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Michigan State Car Insurance Legal Requirements

One must always have his proof of insurance or “Financial Responsibility” as it is more commonly known, in possession and/or within the car. The law demands that you provide these insurance documents should you encounter one of the often occurring incidents as listed below:

• The docs are in great need especially as these can be demanded anytime by the  police or any law enforcement agency.
• You have been in an accident with one or more cars other than your own, and you need to show them to the other driver(s)
• You have gone to the DMV to get registration papers for your car or to renew the old ones

Minimum Insurance Requirement – $10,000

Required Age to Get Learner’s Permit: 14 years 8 months

Penalties for Non-Compliance:

The Vehicle Code, of Michigan’s law has made it necessary to have insurance coverage. A driver detected with non compliance is liable to attract a number of penalties. The following punishments will occur, and there may be even more:

• Fines in money up to $500
• The vehicle bring impounded by the police
• The driver having his Driver’s License possibly suspended or revoked.

The punishments above may come into action whenever a driver is caught disregarding the Financial Responsibility law. Greater aftermath is expected if the driver had been in a traffic accident. Drivers in such times often have to pay on their own for the damages caused and the fines as well.

When an SR-22 is Necessary:

• You had your Driver’s License suspended for DUI and are going in to renew your driving privilege
• You failed to show proof of liability insurance
• You were uninsured while you were in an accident
• You received too many tickets in too little time
• You were often booked for driving violations
• Your Driver’s License gets cancelled or revoked
• You have given an application to the DMV to get a probation permit or hardship permit

In the state of Michigan, a driver’s insurance company can give certification of insurance known as the SR-22. This form of insurance can only provide the minimum basic liability coverage. Drivers with this form are commonly believed to be “problem drivers” for the causes cited above. The SR-22 stays with the Department of Motor Vehicles and hence gives the DMV the power to suspend a Driver’s License if the driver’s insurance is cancelled for one reason or the other.

Further Details Regarding Michigan State Financial Responsibility Law:

“Good Driver’s Discount”

A person held by the law as a “Good Driver” in the state of Michigan can avail large discounts on his car insurance policy. To be called a “Good Driver” involves meeting a few conditions. First, he cannot have been charged with causing more than one accident that resulted in property damage. He can neither have more than one point on his driving record arising out of a moving violation in the past 3 years. Secondly, he must not have caused violation of the Vehicle Code by being a part of a felony or a misdemeanor charge leading to conviction.

Apart from the qualifications, there are some requirements to be fulfilled if one has to get the discount. The upper limit of the value of the driver’s car is $20,000. Finally, if the driver has a college enrolment, he cannot qualify as a dependent on another person’s income tax return.

State of Michigan Department of Motor Vehicles Official Website:

http://www.dmv-department-of-motor-vehicles.com/MI_Michigan_dmv_department_of_motor_vehicles.htm

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