Can I Be Denied Auto Insurance in Michigan?


Michigan state and symbolsA motorist can be denied automobile coverage in Michigan, but only for specific reasons. The Essential Insurance Act was designed and implemented in the Great Lakes State as a way of requiring insurers to offer policies to any eligible drivers. This is particularly important because it is illegal to drive in MI without first buying coverage that meets the state’s requirements. If an individual is ineligible to receive coverage for almost any reason, there is still away to become sufficiently insured. Residents often have the option of applying to the Michigan Automobile Insurance Placement Facility to have a policy located for them.

Although many motorists can purchase Michigan auto insurance without difficulty, there are various reasons why an individual may be rejected by insurers, despite the presence of the Essential Insurance Act. These reasons often include:
  • Having a revoked or suspended license
  • Being convicted of attempting to defraud an insurer in the past 5 years, or having been denied payment of a claim over $1,000 because of fraud
  • Being guilty of driving while under the influence, failing to stop after an accident or driving recklessly within the past three years
  • Registering a vehicle that does not meet the state’s safety requirements
  • Having previous vehicle coverage that was canceled for non-payment within the past 2 years
  • Not meeting the specific requirements for certain types of coverage that require the driver to belong to or join a specific group, organization or club
  • Having an excessive number of points on their driving record
  • Failing to meet specific underwriting guidelines
If a motorist is considered ineligible by a specific insurer, they still must purchase vehicle coverage before legally driving. If a resident is convicted of driving without being adequately insured, they may face a fine of up to $500 and/or a jail sentence of up to a year.
Vehicle owners in the Great Lakes State should know that even if an individual is ineligible for a specific policy, there are still other Michigan car insurance companies that may be able to provide adequate coverage.

To find these insurers, residents are urged to go online and complete a quote comparison. Doing so often produces dozens of quotes in a short amount of time from potential policy providers, giving drivers a variety of options and an increased chance of locating policies. If a motorist is unable to find a suitable policy after an extensive search, they may also want to apply to the Michigan Automobile Insurance Placement Facility for assistance.
The Great Seal of The State of Michigan
This facility is designed to help motorists  meet state coverage requirements and adhere to MI auto insurance laws needed to legally drive. They typically assist drivers in contacting potential insurers that may be able to provide reasonable coverage, by providing residents with information about specific companies that specialize in insuring individuals who are ineligible for vehicle protection other carriers.