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Financial Amnesty for Uninsured Michigan Drivers Ends January 1, 2022

Michigan drivers who remain uninsured have until January 1, 2022 to take advantage of the financial amnesty by obtaining coverage. Thereafter, the limitations on insurance companies’ abilities to impose penalties on those with lapsed coverage will be lifted.


In 2020, Governor Whitmer signed automotive no-fault reform legislation into law. One of the objectives of the new law was to get more drivers in Michigan insured given that Michigan has historically had high numbers of uninsured drivers on the roads, and the new law established an amnesty program meant to address this issue. According to reports, 20% of Michiganders and 60% of Detroiters were allegedly driving without insurance when the reforms took effect.

Beginning on July 2, 2020, uninsured drivers could obtain coverage without penalties. Generally, insurance companies will impose penalties and coverage restrictions for drivers with lapsed coverage. Under the law, during the amnesty period, insurers are not permitted to limit coverage, charge a reinstatement fee, or increase the premium for a driver solely due to a lapse in coverage.

That will soon change. Drivers who remain uninsured have until January 1, 2022 to take advantage of the financial amnesty by obtaining coverage. Thereafter, the limitations on insurance companies’ abilities to impose penalties on those with lapsed coverage will be lifted.


Emily M. Vanderlaan is a litigation associate at Fraser Trebilcock serving some of the largest and most sophisticated insurers in Michigan. From case evaluation, to settlement negotiations, to trial and appeal work, Emily has experience representing insurance companies in a wide range of cases in Michigan state courts. You can reach her at (517) 377.0882 or at evanderlaan@fraserlawfirm.com.