What If I Can't Find a Michigan Car Insurance Company That'll Insure Me?

Man holding a sign on Michigan that reads "Help me get insurance!"Some motorists in the Great Lakes State may find it difficult to locate an auto insurance company in the competitive market that will provide vehicle coverage to them. Residents who are unable to find a policy provider can look for assistance from the Michigan Automobile Insurance Placement Facility (MAIPF), which was established to guarantee that automobile coverage is available to those who can't obtain a policy in the voluntary market.

MAIPF Eligibility

Michigan residents who have a car registered in the state and a valid license can seek policies through the MAIPF if refused auto coverage by companies on the open market.

Motorists do not qualify if any of the following applies:

  • The driver is not required by state law to carry no-fault coverage because he or she does not reside in Michigan and does not intend to within 30 days.
  • The driver's license has been suspended or revoked.
  • The motorist has had an auto insurance policy canceled in the past two years for non-payment of premium.
Motorists who have had an auto policy canceled because of non-payment can still get insured through the Facility if a premium installment amount is paid in advance.

Getting Insured Through the Facility

Motorists can seek assistance with applying for coverage from any agent. Agents have the names of the various companies that issue policies through the Facility, and on the application form, drivers can choose the company they want to service the policy. If no company is chosen, the Facility will assign one, which can be switched at a later date if the motorist wishes to be assigned to another company.

State of MichiganPolicies obtained through the MAIPF provide the same mandatory coverages that can be located in the voluntary market, and the motorist will receive a "binder" upon purchase of a policy. A "binder" is considered adequate proof of car insurance that can be used until the actual policy documentation is received.

The rates charged through the Facility are the same regardless of which insurer provides the policy, but they can be much higher than the rates on the open market. Motorists in need of these types of policies typically have poor driving records, so a higher premium is charged to insure them. In addition, discounts such as multi-line and multi-car are not available, which will also result in higher premiums. Motorists who are looking to buy the cheapest car insurance in Michigan should try to get covered through the voluntary market by driving responsibly and avoiding getting any dings on their driving records.