In Michigan, all drivers are required to have proof of insurance to confirm that they have a valid no-fault auto insurance policy for their vehicles. There is standard basic insurance coverage as well, and failure to meet the minimum insurance standard will mean non-compliance.
If you are an active driver in Michigan, you must make sure that you always have your proof of insurance ready. That is unless you want to face the penalties that come with “No Proof of Insurance.”
What is the Standard Basic Auto Insurance in Michigan?
Even though car insurance has changed recently, Michigan still requires drivers always to bring proof of insurance. They can either present their proof of insurance on paper or electronically, whichever is more convenient for the insurance holder. Here are the minimum insurance coverage requirements needed for every vehicle in Michigan:
- Personal Protection Insurance
This coverage is something you must have if you regularly drive in Michigan. This helps the insurance holder pay victims when it comes to paying medical bills and reimbursements of lost wages. This insurance policy also helps the insurance holder handle their medical care and treatment and provides financial support for recovery.
- Third-Party Car Insurance
This insurance coverage is where at-fault drivers will depend on for the payment of medical benefits, pain and suffering compensation, lost wages, and other damages related to the injured party after an accident. This is also referred to as the “Bodily Injury Liability Insurance.”
- Personal Protection Insurance
Also known as PPI, this insurance policy pays up to $1M for the damages done by your vehicle to third-party properties like buildings and parked vehicles.
Before driving in Michigan, make sure that you have the basic auto insurance requirements above. Without these, you may need to pay fees to the state and have surcharge fees to your future car insurance provider. You may even be held personally liable for the damages incurred after an accident.
Is proof of insurance required when registering a car?
Yes, every driver needs to show proof of insurance before they’re allowed to register a car in Michigan. The driver should present all the required basic auto insurance policies during the registration process.
Is proof of insurance required when renting a vehicle?
Technically, the rental car company already has insurance on the vehicle they’re renting out. Therefore, you do not need to have proof of insurance to rent a car in the state. However, the rental company may require individuals to have a rental car insurance policy before finalizing the rent agreement.
How Much Will It Cost? Penalties in MI for No Proof of Insurance Cases
In Michigan, failure to provide proof of insurance can lead to a civil infraction. However, if the operator or owner of the vehicle can show that the vehicle is insured during the time of contact with the police to the district court clerk before the deadline, the penalties could be reduced. However, if an individual cannot present proof of insurance within the given deadline, the court may impose any of the following penalties:
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License Suspension
The court may ask the driver or operator to surrender their license unless they show proof of insurance to the court. A surrendered license means automatic suspension. The suspension can last for up to 30 days or until the driver presents proof of insurance to the Secretary of State.
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Non-Renewal of Plates
The court shall notify the state of the vehicle’s registration details to the Secretary of State. The Secretary of State will not allow renewal, transfer, or replacement of the vehicle’s plates until the owner meets the minimum coverage requirement or unless the vehicle gets transferred to another individual outside the family of the original owner.
Note that there are different penalties for driving without proof of insurance versus driving without insurance. The driver responsibility fee in a “no proof of insurance” ticket can reach up to $200 a year for two years plus a $25 reinstatement fee. Suspension can last up to 30 days, and it could also lead to as much as one year of jail time. Driving without insurance at all will have more severe penalties.
Let The Clark Law Office Help You With Your No Proof of Insurance Case
The Clark Law Office is one of the most dependable personal injury and auto accident practices in Michigan. If you find yourself in the middle of a No Proof of Insurance issue, we can help you get your case sorted efficiently. Contact us now at (517) 347-6900 for more details.
Sources:
Michigan Legislature – Section 257.328
http://www.legislature.mi.gov/(S(boyl5yeg3b13wntgb4x4xjym))/mileg.aspx?page=GetObject&objectname=mcl-257-328
SOS – Insurance Requirements
https://www.michigan.gov/sos/0,4670,7-127-96435_1587_1590-25289–,00.html
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