Drivers' licenses can also be suspended for 30 days or until they can provide proof of insurance. Driving without insurance is illegal in the state of Michigan. Not having car insurance for a vehicle you own prevents you from recovering any type of compensation if you are involved in a car accident in Michigan, even if the accident isn't your fault. For example, if a drunk driver hits you violently and breaks your leg, you can't collect no-fault benefits or pursue the drunk driver for pain and suffering if you don't have insurance for your vehicle.
If you're looking for new car insurance coverage during that period of time, some insurers may deny you coverage altogether. Most of the time, rental companies rent cars to people who don't own a car, so they don't have car insurance. In other words, if you drive your own car or truck without insurance and if you are involved in a car accident that results in injuries to another driver, even if that other driver was negligent and caused the car accident, you still have to pay. If there's a car accident, they can't sue, even if they're injured and completely innocent, and they'll even have to reimburse the insurance company for the negligent driver.
Under Michigan's no-fault law, drivers must maintain car insurance that includes personal injury protection (PIP) benefits, also known as first-person benefits, which cover economic losses, such as medical bills, lost wages, rehabilitation costs, home care expenses, and reimbursement of miles if you are injured in a car accident. Specifically, you should verify that the driver's vehicle is covered by personal protection insurance, third-party auto insurance, and property protection insurance. A person involved in an uninsured car accident may be required to reimburse the insurance company for benefits paid to the other driver. If proof of insurance is not provided, the car owner is also prevented from transferring, renewing, or replacing the license plate.
If you were uninsured at the time of the fine, but you take out insurance and present proof of insurance within 14 days of the date the fine was issued, this will also help reduce the cost of the fine. However, rental companies may require you to take out car insurance when you rent a car if you don't already have one. In addition to the significant criminal and driving-related penalties described below, driving a car in Michigan without the required auto insurance has many other consequences that can have a devastating impact on your life. You must reimburse the negligent and at-fault driver's auto insurance company for what you pay in terms of no-fault medical and wage loss benefits (and the benefits for loss of survivor if someone dies in the car accident).
Under Michigan's no-fault law, all drivers must have proof of insurance or evidence that the motor vehicle they're driving is insured. Your insurance must also include property insurance protection benefits (PPI), which cover losses from property damage during a car accident.