State requirements
Michigan Car Insurance Requirements & PIP Choice Reform (2026)
Michigan requires default 50/100/10 liability and provides 6 tiers of PIP medical coverage, ranging from k to unlimited lifetime benefits under MCCA.
Data reviewed October 24, 2026
Michigan’s auto insurance regulatory framework underwent historic reform under Public Acts 21 and 22. While Michigan remains a no-fault state, drivers are no longer forced into mandatory unlimited lifetime medical benefits, allowing policyholders to choose among tiered PIP medical levels to manage premiums.
| Tier Level | Eligibility Requirement | MCCA Assessment Applies? |
|---|---|---|
| Unlimited Lifetime | All drivers eligible | Yes (full assessment) |
| ,000 Limit | All drivers eligible | No |
| ,000 Limit | All drivers eligible | No |
| ,000 Limit | Enrolled in Medicaid & spouse/resident relatives covered | No |
| PIP Medical Opt-Out | Qualified health coverage (Medicare A&B) | No assessment |
Michigan Bodily Injury & Property Protection
Default minimum bodily injury liability in Michigan is ,000 per person and ,000 per accident (with statutory minimums of 20/40 allowed if specifically signed), plus ,000 Property Damage (PPI) that pays up to million for damage your car does to other people’s buildings or parked vehicles in Michigan.
Six Tiers of PIP Medical Choice
Under Michigan reform, drivers can select their PIP medical limit: ,000 (Medicaid recipients only), ,000, ,000, unlimited lifetime coverage, or a complete opt-out for Medicare Part A & B participants.
The Michigan Mini-Tort Provision
Under Michigan’s mini-tort law (MCL 500.3135), drivers at fault in a collision can be sued in small claims court for up to ,000 for uninsured physical vehicle damage not covered by collision insurance.
MCCA Assessment & Premium Costs
Vehicles selecting unlimited PIP pay an annual fee to the Michigan Catastrophic Claims Association (MCCA) to fund care for catastrophically injured drivers. Full coverage in Detroit and Wayne County averages ,900 to ,200 annually.
Frequently asked questions
- What is Michigan Mini-Tort?
- It is a state provision allowing an accident victim to recover up to ,000 for unreimbursed vehicle damage from the at-fault driver.
- Is unlimited PIP still available in Michigan?
- Yes, Michigan drivers can still choose unlimited lifetime medical benefits, or choose lower coverage caps of k or k.
Sources
More in State insurance guides
- California Car Insurance Requirements & Average Cost (2026)
- Texas Car Insurance Requirements & Average Cost (2026)
- Florida Car Insurance Requirements & No-Fault Law (2026)
- New York Car Insurance Requirements & No-Fault Law (2026)
- Ohio Car Insurance Requirements & Average Cost (2026)
- Pennsylvania Car Insurance Requirements & Full vs Limited Tort (2026)