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Michigan Car Insurance Minimum Requirements

In 1973, Michigan became a no-fault insurance state, changing the required insurance that all licensed drivers in the state must carry. A major revision to the Michigan Insurance Code was adopted in 2019, however, Michigan still remains a no-fault state. This law demands a minimum insurance policy, without which you are subject to various penalties from monetary fines to jail time.

No-fault insurance consists of four different policies commonly referred to as “personal liability and property damage” (PLPD) insurance. These policies will cover your:

  •         Certain injury claims up to a limit regardless of fault
  •         Property damage up to a certain limit.

Make sure your coverage meets Michigan’s minimum car insurance requirements. Call 248-466-0200 for a consultation with the experienced team at Encore Insurance Group.

Minimum Car Insurance Requirements in Michigan

Your car insurance must include the minimum coverage for each of the following:

  •   $50,000 for bodily injury per person per accident
  •   $100,000 for bodily injury for all persons per accident
  •   $10,000 for property damage 

These are the bare bones of what your insurance coverage must cover in the state of Michigan. However, we highly recommend that you build out your policy with additional coverage such as collision insurance and comprehensive coverage to protect yourself fully in the event of an accident.

Penalties for Failure to Comply with Michigan Car Insurance Minimum Requirements 

If you do not carry the minimum insurance coverage required by the state of Michigan, you could find yourself facing legal consequences.

If you are uninsured or do not meet the minimum requirements, you could suffer the following penalties:

  •   Criminal misdemeanor conviction
  •   Monetary fines between $200 and $500
  •   Up to one year of jail time
  •   The suspension or complete revocation of your driver’s license until you comply with   the minimum requirements
  •   Impounded vehicle
  •   Inability to sue the at-fault party
  •   Pay for your own expenses out of pocket
  •   No reimbursement for lost wages following your accident

In addition to these consequences, you can also suffer financially if you are responsible for an accident while you are uninsured.

If you are found legally responsible for an accident and you do not have insurance, you are still personally liable for the costs of bodily injury and property damage caused by the accident. The injured party can also sue you, and the Secretary of State will revoke your license until you’ve paid for these damages.

Determining Your Car Insurance Rate

Once you’ve met the minimum requirements for car insurance in Michigan, several other factors go into determining your exact rate. The Michigan Department of Insurance and Financial Services controls premiums. Insurance companies use these factors to craft your rate and award discounts based on:

  •   What kind of car you drive
  •   Previous coverage
  •   How often and how far you drive
  •   Driving record and how long you’ve been driving
  •   Age
  •   Gender
  •   Marital status
  •   Location
  •   Whether you use your car for business 

Once you’ve received your rate, certain events can occur that would raise your rate. The following incidents could result in an increase:

  •   Traffic violations: If you’re caught speeding, driving carelessly, or driving while under the influence.
  •   At-fault accidents: If you are in an accident and you are found legally responsible.
  •   Adding a new driver to your policy: If your vehicle is driven by multiple people, they should all be on your policy. Each driver’s history can affect your rate.

Building Your Michigan Car Insurance Coverage

With all of these requirements, it’s essential to build an affordable policy that covers all of your bases. The skilled agents at Encore Insurance Group have ten years of experience crafting personalized car insurance coverage that includes all the coverage you need. We prioritize customer service, so you’ll always speak to a real person when you call.

Call 248-466-0200 or contact us online to set up your consultation and get started on your Michigan car insurance coverage.