michigan car insurance

Michigan has its own set of unique car insurance laws and regulations that you can learn about here. We also break down the discounts, coverages, and perks available to our Michigan customers.

About Michigan car insurance

Michigan law dictates that all drivers need no-fault insurance coverage before they can register their cars.

3-part mandatory no-fault car insurance

This 3-pronged combination is unique to Michigan.

Personal injury protection
Personal injury protection (PIP) pays for medical costs if you or your passengers are hurt in a car accident. It can also pay for lost wages, funeral expenses, in-home care, and other services.

PIP coverage varies based on your health insurance policy. If you don't have health insurance, you'll add "PIP medical – primary" to your policy.

If you do have health insurance that can kick in to pay for post-accident medical expenses, you can add "PIP excess – coordinated medical benefits" coverage to your policy. PIP excess can cover medical expenses above and beyond what your health plan can cover.

PIP work loss coverage is similar. If you don't have a policy that covers lost income after a car accident, you can add "PIP primary work loss benefits" to your policy. If you do have a plan that covers lost income, you can add "PIP excess (coordinated) medical benefits" to your policy.

And if all that makes your head spin, fear not. Our customer service center stands by to help you get a quote or manage your policy at 1-800-ESURANCE (1-800-378-7262).
Property protection insurance
Property protection insurance (PPI) pays up to $1 million in property damage after an accident, regardless of fault. It can cover buildings, trees, road signs, and other things your car may strike in a crash (like a properly parked car). It doesn't pay for damage to any other cars involved in the accident.
Residual bodily injury and property damage liability
No-fault car insurance generally protects you from liability, except in certain extreme cases. In these extreme cases, residual bodily injury and property damage liability can help pay defense costs and damages if you're found at-fault for an accident (up to your policy's limits). It can also cover you if you're in an accident outside of Michigan.

Michigan car insurance requirements

Your Michigan no-fault insurance policy needs to have the following coverages and limits, at a minimum:

$20,000 bodily injury liability coverage per person
$40,000 bodily injury liability coverage per incident
$10,000 property damage liability coverage for accidents you cause outside of Michigan
$1,000,000 property protection insurance for damage in Michigan
Personal injury protection (no limit)

You'll typically see the bodily injury and property damage limits written as 20/40/10. Keep in mind, these are the bare minimums required and you can choose higher liability limits when you buy your policy. You'll be responsible for expenses that exceed the coverage limits you choose when you buy your policy.

How fault works in a no-fault state

Most states let you take legal action, if necessary, to recoup post-accident medical expenses when the other driver is at fault. Michigan, however, is 1 of 12 "no-fault" states that restrict your right to sue.

In no-fault states, your own car insurance policy kicks in to cover accident-related medical expenses for you and your passengers. Only in extreme cases (severe injury or death) does fault re-enter the equation.

It's worth noting that no-fault insurance doesn't pay for damage to your own car (comprehensive and collision coverage can take care of that).

Uninsured drivers in Michigan

A recent report from the Insurance Research Council (IRC) estimated that 19 percent of Michigan drivers were uninsured. That's a higher percentage than all but 6 states.

While uninsured motorist coverage is optional in Michigan, it's worth considering when almost 1 in 5 drivers on the road lacks liability coverage.

No proof of insurance

If you're caught driving without basic car insurance in Michigan, you may be fined up to $500 and sentenced to up to one year in jail. Other fines may also be charged at the court's discretion. For instance, your drivers license may be suspended for at least 30 days or until you can show proof of insurance.

Factors that help determine your Michigan car insurance premium

Driving record
Insurance history
Age and length of time as a licensed driver
Where you live
Your car's make and model
How frequently you drive

Additional factors vary by insurer.

The Essential Insurance Act

The Essential Insurance Act (EIA) requires that insurers accept most Michigan residents for car insurance. There are some exceptions, such as drivers with revoked or suspended licenses, which vary by insurer.

Alternative insurance options

If you're unable to get car insurance from insurance companies, you may apply for coverage through Michigan's Automobile Insurance Placement Facility (MAIPF). You can apply through any licensed insurance agent.

Using your health insurance with PIP

You may be able to designate your personal health insurance policy as the primary source of medical payment if you're in an accident. That means your PIP coverage will kick in only after your health coverage limits are exceeded.

You'll still be required to carry PIP but you may be able to lower your overall premiums if you coordinate the 2 types of coverage this way.

Before taking this step, you may want to review your policy carefully to make sure it covers all injuries caused by car accidents; this includes whether it will pay all hospitalization and other medical costs, deductibles, and other expenses.

Esurance in Michigan

We first offered our technology-driven, customer-focused car insurance to Michigan drivers in 2002.

Optional car insurance coverages in Michigan

Comprehensive coverage
Collision coverage
Limited property damage coverage
Uninsured motorist property damage coverage
Uninsured/underinsured motorist bodily injury liability coverage
Towing and labor coverage
Rental car coverage
Custom parts and equipment coverage
Loan/lease (gap) coverage

Esurance car insurance discounts available to Michigan drivers

When you buy a new policy from Esurance, you could see big savings with these discounts:

Multi-Car discount
Paid in Full discount
Homeowners discount
Fast 5^® discount
Switch & Save^® discount
Good Student discount
Safety Device discount
Anti-Theft discount

Some exclusions may apply. If you're a current Esurance policyholder and have questions about your discounts, call us anytime at 1-800-ESURANCE (1-800-378-7262).

Esurance-approved repair shops in Michigan

If you're an Esurance customer in Michigan, Esurance's network of approved repair shops (E-star^® shops) offer online repair tracking through RepairView^® and guaranteed repairs for as long as the car's yours.

Find an E-star shop in Michigan.