No-fault insurance is a form of auto insurance in which each driver’s insurance pays for certain auto accident-related expenses and costs, regardless of who caused the accident. This form of auto insurance is intended to limit lawsuits and reduce costs associated with auto accidents. Michigan no-fault insurance provides for coverage unique to its no-fault system called Personal Injury Protection (PIP), which pays for a person’s accident-related medical expenses, wage loss benefits, replacement services and the damage the person causes to other people’s property in an accident.


Michigan became a no-fault state in 1973, but on July 2, 2020, many changes to the existing no-fault auto insurance law went into effect as part of Michigan no-fault insurance reform. These changes allow Michigan drivers to choose their level of Personal Injury Protection Allowable Expenses (PIP AE) coverage, which is a component of PIP.* Under the new law, drivers are able to choose from up to six options for PIP AE coverage.

Michigan no-fault law provides certain benefits to those injured in an auto accident without regard to who was at fault for the accident. These benefits are called no-fault benefits. A Michigan no-fault auto insurance policy covers the person named in the policy, the person’s spouse, and their resident relatives, with certain exceptions.

Like 11 other states, Michigan has a no-fault auto insurance system. Michigan implemented no-fault auto insurance in 1973 and required drivers to carry unlimited PIP AE coverage. Partly because of this mandatory high level of PIP AE coverage, auto insurance became very expensive in Michigan. (Michigan auto insurance was the third most expensive in the U.S. in 2019.)

Michigan lawmakers passed significant reforms to auto insurance law in 2019, with most changes going into effect on July 2, 2020. For the first time since the start of no-fault in 1973, drivers could choose between multiple levels of PIP AE coverage. In addition, Michigan put a cap on how much medical providers can be paid for providing treatment to those injured in auto accidents, starting in July 2021. For more information on these changes, see Meemic’s Auto Insurance Reform Center.

Yes. The biggest way that Michigan drivers can save money on their auto insurance is by selecting a lower PIP AE coverage limit. However, keep in mind that choosing a lower PIP AE limit means that you would have less coverage if you were to get injured in an auto accident.

  • Personal Injury Protection (PIP):
Personal Injury Protection (PIP) helps cover expenses that arise as a result of injuries sustained in an auto accident. In Michigan, PIP covers these expenses regardless of who caused the accident or who is at fault. The main coverage provided by PIP is for “allowable expenses,” also known as PIP AE. Allowable expenses are “reasonable charges incurred for reasonably necessary products, services and accommodations for an injured person’s care, recovery or rehabilitation.” This includes medical expenses and attendant care. Until July 1, 2020, in Michigan, your PIP AE coverage was Unlimited. That meant your auto accident-related medical expenses were paid for — for as long as they were reasonable and necessary for your care, recovery or rehabilitation. Now, PIP AE coverage options include Unlimited, $500k, and $250k, as well as lower coverage options for drivers with Qualified Health Coverage, Medicaid, or Medicare parts A and B.
  • Bodily Injury Liability (BI):
In Michigan, Bodily Injury coverage helps to protect you if you are at fault for an auto accident that causes serious injury or death of another person. It covers the other person’s pain and suffering damages, excess medical expenses, and excess wage loss benefits. The minimum BI coverage limits are currently $50k per person/$100k per accident. However, the default BI coverage limits are $250k per person/$500k per accident. If you opt to choose BI coverage limits lower than the default, you’ll have to fill out a form that says you know the risks that come with choosing lower BI coverage limits.
  • Property Protection Insurance (PPI):
Property Protection Insurance is a mandatory no-fault coverage that covers up to $1 million for damage your car causes in Michigan to the property of others (such as buildings, light poles, and fences) and to another person’s properly parked vehicle.
  • Property Damage (PD):
Property Damage insurance is a mandatory no-fault coverage that covers damage your car causes to someone else’s property (such as light poles, fences, and vehicles) in another state. The minimum PD coverage limit is $10,000, with higher limits available.

Unlike fault-based states, where a victim of a car accident caused by another party would file a claim with the insurance provider of the driver at fault, no-fault laws in Michigan require that you file a PIP claim with your own insurance company.

*Your PIP coverage options are for Allowable Expenses coverage, a component of PIP (PIP AE), that includes but is not limited to medical expenses. Please note that certain PIP AE options have eligibility requirements that apply to the named insured and all resident relatives and may vary depending on the option. Please see the Michigan No-Fault Act for complete details.
Discounts and savings opportunities subject to eligibility requirements. Coverage is subject to all policy terms, conditions, exclusions and limitations. Subject to underwriting eligibility requirements. Insurance underwritten by Meemic Insurance Company, 1685 N. Opdyke Rd., Auburn Hills, MI 48326.
Please note that this information is being provided for general informational purposes only. Please refer to the Michigan No-Fault Act for complete details. Back to top Questions & Feedback