Michigan No-Fault Car Insurance Information: If a person owns a vehicle in the Great Lakes State they are required by law to purchase automobile coverage in order to even have a vehicle registered. The type of polices that are available to residents, however, are somewhat unique. Michigan is a No-Fault state, which means that all motorists must have Personal Injury Protection (PIP), which pays for medical expenses, loss of wages, and various other injuries sustained in an accident regardless of who is at fault. Theoretically, this form of coverage means that fewer accidents will result in lawsuits because such suits can only be filed under a PIP policy if the amount of losses is more than policy provides.

Included in the MI No-Fault requirements is mandatory Personal Protection Insurance (PPI) which is in place to pay for property damage done to others up to a limit of $1 million dollars. It is important to note, however, that another person’s automobile only counts as personal property if it is legally parked. Furthermore, Michigan’s No-Fault laws also require that drivers obtain Residual Liability Insurance—Bodily Injury and Property Damage (BI/PD) which amounts to a minimum of $20,000 for a person who is hurt or killed in an accident, $40,000 for multiple people in a single accident, and $10,000 for property damage in the event that the accident occurred out of state. As previously stated, the minimum auto insurance in Michigan does not cover damages done to a person’s automobile if it is not parked, meaning that in order to obtain this protection additional coverage will have to be purchased.