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Michigan requires all motorists to carry at least state-mandated minimums for auto insurance liability limits in order to drive on public roads. The state does not allow anyone to drive any vehicle that is not insured on public roads. Doing so could trigger a suspension of driving privileges and confiscation of the uninsured vehicle. The following information will help motorists to fully understand Michigan insurance requirements to drive legally.
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Basic Auto Insurance
Michigan requires motorists to carry at least state-mandated minimums in liability insurance protection on their vehicles. The state fines motorists who allow auto insurance to lapse on their registered vehicles.
Michigan insurance requirements for vehicles are:
- At least $20,000 in bodily injury liability per person.
- At least $40,000 in bodily injury liability per accident.
- At least $10,000 in property damage liability in another state.
The bodily injury liability minimums mean a vehicle must have at least $20,000 in available insurance coverage to pay the costs of injuries or death suffered by another person during an accident. The $40,000 minimum per accident means the insurer will pay up to that amount in total bodily injury claims if more than one person is injured or killed.
Michigan is a no-fault auto insurance state in which a respective motorist’s auto insurance will pay for damages to his or her car regardless of who is at fault. The idea is to reduce the number of legal disputes arising from car accidents while speeding up payment of claims.
You can purchase higher liability insurance amounts that the state-mandated minimums. You cannot legally operate a vehicle on public roads that has less than those amounts if it is registered in Michigan.
Required Insurance Documents
Whenever driving in Michigan roadways, you must carry proof of insurance. The proof of insurance will show the make and model of the insured vehicles, its VIN number, the owners name and address where the vehicle is parked. Most importantly, the insurance documents affirm the levels of liability coverage and dates that the auto insurance policy is in effect. A police officer could fine you do not have the proof of insurance with you while driving.
Your Insurance Card
Virtually all auto insurers provide a wallet-sized card that makes it easier to provide proof of insurance and share insurer information after an accident. The insurance card will include the make, model and VIN number as well as the name of the policyholder and the address where the vehicle is parked. The insurance card also will list the liability amounts and dates that the policy is in effect to affirm the vehicle abides state law.
Insurance Fraud
Because Michigan is a no-fault auto insurance state that pays property damage claims regardless of fault, auto insurance fraud can be a significant problem. The Michigan Department of Insurance and Financial Services (DIFS) describes auto insurance fraud as deceiving an insurer about an auto insurance claim. The deception could happen by providing misleading information of false documentation to support the claim.
Insurance fraud is a crime that could rise to the level of a felony in Michigan. Violators could spend up to four years in prison and pay up to $50,000 in fines.
How to Report Fraud to the State
Individuals can report known or suspected insurance fraud to the DIFS Fraud Investigation Unit online or by calling 877-999-6442.