The State of Michigan is a no fault state; it requires all drivers to own Michigan no fault insurance previous the vehicle's registration. Policies from other states (out of state insurance) will not meet Michigan insurance requirements, therefore, they should not be used to substitute Michigan's no fault insurance. Proof of insurance is mandatory to be carried at all times while the vehicle is being driven.

No Fault means that regardless responsibility, the insurance company is required to pay for the insured expenses. Insurance companies are enabled to go after the responsible person and pursuit reimbursement, a positive side of this condition is that the insured does not loose time in the fault establishment process and gets paid quicker.

Mandatory coverage included in your liability car insurance policy are PIP (Personal Injury Protection), Property protection, Property Damage and residual bodily injury. These coverages do not pay for damage caused to your vehicle. Minimum amounts are:

• $20,000 per person for bodily injury or death.
• $40,000 per accident for bodily injury or death.
• $10,000 per accident for property damage.

It is required for vehicle owners to carry with them proof of being insured, for this it must be kept inside the insured vehicle at all times the Michigan no fault certificate, another way to prove insurance ownership can be with an insurance ID Card which is provided by your insurer company at the moment of acquiring a policy.. The showing of this ID can be required by any law enforcement officer at their discretion or when you are involved in an accident. Failure to comply with this law may result in license suspension by the Secretary of State if a court requests it. To renew your license plates after being suspended, you must show proof of insurance within six months after suspension and pay all fees required.

All required coverages will pay for damage caused onto others involved in the accident, leaving your own property unattended.

In addition to required coverages, there are other options to protect your vehicle and assure it can be restored after an accident. The most common additional coverages are Collision, Comprehensive and Uninsured / Underinsured Motorist. 

Collision coverage is intended to pay for any reparations needed to fix physical damage caused to your vehicle when it was involved in a collision. Regardless the nature of the collision it will help pay for the fixing expenses. So if it is a simple damage because you backed up into the garage door, or if it was caused by an automobile accident, this coverage will help get your vehicle up and running again.

Comprehensive offers coverage for those unfortunate events that can't be predicted, such as hitting wild animals on a road, weather events such as floods, wild fires, tornados, etc. It also helps pay for physical damage caused by vandalism (for example your car is in the way of a violent demonstration) and by theft.
Uninsured and underinsured Motorist, this coverage is used when the driver responsible for the accident has too little insurance policy or lacks completely of an auto liability insurance policy. Uninsured motorist is commonly used to pay for damages caused in a hit-and-run accident.