Insurance Alliance: Illegal tactics brought to light by recent media reports are not deployed by IAM member companies

LANSING – Representing 95% of the auto insurance market, the Insurance Alliance of Michigan (IAM) is calling out an abusive, improper and illegal tactic brought to light by a recent Detroit News series. 

“At IAM, our members adhere to the highest standards of claims management and customer service,” said Erin McDonough, executive director of IAM. “Our core values include honesty, integrity and fairness in working with our customers. We do not condone the illegal practices recently brought to light and applaud state regulators for cracking down on them.”

Media reports showcased the practice of an insurance company denying a customer’s insurance claim, canceling their policy and then auctioning off their vehicle and keeping the money. This practice is not commonly seen throughout the insurance industry.

If anyone has concerns about their insurance carrier, IAM encourages them to reach out to the DIFS hotline at 833-ASK-DIFS or 833-275-3437. The hotline is for anyone who needs assistance navigating their personal situation.

“We fully support sending a clear message that these practices have no place in the Michigan insurance market,” McDonough said.

Following a Senate Insurance hearing today where a wide variety of topics were discussed, McDonough also urged caution and careful consideration before undermining the 2019 bipartisan reforms to the auto no-fault system which continue to reap benefits for Michigan ratepayers.

Michigan is no longer the most expensive state in the nation for auto insurance, despite offering the most generous benefits in the nation.

“We urge lawmakers to exercise caution when crafting or advancing proposals that would raise costs for Michigan families and businesses at a time when the cost of everything continues to rise,” McDonough said. “Any proposed rollbacks to the 2019 bipartisan reforms must be reviewed with an eye toward the impact on everyday ratepayers and Michigan families who are struggling to make ends meet.”

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The Insurance Alliance of Michigan is a government affairs and public information association that represents auto, home and business insurance companies and related organizations operating in Michigan. Learn more about IAM and its members on Facebook, X or at insurancealliancemichigan.org.