Navigating the landscape of car insurance in Michigan can be a daunting task, especially with the complexities of No-Fault insurance laws. Amidst a plethora of providers vying for your attention, Cure Auto Insurance has emerged as a player in the Michigan market. But is Cure Car Insurance truly the solution, or “cure,” for your auto insurance needs, particularly in Michigan? Before you jump on the bandwagon, it’s crucial to take a closer look at what Cure offers and, more importantly, what Michigan drivers are saying about their experiences.
Is cure auto insurance good in Michigan?
This comprehensive guide delves into the realities of Cure Auto Insurance in Michigan, drawing upon consumer complaints, industry insights, and legal perspectives to provide you with a well-rounded understanding. We’ll explore the concerning trends and customer feedback surrounding Cure, helping you make an informed decision about whether this insurer is the right fit for you.
Cure Auto Insurance in Michigan: A Cause for Concern?
Cure Auto Insurance, officially known as Citizens United Reciprocal Exchange, made its foray into the Michigan auto insurance market in July 2021. Despite being headquartered in New Jersey, they’ve actively been selling policies to Michigan drivers. Interestingly, it wasn’t until August 2023 that Cure established a physical office in Michigan, raising questions about their initial commitment to local presence and service.
By August 2023, reports from The Detroit News indicated that Cure had insured approximately 75,000 drivers in Michigan. While this number might seem substantial, it’s important to consider it within the larger context of Michigan’s vast driving population. In 2023, Michigan boasted over 7.4 million licensed drivers and nearly 10 million vehicle registrations, according to Michigan Traffic Crash Facts. This context positions Cure as a relatively smaller player compared to the giants in the Michigan auto insurance arena, yet their impact and the concerns raised by consumers are significant.
The 25% Deposit: An Added Financial Burden for Cure Customers
One of the most distinctive – and arguably off-putting – features of Cure car insurance in Michigan is their mandatory upfront “deposit,” levied on top of the regular premium. As reported by the Detroit Free Press, this deposit can amount to a hefty 25% of your initial base premium. This additional financial burden can be a significant deterrent for many Michigan drivers, especially when seeking affordable car insurance options. Essentially, before you even receive coverage, Cure requires a substantial deposit, adding to the immediate cost of securing auto insurance.
Claim Denials and Doctor Choice: Cure’s Troubling Claim Practices
Beyond the deposit, serious concerns have emerged regarding Cure Auto Insurance’s handling of claims, particularly concerning medical coverage for accident victims and vehicle damage claims.
Fighting for Medically Necessary Care
A disturbing case from 2022 highlights Cure’s reluctance to cover necessary medical procedures. In case 22-2144, a Michigan car accident victim was denied coverage for a “spinal surgical procedure” by Cure, who deemed it “not medically necessary.” Fortunately, the Michigan Department of Insurance and Financial Services (DIFS) intervened. Upon review by a board-certified neurological surgeon with 30 years of experience, it was determined that the surgery was indeed medically necessary and aligned with accepted medical standards. DIFS subsequently overturned Cure’s denial and mandated that they cover the surgery costs, along with interest on overdue payments.
This case underscores a worrying trend: Cure Auto Insurance seemingly second-guessing medical professionals and attempting to deny coverage for treatments deemed necessary by qualified doctors. This practice can leave accident victims in a vulnerable position, battling their own insurance company for essential medical care while recovering from injuries.
Routine Claim Denials for Vehicle Damage
Adding to these concerns, Scott Watson, an independent appraiser specializing in total loss car valuations, reports that Cure routinely denies claims for vehicle damage. According to Watson, who works with numerous insurance companies in Michigan, Cure stands out for its frequent attempts to deny claims and even rescind or void policies at a significantly higher rate compared to other insurers. This suggests a pattern of aggressive claim avoidance that extends beyond medical claims to encompass vehicle damage as well.
Misleading Advice on No-Fault Coverage: Setting Drivers Up for Financial Ruin
Perhaps one of the most alarming criticisms against Cure Auto Insurance is their alleged practice of discouraging customers from purchasing adequate No-Fault medical coverage. Michigan’s No-Fault system is designed to protect drivers by ensuring medical bills are covered after an accident, regardless of fault. Unlimited No-Fault medical benefits provide comprehensive coverage without a dollar limit, a crucial safety net for Michigan drivers.
However, anecdotal evidence suggests that Cure Auto Insurance is actively advising Michigan customers to reduce their Residual Bodily Injury (RBI) limits – the coverage that protects you if you are at fault in an accident and injure someone else – from $250,000 to as low as $50,000. While this might result in a slightly lower premium, it exposes drivers to immense financial risk. In the event of a serious accident where they are at fault, a $50,000 limit could be easily exceeded by medical expenses and legal judgments, leaving the driver personally liable for potentially crippling debt and even bankruptcy.
Furthermore, reports indicate that Cure is also discouraging customers from opting for unlimited No-Fault medical coverage altogether, pushing them towards lower, fixed PIP (Personal Injury Protection) limits or even complete opt-outs. This practice is particularly concerning as it directly contradicts the fundamental purpose of No-Fault insurance – to ensure access to necessary medical care for accident victims. By pushing for reduced coverage, Cure appears to prioritize lower premiums over the crucial protection Michigan drivers need.
Ignoring Essential Coverages: Leaving Customers Vulnerable
The issue extends beyond No-Fault medical coverage. Personal injury attorneys in Michigan report that Cure Auto Insurance also discourages customers from purchasing adequate liability insurance and neglecting essential coverages like uninsured motorist, underinsured motorist, and collision coverage. These coverages are vital safeguards. Uninsured and underinsured motorist coverage protect you if you’re hit by a driver with no insurance or insufficient insurance, while collision coverage protects your vehicle regardless of fault. By downplaying or discouraging these essential protections, Cure potentially leaves its customers significantly vulnerable to financial hardship in the event of an accident.
Aggressive Claim Avoidance Tactics: A Pattern of Resistance
Michigan auto accident lawyers are increasingly observing aggressive tactics employed by Cure Auto Insurance to avoid paying out on legitimate claims. These tactics appear to be becoming more prevalent and warrant serious consideration.
Medical Necessity Disputes and Biased Medical Exams
One common tactic is disputing “medical necessity.” Cure, like some other insurers, may employ insurance company doctors – often criticized for bias due to their financial incentives – to conduct Independent Medical Examinations (IMEs). These exams can be used to generate reports arguing that treatments, procedures, or medications are not medically necessary, providing a basis for claim denial or benefit termination. The DIFS case mentioned earlier serves as a stark example of this practice, where Cure initially denied a surgery deemed medically necessary by an independent expert.
Policy Rescission: Scrutinizing Applications for Errors
Another concerning tactic is policy rescission. After an accident and claim filing, Cure may meticulously scrutinize the initial insurance application, seeking any discrepancy or error, no matter how minor, to justify rescinding the policy retroactively. This effectively nullifies coverage, leaving the insured driver responsible for all accident-related costs.
“Failure to Cooperate” Claims: Weaponizing Policy Provisions
Cure also appears to be aggressively utilizing “failure to cooperate” clauses in their policies. These clauses require insureds to cooperate with the insurer’s claim investigation. While seemingly reasonable, anecdotal evidence suggests Cure is using this provision as a tool to deny claims. Even minor perceived lapses in cooperation, or disagreements on claim handling, could be twisted into grounds for denial. Lawyers in Michigan note that Cure stands out for its aggressive use of rescission and “failure to cooperate” tactics compared to other insurance providers in the state, indicating a pattern of prioritizing claim avoidance.
Soaring Consumer Complaints: The Numbers Speak Volumes
The surge in consumer complaints against Cure Auto Insurance in Michigan is a significant red flag. Data from the Michigan Department of Insurance and Financial Services (DIFS) reveals a near quadrupling of complaints, jumping from 41 in 2022 to a staggering 150 in 2023.
This dramatic increase propelled Cure to the third-highest number of complaints among Michigan’s 85 largest auto insurers in 2023, despite being only the 20th largest insurer by market share. Furthermore, Cure also held the third-highest complaint ratio, meaning that relative to their premium revenue, they received a disproportionately high number of complaints. A concerning 76% of these complaints in 2023 were related to claims handling, highlighting significant dissatisfaction with Cure’s claim processes.
The National Association of Insurance Commissioners (NAIC) data corroborates these findings, indicating that the majority of complaints against Cure from Michigan policyholders centered around delays in claim handling, unsatisfactory settlement offers, and outright claim denials. These statistics paint a clear picture of widespread customer dissatisfaction and problematic claims practices at Cure Auto Insurance.
Is Cure Auto Insurance a Legitimate Option in Michigan? Proceed with Caution
While Cure Auto Insurance is a legally operating insurer in Michigan, the overwhelming evidence suggests that Michigan drivers should approach Cure with extreme caution. Their business model, characterized by upfront deposits, aggressive claim denial tactics, and encouragement of underinsurance, raises serious concerns about their commitment to protecting their customers.
The anecdotal evidence from personal injury attorneys, coupled with the alarming surge in consumer complaints, paints a consistent picture of an insurer that prioritizes cost-cutting and claim avoidance over fair and reliable coverage. Cure’s entry into Michigan coincided with the implementation of No-Fault law changes that significantly reduced medical provider fees, suggesting they may be capitalizing on a system that is already challenging for accident victims.
Cure Auto Insurance: Not a “Cure” for Your Car Insurance Needs
In conclusion, while the name might suggest a solution to your car insurance needs, Cure Auto Insurance appears to be far from a remedy for Michigan drivers. The numerous complaints, concerning claim practices, and promotion of inadequate coverage indicate that choosing Cure car insurance may lead to more headaches than savings.
For Michigan drivers seeking reliable and trustworthy car insurance, it’s advisable to explore other established and reputable insurers with a proven track record of fair claims handling and customer satisfaction. Protecting yourself financially on the road means choosing an insurance partner that prioritizes your well-being and provides the coverage you need, not one that seeks to minimize payouts and maximize profits at your expense.
Injured in a Car Accident? Seek Legal Expertise
If you have been injured in a car accident in Michigan, especially if you are dealing with claim issues from Cure Auto Insurance or any other insurer, it’s crucial to seek guidance from experienced legal professionals. Michigan Auto Law’s attorneys are available for a free consultation at (800) 968-1001. Their specialization in Michigan No-Fault law and extensive experience handling cases against various insurance companies can provide you with the support and advocacy you need to navigate the complexities of the claims process and protect your rights. Remember, choosing the right legal representation can make a significant difference in ensuring you receive the compensation and care you deserve.
