Michigan relocation guide: car insurance, driver license (Korean license exchange), vehicle registration, taxes

Everything here was checked on official sources (state agencies, cities, utilities, school districts); each item shows its source and the date we checked it. Rules change — confirm with the agency before you apply.

Auto insurance

Michigan no-fault: the three required coverages

To drive legally in Michigan you must carry no-fault auto insurance. Per DIFS, every vehicle must carry three basic coverages: - Personal Injury Protection (PIP): pays allowable expenses for your medical care, recovery and rehabilitation if you are hurt in an auto accident. Wage loss and replacement services are also part of PIP. - Property Protection (PPI): pays up to $1 million for damage your car does in Michigan to other people's property, such as buildings and fences, and to another person's properly parked vehicle. It does not pay for any other damage to cars. - Residual Bodily Injury and Property Damage Liability (BI/PD): covers you if you are held legally responsible for another person's death, injury or damaged property, including accidents outside Michigan or with an out-of-state driver.

DIFS says driving without insurance is a misdemeanor punishable by a fine of up to $500, up to one year in jail, and possible license suspension.

No-fault coverage does not pay to repair your own car after a crash; that is what optional collision and comprehensive coverage are for. Lenders may require them on a financed car.

Source: Michigan Department of Insurance and Financial Services (DIFS) (checked 2026-10-20) · Michigan Department of Insurance and Financial Services (DIFS) (checked 2026-10-20)

Six PIP medical options (since the 2020 reform)

Under the 2019 reform (Public Acts 21 and 22 of 2019), policies issued or renewed after July 1, 2020 let you choose a PIP medical limit — the most your insurer pays per person per accident. - Option 1: Unlimited - Option 2: $500,000 - Option 3: $250,000 - Option 4: $250,000 with some or all household members excluded — each excluded person needs Qualified Health Coverage (QHC) that is not Medicare. - Option 5: $50,000 — the named insured must be enrolled in Medicaid, and the spouse and resident relatives must also qualify. - Option 6: No PIP medical — the named insured must have Medicare Parts A and B, and the spouse and resident relatives must also qualify.

Options 1–3 are open to everyone; options 4–6 only to people with the required health coverage, and you must provide proof (for example, a QHC letter).

What is QHC? Per DIFS, Medicare Parts A and B, or a health plan that does not limit or exclude auto accident injuries and has a deductible at or below the state limit — $6,579 or less for July 1, 2026 to June 30, 2027. Ask your employer's benefits office or health insurer for a letter confirming QHC status.

Keep in mind: - With a lower limit, you may be personally responsible for medical bills above it. - Excluding PIP medical does not remove wage loss, replacement services and funeral benefits. - If you choose $500,000, $250,000 or $50,000, insurers must offer an attendant-care rider. - Indemnity plans (accident-only, fixed or hospital indemnity) are not QHC.

Source: Michigan Department of Insurance and Financial Services (DIFS) (checked 2026-10-20)

If you don't choose: defaults and liability minimums

You choose your PIP and bodily injury (BI) limits by signing the selection forms (paper or electronic) your agent or insurer provides.

PIP medical: if you make no selection, do not provide required documentation, or pick an option you do not qualify for, the policy is issued at the default level and you are charged for it. The DIFS PIP selection form states that in this case your policy may be issued with unlimited PIP medical coverage.

BI/PD liability, per DIFS: - Default if you make no selection: $250,000 per person / $500,000 per accident / $10,000 for property damage in another state - Lowest limits you may buy: $50,000 per person / $100,000 per accident / $10,000 for property damage in another state

DIFS warns that you must pay anything above your limit, which can lead to seized assets, wage garnishment or license suspension. Choose limits carefully.

Under "mini-tort," if you are 50% or more at fault you can be sued for up to $3,000 in damage to the other vehicle not covered by insurance. Optional limited property damage coverage protects you against this.

Source: Michigan Department of Insurance and Financial Services (DIFS) (checked 2026-10-20) · Michigan Department of Insurance and Financial Services (DIFS) (checked 2026-10-20)

Questions or complaints: DIFS

• For auto insurance questions or complaints about an insurer or agent, call DIFS at 833-ASK-DIFS (833-275-3437), Monday–Friday, 8 a.m.–5 p.m., or file online at Michigan.gov/DIFScomplaints.
• DIFS says the 2019 reform bars insurers from using sex, marital status, home ownership, credit score, education level, occupation and zip code in setting auto rates.
• Rates and policies must be approved by DIFS before they are sold.

Source: Michigan Department of Insurance and Financial Services (DIFS) (checked 2026-10-20)

Driver license

Get a Michigan license as soon as you are a resident (no grace period)

The Michigan Department of State (Secretary of State, SOS) says new residents should schedule a visit to apply for a license (or ID), vehicle title and registration as soon as they establish residency. Michigan law provides no grace period.

• The Michigan Vehicle Code defines a "resident" as every person who resides in Michigan and establishes legal presence in the United States.
• SOS cannot issue an original license to someone who is not a Michigan resident, so you need residency documents (see below) before applying.
• Completing the online pre-application when you schedule your visit saves time at the office.

Driving in Michigan on a Korean license: SOS's foreign license card lists Korea as a treaty country. Drivers from treaty countries may drive in Michigan on their foreign license if it is printed in English or accompanied by an English translation, and they do not need to show proof of legal presence.

Source: Michigan Department of State (Secretary of State) (checked 2026-10-20) · Michigan Department of State (Secretary of State) (checked 2026-10-20) · Michigan Department of State (Secretary of State) (checked 2026-10-20)

Korean license holders: written and road tests waived (Korea–Michigan agreement)

Michigan SOS ("What Every Driver Must Know," October 2025): - Drivers from another U.S. state, Canada, Germany or the Republic of Korea (South Korea) may convert their license to a Michigan license without the written knowledge test, temporary instruction permit (TIP) or driving skills test. - After your documents are approved, you take a vision test, have your photo taken and pay the fee. - If your foreign license is expired, you must get a TIP and pass a driving skills test.

Korean Consulate General in Chicago (Michigan is in its jurisdiction): - Korea and Michigan signed a driver license reciprocity agreement on February 14, 2012, effective on signing. - Under the agreement, holders of a valid Korean license age 18 or older can exchange it with only a vision test, without written or road tests. The consulate's announcement describes eligible applicants as Korean citizens lawfully present in the U.S. and living in Michigan. - The consulate's 2012 notice said you may keep your Korean license after getting a Michigan license. Confirm this is still the case at your SOS office. - A 2019 consulate notice says holders of the new Korean license with English on the back (issued from September 2019) do not need a notarized translation when applying in Michigan. With an older license without English, you may need an international driving permit or a consulate translation; ask the consulate first. - Consulate main line: 312-822-9485

Source: Michigan Department of State (Secretary of State) (checked 2026-10-20) · 주시카고 대한민국 총영사관 (Consulate General of the Republic of Korea in Chicago) (checked 2026-10-20) · Consulate General of the Republic of Korea in Chicago (checked 2026-10-20) · 주시카고 대한민국 총영사관 (Consulate General of the Republic of Korea in Chicago) (checked 2026-10-20)

Documents: SSN, legal presence, identity and residency

Per SOS's application guide (SOS-428), an original Michigan license requires four proofs: 1. Social Security number — one document. If you are not eligible for an SSN, bring an SSA-L676 letter of ineligibility; letters more than one year old are not accepted. 2. Legal presence — one document, originals only. Examples: an unexpired foreign passport with an unexpired U.S. visa and an I-94 (or admission stamp); Form I-20 for F visas, DS-2019 for J visas; or a valid Employment Authorization Document (I-766). B1 and B2 visas are not accepted. 3. Identity — one document, originals only, such as an unexpired foreign passport. 4. Michigan residency — two documents with your name and Michigan address, dated within the last 90 days: phone bills, bank statements, lease agreements, pay stubs, etc. P.O. boxes are not accepted; electronic copies are.

Good to know: - Foreign documents must be translated or have English subheadings. - A foreign driver's license is proof of driving experience only; it cannot prove legal presence or identity. - Immigration documents are verified through the federal SAVE system, which may take more than one day, so a second visit may be needed. - Your photo license arrives by mail — in about two weeks per the SOS FAQ, or about three weeks per the driver manual. - Questions: SOS Information Center, 888-SOS-MICH (767-6424)

Source: Michigan Department of State (Secretary of State) (checked 2026-10-20) · Michigan Department of State (Secretary of State) (checked 2026-10-20) · Michigan Department of State (Secretary of State) (checked 2026-10-20)

Vehicle title and registration

New residents title and register immediately

SOS says out-of-state passenger vehicles may be driven in Michigan by nonresidents for up to 90 days, but new residents must title and register their vehicles immediately. Schedule a visit at an SOS office.

To convert an out-of-state title, bring: - Your out-of-state title - Proof of Michigan no-fault insurance - Proof of identity

Keep in mind: - If more than one owner is on the title, all owners must appear, or bring an appointment-of-agent form for anyone who cannot. - If a lender or leasing company holds the title: bring your out-of-state registration (current or expired less than 90 days) or proof of the title, plus proof of Michigan no-fault insurance. Michigan issues a "FOREIGN OWNERSHIP-REGISTRATION ONLY" registration and plates without a Michigan title.

Source: Michigan Department of State (Secretary of State) (checked 2026-10-20) · Michigan Department of State (Secretary of State) (checked 2026-10-20)

Registration fees are based on the vehicle's MSRP

SOS says title and registration fees are set by state law. - For 1984 and newer passenger vehicles and light trucks, plate fees are a percentage of the manufacturer's suggested retail price (MSRP) when the vehicle was first titled, reduced by a percentage over the next three years, with no further reduction after that. - Vehicles older than 1984 are charged by weight. - Use SOS's registration fee calculator or call 888-SOS-MICH for your vehicle's exact fee.

Source: Michigan Department of State (Secretary of State) (checked 2026-10-20)

State and city income tax

2026 Michigan income tax: flat 4.25%

On April 15, 2026, Michigan Treasury announced that the individual income tax rate for the 2026 tax year is 4.25%. Michigan's income tax is a flat rate. The law calls for a yearly check on whether to reduce the rate; the conditions for a cut were not met for 2026.

• The 2026 withholding guide (Form 446) lists a personal exemption of $5,900 per exemption.
• For reference, the 2025 tax year rate was 4.25% with a $5,800 personal exemption.

Source: Michigan Department of Treasury (checked 2026-10-20) · Michigan Department of Treasury (checked 2026-10-20) · Michigan Department of Treasury (checked 2026-10-20)

Moved mid-year: part-year resident

Per Treasury's MI-1040 instructions (2025 tax year): - Resident: Michigan is your permanent home — the place you intend to return to whenever you go away. - Part-year resident: you moved your permanent home into or out of Michigan during the year. You pay Michigan tax on income earned, received or accrued while living in Michigan. - Part-year residents and nonresidents file Schedule NR (Nonresident and Part-Year Resident Schedule) with the MI-1040, allocating income from the date you moved in or out. - Bonus pay, severance pay, deferred income and other amounts accrued while a Michigan resident are taxed by Michigan no matter where you live when you receive them.

Your exact status depends on your situation; check with a tax professional.

Source: Michigan Department of Treasury (checked 2026-10-20)

Some cities also levy an income tax

Michigan Treasury says 24 Michigan cities levy income-related taxes. - Detroit: Michigan Treasury administers Detroit's city income tax. - Cities that administer their own: Albion, Battle Creek, Benton Harbor, Big Rapids, East Lansing, Grand Rapids, Flint, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, Walker - Holland and Ann Arbor are not on this list.

Check rates and filing rules (including for nonresidents who work in the city) with each city's tax office.

Source: Michigan Department of Treasury (checked 2026-10-20)

Related guides

• Alabama insurance & driver license guide
• Arizona insurance & driver license guide
• California insurance & driver license guide
• Georgia insurance & driver license guide
• New Jersey insurance & driver license guide
• New York insurance & driver license guide
• Texas insurance & driver license guide
• Washington State insurance & driver license guide
• Savannah relocation guide
• Clarksville relocation guide
• Austin relocation guide
• Taylor relocation guide
• Relocation checklist
• Open jobs in Michigan
• Send a tip or correction — we check it against the official source first

General information, not legal, tax or insurance advice. For prices and quotes, ask a licensed professional.

Last checked: 2026-10-20

Cite this article as: JOBnaru™ — https://jobnaru.com/en/news/michigan-relocation-guide