What To Do when Denied Michigan auto insurance
Michigan auto insurance is mandatory by the Michigan No-Fault law for all drivers. Michigan No-Fault law created the Michigan Auto Insurance Placement Facility (MAIPF) to provide insurance to meet this requirement when you can’t get it through a traditional carrier. If an insurer says you are ineligible for coverage with their company, ask the agent to submit your application to the MAIPF.
MAIPF guarantees that automobile insurance coverage will be available to any person who cannot get insurance through regular companies. The MAIPF is not a government program; it’s a State Pool that spreads costs and servicing high-risk applicants across all insurance companies and is serviced by three auto insurance companies.
Prior Insurance Requirements Under Michigan Auto Reform Law
Effective July 1, 2020, The law states automobile insurers shall not refuse to prospectively insure, limit coverage available to, charge a reinstatement
fee for, or increase the premiums for automobile insurance for an eligible person, as that term is defined in section 2103, solely because the person previously failed to obtain insurance.
How much are Michigan insurance rates through the (MAIPF)
Auto insurance rates are higher; however, there are limits to how much an auto insurance company can charge you. Rates tend to be higher than what a regular company may charge because high-risk drivers cost more to insure. If you maintain your policy and your driving record improves, you will be able to move to a traditional Michigan auto insurance policy. MAIPF policies require you to pay an initial deposit of $100 or 40% of your total premium, whichever is greater.
What Carriers Provide insurance with MAIPF
After receiving your application, the MAIPF will notify you of which company will be your new policy provider. Currently, the three auto insurance companies that are the servicing providers for MAIPF are:
- State Farm
- Auto Club Insurance Association
- Auto-Owners Insurance Company
Regardless of which insurer the agency assigns you, The rates will be the same with all insurers.
Who is eligible for the Michigan Auto Insurance Placement Facility?
Any driver who is denied coverage through the voluntary car insurance market may be eligible for the MAIPF program. Reasons that you may be ineligible for a traditional auto insurance company are:
- Your driver’s license is suspended or revoked.
- You have too many tickets on your record.
- You have too many at-fault accidents on your record. (usually, this will be two at-fault accidents)
- You have not maintained current insurance on your automobile above 39 days.
- You have a conviction for insurance fraud or have been denied payment of a claim over $1,000 because of fraud.
- Within the past three years, you are guilty of a felony with a motor vehicle.
- Within the past three years, you have a conviction for driving under the influence of alcohol or drugs.
- Failing to stop at the scene of an accident or getting a ticket for reckless driving.
- The car you want to insure does not meet Michigan safety requirements.
Where to get a quote if your insurance company denies you insurance:
Finally, If you have a problem with MAIPF and they cannot answer your question, contact the Department of Insurance and Financial Services
You can get auto insurance coverage provided by the MAIPF website by filling out your information with a Michigan auto insurance quote.