Michigan, like most states, requires drivers to have at least a minimum amount of car insurance to drive legally. If you are caught driving without insurance in Michigan, you may face charges, loss of your license, and even jail time. Liability coverage is the part of your auto insurance policy that pays for the damage you cause to other drivers in an accident where you were at fault. Michigan has the strictest state minimum insurance requirements in the country, which is part of the reason insurance rates are so high.
All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. The final insurance policy premium for any policy is determined by the insurance company upon application. If this happens, PIP and PPI coverages help pay for the expenses incurred in the accident in advance, and your insurer will work with the at-fault party's insurance company to cover the damages. Whether you're a Michigan driver buying car insurance for the first time or checking that you have the right amount of car insurance, here's what you need to know about auto insurance laws and requirements in the Great Lakes state.
However, while insurance requirements in Michigan are important, drivers would still benefit from obtaining higher levels of liability insurance than those required by the state. Michigan's no-fault insurance law means that drivers must carry proof of insurance that shows that they have PIP, PPI, and third-party liability coverage. Michigan car insurance laws and requirements apply even if you don't “own” a car or truck in the conventional sense, such as if you only rent the car or van or borrow it for an extended period (which may or could exceed 30 days). If you have an accident and are found at fault, you won't have car insurance to cover the costs.
Drivers can present proof of insurance with identification cards or electronically through their insurance company's app on their phone. Learn about Michigan car insurance laws and requirements to learn how much coverage you need to drive legally. Michigan auto insurance laws also require drivers to have personal injury protection (PIP) and property protection insurance (PPI) coverage. The law also requires the state to approve new auto insurance rates and increases penalties for insurance companies for some violations.