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Penalties for Driving Without Insurance in Michigan


Driving without car insurance in the state of Michigan is dangerous on many levels. Fees and surcharges can be charged against you by both the state and your future car insurance provider. And even worse, you will be held personally liable in the event of a car accident.

Michigan Secretary of State Penalties

The driver responsibility fee, $200 for two consecutive years, for not providing proof of current car insurance coverage was eliminated October 1, 2012 in Michigan. The elimination of the fee is a huge savings if you are ever caught without car insurance.

Caught by police driving without car insurance:

  • Your license could be suspended
  • Your license plate will not be renewed, transferred, or replaced
  • $50 fine and potentially some other fees required by law
  • Your license plate could be canceled

Michigan Insurance Provider Penalties

Michigan's no fault insurance laws require all licensed drivers to carry its state minimum limits. Car insurance providers want proof of prior insurance before they will write you a new car insurance policy. Failure to provide proof can result in drastically higher insurance rates.

So not only do preferred carriers black list you for 6 months, but if you were caught by law enforcement driving without car insurance they can surcharge you sometimes up to three years. Many preferred car insurance carriers treat being caught by law enforcement without insurance the same as a speeding ticket.

In an At-Fault Car Accident with No Car Insurance in Michigan

A car accident with no car insurance in Michigan can result in triple penalties. You will face the penalties from the Secretary of State, your future insurance provider, and be held personally responsible for the injured party’s pain and suffering.

Michigan being a no-fault state means the most you will have to pay for car repairs for the other party is $1000 only if they do not carry collision coverage or do not have broad collision.

Any property damage caused by you, including hitting a parked car, means you will be held personally responsible for all damages.

The cost of car insurance in the state of Michigan can seem like too much to bear. However, the cost of going without car insurance can far, far outweigh keeping an insurance policy in force at all times. Car insurance should be one of your highest priority bills. Car insurance probably does not outweigh food and shelter, but it should come before cable and cell phones. Make car insurance a permanent part of your budget and look for ways to save money to make it affordable for your family.

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