The Michigan Department of Financial and Insurance Services offer guidelines on the minimum auto insurance requirement. Michigan requires its residents to enroll in a PIP insurance policy. The PIP (Personal Injury Protection) insurance protects the policy holder by paying for the medical cost, hospitalization fee and lost wages. The PIP can be extended to include other passengers.

The comprehensive and collision insurance is not a requirement. Despite that, it is recommended that you obtain the comprehensive and collision coverage so that you won’t have to pay for the repair costs in case of an accident. The collision coverage will pay for up to the maximum repair cost as promised in the agreement. The maximum repair cost is the blue book value of the car. If the repair cost is higher than the blue book value, the insurance company will offer cash value to the policy holder.

The liability insurance is a necessary requirement for all the Michigan vehicles. It covers the medical costs of the injured party including you, your passengers, the passengers of the third party, and pedestrian regardless of who is at fault. For per person, the minimum medical coverage is $20,000. For multiple passengers, the minimum coverage is $40,000. The minimum requirement for property damages is $10,000. The property damage coverage includes public property and the vehicle that belong to the third party.

In addition, the Michigan Department of Financial and Insurance Services recommend the drivers to buy uninsured motorist coverage. It covers the repair cost and medical cost if you are involved in an accident with a person that is not covered by the insurance company.