Do You Need Insurance to Register a Car in Michigan in 2025
Michigan law establishes mandatory motor vehicle liability insurance requirements for all vehicles operated on public roadways. Under Michigan Compiled Laws Section 500.3101, owners and registrants of motor vehicles registered in Michigan must maintain security for payment of benefits under no-fault insurance coverage. The Michigan Department of Insurance and Financial Services regulates insurance companies and ensures compliance with state insurance requirements.
Legal Requirement for Insurance Coverage
Michigan law requires vehicle owners to obtain no-fault automobile insurance before operating a motor vehicle on public roads. Driving without insurance constitutes a crime punishable as a misdemeanor with a fine of up to $500 and up to one year in jail. Operating a vehicle without proper insurance or allowing someone else to operate an uninsured vehicle may result in a misdemeanor conviction, with fines ranging from $200 to $500, imprisonment for up to one year, or both. Additionally, vehicle owners face personal liability for all injuries and damages resulting from accidents when operating without insurance.
The Michigan Secretary of State administers vehicle registration throughout the state and works with the Department of Insurance and Financial Services to ensure compliance with insurance requirements. Under Michigan Compiled Laws Section 257.328, vehicle operators must produce evidence of insurance upon request by law enforcement officers. Failure to maintain required insurance may result in a 30-day license suspension or until proof of valid insurance is provided. Courts may also order license suspension and require payment of a $25 service fee to the Secretary of State for reinstatement.
Vehicle owners determined responsible for operating without insurance face registration restrictions. The Secretary of State will not renew, transfer, or replace the registration plate of the vehicle involved in the violation until the owner meets insurance requirements, unless the vehicle is transferred or sold to a person other than the owner's spouse, mother, father, sister, brother, or child.
Michigan Department of State
430 W. Allegan Street, Lansing, MI 48918
Phone: (888) 767-6424
Official Website: Michigan Department of State
Minimum Insurance Coverage Requirements
Michigan law establishes minimum coverage amounts for motor vehicle liability insurance under the state's no-fault insurance system. The Michigan Department of Insurance and Financial Services regulates insurance companies and provides guidance on coverage requirements. Michigan requires three basic types of mandatory coverage that must be purchased and carried on every vehicle: Personal Injury Protection, Property Protection Insurance, and Residual Bodily Injury and Property Damage Liability.
| Coverage Type | Required Minimum Amount |
|---|---|
| Bodily injury or death of one person | $20,000 |
| Bodily injury or death of two or more persons | $40,000 |
| Property damage in another state | $10,000 |
After July 1, 2020, Michigan law requires minimum bodily injury liability coverage of $250,000 per person and $500,000 per accident for policies issued or renewed. Drivers may choose lower limits of $50,000 per person and $100,000 per accident by completing a form issued by the Department of Insurance and Financial Services that acknowledges the risks of choosing lower liability limits.
Michigan Department of Insurance and Financial Services
430 W. Allegan Street, Lansing, MI 48918
Phone: (877) 999-6442
Official Website: Michigan Department of Insurance and Financial Services
Proof of Insurance Documents
In Michigan, drivers must carry proof of insurance at all times while operating a motor vehicle. Michigan Compiled Laws Section 257.328 permits vehicle owners and operators to present insurance evidence in either paper or electronic format. A certificate of insurance, in paper or electronic form, issued by an insurance company serves as prima facie evidence that the required insurance is in force until the expiration date shown on the certificate.
Michigan accepts the following formats as proof of insurance:
- Insurance Certificate (Paper): The traditional printed certificate of insurance provided by insurance companies showing policy information, insured name, vehicle information, and coverage dates.
- Digital Insurance Certificate (Electronic): Michigan law authorizes the display of an electronic copy of a certificate of insurance using an electronic device such as a cellular phone or portable electronic device.
- Insurance Policy: The complete insurance policy document showing coverage information and policy details.
- Insurance Binder: A temporary proof of insurance document valid while the full policy is being processed.
When an individual displays an electronic copy of a certificate of insurance using an electronic device, the police officer shall only view the electronic certificate and shall not manipulate the electronic device to view any other information.
Insurance Verification System
Michigan utilizes an electronic insurance verification system to monitor insurance coverage for all registered vehicles. The Electronic Insurance Verification system maintains records of insurance policies reported by companies authorized to write motor vehicle liability insurance in Michigan. Insurance companies submit electronic files to the Secretary of State containing policyholder names, addresses, vehicle identification numbers, and policy numbers for verification purposes.
Peace officers verify insurance coverage during traffic stops through electronic database access. When a police officer requests proof of insurance under Michigan Compiled Laws Section 257.328, the officer may check the electronic verification system if available. If the system does not list the vehicle identification number as insured, the peace officer may accept a paper or electronic insurance certificate as evidence that required security is currently in force.
Secretary of State offices verify insurance coverage during registration transactions through the electronic reporting system. Insurance companies report policy information electronically, allowing immediate verification at the time of registration or renewal. The system provides real-time confirmation of active insurance policies for vehicles being registered in Michigan.
Exceptions to Insurance Requirements
Self-Insurance for Qualified Entities:
Large organizations, businesses, or governmental entities with significant vehicle fleets may obtain approval for self-insurance from the Massachusetts Division of Insurance. To qualify, entities must demonstrate substantial financial resources and maintain adequate reserves or bonds to cover potential liabilities. This option is typically available only to organizations with the financial capacity to handle multiple claims simultaneously.
Vehicles Not Operated on Public Roads:
Vehicles that are never operated on public ways and are not registered with the Registry of Motor Vehicles (RMV) are exempt from mandatory insurance requirements. This category includes:
- Off-road recreational vehicles: ATVs, dirt bikes, and snowmobiles used exclusively on private property or designated off-road areas
- Agricultural equipment: Tractors, combines, and farm machinery used solely on private farmland
- Construction equipment: Heavy machinery like excavators or bulldozers operating only on private construction sites
- Display or collection vehicles: Cars permanently stored and never driven on public roads
It's important to note that even brief use on public roads immediately triggers insurance requirements.
Government-Owned Vehicles:
Federal, state, and local government vehicles are typically exempt from purchasing traditional insurance policies, as they operate under governmental immunity provisions and self-insurance programs. This includes police cruisers, fire trucks, emergency vehicles, and other municipal fleet vehicles.
Non-Operational or Stored Vehicles:
Vehicle owners can legally operate without insurance if they formally surrender their license plates to the RMV and ensure the vehicle is stored entirely on private property with no access to public roads. This process requires:
- Returning license plates to the RMV before canceling insurance
- Filing appropriate paperwork declaring the vehicle non-operational
- Ensuring the vehicle remains on private property and is never driven
Nonresident Vehicles (Temporary):
Visitors, students, or active-duty military personnel with vehicles legally registered and insured in another state can generally operate their vehicles in Massachusetts temporarily without obtaining Massachusetts-specific coverage. However, if they establish Massachusetts residency or register their vehicle in the state, they must immediately comply with Massachusetts insurance requirements.
Insurance Requirements for Vehicle Registration
Secretary of State offices throughout Michigan process vehicle registration applications and renewals. Michigan law requires persons to register motor vehicles in the county where they reside.
Insurance coverage must be verified when vehicle registration is issued or renewed. The electronic insurance verification system confirms active insurance policies at the time of registration.
New Michigan residents registering vehicles from other states must establish Michigan insurance coverage. Out-of-state insurance policies do not satisfy Michigan registration requirements for vehicles being registered in the state. Persons establishing Michigan residency must register their vehicles and obtain Michigan no-fault insurance from a company licensed to write motor vehicle insurance in Michigan.
Online registration renewals are available through the Michigan Department of State online services portal. The online system processes renewal transactions for eligible vehicles with verified insurance coverage in the electronic system.
