only recover their damages as reduced by their percentage of fault.

Note: As of 06/2012 some reform attempts are undertaken. Follow our blog to keep up with the news.

Operating While Intoxicated (OWI)

In Michigan, a first time offense of Operating While the Intoxicated (OWI) is a misdemeanor offense. If you are 21 years or older, if you have a Blood Alcohol Content (BAC) level of .08% or higher while driving, Michigan law presumes you are driving while intoxicated. If you are under 21, a lower BAC may apply to you.

1st OWI

If convicted, you may be sentenced up to a maximum of 93 days in jail. A court fine of $500 may be imposed in addition to a Michigan Driver Responsibility Program fine of $1000 per year for two years. Your license will be suspended for up to 180 days. You may also be required to perform community service up to 360 hours. SR-22 or FR-44 forms will be required for a 1st OWI.

2nd OWI

If convicted, you may be sentenced for a minimum of 5 days up to a maximum of 1 year in jail. Fines may be imposed from $200.00 up to $1,000.00 in addition to a Michigan Driver Responsibility Program fine of $1000 per year for two years. Your license will be suspended for a minimum of 1 year and the license plate on your vehicle may be confiscated and your vehicle immobilized for 90 to 180 days. When your vehicle is released, you may be required to install an ignition interlock device. SR-22 or FR-44 forms will be required for a 2nd OUI.

Top Ten Car Insurance Companies in Michigan

In Michigan, the top ten car insurance companies as rated by market share are the following:

  • Auto Club Group Insurance Company
  • Home-Owners Insurance Company
  • Progressive Michigan Insurance Company
  • Memberselect Insurance Company
  • Allstate Property and Casualty Insurance Company
  • Citizens Insurance Company of the Midwest
  • Citizens Insurance Company of America
  • Farm Bureau General Insurance Company of Michigan
  • Auto-Owners Insurance Company
  • Progressive Marathon Insurance Company