Driving on public access roads and highways with out car insurance for Michigan is illegal. Michigan has a No Fault system, which means that your insurance will cover all your expenses up to a certain limit regardless of who was at fault or who was responsible for the accident. The system has been adapted by the State since 1973 and has been the model of other states when designing their insurance system. The best thing about the No Fault system is that it compensates the victims completely and quickly. This is done without having to settle who was at fault for the accident. Your car insurance will cover your medical expenses and other damages, including lost wages.

In Michigan, you are required by the law to have a no-fault car insurance if you own a passenger vehicle, van or a light truck. You cannot use out of state policies even if they are issued from No Fault states. Also it is mandatory for you to carry coverage for personal injury protection, bodily injury, property damage and property protection insurance. You might also be required by your lender to purchase a collision and comprehensive insurance if your car is financed. This is to pay for the loss or damage to the vehicle in case of an accident.

Your personal injury protection shall pay for your medical expenses in the event of an accident. It also includes lost wages for three years or more, services you cannot perform, funeral and burial expenses and survivor loss benefits and replacement services. The property protection pays for damages you have caused to other properties. The residual liability insurance amount required is $20,000 for one person injury, $40,000 for two or more persons injured and $10,000 for property damage. You might also consider purchasing other car insurance coverage for additional protection, such as collision coverage, comprehensive and uninsured/underinsured coverage.

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