Michigan Financial Responsibility

Detroit Financial Responsibility Filing?

If someone is driving a vehicle without insurance and is at-fault in an accident, the injured party may file a suit against the uninsured motorist in court for damages.

If you have a financial Responsibility Judgement against you and you can not pay the judgement there will be a number of restrictions that you will face.

  • You could lose your Michigan Drivers License.
  • You will have to apply for a financial responsibility restricted drivers license.  This is a no photo license that limits you to drive only the vehicles stated on the license.

In order to get a financial responsibility restricted drivers license.

  • You have to file a partial payment agreement with the Michigan Department of State. ( A partial-payment agreement is an agreement that is signed by the injured party and the at-fault uninsured motorist, wherein the at-fault uninsured motorist agrees to make payments toward the judgment. It states a specified amount to be paid, when it is to be paid, and to whom it is to be paid.)
  • You have to purchase financial responsibility insurance. (Financial-responsibility insurance is Michigan no-fault insurance that meets the special requirements of the financial responsibility situation. There are two types of acceptable insurance:)
  1. Owners, which insures any vehicle registered in the name of the responsible party.
  2. Operators, which insures the responsible party in any vehicle not registered in the party’s name.

You can have either,or both of these types of policies, but Most insurers will surcharge these types of policies because there are a lot of additional reporting that they have to do with the state. This is a lengthy process because the application has to be sent to the home office of the issuing company, and then the  home office has to send the certificate of insurance to  the State of Michigan. This process may take up to a week to complete.  Your restricted license will not be valid until the state receives the copy of the certificate of insurance and the partial payment agreement.

Financial Responsibility certificates have to be filed here:

Michigan Department of State
Action Processing Unit
7064 Crowner Driver
Lansing, Michigan 48918-0001

The telephone number is (517) 322-6406, and their fax number is (517) 322-1767.

From Michigan.gov

“Driver Responsibility Fees must be paid to the Michigan Department of Treasury within 30 days of your notice unless you have entered into an approved Installment Agreement Payments may be made towards the Driver Responsibility Fee. However, failure to pay in full or failure to enter into an approved Installment Agreement will result in the suspension of the driver’s license and Treasury may take collection enforcement action such as placing a levy on wages or bank accounts. A reinstatement fee of $125 is required before the license is reinstated.

Once a driver’s license has been suspended for nonpayment of driver responsibility fees, drivers must pay the fee in full to the Department of Treasury. In addition, a $125 driver’s license reinstatement fee is required and must be paid to the Secretary of State. However, under certain conditions driving privileges may be reinstated if a driver enters into an approved Installment Agreement with the Michigan Department of Treasury. The reinstatement fee of $125 may be included in the approved Installment Agreement.”

For more information on understanding Michigan auto insurance go to our post Understanding Detroit Auto Insurance. You can also read about the minimum coverage that is required by the state if you have to file for financial responsibility.

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