Michigan’s Auto Insurance

 

Michigan’s Auto Insurance Law Has Changed The information contained in the following publication pertains to autoinsurance policies issued on or before July 1, 2020. Publications about autoinsurance policies issued on or after July 2, 2020 are available atmichigan.gov/autoinsurance.For more information about the new auto insurance law and how it will affectyou, please visit: www.michigan.gov/AutoInsurance. 

 

 Automobile Insurance Eligibility Michigan law requires every vehicle owner to purchase automobile insurance and guarantees that automobile insurance will be available to all eligible Michigan citizens. An eligible person for automobile insurance is a person who is an owner or registrant of a car registered or to be registered in Michigan or has a valid Michigan driver’s license based The Michigan no-fault system was on Michigan law (MCL 500.2103). adopted in 1973 to increase the level of benefits paid to injured persons, There are circumstances when a company can refuse make sure such payments are made to insure you. promptly, and reduce the proportion Reasons for Denial of premium dollars paid out for legal You can be turned down for automobile insurance if: and administrative costs. You are not required by law to have insurance because you do not plan to live or drive in Michigan for 30 or more days. Your driver’s license is suspended or revoked. Within the past five years you have been convicted of trying to defraud an insurance company, or have been denied payment of a claim over $1,000 because there is evidence of fraud on your part. Within the past three years you have been found guilty of a felony with a motor vehicle, driving under the influence of alcohol or drugs, failing to stop at the scene of an accident, or reckless driving. The car you want to insure does not meet Michigan safety requirements. Within the past two years your automobile insurance has been cancelled because of non-payment of premium. This can be waived if you pay the entire premium on the policy you are buying in advance. The insurance you want to buy requires you to be a member of a group, club, or organization and you do not join the organization. Your driving record causes you to have more than the allowable number of insurance eligibility points (see the box below).

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