Ask an Agent: Recommended Minimum Coverage in Michigan?

October 19, 2017

Q: I am new to Michigan, therefore unfamiliar with “no-fault” auto insurance. What is the recommended (minimum) coverage I obtain?


A: The no-fault law and minimum policy limits were put into effect in 1979. The state says that the minimum coverage allowed is $20,000 per person/$40,000 per accident and $10,000 for property damage. A lot has changed since that limit was set 38 years ago. Think about what you could buy with a $100 then vs what you can buy with a $100 today. Unfortunately, when someone sues today, they don’t sue for $20,000/$40,000/$10,000. I would say you should look at your assets and future earnings to determine the limit that would best fit your needs. Keep in mind, in the event of a claim where you are sued and the judge awards a limit in excess of your policy, the portion not covered by your policy would be your responsibility.


Answered by:



     Tammy Clementz, CSA

      32 years’ insurance experience

      19 years at BHS Insurance

      Email me!