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Consumer complaints against Michigan car insurance companies just keep on rising

October 10, 2013 by Steven M. Gursten

Which insurance companies had the most consumer complaints in 2012? Farm Bureau, MEEMIC and Home-Owners top the list

If you’re an auto accident victim who has ever had to file an insurance claim with your own car insurance company, then this data from Michigan’s Department of Financial and Insurance Services (DIFS) may likely not come as a big surprise:

Consumer complaints about insurance companies in Michigan are increasing – yet again.

According to “Insurance Complaint Statistics” data released on June 27, 2013, by the Michigan Department of Financial and Insurance Services (DIFS), overall consumer complaints against Michigan car insurance companies have steadily climbed over the past three years:

2012: 710 consumer complaints.
2011: 690 consumer complaints.
2010: 660 consumer complaints.

Which insurance companies are the worst? These insurance companies saw huge increases in consumer complaints between 2011 and 2012:

  • Farm Bureau General Insurance Company of Michigan , 100% increase in complaints
  • MEEMIC, 75% increase in complaints
  • Home-Owners Insurance Company, 60% increase in complaints
  • Auto-Owners Insurance Company, 30% increase in complaints
  • Allstate Property and Casualty Insurance Company, 22% increase in complaints

You can find this information in the “Automobile” section, which is under the “Insurance Company Complaint Ratios” section of DIFS’s “Complaint Stats and Ratios” website page.

This data is also likely only the tip of the iceberg, as most people who are mistreated by their car insurance companies do not make formal complaints. And unfortunately most insurance lawyers (like myself), normally tell people that complaining will do almost no good. This creates quite a dampening effect on the number of people who otherwise would complain if Michigan actually had a system in place to evaluate and respond to these complaints by mistreated consumers.

It isn’t entirely futile, and it’s always important to speak up when any company is mistreating you — especially car insurance companies that are required by law to insure Michigan drivers and provide them with No Fault benefits after auto accidents.

But that, you see, is a big part of the problem.

Although the law requires Michigan drivers to purchase auto insurance, the law does not provide mistreated consumers with much legal protection from insurance company abuse. Michigan has no first-party bad faith laws against auto insurance companies And mistreated consumers have no right to file a lawsuit seeking punitive damages, as they can in other states. We also don’t even have a state consumer protection act that protects people from insurance companies (the Michigan Supreme Court created a ridiculous exception for insurance companies from the Michigan Consumer Protection Act that prevents insurance lawyers from bringing lawsuits for mistreated consumers).

The jump in complaints is just a small piece of the pie considering of how bad things really are for crash victims who have open No Fault claims with their own car insurance companies.

Do you have any complaints about your car insurance company? Let our attorneys know by making a comment on our Michigan Auto Law Facebook page.

Related information:

The best insurance companies in Michigan – and the ones our lawyers recommend you avoid

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