Car insurance usually follows the car in Michigan. The types of car insurance that follow the car in Michigan are collision, comprehensive, and property damage liability. You’re required to carry property damage liability and personal injury protection in Michigan. PIP follows the driver, unlike liability coverage.
If you let someone borrow your car and they cause an accident in Michigan, bodily injury liability insurance pays for injuries to the other driver and their passengers. Property damage liability insurance will pay for damage to the other driver's car. If the person who borrowed your car causes damage that exceeds your coverage limits, their liability policy can act as secondary coverage. But their coverage only kicks in after yours is tapped out.
You won’t need to use your PIP or MedPay coverage if someone caused an accident while driving your car because PIP and MedPay follow the driver. You will have to use your collision and comprehensive insurance to pay for damage to your car, though. These optional coverage types pay for your car to be fixed no matter who was driving, but it is a claim on your policy.
It’s always a risk to lend your car to someone else, because you could definitely end up filing a claim using your own insurance in Michigan. When someone borrows your car, they also borrow your insurance coverage in most cases.
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