SR-22 Insurance in Michigan Explained

Whether you’re heading downtown to Detroit for a taste of the nightlife, making the annual summer trek up north for a dose of the Great Lakes, or moving down to Ann Arbor for school in the fall, all drivers in the Great Lakes State must carry the legal minimum of auto insurance coverage when hitting the open road, lest they risk filing for an SR-22.

An SR-22 is a form filed by a policyholder’s insurer on behalf of the policyholder, certifying with the state the policyholder has an active and adequate car insurance policy in Michigan. The minimum legal coverage in the state is high compared to other states in the U.S., so it may be easy to make a life-altering mistake if you’re uninformed, resulting in filing for an SR-22. 

Let’s check out what an SR-22 is in the Great Lakes State, how to find one should you need it, and everything else you should know about SR-22s in Michigan.

Right off the bat, you should know Michigan SR-22 insurance isn’t an insurance policy or a type of coverage but rather a form your insurer will file on your behalf to certify with the state that you have an active and sufficient car insurance policy. A law or court official will inform a driver if they require this form, typically due to a severe driving infraction like a DUI, driving without insurance, or several offenses leading to license or registration suspension.

An SR-22 functions as proof to the state that a driver who has previously made poor choices on the road now has an adequate insurance policy, is willing to pay their premiums, and can pay for any damages associated with an accident. This form certifies that high-risk drivers are willing to accept financial responsibility for any damage they cause.

In Michigan, the legal minimum amount of car insurance all drivers must have is at least $50,000 of bodily injury liability per person, $100,000 of bodily injury liability per accident, and $10,000 of property damage liability per accident, also expressed as 50/100/10 liability coverage. All drivers must also have about $250,000 of personal injury protection (PIP) and, at most, $1 million of property protection insurance (PPI). Those who lease or finance their vehicles may also be required to have collision and comprehensive coverage as part of their legally binding agreement. 

Those who fail to carry the legal minimum amount of insurance put themselves and their passengers in harm’s way and risk financial ruin. Since Michigan is a no-fault state, all drivers carry a first-party medical benefit, like PIP, to cover their own medical expenses. Those who don’t have PIP will have to pay the medical bills they incur from an accident out of pocket and are subject to legal consequences associated with driving uninsured.

While the minimum coverage requirements in the Great Lakes State are comparatively high, it always helps to upgrade a minimum coverage policy to a full coverage one. Adding coverage like uninsured motorist coverage, collision coverage, comprehensive coverage, or GAP coverage can help ensure a policyholder is fully protected in any accident scenario.

Those who have repeatedly broken the state law by driving without insurance may face penalties like fines, license or registration suspension, license revocation, vehicle impoundment, or jail time, depending on the severity and frequency of the crime. 

SR-22 auto insurance in Michigan isn’t actually a type of insurance policy or coverage but rather a form an insurer will file on behalf of a high-risk driver to certify they have an active and adequate car insurance policy. Drivers that require this form will be notified by a law or court official proceeding a traffic violation like driving without insurance, while intoxicated, or otherwise recklessly. 

Drivers who require an SR-22 have likely had their license or registration suspended and require the form as a condition of their reinstatement. This form is a way for the state to verify that a driver is on their way to cleaning up their act by holding the legally necessary insurance coverage and maintaining financial responsibility for any accident they may cause. 

The Michigan SR-22 requirements only apply to high-risk drivers in the state who’ve been notified by a law or court official that they require this form. Typically, if a driver requires this form, it will appear on their record for at least three years, possibly more if the driving infraction that necessitated the document to be filed was severe or frequent. 

If you’re required to carry an SR-22, you know better than anyone how expensive car insurance in the Great Lakes State can be. The average full coverage premium in the state costs about $2,190 annually, or about $1,095 annually for a minimum coverage one. While filing an SR-22 isn’t very costly, typically about $25, the existence of one on your insurance record may double or triple the cost of your premiums. 

It can be challenging for those who need sufficient coverage the most to find a policy that doesn’t break the bank. Luckily, though, it isn’t impossible. Let’s see how you can find the cheapest car insurance policy in the state that still checks all your coverage boxes.

Finding a policy with an SR-22 form on your record can be tricky. Insurers use several factors about you to determine the risk they take by binding a policy with you, which then determines your rates. If you’ve proven to make risky choices behind the wheel, insurers may upcharge you on your premiums or reject you as a policyholder. However, some of the top insurers in the state may be willing to take on high-risk drivers as policyholders if you know where (and how) to look.

All drivers, high-risk and low-risk alike, should start their policy search with standard insurers before looking elsewhere for a policy. Standard insurers like State Farm and Progressive may bind policies with high-risk drivers or drivers with SR-22s, depending on their driving history. Standard insurers often offer an array of additional coverage policyholders can add to their policies and are more reputable than lesser-known insurers. 

Plus, standard insurers may offer various discounts for policyholders to lower their premiums. Discounts can range from criteria-based to enrollment-based, and the discount rates may take off up to 25% of your annual premium. Some insurers offer discounts for those who bundle home and auto policies, insure multiple cars on one policy, or have anti-theft safety devices on their vehicles.

Many insurers offer enrollment-based discounts that require a policyholder to enroll in a class or program to receive discounts on their premiums. Some insurers offer usage-based programs in which policyholders use telematics devices to track and send their driving data to receive a discount for making safe choices on the road. Other insurers may offer pay-per-mile programs in which policyholders can save on their premiums if they drive less than the average 12,000 miles annually.

However, some standard insurers may not bind policies with high-risk drivers or those with SR-22s. Those who have trouble binding a policy with a standard insurer may find better luck with a non-standard insurer. 

Non-standard insurers specialize in policies for specific types of drivers. Some non-standard insurers specialize in car insurance for high-risk drivers, like those with SR-22s. While a non-standard insurer is an excellent option for those who can’t find coverage elsewhere, they’re often more expensive than standard insurers.

If you have an SR-22 and need a car insurance policy in the Great Lakes State with excellent coverage, the best way to start your search is to get and compare quotes online. Getting and comparing quotes is like creating a virtual pros and cons list, allowing you to weigh your options with several different insurers in the state. 

Lucky for you, we love quotes here at Clovered. We even offer a free quoting tool you can use to get and compare several policies in minutes. If you prefer to speak with someone about your quotes, you can contact one of our licensed agents at 833-255-4117 or [email protected].