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Michigan is a no-fault state. Drivers must carry at least PIP + PPI + liability (default 250/500) in coverage, and the average full-coverage premium is $3,862 a year, 32% above the national average of $2,922. This guide covers what Michigan requires, what drivers pay, the rules on fault, uninsured drivers, penalties, teen drivers and phone use, and how to pay less.
| Minimum coverage | PIP + PPI + liability (default 250/500) |
| Fault system | No-fault |
| Average full coverage | $3,862 a year ($322 a month), 32% above the national average of $2,922 |
| Uninsured drivers | 22.3% (2023), the 4th highest rate of 51 |
| Filing after serious violations | Proof of financial responsibility, if ordered |
Michigan requires residual bodily injury liability that defaults to $250,000 per person and $500,000 per accident unless you sign a form choosing lower limits, $10,000 property damage liability for crashes in other states, $1 million of property protection insurance for damage your car does in Michigan, and personal injury protection at a level you choose (Michigan Department of Insurance and Financial Services, "Auto Insurance Reform FAQ" and Bulletin 2019-15-INS).
| PIP medical options | You choose $50,000, $250,000, $500,000 or unlimited PIP medical coverage (the lower options have eligibility rules). If you don't choose, unlimited is the default. |
| Property protection insurance (PPI) | Pays up to $1 million for damage your vehicle does in Michigan to other people's property, such as buildings, fences and properly parked cars. |
The minimums are a legal floor, not a recommendation. Property damage limits in particular don't go far when a new car can cost more than the limit to replace, and anything above your limits is your personal responsibility. See how limits and deductibles work and every type of coverage explained.
The average full-coverage premium in Michigan is $3,862 a year, 32% above the national average of $2,922. That makes Michigan the 4th most expensive of 49 (48 states plus D.C.; Alaska and Hawaii aren't in the data) (Experian, "Car Insurance Average Costs by State," published September 9, 2026; full coverage, 12 months to August 2026).
Within Michigan, prices still vary a lot by ZIP code, driving record and car, and 22.3% of drivers on Michigan roads were uninsured in 2023, so the coverage you choose matters as much as the premium.
Your own price depends on your ZIP code, age, driving record, car and coverage. Try our car insurance calculator with Michigan preselected for a personal estimate, and see what determines your car insurance cost.
Michigan is a no-fault state: your own personal injury protection pays your medical costs whoever caused the crash, and you can sue the at-fault driver for pain and suffering only for serious injuries. Since the 2019 reform, drivers choose their PIP medical level.
An estimated 22.3% of Michigan drivers were uninsured in 2023, the 4th highest rate among the 50 states and D.C. (Insurance Research Council, uninsured motorist estimates for 2023, via Insurance Information Institute "Facts + Statistics: Uninsured motorists"). Uninsured and underinsured motorist coverage protects you when one of them hits you. See coverage types.
Every vehicle driven in Michigan must carry the required no-fault coverages, and you must be able to show proof of insurance when asked. (Michigan Department of Insurance and Financial Services)
Driving without the required insurance is a misdemeanor punishable by a fine of $200 to $500, up to one year in jail, or both. The court can also suspend your license for 30 days, or until you show proof of insurance. (Michigan Compiled Laws §500.3102; Michigan Department of Insurance and Financial Services)
A conviction for driving uninsured also follows you into your next policy. In CarInsurance.com's rate analysis, it raised the average full-coverage premium in Michigan from $2,352 to $3,174 a year, an increase of 35% (CarInsurance.com, "Penalty for driving without insurance in every state," updated March 24, 2026; rate analysis).
Beyond the penalties, driving uninsured leaves you personally liable for any damage you cause. See what happens if you drive without car insurance.
If the Michigan Secretary of State or a court requires proof of future financial responsibility after a serious violation, it will tell you what to file. Your insurer submits it, and it must stay in force for the required period.
Michigan doesn't allow insurers to use gender or credit-based insurance scores to set car insurance rates, so your driving record, mileage, car and ZIP code carry more weight. (AgentSync (2026); Experian (2026))
Michigan uses graduated driver licensing (Insurance Institute for Highway Safety, "Graduated licensing laws" table):
Adding a teen is usually the biggest single increase in a family's premium. Keeping them on the family policy, a good-student discount and a safe, modest car help most.
A distracted-driving ticket can count against your record and your premium. (Insurance Institute for Highway Safety, "Electronic device laws" table)
See how to compare car insurance quotes, or get quotes for your ZIP code.
For questions about a policy, a claim or an insurer's conduct, contact the Michigan Department of Insurance and Financial Services. It handles consumer questions and complaints about insurers in Michigan.
AutoInsuranceQuery editorial team. Last reviewed: September 29, 2026.
