Michigan Auto Insurance Guide
Whether you’re heading to East Lansing for an MSU Spartans game, touring Michigan’s 3,177 miles of Great Lakes shoreline,
doing business in Grand Rapids or exploring music history in Motown, there’s plenty to see and do in the Wolverine State.
From Hancock to Dearborn, Muskegon to Port Huron and all points in between, sightseeing or commuting,
car insurance
is crucial to being a responsible Michigan driver.
Auto Insurance Resources for MI State Residents
As of 2010, there were nearly 7.1 million licensed drivers in the Wolverine State. The Insurance Research Council
estimates that 17% of Michigan drivers are uninsured. The Michigan Office of Highway Safety Planning reported a total
of 290,978 total vehicle crashes in 2009; 70,931 resulted in serious injuries, with 806 fatal crashes resulting in 871
deaths. Alcohol was responsible in 277 of the fatalities. Uninsured and alcohol-impaired drivers are good reasons to
be sure you have enough car insurance while living and driving in the Wolverine State.
Michigan State Minimum Car Insurance
Michigan state law requires you to carry a minimum amount of car insurance or face severe penalties. Michigan is one
of just 12 no-fault states, meaning your insurance will pay your injury claims up to a specified limit, regardless of who
caused the accident. Under a no-fault system, you lose some of your rights to sue. While Michigan does not require that
you carry Uninsured/Underinsured Motorist coverage, additional personal liability or Collision and Comprehensive coverage,
if you own property or other valuable assets, you would be wise to supplement the minimum requirements shown below:
- $20,000 bodily injury per person per accident
- $40,000 bodily injury for all persons per accident
- $10,000 property damage liability
- $1,000,000 property protection insurance
Michigan Car Insurance Laws
Michigan requires that you carry proof of Michigan auto insurance in your vehicle and produce it if a law enforcement
officer asks to see it. The penalty for driving without insurance in Michigan is a minimum fine of $500, up to a maximum
of $5,000. You may also face up to 1 year in jail, instead of or in addition to the fine. Your license may be suspended for
60 days, along with your license plates and vehicle registration.
If you are convicted of being uninsured, you will be held liable for an amount greater than $500 or 1 year’s compulsory
car insurance premium at the highest rate in effect when you committed the offense.
In order to register a vehicle in Michigan, you need to have an active policy stamped by a licensed Michigan insurance
agent, who must also sign the RMV-1 application. You have to take all of this with you to the RMV before they will register
your car.
Regulating Agency and References
Michigan Office of Insurance and Financial Regulation Division of Insurance
This is agency is responsible for regulating vehicle insurance policies sold in Michigan. For more information, visit their website at
www.michigan.gov/dleg
Michigan Department of Motor Vehicles
For information about licensing drivers and registering vehicles, auto insurance requirements, penalties and related information,
visit the State of Michigan’s website at
www.michigan.gov/sos
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC
provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government
officials who regulate the conduct of insurance companies and agents in their respective states or territories.
Visit NAIC at http://www.naic.org
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at
http://www.iii.org/
Related Car and Motorist E Insurance Articles
Filing a Car Insurance Claim. What Happens After the Crash?
What to Do When an Uninsured Driver Hits You
Traffic School Can Lower Your Auto Insurance Premiums
How Much Auto Insurance Coverage Do I Need?