Michigan Motor Vehicle Laws & Regulations

Insurance System & Requirements

System type: Michigan has a no-fault insurance system, meaning your insurance covers medical expenses and lost wages regardless of who caused the accident. You can sue the at-fault driver if you prove their negligence, your injuries meet the criteria for serious impairment or disfigurement, and you file within the statute of limitations.

Minimum liability requirements: To legally drive or register a vehicle in Michigan, you must carry no-fault insurance, which includes the following mandatory coverages:

• Personal injury protection (PIP): PIP covers necessary medical expenses, wage loss, replacement services, and survivor benefits after an auto accident. Michigan drivers have six coverage options to choose from:
  • Unlimited coverage (default option and most comprehensive)
  • $500,000 limit per person per accident
  • $250,000 limit per person per accident
  • $250,000 limit with exclusions for those with qualifying health insurance
  • $50,000 limit for Medicaid recipients
  • No PIP medical coverage for those with Medicare Parts A and B
• Property protection insurance (PPI): Covers up to $1 million for damages your car causes to stationary property in Michigan, such as buildings or parked vehicles
• Bodily injury and property damage (BI/PD): Protects you from lawsuits in specific scenarios, such as accidents resulting in death, serious injury, or those involving out-of-state drivers. Minimum coverage includes: 
  • $20,000 per person injured or killed
  • $40,000 per accident involving multiple injuries or fatalities
  • $10,000 for property damage in another state

Optional coverages: While not mandatory, the following coverages can provide additional protection:

• Collision coverage: Covers damages regardless of fault. You can choose from three types: broad form, standard, or limited
• Comprehensive coverage: This policy covers non-collision damages, such as theft, fire, vandalism, or animal collisions. It also pays if falling objects or natural disasters damage your car
• Uninsured/Underinsured motorist coverage (UM/UIM): Protects you if an uninsured or underinsured driver causes an accident. This coverage ensures you and your household are financially protected in such situations
• Higher liability limits: You can increase your liability coverage beyond the state’s required 20/40/10 limits to safeguard against large financial liabilities in serious accidents
• Roadside assistance and rental car coverage: This policy covers towing and emergency services or provides a rental car while your vehicle is repaired after an accident

Non-compliance penalties: Driving without insurance in Michigan is considered a significant legal violation with severe consequences.

• If convicted of driving without insurance, you may be fined between $200 and $500
• In addition to fines, you could face up to one year in jail, or both, depending on the severity of the violation
• Your driver’s license will be suspended until you provide proof of valid insurance coverage
• The Secretary of State will not renew, transfer, or issue new vehicle registration plates until valid proof of insurance is provided
• If you are uninsured and injured in an accident, you lose the right to sue the at-fault driver for non-economic damages, regardless of the severity of your injuries
• As an uninsured driver, you forfeit eligibility for PIP benefits. You must pay out of pocket for your medical expenses, lost wages, and related costs

Rideshare insurance requirements: Rideshare drivers in Michigan, including those working for companies like Uber or Lyft, must adhere to additional insurance requirements to operate their vehicles while providing services legally. 

• Without a passenger: When logged into the rideshare app and waiting for ride requests, drivers must carry:
  • $50,000 per person for bodily injury
  • $100,000 per accident for bodily injury
  • $25,000 for property damage
• With a passenger: Once a passenger is in the vehicle or during an active ride request, drivers must maintain $1 million in minimum liability coverage for bodily injury and property damage.

Fault & Negligence Laws

Modified comparative negligence

Michigan’s modified comparative negligence system allows injured parties to recover damages even if partially at fault, but their percentage of fault reduces compensation. For instance, someone 10% at fault with $1 million in damages would receive $900,000. However, those over 50% at fault cannot recover non-economic damages like pain and suffering but may still receive reduced economic damages, such as medical expenses and lost wages. 

PIP benefits remain unaffected by fault and cover medical costs and lost wages regardless of who caused the accident.

Criteria for filing a lawsuit

• Serious injuries required: You can sue for pain and suffering only if your injury involves death, permanent disfigurement, or a serious impairment that affects your ability to live normally
• Court or jury decision: The court decides if your injury meets the criteria, but a jury may be involved for specific cases, like severe head injuries
• Fault limits: If you are more than 50% at fault, you cannot recover pain and suffering damages, but you may still recover economic losses like medical bills and lost wages, reduced by your fault percentage
• Excess economic damages: Medical bills and lost wages not covered by your PIP insurance can be recovered through a lawsuit

Multi-vehicle collisions

In multi-vehicle collisions, the fault is divided among drivers based on their contributions to the crash. Compensation is reduced according to fault percentages, and drivers over 50% at fault cannot recover non-economic damages.

Michigan mini-tort law

Michigan’s mini-tort law allows you to seek reimbursement of up to $3,000 for vehicle repair costs from the at-fault driver or their insurer. This coverage is specifically designed to help recover out-of-pocket expenses, such as insurance deductibles, rather than covering all vehicle damages resulting from the accident. To receive compensation, you must be less than 50% at-fault, and damages will be reduced based on the at-fault’s percentage of fault. 

Passenger rights

In Michigan, passengers injured in car accidents have specific rights to pursue compensation for their losses. Depending on the circumstances, they can file two types of lawsuits. The first is a lawsuit against the at-fault driver, who may be either the driver of another vehicle involved in the accident or the driver of the passenger's vehicle. This lawsuit seeks compensation for pain, suffering, and excess economic losses such as medical bills and wage loss exceeding the No-Fault PIP coverage limits.

The second type of lawsuit passengers can file is against their auto insurer. This claim addresses unpaid or overdue no-fault benefits, which include medical expenses, lost wages, and other costs covered. By pursuing this legal avenue, passengers ensure they receive the full benefits they are entitled to under the law.

Statute of Limitations

In Michigan, specific time limits apply for filing lawsuits or claims related to car accidents. These include: 

Personal injury lawsuits: You have three years from the date of the injury or death to file a lawsuit for damages against the at-fault party. This applies to cases seeking compensation for pain and suffering, medical expenses, or lost wages beyond what PIP covers.

No-fault insurance claims: Claims for Personal Protection Insurance (PIP) benefits must be filed within one year of the accident. If a claim is not filed or written notice is not given to the insurer within this timeframe, benefits cannot be recovered. Additionally, claimants cannot recover benefits for expenses incurred more than one year before filing the lawsuit.

Property damage claims: Claims for property protection benefits must be filed within one year of the accident.

Claims against the government: If your claim involves a government agency, you must file within two years of the accident.

Exceptions

• Disabilities: If the injured party is under 18 years old or mentally incapacitated, they have one year after the disability ends to file a claim
• Fraudulent concealment: If the at-fault party hides their liability, the injured party has up to two years from the time the fraud is discovered to file a lawsuit
• Absence from Michigan: If the at-fault party leaves the state, the time they are absent (beyond two months) is not counted toward the statute of limitation

Procedures for MVAs & Police Involvement

When to report an accident

Michigan law mandates that motorists report a car accident immediately under the following conditions:

• Injury or death: If anyone involved in the crash is injured or killed
• Property damage: If the total damage to vehicles or other property exceeds $1,000
• Damage to unattended property: Accidents involving parked vehicles or other unattended property must also be reported

Failing to report an accident as required can lead to criminal penalties, including fines or jail time, depending on the severity of the incident.

Filing a report

Filing a report is straightforward if you're involved in an accident in Michigan. To report the accident, simply call 911 from the scene. Law enforcement will arrive, assess the situation, and complete a UD-10 Traffic Crash Report. This report serves as the official record of the accident and includes critical details such as the parties involved, insurance information, and a description of the incident.

If law enforcement cannot respond to the scene, the driver must report the accident to the nearest police station as soon as possible.

How to access accident reports

Accident reports are essential for insurance claims and legal purposes. In Michigan, you can obtain a UD-10 Traffic Crash Report through:

• Online: Visit the Michigan State Police Traffic Crash Purchasing System. You’ll need details such as the crash date, driver’s license number, and the incident number. A $10 fee applies
• Local police department: Contact the police department in the jurisdiction where the crash occurred for their report request process

Types of Compensation Available & Limits

Michigan provides several types of compensation for car accident claims, each addressing specific aspects of loss:

• Economic damages: These cover tangible losses such as medical expenses, lost wages, and other out-of-pocket costs. In Michigan, economic damages are typically covered by Personal Injury Protection (PIP) insurance. If losses exceed PIP limits, a lawsuit can be filed to recover the remaining amount. There are no caps on economic damages
• Non-economic damages: These include compensation for pain, suffering, and emotional distress caused by the accident. Non-economic damages can only be pursued through a lawsuit against the at-fault driver and require proof of a serious impairment, permanent disfigurement, or death. Similar to economic damages, there are no caps on non-economic damages
• Punitive damages: Michigan does not award punitive damages to compensate injured victims as a form of punishment for the wrongdoer
• Exemplary damages: These damages are not meant to compensate the injured party directly. Instead, they aim to address emotional harm or mental anguish caused by the defendant’s actions. However, they are rarely granted in Michigan, especially for car accidents

Medical Payments & Health Coverage

PIP insurance: Michigan requires all drivers to carry PIP insurance, which covers medical expenses, lost wages, and replacement services regardless of fault. Coverage options range from unlimited to as low as $50,000 for Medicaid recipients. PIP remains the primary source of coverage until limits are reached, after which additional resources may apply. 

Health insurance: Health insurance acts as secondary coverage once PIP limits are exhausted or in scenarios excluded under PIP. Policies may restrict coverage to network providers and require prior authorization for treatments.

Medicaid and Medicare: Medicaid provides coverage for individuals with limited PIP options, such as $50,000 for Medicaid recipients, once PIP is exhausted. Similarly, Medicare can act as a secondary payer if victims have opted out of PIP or exceeded its limits. 

Michigan Assigned Claims Plan (MACP): MACP offers up to $250,000 in no-fault benefits for uninsured accident victims or those without applicable coverage. Once this limit is exhausted, victims must rely on health insurance, Medicaid, or out-of-pocket payments.

Suing the at-fault driver: In cases of serious injury, disfigurement, or death, victims can file lawsuits against the at-fault driver for medical costs exceeding PIP limits. Compensation is subject to proving negligence and meeting Michigan’s injury thresholds.

Unique Local Considerations

Weather and road conditions:

Michigan’s dynamic weather patterns present various challenges for drivers, requiring constant vigilance and adaptability throughout the year.

• Snow and ice: Michigan winters bring heavy snowfall, freezing rain, and icy roads. Black ice, often invisible to drivers, is a leading cause of winter accidents. Reduced traction and visibility during snowstorms create hazardous conditions, increasing the risk of skidding and collisions
• Heavy rain and fog: In spring, rainfall and fog create slick roadways and reduce visibility. Hydroplaning is common during heavy rains, while foggy mornings obscure obstacles and other vehicles. Melting snow and rain also contribute to pothole formation, endangering tires and suspensions
• Heat: Summer heat can lead to engine overheating, tire blowouts, and glare-related visibility issues. Bright sunlight can cause eye strain and obscure hazards on the road
• Leaves and frost: Fall hazards include wet leaves that reduce traction and frost that creates slippery surfaces, particularly on bridges and overpasses

Traffic hazards and wildlife:

• Deer collisions: Deer activity peaks in October and November during mating season, with most crashes occurring at dawn and dusk. Collisions with deer are most frequent in rural and suburban areas
• Road hazards: Potholes and uneven pavement, exacerbated by seasonal weather, are prevalent in Michigan and pose risks to vehicle suspensions and tires

Drivers in Michigan can use the Mi Drive Map for real-time updates on traffic, road conditions, and construction zones. This online tool, provided by MDOT, helps drivers plan safer and more efficient routes by offering live information on incidents, closures, and weather-related road hazards.

Local Resources & Contacts

Michigan Department of Transportation (MDOT): https://www.michigan.gov/mdot

Michigan State Police (MSP): https://www.michigan.gov/msp

Michigan Department of Insurance and Financial Services (DIFS): https://www.michigan.gov/DIFS

Michigan Department of State (MDOS): https://www.michigan.gov/sos