Ask an Agent: Recommended Minimum Coverage in Michigan?

October 19, 2017
Auto Insurance, Michigan No-Fault,

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.


What can BHS Insurance help you with? We have over 25 associates dedicated to finding the best coverage for your life, home and auto needs. Request a quote online today.


Answered by:



     Tammy Clementz, CSA

      32 years’ insurance experience

      19 years at BHS Insurance

      Email me!