Do I need rental car insurance in Michigan?

Drivers in Michigan need $50,000 of bodily injury liability insurance per person (up to $100,000 per accident) and $10,000 of property damage liability insurance. Michigan also requires personal injury protection (PIP) insurance. PIP covers medical expenses for you and your passengers after an accident.

Here’s How Much Car Insurance Drivers Need in Michigan:

The penalties for driving without insurance in Michigan include fines up to $500, up to one year of jail time or both. Driving without insurance is considered a misdemeanor in Michigan, and your driver's license could also be suspended.

To avoid these penalties, drivers in Michigan must have at least $50,000 in bodily injury liability coverage (up to $100,000 per accident) along with $10,000 in property damage liability coverage. Michigan drivers also need to purchase personal injury protection and property protection insurance.

Drivers in Michigan pay an average of $1,300 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.

Penalties for Driving Without Insurance in Michigan

Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation” similar to a seat-belt ticket. In Michigan, your citation might be dismissed if you can provide the court with proof of valid insurance for the date of the citation within 14 days.

Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up.

You can avoid these consequences by purchasing the car insurance coverage required in Michigan.

Required Car Insurance in Michigan

• $50,000 in bodily injury liability (per person)
• $100,000 in bodily injury liability insurance (per accident)
• $10,000 in property damage liability insurance
• $250,000 in personal injury protection insurance
• $1 million in property protection insurance

The key to maintaining the minimum amount of coverage required by Michigan is to find a policy you can afford. If your coverage has already lapsed, start by comparing quotes from the insurance companies WalletHub’s analysis identified as having the best post-lapse rates.

Best Car Insurance in Michigan After a Lapse in Coverage

• Chubb
• Travelers
• Secura
• Auto-Owners
• Progressive

Drivers in Michigan pay an average of $1,300 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.

What Happens If You Get Into a Car Accident Without Insurance in Michigan?

1. All penalties will apply if you get into an accident. If you get into an accident while driving without insurance in Michigan, you will incur the penalties for driving without insurance no matter who is at fault. Driving uninsured can make it difficult to be compensated for damages if you are not at fault and can have long-lasting and life-changing consequences if you are at fault.
2. If the accident is your fault, you'll have to pay for all the damages out of your own pocket. In addition to the legal consequences of driving without insurance, you could easily be responsible for tens of thousands of dollars or more in damages to your vehicle, the other driver's car repairs and hospital bills, and your own medical care. You could face mounting debt or even bankruptcy, especially if the other driver doesn’t carry uninsured motorist coverage or personal injury protection.
3. Even if the accident is not your fault, driving without insurance may leave you responsible for your accident-related expenses. Even if the accident is not your fault, driving without insurance may leave you responsible for your accident-related expenses. Michigan is a “no pay, no play” state, which means drivers cannot pursue certain damages after an accident, regardless of fault, if they were uninsured at the time the accident occurred. In Michigan, no pay, no play means you cannot recover damages of any kind if you are driving uninsured.

The Michigan new-car insurance grace period is 7 to 30 days in most cases. The new-car grace period is how long insured drivers are allowed to drive a newly purchased vehicle before adding it to an existing car insurance policy. If you don't have a current policy, you'll need proof of personal injury protection, property protection insurance and liability coverage before you can legally drive or register your car in Michigan.

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