THE INSURANCE CODE OF 1956
Act 218 of 1956
500.3009 Automobile liability or motor vehicle liability policy; limits; exclusion of named person; notice; documentary evidence of deleted coverages.
Sec. 3009.
(1) Subject to subsections (5) to (8), an automobile liability or motor vehicle liability policy that insures against loss resulting from liability imposed by law for property damage, bodily injury, or death suffered by any person arising out of the ownership, maintenance, or use of a motor vehicle must not be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless the liability coverage is subject to all of the following limits:
(a) Before July 2, 2020, a limit, exclusive of interest and costs, of not less than $20,000.00 because of bodily injury to or death of 1 person in any 1 accident, and after July 1, 2020, a limit, exclusive of interest and costs, of not less than $250,000.00 because of bodily injury to or death of 1 person in any 1 accident.
(b) Before July 2, 2020 and subject to the limit for 1 person in subdivision (a), a limit of not less than $40,000.00 because of bodily injury to or death of 2 or more persons in any 1 accident, and after July 1, 2020, and subject to the limit for 1 person in subdivision (a), a limit of not less than $500,000.00 because of bodily injury to or death of 2 or more persons in any 1 accident.
(c) A limit of not less than $10,000.00 because of injury to or destruction of property of others in any accident.
(2) If authorized by the insured, automobile liability or motor vehicle liability coverage may be excluded when a vehicle is operated by a named person. An exclusion under this subsection is not valid unless the following notice is on the face of the policy or the declaration page or certificate of the policy and on the certificate of insurance:
Warning—when a named excluded person operates a vehicle all liability coverage is void—no one is insured. Owners of the vehicle and others legally responsible for the acts of the named excluded person remain fully personally liable.
(3) A liability policy described in subsection (1) may exclude coverage for liability as provided in section 3017 or 3018.
(4) If an insurer deletes coverages from an automobile insurance policy under section 3101, the insurer shall send documentary evidence of the deletion to the insured.
(5) After July 1, 2020, an applicant for or named insured in the automobile liability or motor vehicle liability policy described in subsection (1) may choose to purchase lower limits than required under subsection (1)(a) and (b), but not lower than $50,000.00 under subsection (1)(a) and $100,000.00 under subsection (1)(b). To exercise an option under this subsection, the person shall complete a form issued by the director and provided as required by section 3107e, that meets the requirements of subsection (7).
(6) After July 1, 2020, on application for the issuance of a new policy or renewal of an existing policy, an insurer shall do all of the following:
(a) Provide the applicant or named insured the liability options available under this section.
(b) Provide the applicant or named insured a price for each option available under this section.
(c) Offer the applicant or named insured the option and form under this subsection.
(7) The form required under subsection (5) must do all of the following:
(a) State, in a conspicuous manner, the risks of choosing liability limits lower than those required by subsection (1)(a) and (b).
(b) Provide a way for the person to mark the form to acknowledge that he or she has received a list of the liability options available under this section and the price for each option.
(c) Provide a way for the person to mark the form to acknowledge that he or she has read the form and understands the risks of choosing the lower liability limits.
(d) Allow the person to sign the form.
(8) After July 1, 2020, if an insurance policy is issued or renewed as described in subsection (1) and the person named in the policy has not made an effective choice under subsection (5), the limits under subsection (1)(a) and (b) apply to the policy.
History: Add. 1971, Act 210, Imd. Eff. Dec. 29, 1971 ;-- Am. 1988, Act 43, Eff. Mar. 30, 1989 ;-- Am. 2016, Act 346, Eff. Mar. 21, 2017 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019 ;-- Am. 2019, Act 22, Imd. Eff. June 11, 2019 ;-- Am. 2024, Act 224, Eff. Oct. 17, 2025
PopularName Notes:
Act 218
Notes of Decisions
Ali Bazzi v. Sentinel Ins. Co., 919 N.W.2d 20 (Mich. 2018).
· cites it 9× “In support of this position, **405 they cite MCL 500.3009(1), 8 which provides the policy coverage minimums for all motor vehicle liability insurance policies, and Titan , 491 Mich.”
Frankenmuth Ins. Co. v. Poll, 875 N.W.2d 250 (Mich. Ct. App. 2015).
· cites it 11× “MCL 500.3009(1). As Frankenmuth acknowledges, the Legislature has seen fit in the past to make certain exceptions applicable to only personal injury benefits and not property damage *448 benefits.”
State Farm Mut. Auto. Ins. v. Ruuska, 282 N.W.2d 472 (Mich. Ct. App. 1979).
· cites it 16× “Even assuming that the Legislature was prompted to enact said amendment by reason of our decision in the Allstate case, which may or may not be the complete reason, the result claimed thereby by plaintiff cannot and does not follow.”
Universal Underwriters Ins. v. Kneeland, 628 N.W.2d 491 (Mich. 2001).
· cites it 6× “§ 500.3009; MSA 24.13009, the defendant appears to have been insured by the plaintiff against the very loss at issue in this case, since a standard automobile policy typically insures such a permissive driver "against loss from the liability imposed *494 by law for damages…”
State Farm Mut. Auto. Ins. Co. v. Michigan Mun. Risk Mgmt. Auth., 892 N.W.2d 451 (Mich. Ct. App. 2016).
· cites it 11× “] Importantly, attached to the end of the emphasized sentence in the preceding passage was the following footnote: “For example, MCL 500.3009(1) provides the policy coverage minimums for all motor vehicle liability insurance policies.”
Titan Ins. Co. v. Hyten, 491 Mich. 547 (Mich. 2012).
· cites it 2× “17 For example, MCL 500.3009(1) provides the policy coverage minimums for all motor vehicle liability insurance policies.”
Powers v. Detroit Auto. Inter-Ins. Exch., 398 N.W.2d 411 (Mich. 1986).
· cites it 4× “" MCL 500.3009; MSA 24.13009.[ [6] ] 6. The Policyholder Protected Against Confusing Statements Rule 6 originates from the DeLand case, which held that the insurance policy may not prominently make a promise of coverage and then less prominently attempt to contradict that…”
Est. of Eugene Wayne Hunt v. Roger Drielick, 496 Mich. 366 (Mich. 2014).
· cites it 2× “The trial court denied Empire’s motion and entered an order to execute the consent judgments, reasoning that the business-use exclusion does not apply and the named-driver exclusion is invalid under MCL 500.3009(2). 2 The Court of Appeals affirmed the trial court’s ruling…”
Progressive Michigan Ins. v. Smith, 791 N.W.2d 480 (Mich. Ct. App. 2010).
· cites it 11× “In this matter of first impression, I would conclude that the warning notice requirement of MCL 500.3009(2) must be enforced as written.”
Verbison v. Auto Club Ins. Ass'n, 506 N.W.2d 920 (Mich. Ct. App. 1993).
· cites it 5× “The policy included an "Authorization for Excluded Driver (Named Excluded Person)” endorsement, pursuant to MCL 500.3009(2); MSA 24.13009(2), that named plaintiff’s wife, Brenda Verbison, as an "excluded person.”
— Mich. Comp. Laws § 500.3009(1) — 44 cases
Ali Bazzi v. Sentinel Ins. Co., 919 N.W.2d 20 (Mich. 2018).
“In support of this position, **405 they cite MCL 500.3009(1), 8 which provides the policy coverage minimums for all motor vehicle liability insurance policies, and Titan , 491 Mich.”
State Farm Mut. Auto. Ins. Co. v. Michigan Mun. Risk Mgmt. Auth., 892 N.W.2d 451 (Mich. Ct. App. 2016).
“] Importantly, attached to the end of the emphasized sentence in the preceding passage was the following footnote: “For example, MCL 500.3009(1) provides the policy coverage minimums for all motor vehicle liability insurance policies.”
Titan Ins. Co. v. Hyten, 491 Mich. 547 (Mich. 2012).
“17 For example, MCL 500.3009(1) provides the policy coverage minimums for all motor vehicle liability insurance policies.”
— Mich. Comp. Laws § 500.3009(1)(a) — 8 cases
— Mich. Comp. Laws § 500.3009(1)(b) — 1 case
— Mich. Comp. Laws § 500.3009(2) — 40 cases
Frankenmuth Ins. Co. v. Poll, 875 N.W.2d 250 (Mich. Ct. App. 2015).
“MCL 500.3009(1). As Frankenmuth acknowledges, the Legislature has seen fit in the past to make certain exceptions applicable to only personal injury benefits and not property damage *448 benefits.”
Est. of Eugene Wayne Hunt v. Roger Drielick, 496 Mich. 366 (Mich. 2014).
“The trial court denied Empire’s motion and entered an order to execute the consent judgments, reasoning that the business-use exclusion does not apply and the named-driver exclusion is invalid under MCL 500.3009(2). 2 The Court of Appeals affirmed the trial court’s ruling…”
State Farm Mut. Auto. Ins. v. Ruuska, 282 N.W.2d 472 (Mich. Ct. App. 1979).
“Even assuming that the Legislature was prompted to enact said amendment by reason of our decision in the Allstate case, which may or may not be the complete reason, the result claimed thereby by plaintiff cannot and does not follow.”
Progressive Michigan Ins. v. Smith, 791 N.W.2d 480 (Mich. Ct. App. 2010).
“In this matter of first impression, I would conclude that the warning notice requirement of MCL 500.3009(2) must be enforced as written.”
— Mich. Comp. Laws § 500.3009(4) — 2 cases
— Mich. Comp. Laws § 500.3009(5) — 9 cases
— Mich. Comp. Laws § 500.3009(6) — 2 cases
— Mich. Comp. Laws § 500.3009(7) — 2 cases
— Mich. Comp. Laws § 500.3009(8) — 4 cases
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