Michigan is known for having some strict car insurance laws. These laws apply to every driver, and the failure to comply with them could have serious consequences.
For example, both first and second offense could result in your license being suspended, up to a year in jail and between $200-$500 in fines (that doesn’t include associated fees such as attorney fees). It only goes up from there.
What Are The Mandatory Car Insurance Requirements in Michigan?
Every state mandates a minimum level of auto liability insurance, and Michigan is no exception. These requirements are enforced by the Michigan Department of Insurance and Financial Services. The law only sets a minimum for liability coverage—any additional coverage is optional.
Liability insurance protects you after an accident by providing some financial help with injuries and damages. Given the financial risks, the appropriate liability coverage could be more than state minimums. The minimums set by Michigan law include:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $10,000 for property damage per accident
- Personal Injury Protection – multiple choices offered
You are required to carry proof of minimum coverage levels when you drive in Michigan. You do not get a grace period, as these requirements are in place as soon as you receive your license.
What is the Penalty for Driving Without Insurance in Michigan?
Liability insurance is mandatory for all Michigan drivers, and motorists that fail to meet the standards set out by state law could face serious consequences. There are two unique criminal offenses in Michigan that apply to the lack of insurance.
First, there is the offense known as driving without proof of insurance. This offense covers drivers that lack the physical proof that they have coverage, even if they do. This could result in a driver’s responsibility fee of up to $400, a license suspension, and even up to a year in jail.
The penalties are even steeper for drivers who are not insured at all. They face $500 in driver responsibility fees, a $125 reinstatement fee, and up to a year in jail.
What Factors Does Michigan Law Allow in Determining Your Premiums?
There are several different factors insurance companies can take into account when setting your premiums. These varying factors are why two drivers with similar backgrounds could have very different quotes.
The factors used to determine your insurance rates are all linked to an increased risk of motor vehicle accidents. For example, teenagers tend to pay more for insurance because statistics show they are more likely to be in accidents than adult drivers. Michigan insurance companies are not allowed to consider gender and credit history when giving you a quote for auto insurance, but they can look at your:
- Zip code
- Accident history
- Claim history
- Marital status
- Type of vehicle
While these factors can increase the price of your insurance, certain discounts could bring it back down. There are other factors that could lower the cost of your premiums, including driving an older vehicle.
Am I Required to Report an Accident In Michigan to Authorities?
Whether or not you are required to report an accident to Michigan authorities will depend entirely on the situation. While there are circumstances where reporting an accident is not required by law, it is a good idea to report it. If the other driver ultimately pursues an insurance claim based on the accident, having a police report could benefit you.
The duty to report an accident is governed by Michigan law. Under the law, it is only necessary to do so when a crash results in bodily injuries, death, or property damage of more than $1,000. Despite these exceptions, most accidents fall into this category, given that any damage to your vehicle is likely to cost at least $1,000 to repair.
Drivers that leave the scene of an accident and fail to report it to the police could face steep consequences. A conviction for a hit-and-run could result in as much as 15 years in prison and a fine of up to $10,000.