Michigan Auto Insurance

Michigan follows a No-Fault insurance system, which means that your company will reimburse you for your material losses and cover your medical expenses regardless of whoever was at fault in an accident.

Minimum Liability Requirements in Michigan

As of April 2026, Michigan requires drivers to carry minimum liability coverage of 50/100/10 — at least $50,000 in bodily injury liability per injured person, up to $100,000 per accident, and $10,000 in property damage liability. Michigan also requires Personal Injury Protection (PIP) and Property Protection Insurance (PPI) alongside these liability limits.

Source: CarInsurance.com, "US State Minimum Liability Car Insurance Requirements," updated April 15, 2026.

Average Car Insurance Premiums in Michigan

Drivers in Michigan pay an average of $3,862 a year for full-coverage car insurance — 32% above the national average of $2,922 a year.

Source: Experian, "Car Insurance Average Costs by State," published September 9, 2026.

Cellphones and driving in Michigan

The Michigan Senate has put a ban on text messaging while driving. Additionally, teens with provisional license who have caused an accident or have received a ticket due to the use of cellphones may not use handheld devices altogether when operating a car.

Teenage driving regulations

Michigan uses the Graduated Driver Licensing system, a concept meant to ease the learning process of aspiring drivers while still keeping them safe from risky situations in traffic. Based on the driving experience of the teenager, there are three levels of restricted licenses:

• Level 1 (six hours behind-the-wheel instruction, 4 hours of observing traffic as a passenger) – may only drive if supervised by a licensed parent, licensed legal guardian or another licensed adult with parents’ consent;
• Level 2 (six months of Level 1 experience, 50 hours behind-the-wheel experience) – may not drive between midnight and 5am unless accompanied by an adult with a valid driver’s license;
• Level 3 (six months of Level 2 experience) – must keep a clean record for three years or risk having their probation extended or license suspended.

Penalties for driving uninsured in Michigan

Drivers must submit proof of insurance before they are allowed to register their vehicle. Driving without the basic insurance is a misdemeanor. Should you be caught without proof of insurance, your license will be suspended for 30 days and will have to pay a reinstatement fee of $125. You will also be fined up to $500, put in jail for a year or both.

AutoInsuranceQuery editorial team. Last reviewed: September 16, 2026.