Driving Without Insurance in Michigan

Michigan is a no-fault state, meaning that each party is responsible for paying for their own damages regardless of who is at fault. No-fault auto insurance is required in Michigan and, if you are caught driving without a valid policy, you can face a fine of up to $500 and up to one year in jail. In addition, you may have your license suspended for 30 days or until you can provide proof of valid insurance to the court.

Michigan’s no-fault law affords certain protections to insured drivers against being sued for economic damages. However, you can be sued if you get into an accident without insurance, which can end up costing more than insurance would have.

What Happens If I Don’t Have Proof of Insurance?

If you are pulled over or get into an accident and don’t have proof of insurance to show a law enforcement officer, you will receive a citation and will need to appear in court. If you do have a valid insurance policy and don’t have the proof on you, you can submit proof to the court in advance of your court appearance to avoid penalties. You may, however, be charged a small fee of up to $25.²

Always make sure you carry proof of insurance, along with your license and registration, when you drive to avoid any potential issues and hassle.

What Proof Is Required?

You will receive a certificate from your insurance company when you purchase a policy, which you’ll need to show law enforcement if asked. According to Michigan law, the certificate must include the policyholder’s and other insureds’ names as well as details about the vehicle being insured.

Paper or Electronic?

In Michigan, both paper and electronic insurance certificates are accepted. In most cases, you can access your insurance certificate via the insurance company’s mobile app or website and even add it to your digital wallet. It’s a good idea to print out a copy to keep in your car in case your phone dies or you can’t access the app for any reason.

An SR-22 is a certificate of financial responsibility that a driver may be required to file with the state DMV if convicted of a severe driving violation like a DUI, to prove to the state that they carry the minimum required insurance. In Michigan, SR-22s are often required if you’re caught driving without insurance.

The state also has what’s called financial-responsibility restricted licenses, which are required if a driver receives a financial-responsibility judgment. This can occur if you get into an accident without insurance and are sued by the other party. If the court awards a judgment for damages against you and you cannot pay in full, your license will be suspended until the judgment is paid off.

In the meantime, you’ll need a financial-responsibility restricted license, which only allows you to drive the vehicles stated on the license. To apply, you’ll need to file a partial-payment agreement and submit proof of financial-responsibility insurance with the Michigan Department of State Driver Record Activity Unit.³

A 2020 Michigan law offered a period of amnesty for drivers without insurance to get coverage without any penalties until January 2022, but it is unfortunately no longer in effect.⁴ If you have gone a period of time without insurance, you are generally considered a high-risk driver and getting high-risk insurance in Michigan can be more challenging.

Get Quotes From Multiple Companies

When looking for auto coverage following a lapse, follow the same best practices you normally would, including shopping around with various companies. Some may turn you away, depending on how long you’ve gone without insurance. While you should expect premiums to be higher than they would be if you had maintained continuous coverage, shopping around will ensure you get the best price.

Use the Michigan Automobile Insurance Placement Facility (MAIPF)

The MAIPF is Michigan’s residual market program for auto insurance, designed to ensure that all drivers can get insured, even if they cannot find coverage on the voluntary market.⁵ As with all residual market insurance, it should be a last resort.

If you’ve shopped around and are unable to find coverage, look for a licensed insurance agent who can apply for a policy on your behalf via MAIPF.

If you receive a citation and are fined for driving without insurance, you can provide proof of insurance to the court before your appearance date to avoid having to pay the fine. The court may still charge you a fee of up to $25.

Here are the basic laws you should be aware of when driving in Michigan.

Minimum Coverage

Michigan has relatively high minimum coverage requirements, which are as follows:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $10,000 property damage liability per accident outside Michigan
• $1 million property protection within Michigan
• $250,000 personal injury protection (limits are lower for certain people on Medicare and Medicaid)⁶

Registration

To register a vehicle or renew your vehicle registration, you’ll need to provide proof of a valid Michigan no-fault auto insurance policy. You can register a vehicle or transfer a title online or by mail.

You’ll also need to purchase a license plate, which costs $5 for a standard plate. Registration fees are calculated using a formula that is based on the vehicle’s manufacturer’s suggested retail price. You must register a car within 15 days of the sale to avoid a $15 late fee.

Michigan requires all drivers in the state to carry at least the minimum auto insurance coverage required by law, which is relatively high compared to other states. Michigan is a no-fault state, meaning that drivers are required to pay for their own damages in an accident, even if it wasn’t their fault. No-fault insurance provides certain protections against drivers being sued by the other party in an accident and not having insurance can leave you open to lawsuits and having to pay financial damages.

In addition, being caught driving without insurance can lead to fines, jail time and license suspension. Even if you’ve been without insurance for a while, it is worth shopping around for a policy to ensure you’re covered. Keep in mind, however, that your premiums will likely be higher. If you continue to maintain insurance and a clean driving record, your rates will decrease over time.