What are the minimum liability insurance requirements for auto insurance in Michigan?

What are the minimum liability insurance requirements for auto insurance in Michigan?

If you drive in Michigan, state law requires you to carry auto liability insurance. These minimum coverages are designed to ensure that if you cause an accident, you can pay for at least some of the damages.

Here are the state minimum liability insurance requirements in Michigan:

• Bodily Injury Liability: $50,000 per person / $100,000 per accident
• Property Damage Liability: $10,000 per accident

If you’re caught driving without these minimum coverages, you could face fines, penalties, or even a suspension of your driver’s license.

Why the Minimums Might Not Be Enough

While these limits meet the legal requirement, they often fall short in real-world accidents. Medical bills, legal fees, and vehicle repair costs can add up quickly. For example, a serious crash with multiple injured parties could easily exceed $100,000 in medical expenses.

Anything above your policy’s limits becomes your responsibility. That means your personal savings, home, or other assets could be at risk if you’re underinsured.

Recommended Liability Coverage in Michigan

Most insurance professionals, including myself, recommend starting at higher limits:

• Bodily Injury Liability: $250,000 per person / $500,000 per accident (often referred to as “250/500”)
• Property Damage Liability: $100,000 minimum, with many drivers opting for $250,000

Choosing higher limits provides stronger financial protection if you’re involved in a costly accident. In fact, if you select limits below 250/500, Michigan law requires you to sign a form acknowledging that you’re choosing lower protection.

Cost Considerations for Higher Limits

One of the biggest misconceptions is that raising your liability limits drastically increases your premium. In reality, liability coverage is often one of the less expensive parts of your auto policy.

Factors like your driving history, claims record, and even the type of vehicle you drive can influence your rates—but in most cases, increasing liability coverage doesn’t cost as much as you might think.

For the peace of mind and financial protection it provides, upgrading to higher limits can be one of the smartest moves you make.

Final Thoughts

Meeting Michigan’s minimum liability insurance requirements is essential—but stopping at the bare minimum can leave you exposed to significant financial risk. By choosing higher coverage limits, you can better protect yourself, your family, and your assets in the event of a serious accident.

If you’re reviewing your policy, take the time to consider whether the state minimums are truly enough for your situation. Many Michigan drivers find that upgrading their coverage gives them stronger protection at a surprisingly affordable cost.