Penalty for No Car Insurance in Michigan
The state of Michigan requires all drivers to have insurance policies in case of accidents. Michigan has taken a somewhat unusual approach to auto insurance in the Michigan No-Fault Auto Insurance laws and the Michigan Driver's Responsibility Act, passed in 2003. Under these laws, Michigan drivers must maintain a certain level of insurance or face penalties, driver's license suspension and additional fines.
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Policy
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Created in 1973, the Michigan No-Fault Auto Insurance system was designed to increase the amount of benefits paid to persons injured in an automobile crash. It established criteria to ensure payments are received in a timely manner and to decrease the amount of money insurance companies spend on legal and administrative costs. The theory is that a reduction in the amount of money insurance companies spend fighting lawsuits is a reduction in overall expenses that leads to lower insurance premiums for drivers.
No-Fault Insurance
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The Michigan No-Fault Auto Insurance law requires drivers to maintain insurance coverage that provides unlimited medical coverage, including costs associated with rehabilitation if necessary. Also included is a lost-wages provision that pays up to $4,929 per month for up to three years, as of 2010, if the insured motorist or injured victim is unable to work as a result of injuries sustained in the crash.
These provisions were made in exchange for the revocation of motorists' right to sue another party in an accident. The only exception to this clause is if the accident results in death or permanent disfigurement.
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Requirements
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Because the Michigan No-Fault Insurance laws require every motorist to have continuous no-fault insurance coverage, motorists found driving without the necessary coverage face serious consequences, including misdemeanor charges. These charges also apply to anyone who knowingly allows someone else to drive his vehicle without proper insurance coverage in place.
Driving Without Insurance
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If a driver is found to be operating a vehicle without proper no-fault auto insurance, the driver can be sued in a civil case and will be held personally liable for any attorney fees. Court costs also will be the responsibility of the non-insured driver, in addition to any medical bills for himself and those of any other injured parties.
Charges, Fines and Fees
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Under the Michigan No-Fault Auto Insurance laws, a driver without proper insurance will be charged with a misdemeanor charge, fined up to $500, sentenced to up to one year in jail, and in some cases, face all of the above.
In 2003, the Michigan Legislature enacted the Michigan Driver Responsibility Law, which allows for additional fines and consequences. If a motorist is unable to provide a proper Proof No-Fault Insurance Certificate, which is issued by the insurance company, when requested by a law enforcement officer, the court has the right to suspend the driver's license for a minimum of 30 days.
Under the Michigan Driver Responsibility law, driving without proof of insurance is a category-two offense, which imposes a first-offense fee of $200. The fee increases significantly with each subsequent offense. This fee is in addition to any other fines and will be in place for two years; for example, if you are charged with driving without proper proof of insurance in 2010, a Driver Responsibility fee will be assessed in 2010 and 2011. Each time the same charge is brought against a driver the fee increases substantially.
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References
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- Photo Credit car crash image by dawn from Fotolia.com
