The minimum coverage required to be purchased for no-fault insurance must include the following:
- Up to $20,000 limit per person injured.
- Up to $40,000 limit per accident if two or more people are injured or killed.
- Up to $10,000 limit for property damage caused by your car in another state.
- Property protection insurance (PPI) up to $1 million for damage your car causes to other people’s property such as buildings and fences.
- Personal injury protection (PIP) up to $5,700 per day in 2018 for reimbursement to eligible injured parties as a result of an accident for wage loss, medical expenses and essential services.
These coverage limits represent the bare minimum and Michigan drivers can (and often do) purchase higher limits and additional insurance such as comprehensive coverage and collision coverage. The purpose of the no-fault insurance laws is to protect all Michigan drivers and reduce litigation (e.g. if one driver collides with another driver and neither had insurance, then the injured driver must sue in court to recover damages). Uninsured drivers operating their vehicles in a careless manner simply make the system more expensive for everyone else.
Minimum automobile insurance is only required to be in effect during the period the motor vehicle is driven or moved on a highway. A “highway” means a public road or street, so security is not required if the vehicle does not leave private property.
Driving without automobile insurance carries bigger penalties than you may expect. A person who operates a motor vehicle on a public highway without the minimum required security is guilty of a misdemeanor punishable by a fine between $200 and $500, or up to one year in jail, or both. MCL 500.3102(2). There are no points assessed against a Michigan operator’s license for this offense, but the fines and costs are usually stiff.
If you are charged with operating a vehicle without security, an experienced traffic lawyer may be able to negotiate a resolution with the prosecutor to reduce this offense to a lesser misdemeanor, a civil infraction or even a dismissal under the right circumstances. If you or a loved one need help defending against any traffic offense in the State of Michigan, do not hesitate to contact the attorneys at Kershaw, Vititoe & Jedinak for your best defense today.
