My Insurance is cancelling my Policy!!!!

[skysurf]

What is the name of your state? Michigan!

Hello,

Recently I have had a bad spell with driving my car. I have a 2006 V6 Mustang that I bought last August 2006. I had no points OR insurance points when I bought my car and my insurance was only $91/month.

However, starting in Feb. things went downhill for my driving and the car. First, my car skidded on some ice and flew acrross the highway, into oncoming traffic and into a ditch (luckily didn't hit anything.) It had almost $3000 worth damage to the underbody. Then, after about 2-3 weeks, I received two speeding tickets. I went to court for both and got them reduced down to Limited Access Speeding 0-5 mph.

Then, about three weeks ago as I was driving to work a cop pulled me over as I was trying to pass another car on a local road. He handed me a citation for Passing in a no Passing zone and another one for speeding 45 on 35. I went back and looked and the sign said "Pass with Care" and he lied to my face. Anyways, I was so upset as I was getting in to work that I realized my turn a bit too late and as I turned, my car hit the curb about 30 mph. I damaged the underbody again, with another $3000 damage.

For both the accidents, there was no police report as the cop just said he would let me handle it with the insurance company and didn't write a report. So the accidents never went on my acutal driving record.

So I just received this letter in the mail from my insurance company stating they are cancelling my policy ending in December due to the two accidents and two speeding violations, as follows:

3 points (first accident)
4 points (second accident)
2 points (Limited access speeding 0-5mph)
2 points (Limited access speeding 0-5mph)
--------------------------------------------------
Total: 11 Insurance points

They are not aware of the last two citations yet as I have a denied responsibility and have to go to court for them next month. But if those stick, I am assuming I will probably have about 17-18 insurance points.

So I guess my question is: What are my options?? Would it be easy for me to switch insurance companies (I know my rates are going to be up the @## for sure....)?? Which insurance company would I be able to switch to, and is there any way I can keep the insurance rates from soaring to the sky (not take the comprehensive, etc..??)

Also, since the accidents didn't actually go in my driving record, if I switch insurance companies would they be aware of the accidents (I am sure they went on the Carfax record for the car though....)??

Should I be thinking of paying for legal help for the court case for the upcoming citations?? If so, who can I ask??

Would appreciate any help!!

 

[efflandt]

I imagine insurance cost is the least of your worries if your license is suspended from those last 2 citations. Do you have a good bicycle?

Go look where you passed that car again. From the time you started the pass until you completed it, was there a solid yellow line on your side of the centerline, or an intersection?

 

[justalayman]

You are going to get to go swimming.

You are going to be assigned to the insurance pool for a couple of years and your rates are going to be sky high for those years plus.

 

[ecmst12]

Any insurance company will know about the accidents. Do you think that insurance companies don't share information?

You might consider selling the Mustang and getting a car that's a little less "manly" and easier to control. Your insurance rates will go down with a less flashy car.

You may end up stuck with expensive crappy insurance from a company that writes for "high risk" people. But with a year like you've had, it may be your only choice. Even if you get the tickets dismissed, you're still going to have to find new insurance.

 

[justalayman]

from http://www.michigan.gov/cis/0,1607,7-154-10555_13222_13224-66774--,00.html#ineligible

What does it mean to be ineligible for coverage?

Michigan law guarantees that auto insurance will be available to all eligible Michigan citizens. The law says that you are eligible if you have a car registered in Michigan or have a valid (not suspended or revoked) Michigan driver’s license. However, there are a few reasons why a company can refuse to insure you. If an agent or company says that you are not eligible for coverage, they must give you the specific reason that you are not eligible for an auto policy with that company.

You can learn more about ineligibility by clicking here to go to our publication Auto Insurance: Are You Eligible? or to our buyer’s guide.

If you are not eligible for coverage directly in the voluntary market, you are still eligible for coverage through the Michigan Auto Insurance Placement Facility (MAIPF). This entity is created by state law, but it is not a part of state government. You can find out more by reviewing the publication The Michigan Auto Insurance Placement Facility Although the MAIPF’s rate may be higher than if you insured directly with an insurance company, any agent must submit an application to the MAIPF if you request him or her to do so.

Finally, if you have questions, please call us toll free at 1-877-999-6442 so that we can help by answering your questions.

you may very well be beyond private insurance companies and into the "pool".

go to that website and read about Mi insurance. It is different than any other states.

 

[moburkes]

Nah. He's still eligible for plain old, expensive as hell, high-risk insurance. He'll need to change his driving habits, or he'll be riding on the sidewalk with the little kiddies.

 

[justalayman]

You can be denied insurance if you have
more than six (6) eligibility points from
violations within the past 3 years.

from http://www.michigan.gov/documents/cis_ofis_ip204_25085_7.pdf (a lot of good info btw)

it would seem at this point it is up to the individual company to accept OP or not but it seems they have every right to refuse coverage.

Strangely enough, in that link, it states:

Most drivers in Michigan will be able to
get insurance under the Essential Insurance
Act. If you are unable to find insurance
through a regular company, or can only find
it at an extremely high price, you may want
to ask your agent to apply to the Michigan
Automobile Insurance Placement Facility.
The facility was created to offer insurance to
persons who have difficulty finding it
through regular companies. IF YOU ASK,
AND ARE QUALIFIED, YOUR AGENT
MUST SUBMIT AN APPLICATION TO
THE FACILITY FOR YOU.

they are inferring that the placement insurance may be less expensive than the insurance available through a private agency. Hhmm.

 

[moburkes]

That might be true, because its not an apples to apples comparison. Most FAIR plans offer the lowest liability and no extras (like comp, collision, mini tort, etc).

 

[FlyingRon]

That might be true, because its not an apples to apples comparison. Most FAIR plans offer the lowest liability and no extras (like comp, collision, mini tort, etc).

Mo, believe me, in Michigan or New Jersey, if you are eligible to be cancelled, you will be. These insurance companies have NO INCENTIVE whatsoever to write the high risk policies other than through their share of the "pool".

 

[moburkes]

Mo, believe me, in Michigan or New Jersey, if you are eligible to be cancelled, you will be. These insurance companies have NO INCENTIVE whatsoever to write the high risk policies other than through their share of the "pool".

I didn't cancel many MI policies when I processed renewals. However, now that I look back at his driving history, his accidents were pretty recent, so I would have been more inclined to do so. You're right. In general, with just tickets, I didn't cancel the policies.