Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Aug 12, 2021

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Key takeaways...

  • Michigan offers coverage for high-risk drivers through the MAIPF program
  • Any driver who is denied coverage through the voluntary car insurance market may be eligible for the MAIPF program
  • It’s illegal to drive without some type of insurance coverage

Auto insurance is mandatory if you want to be on the road. Especially if you have a few tickets, accidents, or other violations, it can be extremely expensive. Some insurance companies may even refuse to issue you coverage at any price. Things like living in an area with high auto thefts aren’t always within your control, but insurance companies may still hesitate to offer you coverage. If you find yourself in this situation, your first instinct may be to try applying with every cheap insurance company. In Michigan, the next step could be leaving the competitive market for MAIPF.

If you’ve been turned down or can only get extremely high rates, you may qualify for assistance from MAIPF. They do not issue or underwriter auto insurance policies. When qualified drivers apply, they are assigned to an insurance company who then has to offer insurance at prices approved through MAIPF.

Need car insurance in Michigan? Enter your zip code above and start comparing quotes for FREE!

Are car insurance rates higher through the Michigan Auto Insurance Placement Plan?

If you are eligible, then a car insurance company can not deny you coverage unless of course, your driver’s license is suspended or revoked along with a few other obvious reasons. You do have to be legally authorized to drive to get coverage this way.

This said, the prices will be higher than the most competitive rates for drivers with clean records. But the organization places limits on how much companies can charge you. So you may pay more for rental coverage, roadside service, and other beneficial services. But you’ll pay less than you would otherwise based on your risk profile for essential liability coverage.

Once approved, the Michigan Auto Insurance Placement will notify you of which company will service your car insurance policy. MAIPF users do not have the option to shop around if they want to take advantage of the benefits of this program just as participating insurers do not have the option to deny them as long as they’re licensed and paying their insurance premiums.

As of 2010, only 5 companies are mandated by Michigan State law to participate in this program so your service provider will be either:

  • Allstate Insurance Company
  • Auto Club Insurance Association
  • Auto-Owners Insurance Company
  • Citizens Insurance Company of America
  • State Farm Mutual Auto Insurance Company

It’s likely one of the same car insurance companies who denied you in the first place!

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Who is eligible for the Michigan Auto Insurance Placement Plan?

Any driver who is denied coverage through the voluntary car insurance market may be eligible for the MAIPF program. Complete details can be found on the MAIPF website located maipf.org or by contacting a licensed Michigan auto insurance agent.

Due to the need for car insurance for anyone operating a vehicle, states like Michigan have laws which require car insurance companies to offer coverage to everyone including high-risk drivers. The idea is that drivers who really need to get somewhere may drive with or without insurance. It’s better to have everybody meeting the state minimums in auto insurance.

Car insurance companies can deny coverage to high-risk drivers, however, when state law requires it, must be available to everyone and denial of coverage was happening far too often so Michigan created laws to help all drivers obtain car insurance.

MAIPF does not guarantee coverage for drivers who just don’t like the rates they’re getting. You have to provide reasonable proof you cannot find coverage at a reasonable rate in the voluntary market.

Not sure if you are high risk? Many car insurance companies still offer affordable policies to drivers with minor violations so always be sure to compare car insurance quotes online.

Ready to find Michigan car insurance Companies? Enter your zip code below to get started for FREE!

References:

  1. https://www.allstate.com/
  2. https://www.auto-owners.com/
  3. https://www.statefarm.com/insurance/auto/claims