If you unknowingly have a fake auto insurance certificate and it is found that it is not valid then you would be found to be driving without insurance.
Michigan law requires no-fault insurance so that every registered car must be insured. It is a misdemeanor to drive your car or let your car be driven without basic no-fault auto coverage. If you are convicted of driving without the mandatory MI car insurance, you may be fined up to $500, put in jail for a year or both.
If you are unable to provide proof of insurance, thus an uninsured motorist, you may be found guilty of a civil infraction. The court may order your license suspended for 30 days or until you can show proof of no-fault coverage on your vehicle. You may also be required to purchase a pre-paid non-cancelable insurance policy before you can renew your vehicle's registration.
The MI insurance regulator, Office of Financial and Insurance Services (OFIS), notes that there are also drivers who purchase phony insurance certificates knowingly to avoid paying the cost of no-fault insurance coverage. Just as we noted above this type of person would be caught driving without no-fault coverage could be guilty of a misdemeanor and subject to a fine of not less than $100 nor more than $500, imprisonment of not more than one year, or both.
Michigan Code section 500.3101a subsection (3) notes that a person who supplies false information to the secretary of state or who issues or uses an altered, fraudulent, or counterfeit certificate of insurance is guilty of a misdemeanor punishable by imprisonment for not more than 1 year, or a fine of not more than $1,000.00, or both.
The OFIS also notes that if they find someone that is making fraudulent insurance certificates or are selling them as a phony agent the OFIS will inform local law enforcement agencies for possible criminal prosecution. If you have more questions regarding the penalties for having or making a fake certificate of insurance in Michigan contact the Investigation Services department of the Office of Financial and Insurance Services at (517) 373-3718.