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Michigan Insurance Laws

Michigan Insurance Laws says that a minimum of $20,000 per person up to a sum of $40,000 per accident is to be carried as coverage for Bodily Injury Liability by all motorists in the state. Also, the minimum Property Damage Liability insurance of Michigan is set at $10,000. This car insurance coverage is often called the 20/40/10 coverage. 

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A summary of the basic insurance requirements in Michigan are shown below.

Michigan Auto Insurance Requisites

  1. Bodily Injury Liability of $20,000/$40,000 (minimum)
  2. Michigan-insurance-laws-001
  3. Property Damage Liability of $10,000 (minimum)
  4. Property Protection Insurance of $1,000,000 (minimum)
  5. Personal Injury Protection for Medical expenses
  6. Personal Injury Protection for Work Loss

Personal Injury Protection, or PIP coverage, will cover for medical expenditures you incur when you are hurt in an auto collision. Michigan Insurance laws oblige you to carry Personal Injury Protection coverage for both Medical (treatment and visits) and Work Loss.

Another important coverage is the Uninsured/Underinsured Motorist Bodily Injury or the UM/UIM coverage. The state of Michigan does not require this but you should look into this one and consider buying it. UM/UIM coverage will pay for any expenses for the bodily injury you incur when you get involved in an accident with an underinsured driver and/or uninsured motorist. This coverage might save you a lot of headaches in the long run.

Michigan Insurance Laws mandates the state to operate on a No-Fault system. This means that the insurance provider will have to pay for injury claims you make regardless of who is at fault. The payment the insurance provider makes, of course, is restricted to the coverage limit set in your auto policy. Under a No-Fault system, you drop some of your rights to take legal action; although the particulars of a no-fault system differ from state to state.


Comparative Fault systems are subdivided into three – contributory negligence, pure negligence, and modified negligence. A state following a comparative fault system falls only into one of three subdivisions. Fifty one jurisdictions follow the comparative fault standards. Around twenty one states use the 51 percent bar rule, where an injured party cannot recover for damages if he is 51 percent or more at fault but he can collect for damages if he is fifty percent or less at fault. The amount recovered by the injured party though is dependent on the degree of fault assigned to the said party. The state of Michigan follows the 51 percent rule.

Now when choosing an Insurance package or an insurance provider for that matter, go for a package that adequately covers the minimum requirements of the state. But, do not settle for meager coverage alone. Opt for a more sweeping one that not only satisfies the state minimums but can also sufficiently protect you in the event of an accident. You can partner with your provider and customize your insurance limits and policy deductibles to fit your needs. Find an insurance provider that can walk you through the complexities of auto insurance and can help you throughout the quote and insurance purchase process.

Michigan Insurance Laws
Jurisdiction Modified Comparative Fault -- 51 Percent Bar
Liability Insurance required? Yes
Personal injury liability maximum for one person injured in an accident. $20,000
bodily injury liability maximum for all injuries in one accident. $40,000
property damage liability maximum for one accident. $10,000
PIP required? Yes
No-fault state? Yes
Uninsured motorist coverage required? No
Bodily Injury Statue Of limitations 3 Years
Property Damage Statute of Limitation 3 Years
Small Claims Court Maximum Limit $3,000

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