Keeping your insurance policy information up to date can save time and money

By Erin McDonough, Executive Director of the Insurance Alliance of Michigan

Michigan’s auto insurance companies are dedicated to keeping families safe and protected.  

To do that, auto insurers rely upon clear and complete information from their customers, including information about those who live in their household.  

Accurate information from consumers allows insurers to accurately assign a level of risk, and therefore price various products appropriately. This helps keep rates in check for everyone and ensures our state’s insurance system remains stable, affordable and fair. 

To keep your family protected, it’s important to keep your auto insurance policy up to date, answer all household questions accurately and thoroughly, and review your policy every 12 months in case any information needs to be updated. Taking these steps helps to protect everyone in your home, prevent delays if you need to file a claim, and ensures that your coverage accurately reflects your current household, especially when it changes. 

At the Insurance Alliance of Michigan (IAM), we represent the state’s auto, home and business insurance companies. Our members are committed to making sure everyone receives the care and support they need, especially when disaster strikes. 

Our members have worked hard with Michigan lawmakers to pass and protect the 2019 bipartisan auto no-fault reforms. These reforms continue to save money for Michigan drivers, rein in rising costs and offer consumers more choices. 

Without accurate information from drivers about all their household members, auto insurers are hampered in their ability to offer consistent pricing, key discounts and may not create a coverage package that is appropriate for a particular family. Michigan’s auto insurance system includes the highest Personal Injury Protection (PIP) medical benefits in the country. Because these benefits are so robust, insurers depend upon knowing how many people they are covering in each household. These details ensure that the financial responsibility for this comprehensive level of protection is allocated fairly. 

Household size also helps determine fair pricing. If household information is missing or incorrect, larger households may appear smaller and pay less than their fair share. Additionally, smaller households, like a retired couple, may end up paying more to cover the risk created by larger households that do not accurately disclose key details about their family size.  

By transparently listing all household members, including children and non-drivers, the right people are matched with the right risk, and everyone pays a fair, accurate price. While children are not rated or charged as drivers, insurance companies need to know about them to make sure everyone in the household is protected in the case of an accident.  

Keeping your auto insurance policy up to date, answering all household questions accurately, and reviewing your policy each year will keep your family protected from higher rates or having your coverage impacted. By following these simple steps, Michigan’s insurance system will remain fair, stable and affordable for years to come.