The limits under Michigan law
Bodily injury (BI) liability coverage pays when the insured driver is legally responsible for injuring someone. It is what pays a pain and suffering or excess economic claim. MCL 500.3009 sets the limits:
| Policy issued or renewed | Per person | Per accident |
|---|---|---|
| Before July 2, 2020 (old minimum) | $20,000 | $40,000 |
| After July 1, 2020 (default) | $250,000 | $500,000 |
| After July 1, 2020, if the driver signs the state form to choose lower limits (lowest allowed) | $50,000 | $100,000 |
To choose limits below the default, the policyholder must sign a form issued by DIFS that states the risks of lower limits. If no valid form is signed, the 250/500 default applies. When an insurer claims its driver chose lower limits, it is worth asking for the signed form.
The per-person limit is the most the policy pays for one injured person. The per-accident limit caps the total for everyone hurt in the crash, so several injured people can end up sharing it.
How limits are discovered
Before suit, the other driver’s insurer may decline to say what the limits are. Once a lawsuit is filed, MCR 2.302(A)(1)(g) requires the defendant to provide, without a request, the pertinent portions of any insurance agreement that may pay all or part of a judgment, including self-insured retentions and coverage limits. The jury, however, does not hear about insurance at trial (MCL 500.3030).
Where else coverage can come from
- The vehicle owner’s policy. Under Michigan’s owner liability statute (MCL 257.401), the owner is liable when the vehicle is driven with the owner’s express or implied consent, and consent is presumed when an immediate family member is driving.
- An employer. If the driver was working, the employer and its commercial policy may be responsible. Commercial policies usually carry much higher limits. See delivery and company vehicles and truck accidents.
- Umbrella policies. Some drivers carry personal excess coverage above their auto policy.
- Rideshare coverage. Uber and Lyft coverage depends on what the driver was doing at the time; see rideshare crashes.
- Your own underinsured motorist (UIM) coverage. UIM is optional in Michigan and governed by your policy’s terms, which often require your insurer’s consent before you accept the at-fault driver’s limits and may set notice deadlines shorter than three years.
Rental cars are a special case. When a short-term rental company is the owner, its liability as owner is capped at $20,000 per person and $40,000 per accident unless the company was itself negligent (MCL 257.401(3)). The renter’s own coverage often matters more.
Check your own policy today
The same reform that lets other drivers carry $50,000 lets you buy UIM coverage that pays when they do. Your declarations page shows your BI limits and whether you have uninsured and underinsured motorist coverage. See reading your declarations page and uninsured and underinsured drivers.
Do not accept a policy-limits offer before calling your own insurer. Many UIM policies require written consent before you settle with the at-fault driver. Settling first can forfeit the UIM claim.
Sources: MCL 500.3009(1), (5)–(8); DIFS, “Choosing bodily injury coverage”; MCR 2.302(A)(1)(g); MCL 500.3030; MCL 257.401(1), (3).
Questions people ask us
What are the minimum bodily injury limits in Michigan?
For policies issued or renewed after July 1, 2020, the default is $250,000 per person and $500,000 per accident. A driver can choose lower limits by signing a state form, but not below $50,000 per person and $100,000 per accident.
How do I find out how much insurance the at-fault driver has?
Insurers often will not disclose limits before a lawsuit unless the driver consents. Once a lawsuit is filed, Michigan’s court rules require the defendant to disclose any insurance agreement that may pay a judgment, including its limits, as part of initial disclosures.
What happens if my damages are more than the driver’s policy limit?
You can look to other policies that cover the driver or vehicle, the personal assets of the driver or owner, and your own underinsured motorist coverage if you bought it. UIM coverage is optional in Michigan, so check your declarations page.