Published by RGC Insurance
When you can be sued in a no-fault state
Michigan's no-fault trade only limits lawsuits — it doesn't end them. You can be sued for causing death, serious impairment of body function, or permanent serious disfigurement, and for economic damages beyond PIP caps — especially now that many drivers carry capped PIP levels. When their capped PIP runs out, their attorney looks at your BI limits next.
Reading the numbers
BI limits come as a pair — per person / per accident. Michigan's default limits apply unless you sign for the lower statutory minimums, and neither figure is impressive against a real verdict. One serious injury can pass the default per-person limit before rehabilitation ends; everything beyond your limit is yours: wages garnished, assets exposed, judgments that follow you.
| Choice | Reality check |
|---|---|
| Statutory minimums (signed election) | Cheapest line on the dec page, priciest decision you can make. One surgery exceeds it. |
| Default limits | Where Michigan puts you absent a signature. Adequate for some; thin for anyone with home equity, savings, or wages worth protecting. |
| 250/500 and up | What we quote for most homeowners. The premium difference is routinely smaller than people guess — we show it side by side. |
| High limits + umbrella | The grown-up answer: strong BI plus a $1M umbrella often costs less than people pay for their streaming services. |
Mini-tort, while we're here
Michigan's limited property damage liability — mini-tort — is the up-to-$3,000 the other driver can collect from you for vehicle damage when you're at fault. The coverage that pays it costs almost nothing. Carry it.