SR-22 insurance in Michigan costs an average of $2,014 per year, an increase of 6% compared to standard car insurance rates. In addition to an increased premium, it costs between $15 and $25 to file an SR-22 form in Michigan, depending on the insurance company.
An SR-22 is a state-issued form verifying that a driver is carrying the minimum amount of car insurance coverage required by the state after they are convicted of a serious violation like DUI or reckless driving. Because an SR-22 designates the policyholder as high-risk, their insurance premium goes up while it’s on file with the state. Drivers in Michigan who need to file an SR-22 will also lose any discount related to good driving that they may have previously qualified for.
The effect of an SR-22 on the cost of insurance is only temporary, though. In Michigan, drivers only need to have their SR-22 on file for 3 years. After that, the driver’s premium will start to go back down, assuming they drive responsibly.
Yes, Michigan is a no-fault state for car insurance. In the event of an auto accident, a Michigan driver’s no-fault personal injury protection (PIP) insurance pays for his or her own medical expenses, lost wages and at-home services like cleaning or laundry. It does not matter who caused the accident, unlike in fault states, where the at-fault driver must pay for the other party’s expenses.… read full answer
Minimum Limits Required By Michigan Insurance Laws
Bodily injury liability: $50,000 per person / $100,000 per accident
Michigan No-Fault Restrictions on Car Accident Lawsuits
Each no-fault state has its own rules for when you can sue an at-fault driver after an accident. Currently, Michigan is one of the strictest no-fault states in the country, only allowing you to sue the at-fault driver under very limited circumstances.
When You Can Sue According to Michigan No-Fault Laws
If the accident is in Michigan and causes death, serious injury, or permanent disfigurement
If a Michigan driver is involved in an accident in another state
If a Michigan driver is in an accident within the state involving a non-resident driving a car not registered in Michigan
If the at-fault driver is sued, their liability policy will pay up to its limits. If the court awards more than their limits, they will be personally responsible for paying the amount not covered.
Michigan’s auto insurance reform law allows drivers to opt out of buying unlimited personal injury protection (PIP), but they need higher liability limits. Michigan’s auto insurance reform law changed the state’s car insurance requirements for policies issued or renewed after July 2020. Michigan’s insurance reform also decreased the Michigan Catastrophic Claims Association (MCCA) fee, which drivers must pay if they purchase unlimited PIP insurance.… read full answer
Michigan Auto Insurance Reforms After July 2020
Drivers need $250,000 in personal injury protection per person, with lower limits or exclusions allowed for drivers with Medicare, Medicaid, or qualified health care.
Insurers must offer an optional supplement to PIP insurance that covers attendant care, such as home nursing.
Insurers must offer $3,000 in limited property damage liability insurance, which applies if you are 50% or more at fault in an accident and the other driver sues you for vehicle damage.
Michigan has some of the most expensive car insurance premiums in the country, as well as high fraud rates. To combat this, Michigan’s auto insurance reform law implemented several new consumer protections.
Consumer Protections Created by Michigan’s Auto Insurance Reform Law
Insurance companies can no longer consider gender, home ownership, marital status, credit score, educational level, occupation, and ZIP code when determining rates.
Drivers cannot be penalized for a lapse in auto insurance coverage as long as they apply for insurance by January 1, 2022.
Michigan insurers must reduce PIP premiums, and all premiums need to be approved by the Department of Insurance and Financial Services.
A new fraud investigation unit was formed.
Fees and penalties for insurance companies who violate laws increased.
You can get your SR-22 removed in Michigan after 3 years by notifying your insurance company, which will cancel the SR-22 filing with the state. Sometimes, the Secretary of State (SOS) will send you a notice letting you know when your SR-22 period is over.
If you’re not sure whether you’ve satisfied your SR-22 certification requirement, you can find out when you’ll be able to remove the high-risk SR-22 label from your driving record by contacting the Secretary of State (SOS). Drivers who cancel their SR-22 coverage too early risk having their license suspended or facing fines.… read full answer
Once you cancel your SR-22, your insurance premiums will likely go down because you are no longer considered as high-risk. As a result, you should get quotes from different insurance companies to make sure that you’re still getting the best deal. Additionally, if you do not own a car but were previously required to file a non-owner SR-22, you are free to cancel your insurance altogether.
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