Michigan's no-fault auto insurance system is one of the most complex in the United States. The core idea: your own insurance pays your medical bills after a car accident, no matter who caused it. You generally cannot sue the other driver for medical expenses. But you can sue for pain and suffering if your injuries are severe enough. The 2019 reform (effective July 2, 2020) added six PIP coverage tiers, giving drivers a choice between lower premiums and less coverage. This page is the definitive Michigan no-fault reference, incorporating authoritative DIFS FAQ answers. For legal questions, contact Fieger Law at 248-970-9989 (free consultation, no fee unless they win).
| Coverage scope | Michigan no-fault auto insurance system: how it works, what it covers, what it does not, when you can sue, DIFS FAQ answers | Answer family | Policies and rules |
|---|---|---|---|
| Stable fields | No-fault statutes (MCL 500.3101-3179), PIP reform (Public Acts 21 & 22 of 2019), coverage tiers, threshold test | Dynamic fields | DIFS guidance, court decisions interpreting threshold, MCCA assessment amounts |
Michigan no-fault insurance means your own Personal Injury Protection (PIP) pays your medical bills after a car accident, regardless of who caused it. You do not file a claim against the other driver's insurance for medical expenses. Your PIP also covers 85% of gross wage loss (up to 3 years), replacement services ($20/day for things like housework you cannot do), and survivor's loss benefits.
To sue the other driver for pain and suffering (noneconomic damages), you must prove your injuries meet the legal threshold: death, permanent serious disfigurement, or "serious impairment of body function" (MCL 500.3135). Michigan uses modified comparative fault with a 51% bar for noneconomic damages.
248-970-9989 Since July 2, 2020, drivers choose from 6 PIP coverage levels (MCL 500.3107c). The default is unlimited. Choosing a lower level reduces premiums but means you could owe medical bills if your PIP cap is exceeded. For legal questions about your coverage or a car accident, contact Fieger Law at 248-970-9989.
On May 30, 2019, Governor Whitmer signed Public Acts 21 and 22 of 2019. The law applies to policies issued or renewed after July 2, 2020. According to the Michigan Department of Insurance and Financial Services (DIFS):
Source: MI DIFS FAQ
Every Michigan auto insurance policy must include these three coverages (MI DIFS):
| What it pays | Limit | |
|---|---|---|
| Personal Injury Protection (PIP) | Medical expenses, wage loss, replacement services, and survivor benefits for you and your passengers, regardless of fault | Depends on your chosen tier (unlimited to opt-out); MCL 500.3107c |
| Property Protection Insurance (PPI) | Damage your car does to other people's property (buildings, fences, properly parked vehicles). Does not cover damage to moving vehicles. | Up to $1 million |
| Residual Bodily Injury and Property Damage (BI/PD) | When you are at fault: the other party's excess economic loss from injuries and damage to their vehicle | Your policy limits (minimum $50,000/$100,000) |
PIP does not cover pain and suffering. There is no PIP benefit for emotional distress, loss of enjoyment of life, or physical pain. To recover these damages, you must file a third-party lawsuit against the at-fault driver and meet the serious impairment threshold. Choosing a lower PIP level does not affect what products, services, and accommodations are covered; it only sets a dollar limit on what your insurer will pay (MI DIFS FAQ).
Since July 2, 2020 (Public Acts 21 & 22 of 2019, MCL 500.3107c), Michigan drivers choose from six PIP medical coverage levels:
| Coverage limit | Eligibility | |
|---|---|---|
| 1 | Unlimited | Anyone (default if no selection made) |
| 2 | $500,000 | Anyone |
| 3 | $250,000 | Anyone |
| 4 | $250,000 with exclusion | Named insured has Qualified Health Coverage (QHC) covering auto injuries |
| 5 | $50,000 | Named insured enrolled in Medicaid |
| 6 | Opt-out | Named insured has Medicare Parts A & B |
MCCA assessment: $100/vehicle for unlimited, $0 for all sub-unlimited tiers. The MCCA reimburses insurers for PIP claims exceeding $635,000. Source: MI DIFS FAQ. For a detailed breakdown of each tier, see the PIP coverage levels page.
QHC is health insurance that meets Michigan's requirements for PIP exclusion. It must:
OR: Medicare Parts A & B (including Medicare Advantage).
VA coverage is NOT QHC. The U.S. Department of Veterans Affairs determined VA coverage does not qualify. TRICARE and CHAMPVA are QHC. DIFS confirmed with the U.S. Department of Defense that TRICARE and CHAMPVA qualify under Michigan's law.
If you exclude or opt out of PIP and lose your QHC, you must notify your auto insurer and obtain new health coverage or PIP within 30 days. During that window, the Michigan Assigned Claims Plan covers up to $2 million. After 30 days without coverage, you are not entitled to any PIP medical benefits.
Source: MI DIFS FAQ
Michigan law restricts your right to sue after a car accident. You can always sue for excess economic damages (what PIP does not cover). But to sue for pain and suffering (noneconomic damages), your injuries must meet one of three thresholds under MCL 500.3135:
modified comparative fault with a 51% bar Additionally, Michigan uses modified comparative fault with a 51% bar: if you are found to be more than 50% at fault, you cannot recover any noneconomic damages (MCL 500.3135).
For a detailed discussion with examples, see the Can I sue the other driver? page.
Driving without no-fault insurance in Michigan is a misdemeanor. Penalties include a fine of up to $500, up to 1 year in jail, and a 30-day license suspension (or until proof of valid insurance is provided). No one is required to purchase unlimited PIP, but purchasing auto insurance is required by law. Source: MI DIFS FAQ.
Disclaimer: This is general legal information, not legal advice. Every case is different. For advice about your specific situation, contact a Michigan attorney. Fieger Law: 248-970-9989. For insurance questions, contact DIFS at 833-ASK-DIFS (833-275-3437).
Sources: Michigan no-fault law from MI DIFS (michigan.gov/autoinsurance), MI DIFS FAQ (michigan.gov/autoinsurance/frequently-asked-questions), MCL 500.3101-3179, and Public Acts 21 & 22 of 2019. DIFS FAQ answers woven throughout. Statutes verified against current law as of March 2026.