The Risks of Driving Without Insurance in Michigan

An uninsured driver may have some coverage, but those who fail to meet the minimum legal requirements are considered uninsured in the Great Lakes State. The minimum legal coverage in the state is $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 known as 50/100/10 liability coverage. Since Michigan is a no-fault state, drivers must also have about $250,000 in personal injury protection (PIP) and up to $1 million in property protection insurance (PPI).

Let’s take a look at what happens to those caught driving without sufficient coverage and how you can create a Michigan auto insurance policy that includes the necessary coverage to avoid legal repercussions. 

The penalties for driving without insurance in Michigan may be enough to steer some drivers away from driving uninsured, but they aren’t the only punishment drivers face for failing to carry sufficient coverage. Legally sufficient coverage in the Great Lakes State is 50/100/10 liability coverage, about $250,000 in PIP, and up to $1 million in PPI.

Carrying the minimum coverage required in the state can guarantee you won’t face the legal penalties associated with driving uninsured and will also ensure your safety and the safety of others on the road. If you cause an accident, your PIP will help cover the expenses associated with your or your passengers’ injuries once you reach your deductible. If you don’t have PIP or the other required coverages, you’ll be liable for any expenses you incur in the event of an accident. 

You take considerable legal and financial risks when you get behind the wheel without sufficient insurance coverage. The costs associated with driving uninsured can add up quickly, from legal penalties and fees to medical expenses to increased insurance premiums in the future. You risk financial ruin when you get behind the wheel without an active insurance policy. 

Yes, driving without auto insurance is a crime, and the punishment for driving without insurance in Michigan can range from fines, license or registration suspension, or jail time. Driving uninsured is considered a misdemeanor in the state, so the offense carries the possibility of jail time. If you’re caught driving without your proof of insurance, even if you have a valid policy, you could face the penalties associated with driving uninsured.

Those caught driving uninsured will likely be issued an SR-22 form from the state. An SR-22 form is a form an insurer files on behalf of a high-risk driver to certify with the state the driver has an active and adequate insurance policy. While it doesn’t cost much to file the form itself, typically about $25, the existence of this form on your driving record is enough for an insurer to hike up your premiums or refuse to bind a policy with you because of your poor driving history.

Insurers use several factors to determine a driver’s premiums, all of which help the insurer determine a driver’s risk level. If a driver is risky to insure, meaning there’s a high likelihood of them filing a claim, they’re typically charged higher-than-average premiums. The average premium for a full coverage policy in Michigan is about $2,190 annually, so high-risk drivers may see premiums double or triple the average cost. High-risk drivers will typically see higher premiums for a few years before they start to level out, assuming the driver doesn’t have any subsequent infractions.

Driving without valid insurance in Michigan can be a significant mark on one’s record, making it challenging for offenders to find insurance in the future. Many of the cheapest policies in the Great Lakes State through the state’s top insurers are unavailable to drivers with this infraction on their record, making it difficult for a high-risk driver to find an affordable policy. 

For one’s first offense of driving without insurance in Michigan, the penalties range from fines, license or registration suspension, or even jail time. No matter how big or small the offense, all drivers who fail to carry sufficient coverage may face any of these penalties, as driving without insurance is considered a misdemeanor in the state. 

Let’s break down the individual penalties drivers who fail to maintain sufficient coverage may face. 

Those who get a ticket for driving without car insurance in Michigan may face a fine of at least $500 and license or registration suspension. If your license or registration is suspended, you may face an additional reinstatement fee once you’ve served the appropriate amount of time, usually 30 days but sometimes longer, depending on the severity and frequency of the offense. If your vehicle is impounded as a penalty for your crime, you may face even higher reinstatement fees.

It’s important to remember that license or registration suspension can significantly impact how you earn and save money. If you rely on your vehicle to get you to and from work and suddenly your license or registration is suspended, you may face losing your job and your income, thus further worsening the issue. 

Additionally, if you’re driving without insurance and cause an accident, you’re liable for all the associated costs. This includes your medical bills, your vehicle repairs, and those of your victim or victims. Not to mention any legal expenses you may incur if the accident victim decides to sue you for damages.

There are so many costs associated with driving uninsured– it’s always cheaper to maintain sufficient coverage rather than cash in on the short-term savings of forgoing coverage entirely. While a minimum coverage policy in Michigan can be costly, it’s much easier to budget for insurance premiums than risk financial ruin. 

It is against the law in Michigan to be driving without insurance, as all drivers without minimum legal coverage are uninsured and may face penalties like fines, license or registration suspension, or even jail time. The crime is a misdemeanor in the state, which means you can be arrested and face jail time for this offense. 

Driving without insurance in the Great Lakes State is a big deal and should be avoided at all costs. It’s much more cost-effective to maintain a minimum coverage policy in the long run than cash in on the short-term savings you might get by driving uninsured. One infraction for driving uninsured can significantly impact your savings and can increase your insurance premiums for years down the line.

If you’re interested in binding a policy or comparing rates from several insurers, you can start your journey by getting and comparing quotes online. Comparing quotes from several insurers can help you decide what type of policy and coverage best suits your needs and may even help you find a great deal.

Luckily, you’ve come to the perfect place for quotes. Here at Clovered, we have a free quoting tool you can use to get and compare quotes in minutes. If you’d rather get your quote from an agent or have any remaining questions about driving without insurance in the Great Lakes State, contact one of our licensed agents at 833-255-4117 or [email protected].