State leaders in Michigan are encouraging residents to secure auto insurance before the amnesty period expires and premiums begin to rise.
The amnesty period is part of the state’s no-fault reform legislation, which took effect in July 2020. The law provides uninsured drivers a reprieve, allowing them to obtain insurance without penalty or rate increases.
The amnesty period is set to end on January 01, 2022, meaning drivers without insurance have until December 31 to get coverage before facing penalties and stiff premiums, according to The Detroit News.
In a Press conference attended by the news outlet, Detroit Mayor Mike Duggan said that more than 100,000 previously uninsured motorists have picked up coverage because of the amnesty.
“The single biggest reason for passing this legislation was for those folks of moderate-to-low income who were driving uninsured and were at risk every day,” he said. “If you haven’t had car insurance for some time, you can be put at higher risk and when you go to buy it, the insurance company can charge you a higher rate than other drivers.”
