STATE LAW – MICHIGAN LIBRARY – GUIDE 02
Required Auto Insurance, PIP, PPI & Liability Limits in Michigan
Michigan automobile insurance combines no-fault PIP, property protection insurance, and residual liability. The controlling coverage depends on the policy, the insured’s PIP election, the accident date, and any optional first-party or excess coverage.
Required Coverage
Michigan uses a no-fault system with several distinct coverages
Do not collapse PIP, PPI, residual liability, collision, and optional UM/UIM into one number. Each protects against a different category of loss and may be governed by different eligibility or priority rules.
Residual bodily-injury and property-damage liability
MCL 500.3009 sets Michigan’s automobile liability-limit structure. For policies issued or renewed after July 1, 2020, the default bodily-injury limits are $250,000 per person and $500,000 per accident unless a permitted lower limit is effectively selected in the manner required by statute. The permitted lower bodily-injury limits may not be below $50,000 per person and $100,000 per accident, and property-damage liability has a separate $10,000 floor. The actual declarations page and executed selection form control the policy-specific inquiry.
Personal protection insurance (PIP)
PIP is first-party no-fault coverage for categories of economic loss established by Chapter 31 of the Insurance Code. Michigan’s 2019 reform created multiple PIP medical coverage choices, including unlimited coverage and qualifying limited or opt-out structures. Eligibility for a particular option depends on the insured and household circumstances, so the policy election and supporting eligibility information should be preserved.
Property protection insurance (PPI)
PPI is a separate no-fault property benefit under MCL 500.3121 for qualifying accidental damage to tangible property arising from motor-vehicle use in Michigan, subject to statutory exclusions, priorities, and limits. It should not be confused with collision coverage, residual property-damage liability, or Michigan’s limited vehicle-damage tort remedy.
Current indexed values require maintenance
DIFS publishes annual or periodic no-fault adjustments. Bulletin 2026-08-INS retains the qualified-health-coverage deductible threshold of $6,579 for July 1, 2026 through June 30, 2027. Bulletin 2026-09-INS states a cumulative 16.38% adjustment to the specified fee-schedule amounts for dates of service July 2, 2026 through July 1, 2027. Bulletin 2026-20-INS sets the work-loss/survivors’-loss maximum at $7,455 per single 30-day period for October 1, 2026 through September 30, 2027, subject to its accident-date and proration rules. These figures are maintenance items, not permanent statutory constants.
What to obtain after a crash
- Declarations page and complete policy, including endorsements.
- PIP medical selection and eligibility forms.
- Residual bodily-injury limit selection documentation.
- Collision, UM/UIM, umbrella, and excess declarations.
- Any employer, rental, rideshare, commercial, or self-insurance records implicated by the facts.
Authorities
Official Michigan sources
- MCL 500.3009 — default limits and lower-limit selection
- MCL 500.3107c — PIP medical coverage selections
- MCL 500.3107d — qualifying PIP election not to maintain medical coverage
- MCL 500.3121 — property protection insurance
- DIFS Bulletin 2026-08-INS — QHC deductible
- DIFS Bulletin 2026-09-INS — fee-schedule adjustment
- DIFS Bulletin 2026-20-INS — work and survivors’ loss maximum
Source review: October 15, 2026. These links support the stated statutory and agency propositions. Apply the policy and law version governing the crash, service or benefit period; broader enactment and controlling-case review remains separate.