Can I be Denied Auto Insurance Coverage in Michigan if I Use My Car for Work or to Volunteer?

See the original article on BizBrag

Michigan law prohibits auto insurance companies from denying or limiting auto insurance coverage if a consumer uses their car for business use or to volunteer.   Michigan drivers have a right to full coverage and, if they are denied coverage, there are a series of steps consumers can take to report this violation and resolve the situation.

Right to Full Coverage

Auto insurance in Michigan cannot be limited or refused if a car is used for volunteer work, charity work, business use reimbursed by an employer or contractor, door-to-door delivery or reimbursed sales use.  If a driver uses their car for any of these, they are still eligible for full coverage in Michigan.  Coverage option in Michigan includes:  bodily injury liability, personal injury protection, property damage liability, property protection insurance, protection against uninsured or underinsured motorists, collision coverage and comprehensive coverage, which covers you against theft, fire or other disasters.  Further, auto insurance companies cannot deny consumer claims for damage or loss when the car is used for these types of activities. 

Smart Business Practice

Businesses that use these types of drivers should take steps to make sure they have sufficient coverage to limit their liability in case someone driving for them causes damage.  Businesses can limit their liability by doing background checks and training and monitoring drivers.  If the business fails to take some preventive measures, they can be sued for negligence.    

What if a Consumer Is Refused Coverage?

If a consumer is refused coverage, they can write the auto insurance company a complaint letter and explain to the insurer that the denial violated Michigan Law MCLA 500.2118(2)(f), which prohibits denial of this type of coverage.  If a letter does not resolve the situation within 30 days, the consumer can also file a complaint with the Michigan Office of Financial Services and Insurance Services’ Consumer Services Division.  This division can be reached toll free at 877-999-6442.  Be sure to send the auto insurance company a copy of the complaint to the Consumer Services Division.  Hopefully, the insurance company will quickly provide coverage, upon receiving a copy of your complaint. 

Read More