How Michigan no-fault works
"No-fault" means that after a crash, your own auto policy generally pays your medical bills, a portion of lost wages and certain household services through Personal Injury Protection — no matter who caused the accident. That's very different from most states, where you'd file against the at-fault driver's insurance.
A Michigan policy is built from three required pieces:
- Personal Injury Protection (PIP) — your medical, wage-loss and replacement-service benefits.
- Property Protection Insurance (PPI) — up to $1 million for damage your car does to other people's property in Michigan, like buildings, fences and properly parked cars.
- Residual Liability (BI/PD) — protects you if someone sues you after a serious injury crash, or for accidents outside Michigan.
Your PIP medical options
| PIP option | Who can choose it | Things to know |
|---|---|---|
| Unlimited | Anyone | The most medical protection after a crash. Policies with unlimited PIP also carry the MCCA assessment for catastrophic claims. |
| Up to $500,000 | Anyone | A high cap that still lowers the premium compared with unlimited for many drivers. |
| Up to $250,000 | Anyone | Often chosen by households with solid health insurance. |
| $250,000 with exclusions | Those with qualifying health coverage | Household members with qualifying health coverage can be excluded from PIP medical. |
| Up to $50,000 | Eligible Medicaid enrollees | Household members need qualifying coverage too. |
| Opt out of PIP medical | Eligible Medicare Parts A & B enrollees | Others in the household must have qualifying health coverage or other PIP. |
Important: "Qualifying health coverage" has a specific legal meaning. Before choosing a lower PIP limit or an exclusion, confirm with your health plan whether it covers auto accident injuries and how much your deductible is. We'll walk through this with you line by line.
Questions to ask before you lower PIP
- Does my health plan cover injuries from car accidents, and are there limits?
- What is my health insurance deductible and out-of-pocket maximum?
- Who in my household doesn't have qualifying health coverage?
- Would I lose income if I couldn't work for months after a serious crash?
- How would I pay for long-term care, attendant care or home modifications?
Liability limits matter more than ever
When drivers choose lower PIP, injured people may have more reason to sue an at-fault driver for medical costs above their PIP limit. That's one reason Michigan set default bodily injury limits at $250,000 per person / $500,000 per accident. You can choose limits as low as $50,000/$100,000 by signing a selection form — but your personal assets are exposed above your limits. Many families pair strong liability limits with a personal umbrella policy.
The mini-tort and collision options
If you cause a crash, the other driver can recover up to $3,000 from you for vehicle damage their own policy didn't cover. And your collision choice — limited, standard or broad form — decides when your deductible applies. Our auto insurance page breaks down each option in a simple table.
This guide is general information about Michigan auto insurance as of 2026 and is not legal advice. Eligibility rules, required forms and coverage terms apply. Your policy documents control your coverage. Talk with a licensed agent about your situation.
Michigan no-fault FAQs
Is unlimited PIP still available in Michigan?
Yes. Unlimited PIP medical coverage is still an option for any Michigan driver.
Can I opt out of PIP in Michigan?
Only if you have qualifying Medicare Parts A and B coverage and your household members have qualifying health coverage or other PIP coverage. Other drivers choose a PIP limit instead.
What is the MCCA fee?
The Michigan Catastrophic Claims Association assessment helps pay very large PIP claims. It applies to policies with unlimited PIP coverage.
What does PPI cover?
Property Protection Insurance pays up to $1 million for damage your vehicle causes to other people's property in Michigan, such as buildings, fences and properly parked vehicles.
Does my health insurance cover car accident injuries?
Some plans do and some exclude or limit auto injuries. Check with your health plan before lowering your PIP limit — we can help you know what questions to ask.
Can Harlan Insurance review my current PIP choice?
Yes. Bring or send your declarations page and we'll go over your PIP level, liability limits and collision option with you, free of charge.