Car insurance is required in almost every state, but the minimum amount drivers must purchase varies.
In Michigan, drivers must carry a minimum of 50/100/10 of auto insurance to legally drive a vehicle.
State minimum car insurance is the minimum liability coverage your state requires. It covers the accidental bodily injury and property damage you cause to others. It doesn’t, however, cover damage to your car or your injuries.
“Liability coverages will help protect you in the event you cause injury or damage to another person or other property,” says Rick Kautzer, director of product management at insurer Dairyland Insurance.
While meeting the minimum requirements in Michigan is a legal obligation, it is worth considering getting more than just bare-bones coverage. The state minimum is rarely enough to protect your finances in case of a costly accident. Paying for additional coverage can offer better protection and can help safeguard your finances.
What is the minimum amount of car insurance required in Michigan?
See the minimum liability insurance requirements for Michigan in the table below:
| Insurance required | Coverage limit (BI/PD) | UI/UM PIP & Medpay | Coverage limit UI/UM PIP and Med Pay |
|---|---|---|---|
| BI/PD, PIP, PPI* | 20/40/10 | PIP | No-limit personal injury protection (PIP) $1 million per accident for property protection insurance (PPI) |
This is the minimum coverage that drivers must purchase in Michigan to meet the state’s financial responsibility laws.
However, this is rarely sufficient protection in case of an accident, which is why Michigan drivers should consider getting more coverage than the state-mandated coverage limits.
CarInsurance.com editors recommend liability limits of 100/300/100 with full coverage for most drivers. These limits mean you’re protected within the following amounts:
- Up to $100,000 for the medical bills of those you injure.
- Bodily injury liability of up to $300,000 per accident.
- Up to $100,000 to repair other drivers’ cars and property that you damage.
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How much does the state minimum car insurance cost in Michigan?
A driver with a good driving record pays an average of $50 a month for state minimum liability car insurance in Michigan for the coverage limits of 50/100/10.
The three key aspects of liability coverage encompass bodily injury per individual, bodily injury per accident and property damage. The insurer covers up to $50 for bodily injuries inflicted on a single individual in a car crash. In case an accident results in injuries to multiple individuals, the insurance will cover a total amount up to $100. Furthermore, any property damage caused by an accident will be covered up to a limit of $10.
Car insurance rates can vary based on several factors, including your location, driving history, age and the insurance company you choose. Remember, this is liability insurance only – it won’t cover any damage to your vehicle or injury to your passengers in the case of an at-fault accident.
Learn how much full-coverage car insurance costs in your state
Cheapest car insurance companies for minimum liability coverage in Michigan
Drivers must find an insurer that offers competitive rates while still providing the necessary coverage to comply with Michigan’s legal requirements.
According to a CarInsurance.com analysis, Travelers offers the cheapest state minimum car insurance in Michigan at an average of $9 a month, or $106 a year. Other than Travelers, USAA and Auto-Owners also provide cheap car insurance to Michigan drivers for the coverage limit 50/100/10.
Below are the cheapest car insurance companies for minimum coverage in Michigan.
| Company | State Minimum Annual Rates | State Minimum Monthly Rates |
|---|---|---|
| Travelers | $106 | $9 |
| USAA | $320 | $27 |
| Auto-Owners | $469 | $39 |
| Automobile Club MI (AAA) | $540 | $45 |
| Geico | $620 | $52 |
| Pioneer State Mutual | $630 | $53 |
| Frankenmuth Insurance | $750 | $63 |
| Progressive | $789 | $66 |
| Michigan Farm Bureau | $900 | $75 |
| State Farm | $1,651 | $138 |
Penalty for driving without minimum insurance in Michigan
Driving without minimum car insurance in Michigan can result in hefty fines. The state of Michigan requires every driver to have minimum car insurance coverage to ensure that in case of an accident, everyone involved will have the necessary protection.
Here’s what can happen if you drive without minimum insurance in Michigan:
| Fine Amount | Jail Time | Registration Suspension | License Suspension |
|---|---|---|---|
| $200 | Up to one year | No | Yes |
State minimum car insurance required for legal driving in the U.S.
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State minimum car insurance is the minimum level of coverage required by Michigan law. While it may be sufficient to meet Michigan’s legal requirements, it won’t necessarily provide adequate protection if you are involved in an accident.
Michigan minimum car insurance includes liability coverage, which helps cover damages caused to others in an accident for which you are at fault – up to the policy’s limits.
However, it does not cover damages to your own vehicle or injuries you sustain in an accident.
“You should carefully review the amount of coverage you’re being quoted and determine whether it offers the protection you need,” Kautzer says.
What other car insurance coverage is available in Michigan?
Make sure you consider the value of your vehicle, your driving habits and your financial situation before you decide on a policy.
In addition to liability coverage, there are other types of car insurance coverage available in Michigan, including:
- Comprehensive insurance: Comprehensive coverage in Michigan reimburses you for damage to your car caused by events such as theft, vandalism, animal strikes or weather events.
- Collision insurance: Collision coverage pays for damage to your car caused by a collision with another car or object.
- PIP/MedPay: Personal injury protection or medical payments coverage is optional in Michigan. It covers medical expenses for you and your passengers if you are injured in a car accident, regardless of who is at fault. PIP protection also may offer additional benefits, such as reimbursing you for lost wages.
- Uninsured/underinsured motorist coverage: Insurance companies in Michigan are required to offer UM/UIM coverage to drivers as an option. It pays for damages and injuries caused by a driver who does not have enough insurance to cover the costs of an accident.
- Roadside assistance coverage: Car insurance companies in Michigan offer roadside assistance coverage as an option if your car breaks down or you need a tow.
- Rental reimbursement coverage: In Michigan, rental reimbursement coverage pays for a rental car while your car is being repaired after an accident.
Why must drivers purchase Michigan’s car insurance minimums?
Michigan drivers are required to purchase minimum liability car insurance of 50/100/10. Failing to meet these minimum requirements can result in fines, license suspension or other legal consequences.
Minimum liability car insurance provides some financial protection to drivers and others who drive the policyholder’s vehicle, but only up to the policy’s limits. This type of insurance covers the cost of repairing or replacing someone else’s vehicle, as well as covering the cost of their medical expenses up to the policy’s limits. It even covers legal fees that may arise from accidents.
However, it’s minimum coverage. Michigan drivers will face significant out-of-pocket expenses after an at-fault accident if their limits are low and damages exceed them.
Resources and Methodology
Sources
- Insurance Information Institute. “Automobile Financial Responsibility Laws By State.” Accessed January 2024.
- Virginia DMV. “Insurance Requirements.” Accessed January 2024.
- New Hampshire Insurance Department. “2022 Automobile Insurance Consumer Frequently Asked Questions.” Accessed January 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Institute to get state minimum car insurance rates from a 2023 data set. The rates are based on the sample profile of a 40-year-old male who drives a Honda Accord LX and has a clean driving record.
After an in-depth analysis, we have curated a list of companies that provide the cheapest state minimum car insurance rates. USAA is included in this list but it offers services only to current and former military members and their families.
Our dedicated team of insurance experts analyzed 53,409,632 insurance quotes from 75 insurance companies across 34,588 ZIP codes.
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Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
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John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
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Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
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Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.
Guide to car insurance (with rates) in cities of Michigan