Penalties for Driving without Insurance in Michigan

Every state in the country requires that people carry automobile insurance policies on them when driving in order to drive legally in their state. Michigan car insurance prices are higher than the national average, making some people question whether or not they can save money by canceling their insurance policy or by letting it lapse. Not having a valid car insurance policy while driving in the state of Michigan can lead to harsh fines and fees, as well as higher auto insurance prices when a new policy is sought out.

Penalties for Driving Without Insurance

Driving without insurance leads to several possible penalties. The most common, and known about, penalties in the state are tickets and reinstatement fees. These take an immediate bite out of your bank account and if they are not paid promptly increase in cost. In addition, failure to pay these fines and fees can lead to the suspension of your driver’s license or having a warrant out for your arrest. Other penalties and consequences can also occur, varying in severity depending on whether it is your first offense or a subsequent offense that has happened. Multiple offenses can lead to a person losing their driving privileges, which can have a major effect on people’s lives in general.

Penalties For A First Offense

In most cases, drivers are fined between $200 and $500, as well as their license possibly being suspended or revoked until the driver can show proof of insurance. Insurance companies are required to report one insurance lapses from their customers in the state of Michigan, and police can pull people over simply for not having a valid auto insurance policy on record. Also, if you are involved in an accident with no insurance policy, you will be liable for the injury-related bills, lost wages, and property damage that resulted from the accident.

Penalties For Second Offenses

The fees and fines for having a second offense for driving without insurance are more severe. Not only can your license be suspended or revoked until you show proof of insurance, but the fines and fees go up. In addition, you can find your car impounded or loss of driving privileges regardless of whether you purchase an automobile insurance policy.

Subsequent Offenses

Additional offenses have steeper consequences as well, and people found driving without insurance can end up spending a lot more money than the cost of an auto insurance policy in the state. Check to see if you qualify for any low-cost insurance program available in the state, but also keep in mind that comparing free quotes for auto insurance from multiple providers on this website can help you save money not only on your car insurance premiums, but also on possible fees and costs of damage if an accident occurs.

Penalties For Driving Without Insurance In An Accident

Depending on the circumstances surrounding the accident, you may have even larger penalties and consequences than simply getting pulled over. The damage, including bodily injury damage, property damage, and lost wages, from an accident you're found at fault for can be extremely expensive. With cars often being the second most expensive purchase a person makes, totaling a car belonging to another person due to an automobile accident can get very expensive very fast.

In addition, medical bills and lost wages can also add up very quickly, finding people who are driving without insurance and get into an accident having empty bank accounts and that stemming from the aftermath of the crash.

To save money on car insurance in Michigan, make sure to compare rates from multiple companies, look for all of the discounts that you can qualify for to have applied to your policy, and do your best to maintain a good driving record. Also, you should keep in mind that if your insurance lapses by more than 30 days you may be put into a high-risk category, which means you will be paying higher rates on your car insurance premiums.