Michigan law requires that every vehicle owner must have at least a minimum of one year’s car insurance. It is illegal to drive without insurance in Michigan and can lead to serious consequences. It doesn’t matter if you are an existing Michigan resident or if you plan to move there in the future, it is crucial that you understand the penalties for driving without insurance.
Michigan car insurance laws
Michigan law requires that you have car insurance. You must comply with the state’s minimum vehicle insurance laws if your vehicle is registered with the Department of Motor Vehicles (DMV). Michigan is a no fault state. Drivers are required to have special types of insurance in addition to basic liability coverage.
Michigan car insurance law requires drivers to have personal injury protection (PIP), and property protection insurance(PPI) in order to comply with no-fault laws. Personal liability coverage must be carried by drivers at 250/500/10. This includes:
- $250,000 per person in bodily injury coverage
- $500,000 per accident in bodily injury coverage
- $10,000 in property damage coverage per accident
Michigan drivers without insurance face severe penalties
Michigan law prohibits you from driving without insurance. You will be subject to severe penalties if you are caught driving without insurance. These penalties could affect your driving privileges and your ability to file an Insurance claim after an accident.
Michigan’s driving without insurance constitutes a misdemeanor. It can be published with a fine of $200-$500, up to one-year imprisonment, or both. Drivers can also be subject to a license suspension for up to 30 days or until they provide proof of insurance. Drivers may also be required to pay a reinstatement fee up to $125.
The Michigan Secretary of State also has the power to limit your car registration privileges until proof of insurance is provided. The Secretary of State might refuse to allow you to transfer, renew, or replace your car registration if you are cited for not having insurance.
Michigan drivers need to be aware of the laws regarding driving without proof of insurance. A small penalty will be applied to those who can’t show proof of insurance if they have an active policy on their car. A mandatory $25 fine is usually assessed for driving without proof of insurance.
In an accident and not having insurance
Michigan law prohibits drivers from driving without insurance. This can lead to severe consequences. Michigan’s car insurance laws don’t offer forgiveness to drivers who cause an accident with no-fault insurance or personal liability insurance.
Michigan law prohibits you from seeking compensation for an accident caused by your inability to have insurance. Michigan’s car insurance laws state that drivers cannot claim no-fault medical benefits for injuries or lost wages after an accident. The driver would need to file a claim with his or her health insurance provider, or pay out of pocket.
Drivers without insurance who cause damage to their vehicle or purchase a new car will be responsible for any costs. Drivers without car insurance in Michigan cannot use the mini tort law to recover up to $3,000 from at-fault drivers to repair vehicle damage.
Even more severe are the consequences of not having insurance if you cause an accident. You will be responsible for the medical bills, lost wages, and vehicle damage of another driver if you hit another driver without insurance. You will be responsible for 100% of the legal fees if you are sued by another driver. Your personal assets may also be at risk.
Drivers involved in an accident at fault without insurance may also need to purchase SR-22 insurance. SR-22 insurance does not constitute an insurance policy. It is a certificate that shows you meet the state’s minimum liability requirements. Although filing an SR-22 can be inexpensive, having an SR-22 on your records will increase your car insurance premium, usually for many years.
Questions frequently asked
Which Michigan insurance policy is best?
The best Michigan car insurance depends on many things, including your budget, coverage requirements, discounts available, and personal preferences. While some insurance companies offer great rates for drivers looking for low rates, others provide better customer service and coverages for those who are more particular. Michigan drivers should compare rates and providers to find the best company for them.
What is the cost of Michigan’s car insurance?
Michigan is the most expensive state for car insurance. The average driver spends $2375 per year on full coverage insurance, and $995 for minimum coverage insurance. The average cost for full coverage in the United States costs $1,738 per annum, which is more than $600 less than the average premium in Michigan. The cost of full coverage in the state may be higher or lower for drivers depending on their claims history and age, as well as their policy’s coverage limits.
What is Michigan’s no-fault insurance coverage?
Michigan’s no-fault insurance includes two policies: personal injury protection (PIP), and property protection insurance. PIP covers medical expenses and lost wages following an accident regardless of who caused it. PPI covers damage to property of others, such as their vehicle, storefront, fence, or other stationary object.
