Michigan Car and Motorcycle Insurance Law

Required Minimum Bodily Injury Coverage

• $20,000 per person injured in any one accident and $40,000 for all persons injured in any one accident

Required Minimum Property Damage Coverage

• $10,000 for injury to or destruction of property of others in any one accident

Optional Insurance Coverage

• Personal Protection Insurance Benefits. These benefits cover the insured and the insured’s passengers for medical expenses and work loss. Insurance companies are required to offer medical benefits between $1,750 and $5,000 per person and work loss benefits of 85 percent of wages for 3 years, but not to exceed $1,000 per month.

Restrictions on Tort Liability

• No-Fault statute. Michigan has a No-Fault statute. Under the statute, an injured person cannot sue for pain and suffering unless the injury causes death, serious impairment of bodily function, or permanent, serious disfigurement. Whether an injury rises to the level of a “serious impairment of bodily function” or a “permanent, serious disfigurement” is left for a judge to decide.
• Uninsured (UM) and Underinsured Motorist (UIM) Coverage. Michigan does not have a statute regarding UM/UIM coverages.

Special Rules for Motorcyclists

• Insurance companies are required to offer motorcycle owners first-party benefits in $5,000 increments.