Michigan auto insurance Options?
Michigan auto insurance is mandatory by the Michigan No-Fault law to all drivers through the Michigan Auto Insurance Placement Facility (MAIPF). If an insurer says you are ineligible for coverage with their company, ask the agent to submit your application to the MAIPF. Rates may be higher than what a regular company may charge, but if you maintain your policy and your driving record improves, you will be able to move to a traditional Michigan auto insurance policy.
MAIPF guarantees that automobile insurance coverage will be available to any person who is unable to get insurance through regular companies. Michigan laws created the MAIPF, but it’s not a government program, its a State Pool that spreads costs and servicing of high-risk applicants across the three auto insurance companies.
Michigan insurance rates are higher through the (MAIPF)
Auto insurance rates are higher; however, there are limits to how much an auto insurance company can charge you. Auto insurance carriers for MAIPF
After receiving your application the MAIPF will notify you of which company will be the provider of your new policy. Currently, the three auto insurance companies that are the servicing providers for MAIPF are:
- State Farm
- Auto Club Insurance Association
- Auto-Owners Insurance Company
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 been convicted of 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.
Who to contact 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 MAIPF website by visiting a filling it out your information to be contacted by licensed Michigan auto insurance agent.