Michigan Auto Insurance Policy Requirements

Q: What is in a basic Michigan auto insurance policy?
A: Consumers can add these main options to their Michigan auto insurance policy:

  1. Liability Coverage
    1. Since property and people are completely separate insurance concepts, liability insurance is divided into two types:
      1. Bodily Injury Liability Coverage
      2. Property Damage Liability Coverage
    2. Liability coverage is required in Michigan. To legally drive in Michigan, one must have a valid driver’s license and also the minimum of liability coverage in his or her auto insurance policy:
      1. 20/40/10” (Michigan’s minimum auto insurance requirement)
      2. $20,000 for injury/death to one person.
      3. $40,000 for injury/death to two or more people.
      4. $10,000 for property damage.
    3. Liability minimums are different for vehicles that are leased.
  2. Collision Coverage is a legal requirement when your vehicle is financed (not completely paid for). It is optional for your Michigan auto insurance policy if the vehicle is not financed.
  3. Comprehensive Coverage, similar to collision, is only required if you are still paying off your vehicle. If the vehicle has been fully financed, and is thus paid for, comprehensive is not required in your Michigan auto insurance policy.
  4. Medical Payments Coverage is advisable to include in a Michigan auto insurance policy though it is not required.
  5. Uninsured (and Underinsured) Motorist Coverage is another optional although recommended insurance option in Michigan.
  6. Personal Injury Protection (PIP) Coverage is required under Michigan state law for all auto insurance policies.
  7. Other Options for your Auto Insurance Policy
    1. Towing Coverage
    2. Rental Coverage
    3. Loan/Lease Gap Coverage
Q: Is Michigan a No-Fault state?
A: Yes, Michigan maintains a no-fault insurance system.

Q: How can I get a discount on a Michigan auto insurance policy?
A: To see if you are eligible for the several ways you may be able to save money on your policy, take a look at our list of auto insurance discounts.

Q: Where can I find more information about Michigan auto insurance?
A: You can consult the following official internet resources for more information on insurance coverage in the state of Michigan:
  1. Michigan Insurance Resources
    1. The Michigan Secretary of State (SOS) manages the issuance of driver’s licenses, vehicle titles, and voter registration. The MI SOS website has an auto insurance page which thoroughly explains Michigan auto insurance requirements.
    2. The Michigan Office of Financial and insurance Services (OFIS) helps inform the public of insurance laws. The site includes an auto insurance page with useful information on purchasing auto insurance.
  2. National Insurance Resources

Whether you’re a “yooper” or a “troll”, CLICKinsure agents are happy to provide their top services to residents of the country’s only bi-peninsular state – Michigan. Home to the majestic great lakes, the world’s longest amount of freshwater shoreline, and the Motor City, Michigan offers many options in auto insurance plans. Residents in any Michigan city, including Detroit, Grand Rapids, Warren, Sterling Heights, Flint, Lansing, Ann Arbor, Livonia, Dearborn, Marquette, Benton Harbor, Kalamazoo, and Battle Creek, can find reliable insurance information and coverage when they select CLICKinsure as their broker.