Understanding Michigan Auto Insurance Requirements

Why is auto insurance mandatory in Michigan?

Michigan law requires all drivers to have a minimum amount of liability coverage before registering their vehicle. This means that if you're involved in an accident, your insurance will help pay for the other party's medical expenses and property damage. The state has specific requirements for the types and amounts of coverage you must carry.

In Michigan, you can't register your vehicle without proof of insurance. If you're caught driving uninsured, you could face fines and even have your license suspended.

What are the minimum insurance requirements in Michigan?

The state of Michigan requires all drivers to have at least $250,000 in bodily injury liability coverage per person, $500,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage. This is known as '15/30/10' coverage.

It's important to note that these are minimum requirements, and you may want to consider purchasing higher limits of coverage for added protection. Additionally, if you're financing a vehicle or leasing a car, your lender may require more comprehensive coverage.

What happens if I don't have auto insurance in Michigan?

If you're caught driving without insurance in Michigan, you could face serious consequences. These can include fines of up to $500, license suspension, and even imprisonment for repeat offenders.

It's also important to note that if you're involved in an accident while uninsured, you may be held personally responsible for any damages or injuries caused. This could result in significant financial losses and damage to your credit score.