All drivers in Michigan are required by law to have three mandatory insurance coverages:
Personal Injury Protection
The accident victim receives benefits from his or her own insurance company:
- All reasonable and necessary medical expenses (unless the insured opts-out).
- Work loss benefits.
- "Replacement services" for services the injured person can no longer perform.
- Survivors' loss benefits and replacement services benefits are paid to the insured's dependents in case of death.
- Funeral and burial expense benefits (unless the insured opts-out).
Personal Injury Protection
The accident victim receives benefits from his or her own insurance company:
Personal Injury Protection coverage applies to accidents occurring throughout the United States and Canada and may provide coverage to any injuries involving a motor vehicle. Premium costs for this coverage can be reduced by choosing a deductible for medical benefits - and a waiting period or deductible for work loss benefits. Further, premium reductions may be obtained by selecting lower medical limits on or after July 2, 2020.
Property Protection
This provides coverage for damage caused by your car to property of others (except moving vehicles), regardless of fault.
- Coverage is provided up to a $3,000,000 maximum.
- Vehicles are excluded from coverage, unless properly parked.
- Property Protection does not apply to accidents occurring outside the state of Michigan.
Third Party Liability
This provides protection if you are sued or are legally responsible:
- In accidents involving death, serious impairment of body function, or permanent, serious disfigurement.
- When actual economic losses sustained in an accident exceed the benefits available in Personal Injury Protection coverage.
- In accidents occurring outside of Michigan, for property damage and bodily injury.
The required limits of this coverage are $50,000 for one person's injury, $100,000 for all persons injured in one accident and $10,000 for property damage. Higher limits may be purchased.