Michigan No-Fault Law, section by section › MCL 500.3131
Residual liability insurance; coverage.
In plain terms
The residual liability coverage every Michigan policy must include covers bodily injury and property damage in the United States, its territories and possessions, and Canada, meeting the financial-responsibility requirements of the place where the injury occurs, and in Michigan it covers the tort liability that section 3135 preserves. Minimum limits are set by section 3009(1).
How this section works in practice
Residual liability insurance is the coverage that answers for the lawsuits the no-fault act still allows. It must cover bodily injury and property damage anywhere in the United States, its territories and possessions, and Canada, at the level the local financial-responsibility law requires, and in Michigan it must cover the liability that section 3135 preserves: noneconomic damages for death, serious impairment of body function or permanent serious disfigurement, excess economic damages above PIP limits, and the mini tort.
The minimum limits are set by section 3009(1). Since the 2019 reform the default bodily injury limits are $250,000 per person and $500,000 per accident, and a policyholder may choose lower limits, down to $50,000 per person and $100,000 per accident, only by a written selection. Those numbers matter more than they used to. With PIP medical now capped for many households, the at-fault driver's liability policy is the main source for medical expenses above the cap, and a $50,000 policy is exhausted by a single surgery. Uninsured and underinsured motorist coverage, which is optional in Michigan, is the way to protect your own family against a low-limit driver.
Text of MCL 500.3131
Sec. 3131.
(1) Residual liability insurance shall cover bodily injury and property damage which occurs within the United States, its territories and possessions, or in Canada. This insurance shall afford coverage equivalent to that required as evidence of automobile liability insurance under the financial responsibility laws of the place in which the injury or damage occurs. In this state this insurance shall afford coverage for automobile liability retained by section 3135.
(2) This section shall not require coverage in this state other than that required by section 3009(1). This section shall apply to all insurance contracts in force as of October 1, 1973, or entered into after that date.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1978, Act 460, Imd. Eff. Oct. 16, 1978
Source: MCL 500.3131 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 500.3135: Serious Impairment Threshold and Mini Tort
Sections that refer to this one
- MCL 500.3135: Serious Impairment Threshold and Mini Tort
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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