Insurance in Michigan: State Rules and Requirements

Insurance in Michigan

The rules that shape car, home and business insurance in Michigan, each linked to its official source, and how to get coverage shopped here. Sam Alishahi holds a Michigan nonresident insurance producer license (#1511445, NPN 21022298) and places Michigan policies directly.

By Sam Alishahi · Reviewed October 2026

Car insurance in Michigan (50/100/10)

Minimum car insuranceMichigan policies default to bodily injury liability of $250,000/$500,000 and $10,000 for property damage in another state; drivers may choose limits as low as $50,000/$100,000/$10,000 by signing a form. Every policy must also include personal injury protection (PIP) and $1 million of property protection insurance (PPI) for damage your car does to property in Michigan; uninsured motorist coverage is optional. Source
Fault systemMichigan is a no-fault state where your own PIP pays medical bills, but since the 2019 reform you choose a PIP medical level: unlimited, $500,000, $250,000 (with or without exclusions), $50,000 for Medicaid enrollees, or opting out if you have qualifying health coverage. Source

Business insurance rules in Michigan

Workers’ compensationPrivate employers must carry workers' compensation if they employ three or more people at one time, or at least one person for 35 or more hours a week for 13 weeks or longer in the past 52 weeks. Michigan is not a monopolistic state; employers buy from private insurers or self-insure. Source
Contractor licensingThe Department of Licensing and Regulatory Affairs (LARA) licenses residential builders and residential maintenance and alteration contractors for residential jobs of $600 or more; Michigan does not license commercial builders at the state level. Source

Home insurance in Michigan

Home insurer of last resortSevere storms and flooding are the main risks; standard homeowners policies do not cover flood, and water backup or sump pump overflow usually needs added coverage. Source

High-value homes in Michigan.

Disasters, floods, hail, tornadoes and earthquakes in Michigan

Michigan disasters, floods, hail, tornadoes and earthquakes, from federal records
Measure	Michigan	Rank among the states	Detail
Federal major disaster declarations since 2000	13	#44 of 51	Most often for flood (6), severe storm (5), dam/levee break (1). Oakland County has been in 5 of them.
National Flood Insurance Program claims, 2005–2025	6,075	#32 of 51	$108.4 million paid; 31% of claims with a known flood zone were outside FEMA’s high-risk zones.
Homes in high-risk flood zones with a federal flood policy	16%	#35 of 50	10,321 policies for 63,812 homes in the counties FEMA can measure; US: 40%.
Hail reports, 2016–2025	845	#30 of 51	63 of them 2 inches or larger. Largest stone 4 inches, Luce County, June 2018.
Tornadoes, 2016–2025	138	#27 of 51	8 rated EF2 or stronger; 1,152 recorded since 1950.
Earthquakes of magnitude 4.0+, 2000–2025	1	#28 of 51	Largest: magnitude 4.2, 5 km S of Galesburg, Michigan, May 2, 2015.

From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.

Look up the storm history of any county in Michigan.

The property risks that matter in Michigan

Winter storms drive many Michigan claims: frozen and burst pipes, ice dams and roof collapse from snow load. Sudden pipe bursts are usually covered, but losses from failing to maintain heat in a vacant home may not be. Water backup coverage is a separate endorsement.

Standard homeowners and renters policies exclude flood. In Michigan, flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally carry a 30-day waiting period, so buy before storm season. Check your address on FEMA's Flood Map Service Center.

Severe thunderstorms bring wind, hail and fallen trees in Michigan. Most are covered as windstorm; check your deductible and tree-removal limits.

Worth knowing in Michigan

Michigan drivers must actively choose a PIP medical coverage level when buying or renewing a policy; if no valid choice is made, the policy is issued at the default level.

Annual review checklist for Michigan

Compare your auto liability limits with the Michigan minimum of 50/100/10 (250/500 default unless lower limits are chosen in writing) and with your actual assets.
Add water backup coverage and keep heat on when the home is empty.
Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
Confirm tree-removal and debris limits on your homeowners policy.
Landlords: confirm fair rental value and liability on each unit.

Michigan’s insurance regulator

Insurance in Michigan is regulated by the Michigan Department of Insurance and Financial Services (DIFS), which handles consumer complaints and licenses insurers and agents.

Sam Alishahi holds a Michigan nonresident insurance producer license (#1511445, NPN 21022298) and places Michigan policies directly.

Common questions

What is the minimum car insurance in Michigan?

Michigan policies default to bodily injury liability of $250,000/$500,000 and $10,000 for property damage in another state; drivers may choose limits as low as $50,000/$100,000/$10,000 by signing a form. Every policy must also include personal injury protection (PIP) and $1 million of property protection insurance (PPI) for damage your car does to property in Michigan; uninsured motorist coverage is optional.

Is Michigan a no-fault state?

Michigan is a no-fault state where your own PIP pays medical bills, but since the 2019 reform you choose a PIP medical level: unlimited, $500,000, $250,000 (with or without exclusions), $50,000 for Medicaid enrollees, or opting out if you have qualifying health coverage.

Do employers in Michigan need workers’ comp?

Private employers must carry workers' compensation if they employ three or more people at one time, or at least one person for 35 or more hours a week for 13 weeks or longer in the past 52 weeks. Michigan is not a monopolistic state; employers buy from private insurers or self-insure.

What can a Michigan homeowner do if no insurer will write the house?

Severe storms and flooding are the main risks; standard homeowners policies do not cover flood, and water backup or sump pump overflow usually needs added coverage.

Are frozen pipes covered in Michigan?

Sudden bursts are usually covered, but damage caused by failing to maintain heat in a vacant home may be excluded.

Do I need flood insurance in Michigan?

If you're in a high-risk flood zone with a federally backed mortgage, your lender will require it. Elsewhere it's optional but worth pricing, because homeowners policies exclude flood.

More answers: Michigan homeowners insurance guide Michigan renters insurance and security deposit guide Michigan small business insurance requirements Michigan life insurance consumer guide Michigan flood risk and NFIP guide Detroit home and auto insurance guide Grand Rapids home and auto insurance guide

Sources

General information as of October 2026, not legal advice; confirm current rules with the agency.

Tell me what you need insured.

Home, car, business, trucks or something harder to place. One request, and I take it from there.

Alishahi Insurance · Saman Alishahi, independent insurance broker, 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210. General information, not a quote or a promise of coverage.

Insurance in Michigan