Cure Auto Insurance has entered the Michigan auto insurance market promising savings and a fresh approach. However, for Michigan drivers seeking reliable protection and peace of mind, cure auto insurance might not be the remedy they’re hoping for. Instead of a cure, customers may find themselves facing a host of problems, from unexpected upfront costs and denied medical claims to dangerously inadequate coverage advice. Before you consider cure auto insurance for your vehicle in Michigan, it’s crucial to understand the potential pitfalls.
Consumer complaints against cure auto insurance have alarmingly increased, nearly quadrupling in a single year, according to the Michigan Department of Insurance and Financial Services (DIFS). Despite being only the 20th largest auto insurer in Michigan, Cure ranked third highest in the number of complaints in 2023 among the 85 largest insurers. This isn’t just a few isolated incidents; it’s a pattern of dissatisfaction that Michigan drivers should be aware of.
Concerned driver looking at car insurance paperwork, highlighting the complexities and potential pitfalls of choosing the wrong insurer.
The 25% Upfront Deposit: A Costly “Cure”
One of the first shocks for new customers of cure auto insurance in Michigan is the mandatory 25% “deposit” tacked onto their premium. This isn’t a down payment that reduces your overall cost; it’s an additional fee, on top of your already calculated premium. For Michigan drivers already facing some of the highest auto insurance rates in the nation, this extra deposit from cure auto insurance adds a significant financial burden right from the start.
The Detroit Free Press has reported that this deposit, equal to 25% of your initial base premium, means you’re paying more upfront for the same coverage compared to many other insurers who don’t require such a deposit. This practice by cure auto insurance essentially increases the immediate cost of obtaining car insurance, making it less accessible, especially for those on tighter budgets. It’s a financial hurdle that many Michigan drivers simply don’t need, and it certainly doesn’t feel like a “cure” for expensive auto insurance.
Claim Nightmares: Why Cure Auto Insurance Falls Short
Beyond the upfront costs, the real test of any auto insurance company is how they handle claims when accidents happen. Unfortunately, this is where cure auto insurance appears to significantly falter, based on consumer complaints and legal cases. Reports indicate a troubling trend of claim denials, disputes over medical necessity, and tactics to avoid paying out valid claims.
Second-Guessing Doctors and Denying Necessary Medical Care
A disturbing example of cure auto insurance’s claim handling is their tendency to question medical necessity and deny coverage for crucial treatments. In a documented case (DIFS Case No. 22-2144), cure auto insurance refused to cover a Michigan car accident victim’s spinal surgery, claiming it wasn’t medically necessary. This denial occurred despite the victim’s doctor recommending the surgery.
The Michigan Department of Insurance and Financial Services (DIFS) intervened, and a board-certified neurological surgeon, with decades of experience, reviewed the case. This independent expert concluded that the surgery was medically necessary and aligned with accepted medical standards. DIFS ultimately overturned cure auto insurance’s denial and ordered them to pay for the surgery plus interest on the delayed payments.
This case highlights a deeply concerning practice: cure auto insurance seemingly prioritizing cost-cutting over patient well-being, even to the point of contradicting medical professionals. This approach can leave car accident victims in agonizing situations, delaying or denying them the medical care they desperately need after an accident. It’s far from a “cure” for the aftermath of a car crash; instead, it adds significant stress and financial uncertainty during a vulnerable time.
Policy Rescission: Finding Loopholes to Avoid Payouts
Another troubling tactic reportedly employed by cure auto insurance is policy rescission. This occurs when, after an accident and a claim is filed, the insurance company meticulously examines the initial application, seeking any discrepancy or alleged misrepresentation to retroactively cancel (rescind) the policy. If successful, cure auto insurance can then deny all coverage, leaving the policyholder responsible for all accident-related costs.
Scott Watson, an independent appraiser who assists individuals with total loss car claims and works with nearly every insurance company in Michigan, notes that cure auto insurance stands out for its aggressive use of rescission. According to Watson, cure auto insurance attempts to deny claims and rescind policies at a much higher rate than other insurers in Michigan. This suggests a pattern of actively seeking ways to avoid financial responsibility after accidents, rather than providing the promised protection.
“Failure to Cooperate” Tactics: Another Claim Denial Strategy
Furthermore, anecdotal evidence from Michigan personal injury attorneys suggests cure auto insurance is becoming increasingly aggressive in using “failure to cooperate” clauses to deny claims. Most insurance policies require policyholders to cooperate with the insurer’s claim investigation. However, cure auto insurance appears to be interpreting this clause broadly and using it as a tool to deny legitimate claims.
While specific instances are anecdotal, the consistent reports from multiple attorneys who deal with various insurance companies paint a concerning picture. These legal professionals observe that cure auto insurance is uniquely aggressive in leveraging the “duty to cooperate” to avoid payouts, far more so than other insurers operating in Michigan. This tactic adds another layer of difficulty for policyholders trying to navigate the claims process and receive the benefits they are entitled to after an accident.
Dangerous Coverage Advice: Underinsuring Michigan Drivers
Beyond claim issues, there are serious concerns about the coverage advice being provided by cure auto insurance. Reports and anecdotal evidence suggest that cure auto insurance is actively encouraging Michigan drivers to select lower levels of coverage, particularly when it comes to No-Fault medical benefits (PIP) and liability protection. This advice, while potentially lowering premiums in the short term, can have devastating long-term financial consequences for drivers and their families.
Pushing for Low PIP Coverage: Risking Financial Ruin
Unlimited No-Fault medical benefits (PIP) coverage is a cornerstone of Michigan auto insurance, designed to protect individuals injured in car accidents, regardless of fault, covering all necessary medical expenses, no matter how high. However, cure auto insurance appears to be steering customers away from this vital protection, advocating for lower, fixed PIP coverage limits or even complete opt-outs of No-Fault medical coverage.
While the 2019 Michigan auto insurance reforms introduced options for lower PIP coverage levels to reduce premiums, choosing these lower limits, or opting out entirely, carries significant risk. If seriously injured in an accident and medical bills exceed the chosen limit, or if No-Fault coverage is waived, individuals become personally responsible for potentially catastrophic medical debt. This can lead to financial ruin and bankruptcy.
Disturbingly, cure auto insurance seems to promote these lower coverage options as a positive feature. The CEO of cure auto insurance reportedly stated that “94% of all the people that buy car insurance from CURE are choosing an option that was introduced under this new law,” referring to options with less than unlimited PIP. While presented as customer choice, this statistic raises concerns that cure auto insurance is actively incentivizing and selling policies that leave Michigan drivers dangerously underinsured and financially vulnerable.
Neglecting Essential Liability and Uninsured/Underinsured Coverage
In addition to PIP coverage, adequate liability insurance and uninsured/underinsured motorist coverage are crucial for comprehensive protection. Liability coverage protects you if you cause an accident and are sued for damages. Uninsured/underinsured motorist coverage protects you if you are hit by a driver with no insurance or insufficient insurance to cover your injuries.
Anecdotal evidence suggests cure auto insurance is also discouraging customers from purchasing sufficient liability coverage and neglecting to emphasize the importance of uninsured and underinsured motorist protection. These coverages are relatively inexpensive but provide critical financial safety nets in the event of serious accidents. By downplaying or discouraging these essential coverages, cure auto insurance may be leaving its customers exposed to significant financial risks.
Customer Complaints Skyrocket: The Numbers Speak Volumes
The rising tide of consumer complaints against cure auto insurance provides further compelling evidence of the issues Michigan drivers are experiencing. As previously mentioned, complaints nearly quadrupled from 41 in 2022 to 150 in 2023, according to DIFS data.
This dramatic increase is not simply due to growth in market share. While cure auto insurance expanded its presence in Michigan, the complaint ratio – the number of complaints relative to premiums collected – also placed them third highest among the largest insurers. This means that even when accounting for their size, cure auto insurance generates a disproportionately high level of dissatisfaction among its customers.
Furthermore, a staggering 76% of the complaints against cure auto insurance in 2023 were related to claims handling. This reinforces the concerns about claim denials, unsatisfactory settlements, and delays in the claims process. Data from the National Association of Insurance Commissioners (NAIC) confirms these trends, highlighting delays, unsatisfactory settlement offers, and outright claim denials as the primary drivers of complaints against cure auto insurance in Michigan.
Is Cure Auto Insurance Legit? A Questionable Choice for Michigan
While cure auto insurance is a legally operating company in Michigan, its practices and customer feedback raise serious questions about whether it is a good choice for Michigan drivers seeking reliable and comprehensive auto insurance. The combination of upfront deposits, aggressive claim denial tactics, and potentially dangerous coverage advice paints a concerning picture.
The anecdotal evidence from legal professionals and the data from regulatory bodies like DIFS and NAIC strongly suggest that cure auto insurance is not living up to the expectations of many Michigan drivers. Choosing cure auto insurance might seem like a way to save money initially, but the potential for claim denials, underinsurance, and financial hardship in the event of an accident makes it a risky proposition. For true peace of mind and reliable protection on Michigan roads, drivers may be better served by considering other, more established and customer-centric auto insurance providers.
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