Will Auto Insurance Policy in Michigan Cover Out of State Claim?
Reader’s Question:
In a couple of months, I am planning to move to PA. My present address is in Battle Creek, MI where my family lives and I intend to keep my car insurance here. My dad told me that my insurance policy won’t be honored once I moved to PA and if ever I get into an accident, he can be sued? Is this true?
Nicole
Battle Creek, MI
First thing you have to do is to speak with your car insurance agent regarding your plan to move to Pennsylvania. The car insurer can tell you if you would still remain on your dad’s policy but usually the answer is no. In cases where you move away from home, especially out of state, and since the car is no longer garaged at the household address listed on the policy, an insurance provider will likely no longer carry you and the vehicle on the current policy.
Normally, car insurance companies will follow the limits set by the state where you’re operating a vehicle in cases where you are only visiting or are driving through a state and not when you have moved there for good. If you fail to inform your insurance company regarding moving out of state, or properly changing your coverages over to PA insurance, this would likely be taken as misrepresentation by the Michigan insurer which is a form of auto insurance fraud and is a reason to deny your insurance claims.
If your car insurance did not accept the claim and/or if your car insurance limits were too low and exceeded, your father, both you as the driver and your father as the car owner could be held liable and sued. Your father may face a serious liability putting his assets at risk so make sure that your liability limits are sufficiently high enough.
Where Do I Get Michigan SR22 Insurance
Reader question:
I have gone everywhere I can think of, but nobody will sell me a Michigan SR22 car insurance policy. I need my license already. I need to stop stressing and just drive. What can I do? Do I have any recourse?
Julia
Excellent questions, Julia.
Worry no more. You have the guaranteed ability to get Michigan SR22 insurance if the state requires it of you, although you might not want to take advantage of their options just yet. First of all, ask yourself if you have truly looked as far and wide as you seem to think you have. You might have to talk to an insurance agent to help you out, but you should check the companies which offer high risk policies. At a somewhat higher price, these businesses will insure pretty much anyone, and it’s better than the final resort.
But if not that, then the final resort…which is to phone the Michigan Department of Insurance and ask to apply for their assigned risk statewide pool for auto insurance. You will be placed into the pool, and from their assigned completely at random to any of the licensed companies in the state, who will then have to sell you a Michigan SR22 policy–they won’t do it cheaply, though.
Cheers,
Fashun Guadarrama.
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