Do You Need Insurance to Register a Car?

In most states throughout the U.S., you’re legally required to have car insurance to register, and drive your car. If you don’t have car insurance, you won’t be able to register your car, as the DMV requires proof of insurance to verify whether you’re abiding by the state’s insurance requirements.

Typically, every state has mandatory car insurance requirements, and you must have at least the minimum coverage. So, if you don’t fulfill your state’s car insurance requirements, you’re not eligible to register your car at the DMV.

Whether you’re registering your car online, or in person at the DMV office you will need to provide proof of insurance to proceed with your application. If you don’t have car insurance, the DMV won’t accept your application, and you will be prompted to try again after getting car insurance.

What Do You Need to Register a Car in Michigan?

Registering your car at the DMV is an official process, and it requires specific documents and information. If you’re planning to register your car any time soon, it is essential to ensure you’ve everything ready before heading to the DMV office or starting the process online.

Here in Michigan, you will need the following documents to register your car.

• Title
• VIN (Vehicle Identification Number)
• Proof of Identity (Driver’s License, State ID)
• Proof of Insurance
• Odometer Disclosure
• Statement
• Statement from Loan Provider

After you fill up the application, and the required documents, you will be prompted to pay the car registration fees. Once you pay the registration fees, and submit the application, the DMV will process your application and issue your car registration immediately.

For more information, you can refer to the guidelines provided by the Michigan State Department.

Why is Car Insurance Required to Register a Car in Michigan?

Just like most other states in the U.S., it is a legal requirement to have active car insurance to register a car in Michigan. In fact, you cannot register your car at any local DMV in Michigan without providing proof of insurance.

If you’re wondering why car insurance is a legal requirement and a direct pre-requisite, it is basically a technical approach to compel every driver to stay insured, mainly to ensure every driver is financially secured on a state or even national level.

Again, if you think of it from a psychological viewpoint, you’re compelled to purchase at least the minimum car insurance coverage mandated in Michigan.

So, right after purchasing a car if you think of registering it, you will also prioritize getting car insurance not just because it provides financial security and a legal requirement but also because you cannot register the car in your name without it.

What Type of Car Insurance Do You Need to Register Your Car in Michigan?
In Michigan, there are 2 types of car insurance that are mandatory with a minimum coverage level which includes liability auto insurance, and personal injury protection insurance. It is essential to get your car insurance policy from a reliable insurance agency in Michigan, whether you’re located in Flint, Saginaw, or Mt. Pleasant, we offer the best insurance coverage at the most reasonable rate all over Michigan.

Here’s a detailed overview of these two mandatory coverages, their limits, and how they work in Michigan as follows.

Liability Auto Insurance
Despite being a no-fault state, liability auto insurance is legally mandatory in Michigan, which is commonly known as PLPD (Personal Liability and Property Damage) Insurance.

The reason PLPD insurance is mandatory here in Michigan is that it ensures financial compensation to the other driver for any bodily injury, vehicle, and property damage for an accident in which you’re at fault. Plus, it also covers the other driver’s passengers, pedestrians, and third parties for bodily injuries and property damage.

Typically, PLPD or liability auto insurance is designed to financially protect you by compensating the other driver when you’re responsible for the accident. As PLPD insurance is a legal requirement for registering your car in Michigan, you will need to ensure having the following coverage based on the requirement provided by DIFS Michigan.

Recommended PLPD Coverage: 

• Up to $50,000 for each person injured or killed
• Up to $500,000 for each accident for several people injured or killed
• Up to $10,000 for property damage

Minimum PLPD Coverage (Mandatory): 

• Up to $50,000 for each person injured or killed
• Up to $100,000 for each accident for several people injured or killed
• Up to $10,000 for property damage

If you want to know more, here’s a detailed guide on how PLPD insurance works in Michigan.

Personal Injury Protection Insurance

PIP, or personal injury protection is a car insurance coverage mainly available in no-fault states that covers medical bills and lost wages for you and your passengers regardless of whoever is responsible for the accident.

Depending on the severity of the accident and your coverage limits, PIP insurance also covers caregiver expenses, childcare costs, household costs, funeral expenses, and death benefits paid to spouse, child, or family members who rely on your income.

As PIP insurance is mandatory in Michigan, you’re required to have PIP insurance coverage to register your car in Michigan. Since the reformation of Michigan’s auto insurance laws in June 2020, you have the option to choose among the six coverage options as follows.

1. Unlimited Coverage
2. Up to $500,000 in coverage 
3. Up to $250,000 in coverage 
4. Up to $250,000 in coverage with PIP medical exclusion(s) 
5. With this option, you can opt out of PIP medical coverage if you have non-Medicare health insurance that covers auto accident injuries. Your household members may also be excluded if they have qualifying health coverage. 
6. Up to $50,000 in coverage 
7. You can opt for this if you have Medicaid, and all your household members are also covered by another auto insurance policy, Medicaid, or health insurance that pays for auto accident injuries. 
8. PIP medical opt-out 
9. You may completely opt out of PIP medical coverage if you’re enrolled in Medicare Parts A and B. Your household members must also have either auto insurance or health insurance that provides coverage for injuries when a car accident takes place.

Note: If you don’t choose any of the options, you will automatically opt for unlimited coverage by default.

States that Don’t Require Insurance for Car Registration

It is a legal requirement to have car insurance to register a car in almost every state in the U.S. except for the 7 states which include the following.

Arizona

Mississippi

New Hampshire

North Dakota

Tennessee

Washington

Wisconsin

Even in these 7 states, it is mandatory to have car insurance to drive a car, but you can register it without requiring proof of auto insurance. Typically, New Hampshire is the only state where car insurance is not officially mandatory, but if you’re not willing to get car insurance, you must show proof of financial responsibility to register and drive a car.

So, if you’re located anywhere except the 7 states mentioned above, you must show proof of insurance or financial responsibility to register your car.

What Happens if You Don’t Have Car Insurance in Michigan?

Car insurance laws are strictly maintained in Michigan. If you’re caught driving without auto insurance in Michigan, you can face legal consequences from minor charges to severe penalties as follows.

• Fines: You can get fined up to $500 for not having car insurance in Michigan.
• Jail time: If you’re caught more than once, you can even face jail time of up to 1 year.
• Community service: The court may instruct you to provide community services for a significant time as punishment for not having car insurance.
• License suspension: Your driving license can get suspended if you don’t have car insurance. Without it, you can’t get auto insurance as a driver's license is required to purchase car insurance in Michigan. As an alternative, you will have to acquire an SR-22 Form/Insurance.  
• Vehicle Impound: Your car can get impounded if you’re caught driving without insurance, and then you will have to pay fines at the DMV to get it out of the impound lot.

The Bottom Line 

Typically, it depends on the state that you’re located in. If you’re in Michigan, or any of the 43 states that require insurance for car registration, then you must have car insurance as it is an eligibility requirement.  

On the other hand, there are 7 U.S. states that don’t require insurance to register a car, so if you’re located in those states then you don’t need insurance to register your car. However, almost every state in the U.S. requires car insurance to drive a car, so either way you need to have car insurance to stay legally compliant and financially protected.

If you’re struggling to acquire auto insurance to register your car at the DMV, or if you need car insurance urgently for registration, please contact us to get a free quote and consultation today.

FAQ

Do you need to have insurance to register a car in Michigan?

Yes, you do need car insurance to register a car in Michigan as it is a legal requirement. So, without having active car insurance, your application will not be accepted at the DMV, whether you submit it online, or by visiting the DMV office.  

Do you need insurance to transfer a title in Michigan?

As it is a legal requirement to have car insurance to register it, you need insurance to transfer a title after buying it from a seller. If you buy the car from a dealership, usually they handle the title, and car ownership. However, either way you need to provide proof of insurance to transfer a title in Michigan.  

Are car registration and insurance required to drive in Michigan?

Yes, according to Michigan’s auto insurance law, you must have insurance, and your car must be registered to drive to legally drive on the streets. If you’re caught driving without insurance and registration, you can get legally penalized which can include fines, license suspension, vehicle impoundment and even jail time.