Michigan drivers can soon show proof of auto insurance with their phones

Michigan Auto Insurance rates

Governor Snyder signs legislation to make showing proof of insurance more convenient

Drivers in Michigan will soon be able to show proof of their auto insurance coverage using only their smartphones. Governor Rick Snyder has signed new legislation that makes this possible, noting that the goal of the legislation is to make everyday life easier for consumers that operate vehicles. The law itself is set to go into effect in three months. Before then, consumers will still need to provide physical proof of their auto insurance coverage.

Officers will be able to receive electronic proof of auto insurance coverage

When drivers are pulled over, they will be able to provide an electronic copy of their auto insurance certificate using their smartphones. This system also prevents law enforcement officers from looking at other information while viewing a driver’s smartphone, as they will only have access to the electronic insurance certificate. Officers will also be able to request drivers to forward a copy of the electronic certificate to an outside source. Drivers that fail to provide adequate proof that they are insured will, of course, face penalties based on the state’s insurance laws.

Those unable to provide proof of insurance will still be penalized by state law

Michigan Auto InsuranceAccording to Michigan law, drivers unable to provide proof of their auto insurance coverage during a traffic stop or after an accident can avoid paying fines if they are able to provide proof that they were insured before the incident before their court appearance date. Even if drivers are able to do this, however, a judge may impose an assessment of up to $25.

Auto insurance prices are still on the rise in Michigan

The convenient nature of this new service may be welcome among drivers in the state, but many are expressing concern for a more troubling issue: The rising cost of auto insurance coverage. Insurers have been raising rates in order to offset financial losses they have experienced over the past few years, with many of these losses being the result of fraud. Insurance fraud continues to be a costly problem for insurers and consumers alike.

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