Michigan Auto Insurance Laws
Introductory guide to Michigan car insurance laws. Highlights the main requirements as well as the associated penalties and fines for failure to comply with the law.
Under Michigan auto insurance requirements, all drivers must carry a policy that covers up to $1 million dollars in personal injury and property protection.† This covers injuries you sustain as either a driver, passenger or pedestrian after your deductible.† Deductibles can be adjusted to control the overall cost of insurance.†
Along with this coverage, Michigan auto insurance laws also mandate minimum liability coverage of $20,000 per person injured, $40,000 for more than one person injured and $10,000 for property damage.† This coverage can provide for any damages that exceed your PIP coverage and damages or injuries sustained in an accident outside the state of Michigan.
You must provide proof of insurance when you register your vehicle and are also required to carry proof of insurance with you at all times while you are operating your vehicle.† If you are found to be operating your vehicle without proper insurance or allow someone else who is uninsured to drive your car, you may be subject to penalties that include fees and jail time.
According to Michigan auto insurance requirements, any driver who is stopped by law enforcement and cannot provide proof of insurance is subject to a fine of $200 to $500.† Your driverís license may also be suspended for up to 30 days and you may face up to a year in jail.† You may also be sued and held liable for all damages incurred in any accident that occurs while your vehicle is operated without insurance.†
Because Michigan is considered a no fault state, fault does not have to be assigned to any individual driver in an accident.† Insurance companies are required to cover expenses for each individual driver according to his or her policy.† This extends to drivers of all vehicles except off-highway vehicles and non-registered nonoperational vehicles that donít require insurance.
Michigan auto insurance laws also mandate that insurance companies must extend unlimited medical and rehabilitation benefits, wage loss benefits and $20 per day for auto replacement services for a maximum of three years for all those involved in an accident.† The Michigan Department of Energy, Labor and Economic Growth oversees these laws.
Keeping the roads safe for all travelers is important to the government of the state of Michigan.† This is why there are such strict laws in place in regards to auto insurance.† Michigan wants all of its residents and visitors to enjoy their stay, which means knowing that they are properly protected with auto insurance.
To find suitable low cost insurance plans, you can compare car insurance companies' rates online, including quotes from Michigan insurance agents and brokers.
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ABOUT THE AUTHOR
Mike Kelly is a web author who writes on insurance, real estate, employment law and contemporary music.