• Michigan requires all registered vehicles to carry a no-fault insurance policy.polizei image by Tino Hemmann from Fotolia.com
  
  Personal injury protection insurance is a no-fault insurance policy that pays for personal injury in the event of an automobile accident. The insurance does not pay for damage to the policyholder's automobile or the automobile of the other party. Michigan is one of 14 states that require this type of insurance for all drivers.
  
  

No-Fault State

• Michigan is one of only 12 states that are no-fault car insurance states. A no-fault state for car insurance means drivers involved in automobile accidents are covered by their own personal injury protection insurance policy for medical injuries. The no-fault system does not require the insurance company to determine who was at fault for the car accident or to what degree.
  
  

State Requirement

• Michigan requires all registered vehicles in the state carry a no-fault insurance policy, which includes personal injury protection coverage. Drivers who fail to insure the vehicle are subject to fines up to $500, jail time up to one year and license suspension.
  
  The state requires all drivers to carry proof of insurance in the vehicle at all times. Law enforcement officers can request proof of insurance from a driver during a routine traffic stop or at the scene of an accident. Drivers who cannot provide proof of insurance may lose driving privileges until the state sees proof of insurance.
  
  

What is Covered

• Personal injury protection insurance pays only medical costs, lost wages and rehabilitation costs for drivers injured in automobile accidents. The insurance does not pay for property damages to the insured's vehicle or the other driver's vehicle.
  
  Personal injury protection policies cover passengers in the vehicle who do not carry policies of their own, such as children or nondrivers. Michigan does not use a monetary threshold for paying personal injury protection insurance coverage to the insured, but it does use the seriousness of the injuries to determine if drivers receive coverage.