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Michigan No-Fault Coverage: What is it and how does it affect you?

In Michigan, PIP (Personal Injury Protection) is a mandatory coverage. Even the most basic auto policy includes it - but what exactly IS it?

A brief history

The no-fault system was made law in 1973. The system is designed to increase the level of benefits paid to injured persons, make sure such payments are made promptly, and reduce the cost paid for legal and administrative costs. The basic no-fault policy has three parts:

Personal Injury Protection (PIP)

Pays all necessary medical and rehabilitation costs for anyone injured in an automobile accident. It also provides wage loss benefits (subject to a maximum a mount) for up to three years - all of this is regardless of fault. In exchange, Michigan motorists gave up the right to sue in auto accidents except when someone is killed or seriously injured. The idea behind this being that medical expenses are paid out faster, even when there's a dispute over whom is "at fault".

Property Protection (PPI)

Pays up to $1 million for damage your car does in Michigan to other people's property - such as buildings or fences. It will also pay for damage your car does to another vehicle but ONLY IF THE VEHICLE WAS PROPERLY PARKED. Otherwise, the other vehicle damaged is covered only by their own collision and/or comprehensive coverage.

Basic No-fault does not cover:

  • Repairs to your vehicle after an accidnet - regardless of who was at fault.

  • Repairs to another person's vehicle after an accidnet - unless the vehicle was properly parked.

  • Costs for replacement of your vehicle if it is stolen.

  • "Mini-Tort" protection.

Additional Insurance you may want to consider

  • Increased Liability Insurance

  • Physical damage for your car (collision/comprehensive)

  • Limited Property Damage Liability Insurance (Mini-Tort)

  • Uninsured Motorist Coverage

Additional Information

Have questions? I'm here to help. Call Kris @ 734-662-3100 extension 27 for more information.

Note: The information in this article is designed to be a general overview of the topic. None of the information provided is to be used as a baisis for buying insurance. As always, you should talk with your agent for specific information regarding these coverages before making a buying decision.

Proudly quoting you with

Kris Hall
Who am I?

My name is Kris Hall. For years I've been insuring families all over Michigan and I'd like the opportunity to do the same for you. We live in an increasingly litigious society and having adequate coverage is more important than ever. 

                                      I take pride in helping my clients understand what they're buying, not just how much it costs. Every client benefits from having multiple companies compete for their business. 


  • Expert Advice

  • Impartial quotes

  • No broker fees

My agency

Located in Ann Arbor, the Kleinschmidt Insurance Agency has been serving Michigan since 1926. For three generations we've taken pride in being the most experienced agency in Ann Arbor with a longstanding history of excellence. 

Contact & Location Information

450 South Maple Rd

Ann Arbor, MI 48103


Office: 734-662-3100 x25

Cell: 734-417-4274

Fax: 734-662-5379

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