“Full Coverage” Car Insurance in Michigan

In Michigan, “full coverage” car insurance isn't a specific policy, but rather a convenient way to describe a package of essential protections—namely liability, collision, and comprehensive insurance. Due to the state’s unpredictable weather, high accident rates, and the complexity of its no-fault insurance laws, Michigan drivers are frequently encouraged to carry full coverage to better protect themselves and their vehicles from region-specific risks. It’s important to note that even though “full coverage” provides broader protection, it does not cover everything.

What is “Full Coverage” Car Insurance in Michigan?

So what exactly does “full coverage car insurance” mean?

It’s an informal term used to describe a bundle of coverages that go beyond the minimum legal requirements, typically including liability, collision, and comprehensive insurance. Liability coverage pays for damages or injuries you cause to others, while collision covers repairs to your own vehicle after an accident, and comprehensive protection against non-collision-related incidents like theft or weather damage.

Although there’s no policy officially called “full coverage,” the term is commonly used to describe this broader level of protection.

In Michigan, full coverage must also comply with the state’s unique auto insurance regulations under its No-Fault Insurance law (MCL 500.3101). This regulation stipulates that Michigan drivers are required to carry Personal Injury Protection (PIP), Property Protection Insurance (PPI), and Residual Bodily Injury Liability and Property Damage Liability (BI/PD).

PIP is especially important in Michigan due to the state’s no-fault system, which mandates that a driver’s own insurance covers medical expenses regardless of who’s at fault in an accident.

As a result, what’s considered “full coverage” in Michigan typically includes these state-specific coverages on top of the standard liability, collision, and comprehensive protections.

Liability Coverages

For Michigan drivers, liability coverage is the only type of required car insurance, typically providing provisions for bodily injury liability and property damage liability.

• Bodily injury liability - Pays for medical costs or lost wages of other people if you’re at fault in an accident.
• Property damage liability - Covers damage you cause to someone else’s vehicle or property.
• Property Protection Insurance (PPI) – Covers damage you cause to parked cars or other property. All Michigan Auto policies are required to include $1 million of PPI coverage.
• Limited Property Damage (Mini Tort) - Covers up to $3,000 of damage to a vehicle not otherwise covered by insurance.

Keep in mind that liability coverage is designed to protect others—not you. It does not cover repairs to your own vehicle, which is why many drivers opt for additional coverages like collision and comprehensive for more complete protection.

Medical Coverages

One of the other most popular add-ons for our Michigan policyholders is medical coverages, which ensure that medical expenses for both drivers and their passengers are covered after an accident, regardless of who’s at fault. This is especially important in Michigan due to the state’s no-fault insurance system, which requires drivers to carry PIP.

GEICO offers two distinct types of medical coverage options:

• Medical Payments (MedPay) Coverage - Helps pay medical bills for you and your passengers after a covered accident.
• Personal Injury Protection - Broader than MedPay (available in no-fault states); covers medical expenses, lost income, and funeral costs.

Uninsured Motorist Coverages

In an ideal world, all drivers would carry sufficient insurance to protect them across the wide range of potential scenarios that can unfold on the road. Unfortunately, this just isn’t the case.

That’s where uninsured motorist coverage comes into play. This insurance is crucial because it protects you financially if you're involved in an accident with a driver who doesn't carry enough coverage to pay for your damages. Without this protection, you could be left paying out-of-pocket for medical bills, lost wages, and vehicle repairs—even if the accident wasn’t your fault.

Uninsured Motorist covers your medical expenses, lost wages, and pain/suffering.

While some states require one or both of these coverages (uninsured/underinsured motorist (UM/UIM)), others offer them as optional additions to your policy. In Michigan, UM/UIM coverage is optional, but it’s strongly recommended as added protection, especially since not all drivers on the road carry enough insurance to cover the costs of a serious accident.

Vehicle Coverages

We’ve already touched on liability insurance—which covers damages for others. But what about your own damages?

Including vehicle coverages like collision and comprehensive in your insurance policy can help ensure that your needs are taken care of if your car suffers damage.

• Collision coverage - Pays to repair or replace your vehicle if you're involved in an at-fault accident or a single-car crash, such as hitting a tree, guardrail, or pole. Optional unless required by your lender or leasing company as part of a financing agreement.
• Comprehensive coverage - Covers damage to your vehicle caused by non-collision incidents, such as theft, vandalism, or weather-related damage. It’s often paired with collision coverage as part of a full plan to provide complete protection for your car.

These add-ons offer extra peace of mind by ensuring that you’re not left paying out-of-pocket for expensive repairs or losses after an incident.

Limitations in Full Coverage

Although “full coverage” significantly extends the scope of potential incidents that both you and your car are protected against, it’s important to remember that no insurance plan covers every scenario you may encounter. Whether it’s age-related performance degradation or suffering damage while using your personal car for work-related purposes, here are a few situations where full coverage might not apply:

• Mechanical breakdowns or wear and tear – Full coverage doesn’t take care of routine maintenance or repairs due to age-related issues, such as engine failure or brake wear.
• Post-crash damage when used for unauthorized purposes – If your car was illegally parked or used for commercial activity without proper coverage, your claim might be denied.
• Certain stolen vehicle claims instances – If you can’t prove theft or if the insurer determines negligence (e.g., leaving the keys in the car), coverage may not apply.

Does Michigan Require “Full Coverage” Car Insurance?

While full coverage isn’t legally required in Michigan, if you have a car loan or a lease, your lender may still insist that you get it. And again: Michigan is a no-fault state, which means your own insurance takes care of your medical costs no matter who’s at fault in an accident. On top of that, the state sees its fair share of harsh weather, high accident rates, and car theft, making full coverage a smart choice for protecting yourself and your ride.

Simply put: Even though it’s optional, having that extra peace of mind is always worth considering, especially when unpredictable Michigan roads are involved.

Looking to get a better idea of what your car insurance will cost you? Use our free coverage calculator.

Optional Add-Ons to “Full Coverage”

Beyond the more traditional types of insurance we mentioned above, there are some additional coverages you may choose to consider based on your specific needs:

• Emergency roadside service: Provides help if you’re stranded due to a flat tire, dead battery, or breakdown.
• Rental reimbursement: Helps pay rental costs while your vehicle is being repaired as a result of a covered claim.
• Mechanical breakdown insurance: Covers costs from repairs if your vehicle breaks down, needs replacement parts, or suffers other types of mechanical problems.
• Rideshare Coverage (where applicable): Offers additional coverage while you're actively using your vehicle for ridesharing, supplementing the limited coverage offered by rideshare apps.
• Customized equipment coverage: Protects aftermarket enhancements made to your vehicle to help safeguard the investment you've made in customizing your car.

We suggest thoroughly evaluating your local driving conditions, vehicle age, and budget to determine which of these add-ons—if any—are best for you.

Ways to Save on “Full Coverage” Car Insurance in Michigan

Looking to secure full coverage without paying full price? At GEICO, we offer a variety of unique discounts designed to reward policyholders for bundling, safe driving, education, and more:

• Multi-policy - Unlock substantial savings when you bundle your property insurance, car insurance, and other coverages through GEICO.
• Safe driver - Maintaining a clean driving record or installing a telematics device in your vehicle can help lower your premium.
• Vehicle safety features - Simply owning a newer vehicle, installing anti-theft mechanisms, or having functional airbags and seatbelts can bring your costs down significantly.
• Good student - Full-time students with a good academic record can receive up to a 15% discount on certain coverages.
• DriveEasy* - Secure serious savings for good driving behavior by participating in the DriveEasy program through the GEICO mobile app.

Get a Michigan Car Insurance Quote Today!

Interested in taking the next step in securing your car insurance in Michigan? With GEICO, getting a quote is easy, free, and only takes a few minutes. Don’t wait until after something has already happened to start looking into coverage—get your Michigan car insurance quote from GEICO today!