Michigan No-Fault Auto Insurance

Summary

Michigan has a unique 'No-Fault' auto insurance system where your own insurance company pays for your medical bills and lost wages after a car accident, regardless of who caused the crash.

Rights & Rules

01.
If you are injured in a car accident, your own auto insurance policy (called Personal Injury Protection or PIP) pays your medical bills, up to the limit you selected when buying the policy.
02.
Because of a 2019 reform, you are no longer forced to buy 'unlimited' lifetime medical coverage; you can now choose lower coverage limits (like $250k or $500k) to save money on your premiums.
03.
If your car is damaged in an accident that was NOT your fault, you can only sue the at-fault driver for a maximum of $3,000 to cover your deductible (called the 'mini-tort' provision).
04.
You cannot sue the at-fault driver for medical bills or 'pain and suffering' unless your injuries meet a very high legal threshold (e.g., serious impairment of an important body function or permanent disfigurement).

Penalties

01.
Driving without no-fault insurance in Michigan is a misdemeanor punishable by up to a year in jail and a $500 fine, and you lose the right to sue an at-fault driver for your injuries.

Verified Citations

Michigan Compiled Laws Section 500.3101

Source

"The owner or registrant of a motor vehicle required to be registered in this state shall maintain security for payment of benefits under personal protection insurance, property protection insurance, and residual liability insurance."