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The Essential Insurance Act guarantees that auto and home insurance will be available to most Michigan citizens. The law states that you are eligible for home insurance if you live in and rent or own one of the following: a house, a condominium, a cooperative unit, a room, or an apartment.
To calculate the IPT for general insurance, simply multiply the premium by 12%. For example, if the premium is 100, the IPT would be 12. For life insurance, the rate of IPT is 20%. To calculate the IPT for life insurance, multiply the premium by 20%.
Some qualified paid health insurance premiums may be deducted from income when calculating the homestead property tax and other credits allowed on the Michigan income tax return.
DIFS regulates banks, credit unions, insurance companies, insurance agents, insurance agencies, mortgage licensees, and consumer finance-related entities. Learn more about DIFS.
The premiums tax is calculated at 1.25% of gross direct premiums written on property or risk located in Michigan. Insurance companies are permitted certain exclusions from the tax base and a limited number of insurance-specific credits.
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While Michigan does not impose premium taxes on captives, they do have to pay a renewal fee, which is based on captives premium volume. The minimum renewal fee is $5,000, and the maximum is $100,000.
Penalties for Driving Without Insurance in Michigan Type of OffenseLicense and/or Registration Suspended?Maximum Fines Fees No Proof of Insurance (Can Prove Coverage Later) No $25 mandatory fee 1ST Offense With No Coverage Yes, license $200-500 Repeat Offense (No Coverage) Yes, license $200-500 Jul 17, 2023
4% on all other contracts of insurance.

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