DETROIT – At least two popular car insurance providers in Michigan say state law requires you to list everyone in your household, even if they don’t drive, and includes infants.
The Michigan Department of Insurance and Financial Services says it’s up to each individual insurance provider.
Local 4 first told you about Washtenaw County couple Kara Vogel and Carson Howatt. They were nearly denied coverage for a Christmas Eve accident because they did not list their toddler and three-month-old child on their GEICO car insurance policy.
After publishing the story, Local 4 received many messages from people in the area experiencing the same thing.
“A technicality of no regard,” Justin Turk said. Turk and his wife, Crystal, are being denied for a November accident.
“I just don’t think what they are doing is right,” Frances Murphy said. Murphy is an attorney representing a woman who is being denied coverage for a 2023 accident.
“It ends up being about $10k worth, between what the car is worth and us having to move the vehicle,” Alexandrea Walker said. She and her family are being denied for a November accident.
Each of those families living in the area has been in an accident in the last few years.
After, they each submitted a routine claim with GEICO. Then came the questions.
“She then reiterated again they were both passengers, and I said, ‘yes, they were both passengers in the vehicle. I was dropping them off at school,’” Crystal Turk said. “Not thinking that would turn into a reason as to them dropping the insurance a week later.”
Each one of their claims was denied, all for the same reason, “failing to include all household residents in the application or attestation for insurance.”
Every family said they are accustomed to only listing people of driving age on their policy.
In most cases, their policy was also retroactively canceled.
“Basically, they said that on the twelfth, they decided they were going to cancel our policy due to misrepresentation and then on the fifteenth, they decided to retroact back to the date of when we purchased it in August,” Walker said.
Local 4 reached out to GEICO about each specific family’s case discussed in the story. GEICO said it was unable to comment on any specific case.
GEICO says it’s their policy because of the Michigan Personal Injury Protection law. They also say that all other auto insurance providers in the state have the same requirement.
Local 4 reached out to some of the most popular.
First up was AAA.
Their corporate team didn’t answer via email, so Local 4 called their general question line.
“Does AAA require that all household members be listed on car insurance policy - or is it just those of driving age that need to be listed?” Local 4 asked.
The AAA representative said that due to state law, everyone has to be listed, even infants.
Progressive and State Farm would not answer if they held the same policy. They requested Local 4 reach out to the Insurance Alliance of Michigan.
“Michigan’s auto insurance companies are there when disaster strikes, and they provide an important safety net including 24/7 service for Michigan drivers,” the alliance said in a statement. “Our state’s competitive market allows drivers to shop around to find a policy that works best for them and their families. Auto insurance companies are regulated by state laws and the Michigan Department of Insurance and Financial Services (DIFS) and may handle individual claims in different ways. It is important for drivers to thoroughly review and understand their individual policy, including which members of a specific household may be covered by a particular policy. It is also important to review the accuracy of the information submitted at the time of application. We encourage consumers to speak with a licensed insurance agent regarding the details of their policy to determine the appropriate coverage that best fits their needs. It is customary for insurers to ask members for information about their household and which members should be covered under a particular policy, as this information can affect insurance premiums.”
The Michigan Department of Insurance and Financial Services’ full statement is below.
“We cannot comment on specific cases, but the following information is important for Michiganders to be aware of: Under state law, insurance companies are permitted to set rates for Personal Injury Protection coverage based on the “number of dependents of income earners insured under their policy” (MCL 500.2111(2)(b)(ii)) and may require consumers to report that information under the terms of their policy. The consequences to consumers for not disclosing required information can vary, depending on the specific facts of the case. Michiganders should review their insurance documents carefully when they apply and upon renewal of their coverage and ask their insurance company or agent any questions, especially if they have a major change in their household. Additionally, if consumers have questions or concerns about their insurance policies or wish to file a complaint against an agent or company, contact DIFS at 833-ASK-DIFS, Monday through Friday, 8 a.m. to 5 p.m., or visit Michigan.gov/DIFScomplaints.”