Michigan No-Fault Auto Coverage
Michigan runs one of the most distinctive auto systems in the country. This chapter covers Michigan no-fault: the required personal injury protection, the Property Protection Insurance that is unique to Michigan, the residual liability coverage, and how the 2019 reform and the mini-tort rule change what producers must explain to clients.
No-Fault, PIP, and Property Protection Insurance
Michigan is a no-fault state. A compliant personal auto policy includes personal injury protection (PIP), which pays the insured's own medical and related benefits regardless of who caused the crash; residual bodily-injury and property-damage liability (BI/PD) for injuries or damage the insured causes outside no-fault; and Property Protection Insurance (PPI), a coverage distinctive to Michigan that pays up to a statutory limit for damage the insured vehicle causes to other people's tangible property and to properly parked vehicles in Michigan. Because the required limits and the PPI cap are set by statute and were revised by recent reform, verify the current figures with the Michigan DIFS.
The 2019 Reform and the Mini-Tort
Michigan's 2019 no-fault reform, phased in from 2020, let drivers choose among PIP medical coverage levels instead of the previously mandatory unlimited lifetime medical benefit, with certain opt-outs for qualifying drivers. Separately, the 'mini-tort' provision lets a driver recover a limited statutory amount from an at-fault driver for vehicle damage not covered by the driver's own policy, because ordinary vehicle-damage lawsuits are otherwise restricted under no-fault. The PIP tiers, eligibility rules, and mini-tort cap are all set by law and can change; confirm current details with the Michigan DIFS when advising clients.