Michigan No-Fault Law, section by section › MCL 500.3101
Security for payment of benefits required; period security required to be in effect; definitions; policy of insurance or other method of providing security; filing proof of security; exclusion.
In plain terms
The owner or registrant of a motor vehicle that must be registered in Michigan has to carry personal protection (PIP), property protection (PPI) and residual liability coverage while the vehicle is driven or moved on a highway. Subsection (3) supplies the definitions the rest of the chapter depends on, including "motor vehicle" (more than two wheels; motorcycles, mopeds, ORVs, golf carts and electric bicycles are excluded) and "owner" (which includes someone who has the use of a vehicle for more than 30 days).
How this section works in practice
This is the section that puts the "no-fault" in Michigan car insurance. If you own or register a car, truck, van or trailer in Michigan, you must carry three coverages while it is driven or moved on a public road: personal protection insurance (PIP, which pays your own medical bills, wage loss and replacement services no matter who caused the crash), property protection insurance (PPI, which pays for damage you do to other people's property), and residual liability insurance (which covers the limited lawsuits the act still allows). A car that sits in storage can be reduced to comprehensive-only coverage under section 3009(4).
The definitions in subsection (3) decide many cases. A "motor vehicle" has more than two wheels, so a motorcycle, moped, ORV, golf cart or electric bicycle is not one; a crash involving only a motorcycle is not a "motor vehicle accident" and PIP is available only if a motor vehicle was involved (see section 3114(5)). "Owner" reaches beyond the title holder: anyone who has the use of a vehicle for more than 30 days is an owner, which is why a family member who drives a relative's uninsured car for months can lose PIP entirely under section 3113(b).
The 2024 amendment, in force since October 17, 2025, lets insurers exclude coverage under sections 3017 and 3018, and section 3113(e) now denies PIP to the owner or operator of a vehicle covered by such an exclusion. Read your declarations page for named exclusions before you assume a household member is covered.
Text of MCL 500.3101
Sec. 3101.
(1) Except as provided in sections 3107d and 3109a, the owner or registrant of a motor vehicle required to be registered in this state shall maintain security for payment of benefits under personal protection insurance and property protection insurance as required under this chapter, and residual liability insurance. Security is only required to be in effect during the period the motor vehicle is driven or moved on a highway.
(2) Except as provided in section 3107d, all automobile insurance policies offered in this state must include benefits under personal protection insurance, and property protection insurance as provided in this chapter, and residual liability insurance. Notwithstanding any other provision in this act, an insurer that has issued an automobile insurance policy may only delete portions of the coverages under the policy and maintain the comprehensive coverage portion on a motor vehicle that is not driven or moved on a highway in accordance with section 3009(4).
(3) As used in this chapter:
(a) "Automobile insurance" means that term as defined in section 2102.
(b) "Commercial quadricycle" means a vehicle to which all of the following apply:
(i) The vehicle has fully operative pedals for propulsion entirely by human power.
(ii) The vehicle has at least 4 wheels and is operated in a manner similar to a bicycle.
(iii) The vehicle has at least 6 seats for passengers.
(iv) The vehicle is designed to be occupied by a driver and powered either by passengers providing pedal power to the drive train of the vehicle or by a motor capable of propelling the vehicle in the absence of human power.
(v) The vehicle is used for commercial purposes.
(vi) The vehicle is operated by the owner of the vehicle or an employee of the owner of the vehicle.
(c) "Electric bicycle" means that term as defined in section 13e of the Michigan vehicle code, 1949 PA 300, MCL 257.13e.
(d) "Golf cart" means a vehicle designed for transportation while playing the game of golf.
(e) "Highway" means highway or street as that term is defined in section 20 of the Michigan vehicle code, 1949 PA 300, MCL 257.20.
(f) "Moped" means that term as defined in section 32b of the Michigan vehicle code, 1949 PA 300, MCL 257.32b.
(g) "Motorcycle" means a vehicle that has a saddle or seat for the use of the rider, is designed to travel on not more than 3 wheels in contact with the ground, and is equipped with a motor that exceeds 50 cubic centimeters piston displacement. For purposes of this subdivision, the wheels on any attachment to the vehicle are not considered as wheels in contact with the ground. Motorcycle does not include a moped or an ORV.
(h) "Motorcycle accident" means a loss that involves the ownership, operation, maintenance, or use of a motorcycle as a motorcycle, but does not involve the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle.
(i) "Motor vehicle" means a vehicle, including a trailer, that is operated or designed for operation on a public highway by power other than muscular power and has more than 2 wheels. Motor vehicle does not include any of the following:
(i) A motorcycle.
(ii) A moped.
(iii) A farm tractor or other implement of husbandry that is not subject to the registration requirements of the Michigan vehicle code under section 216 of the Michigan vehicle code, 1949 PA 300, MCL 257.216.
(iv) An ORV.
(v) A golf cart.
(vi) A power-driven mobility device.
(vii) A commercial quadricycle.
(viii) An electric bicycle.
(j) "Motor vehicle accident" means a loss that involves the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle regardless of whether the accident also involves the ownership, operation, maintenance, or use of a motorcycle as a motorcycle.
(k) "ORV" means a motor-driven recreation vehicle designed for off-road use and capable of cross-country travel without benefit of road or trail, on or immediately over land, snow, ice, marsh, swampland, or other natural terrain. ORV includes, but is not limited to, a multitrack or multiwheel drive vehicle, a motorcycle or related 2-wheel, 3-wheel, or 4-wheel vehicle, an amphibious machine, a ground effect air cushion vehicle, an ATV as defined in section 81101 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.81101, or other means of transportation deriving motive power from a source other than muscle or wind. ORV does not include a vehicle described in this subdivision that is registered for use on a public highway and has the security required under subsection (1) or section 3103 in effect.
(l) "Owner" means any of the following:
(i) A person renting a motor vehicle or having the use of a motor vehicle, under a lease or otherwise, for a period that is greater than 30 days.
(ii) A person renting a motorcycle or having the use of a motorcycle under a lease for a period that is greater than 30 days, or otherwise for a period that is greater than 30 consecutive days. A person who borrows a motorcycle for a period that is less than 30 consecutive days with the consent of the owner is not an owner under this subparagraph.
(iii) A person that holds the legal title to a motor vehicle or motorcycle, other than a person engaged in the business of leasing motor vehicles or motorcycles that is the lessor of a motor vehicle or motorcycle under a lease that provides for the use of the motor vehicle or motorcycle by the lessee for a period that is greater than 30 days.
(iv) A person that has the immediate right of possession of a motor vehicle or motorcycle under an installment sale contract.
(m) "Power-driven mobility device" means a wheelchair or other mobility device powered by a battery, fuel, or other engine and designed to be used by an individual with a mobility disability for the purpose of locomotion.
(n) "Registrant" does not include a person engaged in the business of leasing motor vehicles or motorcycles that is the lessor of a motor vehicle or motorcycle under a lease that provides for the use of the motor vehicle or motorcycle by the lessee for a period that is longer than 30 days.
(4) Security required by subsection (1) may be provided under a policy issued by an authorized insurer that affords insurance for the payment of benefits described in subsection (1). A policy of insurance represented or sold as providing security is considered to provide insurance for the payment of the benefits.
(5) Security required by subsection (1) may be provided by any other method approved by the secretary of state as affording security equivalent to that afforded by a policy of insurance, if proof of the security is filed and continuously maintained with the secretary of state throughout the period the motor vehicle is driven or moved on a highway. The person filing the security has all the obligations and rights of an insurer under this chapter. When the context permits, "insurer" as used in this chapter, includes a person that files the security as provided in this section.
(6) An insurer that issues a policy that provides the security required under subsection (1) may exclude coverage under the policy as provided in section 3017 or 3018.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1975, Act 329, Eff. Mar. 31, 1976 ;-- Am. 1977, Act 54, Imd. Eff. July 6, 1977 ;-- Am. 1980, Act 445, Imd. Eff. Jan. 15, 1981 ;-- Am. 1984, Act 84, Imd. Eff. Apr. 19, 1984 ;-- Am. 1987, Act 168, Imd. Eff. Nov. 9, 1987 ;-- Am. 1988, Act 126, Imd. Eff. May 23, 1988 ;-- Am. 2008, Act 241, Imd. Eff. July 17, 2008 ;-- Am. 2014, Act 492, Imd. Eff. Jan. 13, 2015 ;-- Am. 2016, Act 346, Eff. Mar. 21, 2017 ;-- Am. 2017, Act 140, Imd. Eff. Oct. 30, 2017 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019 ;-- Am. 2024, Act 224, Eff. Oct. 17, 2025
Source: MCL 500.3101 at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections this one refers to
- MCL 500.3107d: Opting Out of PIP Medical With Medicare
- MCL 500.3109a: Coordinated PIP and Health Insurance
- MCL 500.3103: Motorcycle Coverage Requirements
Sections that refer to this one
- MCL 500.3102: Nonresidents and Driving Uninsured
- MCL 500.3104: The Michigan Catastrophic Claims Association
- MCL 500.3107c: Choosing a PIP Medical Coverage Level
- MCL 500.3107d: Opting Out of PIP Medical With Medicare
- MCL 500.3109a: Coordinated PIP and Health Insurance
- MCL 500.3111: Out-of-State Accidents
- MCL 500.3113: Who Is Disqualified From PIP
- MCL 500.3114: Priority: Which Insurer Pays PIP
- MCL 500.3116: PIP and Tort Recoveries
- MCL 500.3135: Serious Impairment Threshold and Mini Tort
- MCL 500.3157: Medical Fee Schedule and Attendant Care
- MCL 500.3177: Recovery From Uninsured Owners
Practice pages
Important: This is not legal advice
This article is general information about Michigan personal injury law. It is not legal advice and should not be relied on as a substitute for consultation with a licensed Michigan attorney about your specific situation. The laws, deadlines, procedures, and frameworks here are general guidelines that may or may not apply to your case.
Every personal injury case turns on its own unique facts. The timing, the parties, the evidence, the jurisdiction, the insurance available, and dozens of other variables can change the legal analysis. Do not rely on anything written on this website to make decisions about your case.
If you have been injured in Michigan, the only responsible step is to speak with a licensed Michigan attorney about your specific facts. Call Koussan Law at (313) 800-0000 for a free consultation, or contact a different Michigan personal injury attorney of your choosing.
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