In Michigan, drivers need $50,000 of bodily injury liability insurance per person (up to $100,000 per accident) and $10,000 of property damage liability insurance. Most Michigan drivers also need to carry personal injury protection (PIP), which pays for medical expenses for a driver and their passengers. Property protection insurance is required in Michigan, too, and it pays for damage to other people’s property within the state of Michigan, such as buildings, fences, and parked cars.
How Much Car Insurance Drivers Need in Michigan
*Drivers in Michigan may be able to purchase less PIP coverage if they have Medicare or Medicaid.
Optional Car Insurance Coverage in Michigan
If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Michigan law. For instance, lenders usually require comprehensive and collision insurance.
Collision insurance covers repairs to your car when you hit another car or object. Comprehensive insurance covers damage to your vehicle caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals.
You might also want to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.
Even if you’re not required to carry these optional coverage types, you may still need them. To learn more, check out WalletHub’s guides to dropping optional coverages and the penalties for driving without insurance in Michigan.
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