Michigan Car Insurance: PIP Choices, Required Coverage and What Changed After Reform
Enter the ZIP code where your car is parked overnight to compare Michigan auto insurance quotes with the same limits and deductibles.
By the AutoQuotesByZip editorial team. Last reviewed: October 14, 2026. Data: NAIC, IRC, IIHS, NICB and official state sources listed below.
Michigan’s auto insurance system is unlike any other state’s. Every policy must include personal injury protection, property protection insurance and residual liability, but since the 2019 reform drivers choose their PIP medical level — from unlimited to, for eligible Medicare enrollees, none at all. The same reform prohibits insurers from using ZIP codes, credit scores, sex, marital status, home ownership, education or occupation to set rates, according to the Michigan Department of Insurance and Financial Services (DIFS).
The effect shows in NAIC’s numbers. Michigan’s average spending of $1,631 in 2024 still ranks 9th, but it rose only 15% between 2020 and 2024 — the smallest increase of any state over a period when the national average climbed 37%.
Enter the ZIP code where your car is parked overnight to compare Michigan auto insurance quotes with the same limits and deductibles.
Michigan car insurance at a glance
| Fact | Michigan | Source |
|---|---|---|
| Required coverages | Personal injury protection (PIP), property protection insurance (PPI) and residual bodily injury/property damage liability | Michigan DIFS |
| Liability limits | Default 250/500; you may choose as low as 50/100 by signing a selection form ($10,000 for property damage in another state) | Michigan DIFS |
| PIP medical choices | Unlimited, $500,000, $250,000, $250,000 with exclusions, $50,000 (Medicaid) or opt-out (Medicare Parts A and B) | Michigan DIFS |
| Property protection insurance | Up to $1 million for damage your car does in Michigan to others’ property, such as buildings and parked cars | Michigan DIFS |
| Prohibited rating factors | ZIP codes, sex, marital status, home ownership, credit score, education level and occupation | Michigan DIFS |
| Average annual spending on auto insurance (2024) | $1,630.72 — 9th highest of 51 (US: $1,431.63) | NAIC |
| Change in average spending | +12.8% vs 2023; +14.8% vs 2020 (US: +11.7% and +36.6%) | NAIC |
| Average liability / collision / comprehensive premium | $831 / $658 / $303 | NAIC |
| Estimated uninsured drivers (2023) | 22.3% — 4th highest (US: 15.4%) | IRC via III |
| Traffic deaths (2024) | 1,098 — 10.8 per 100,000 people; 1.1 per 100 million miles (US: 11.5 and 1.19) | IIHS |
| Driving uninsured | Misdemeanor: fine up to $500 and/or up to one year in jail; license suspension possible | Michigan DIFS |
Compare Michigan quotes with the same PIP level, BI limits and deductibles on every quote.
Choosing a PIP medical level
DIFS lists six PIP medical options. Unlimited, $500,000 and $250,000 are available to everyone. The $250,000-with-exclusions option and opt-out require qualified health coverage or Medicare Parts A and B for the people excluded, and the $50,000 option is limited to Medicaid enrollees. If you do not make a valid selection, the policy is issued with the default level and premium. A lower PIP level does not change what kinds of care are covered — it caps how much the insurer pays per person per accident.
Liability limits: the 250/500 default
Michigan sets default bodily injury limits of $250,000 per person and $500,000 per accident. You can choose lower limits, down to 50/100, only by signing a selection form. DIFS warns that limits below your exposure can leave your wages and assets at risk after a serious crash. The optional limited property damage (“mini-tort”) coverage pays up to $3,000 if you are at least 50% at fault for damage to another car.
What Michigan drivers pay
Michigan’s average liability premium was $831 in 2024 (16th), while collision, at $658, ranked 3rd in the country. Estimated uninsured driving is high at 22.3% (4th nationally), which makes uninsured/underinsured motorist coverage worth pricing.
| 2024 NAIC measure | Michigan | United States | Rank (1 = most expensive) |
|---|---|---|---|
| Average expenditure (all coverages actually bought) | $1,630.72 | $1,431.63 | 9th of 51 |
| Liability premium | $831.14 | $813.27 | 16th |
| Collision premium | $657.56 | $516.39 | 3rd |
| Comprehensive premium | $302.52 | $283.15 | 19th |
| Liability + collision + comprehensive combined | $1,791.22 | $1,612.81 | 11th |
Does your ZIP code matter in Michigan?
Insurers in Michigan may not use ZIP codes as a rating factor under the 2019 reform, DIFS says, so two identical drivers on either side of a ZIP boundary should not be priced differently for that reason alone. Rates can still differ between insurers and with your driving record, vehicle and coverage choices — which is why comparing quotes still pays. See how ZIP codes affect rates in other states.
Frequently asked questions
What car insurance is required in Michigan?
Every Michigan policy must include personal injury protection (PIP), property protection insurance (PPI) of up to $1 million and residual bodily injury/property damage liability. Default liability limits are 250/500; you can elect as low as 50/100 in writing.
Can Michigan insurers use my ZIP code to set my rate?
No. According to DIFS, the 2019 reform prohibits using ZIP codes, as well as sex, marital status, home ownership, credit score, education and occupation, in setting auto insurance rates.
What is the cheapest legal PIP option in Michigan?
Opting out of PIP medical is possible only with Medicare Parts A and B, and the $50,000 option only for Medicaid enrollees. Everyone else chooses $250,000, $500,000 or unlimited, or $250,000 with exclusions if eligible.
Sources
- Michigan DIFS — Auto insurance frequently asked questions
- MCL 500.3009 (liability limits)
- NAIC, 2024 Auto Insurance Database Average Premium Supplement
- Insurance Information Institute, Facts + Statistics: Uninsured motorists (Insurance Research Council estimates for 2023)
- IIHS-HLDI, Fatality facts 2024: State by state
- Insurance Information Institute, Background on: No-fault auto insurance
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