How do you Start Michigan Financial Responsibility?

Michigan’s financial responsibility is 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 and you cannot pay, there will be some 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 restricted license is a no photo license that limits you to drive only the vehicles are on the license.

The process to get a financial responsibility 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. It is an agreement where the uninsured at-fault driver agrees to make payments toward the judgment. It states the amount that the at-fault person has to pay and how to pay the fees.
  • You have to purchase financial responsibility insurance (SR-22 filing). Financial-responsibility insurance is a Michigan no-fault insurance policy that meets the special requirements of the financial responsibility situation.
  • There are two types of acceptable insurance policies:
  1. Owners insurance policy, which allows insures any vehicle registered in the name of the responsible driver.
  2. Operators insurance policy, which allows the responsible driver for any vehicle not registered in their name.

You need one of these types of policies, but most insurers will add a surcharge because of the additional reporting to the state. The process can take approximately a week to complete for state registration.  Your restricted license will not be valid until the state receives a copy of the certificate of insurance and the partial payment agreement.  The state of Michigan offers these policies through the Michigan Placement Facility.  

Address for Financial Responsibility certificates filings

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


Financial Responsibility SR-22 agreement


“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 inability to enter into an approved Installment Agreement will result in the suspension of your driver’s license. The state treasury may also start collection enforcement action, such as placing a levy on wages or bank accounts. You have to pay a $125 reinstatement fee to reinstate your license. 

If your driver’s license is suspended for nonpayment of fees, you must pay the full fee to the Department of Treasury, and they will reinstate your license. Also, you will need to pay a $125 driver’s license reinstatement fee to the Secretary of State. However, The Michigan Department of Treasury can reinstate driving privileges if a driver enters into an Installment Agreement. The reinstatement fee of $125 will be a part of the Installment Agreement.”

Finally, for more information on Michigan auto insurance, click our link Understanding Michigan Auto Insurance. We will show you the minimum coverage that you need to satisfy the financial responsibility requirement.