Uninsured Drivers Can Still Benefit From Amnesty | News, Sports, Jobs

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Uninsured Michigan drivers are reminded that January 1 is the deadline to take advantage of the state’s uninsured motorist amnesty period.

This consumer protection has already enabled more than 100,000 previously uninsured Michigan residents to purchase auto insurance without penalty, said Anita Fox, director of the insurance and financial services department.

“Before the amnesty period, drivers who let their insurance expire faced potentially costly penalties and fees if they later tried to purchase an auto insurance policy.” Fox said at a press conference on Tuesday to highlight insurance reform.

The amnesty period ensures that fees will not be charged if the driver requests a policy before the Jan. 1 deadline, Fox explained. From 2022, these costs can be billed again.

Before Governor Gretchen Whitmer signed the bipartisan auto insurance reform bill in 2019, an estimated 20% of Michiganders were driving without insurance. The amnesty period gives those who have let their auto insurance coverage expire the option to purchase a policy without penalty or premium increase if they apply for coverage from a licensed insurance agent or company insurance before the January 1 deadline.

To drive legally in Michigan, state law requires the purchase of no-fault auto insurance. Driving without insurance is punishable as an offense with a fine of up to $ 500 and up to one year in prison. The court can also order your license to be suspended for 30 days or until you are able to provide valid proof of insurance.

Auto insurance also offers financial security. If you or your family are injured in a car accident, your auto insurance will pay for all reasonably necessary expenses up to the limit of coverage you choose to purchase, as well as lost wages and service benefits. replacement.

In a serious accident, injuries can cost you hundreds of thousands of dollars. The financial security that comes with insurance is one of the most important reasons for purchasing insurance.

Fox was joined at Tuesday’s press conference by Krysten Jones, 35, of Detroit. She used to pay over $ 550 a month for auto insurance despite having a clean driving record. Jones had dropped this policy.

“I was ready to take the risk of driving without insurance” she said. “(Under the new law) I knew I could purchase coverage without paying any fees or penalties, and my rates immediately dropped by almost $ 400 per month. I recently had an accident and am grateful that I was able to get this coverage before I needed it without paying any fees or penalties. I encourage everyone to get covered as soon as possible.

Consumers who have questions about the new law, including the amnesty period, should contact DIFS Monday through Friday 8 a.m. to 5 p.m. EST at 877-999-6442 or by emailing at [email protected]

Consumers can also find a list of frequently asked questions, tips for buying insurance, and an insurance locator to help find licensed agents by going to Michigan.gov/AutoInsurance.

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