Michigan Senate Hears Testimony About CURE Auto Insurance Abuses

The Michigan Senate Committee on Finance, Insurance and Consumer Protection heard testimony about CURE Auto Insurance’s claims handling practices at the September 17^th hearing on “Automobile Insurance Accountability and Affordability.”

The Michigan Senate lawmakers heard about the experiences of CURE Auto Insurance insureds whose vehicles were deemed a “total loss” after a crash, only to have CURE cancel their policies, refuse to pay on the claims and refuse to return their vehicles. Two of these cases were also reported on recently by The Detroit News in its exposé on CURE’s claims handling practices.

Significantly, less than a month after the publication of The Detroit News’ exposé on CURE Auto Insurance, the Director of the Michigan Department of Insurance and Financial Services (DIFS) issued, Bulletin 2025-19-INS which identified the following “claims administration practices” as “abusive” and “improper”:

• “Declaring a vehicle a total loss and accepting transfer of the vehicle’s title without first completing an investigation of the claim and agreeing to pay the claim”
•  “Inducing a claimant to transfer a vehicle’s title and subsequently canceling or purporting to ‘rescind’ the policy based on alleged misrepresentations that could have been uncovered earlier through reasonable diligence”
• “Investigating underwriting issues after a claim is filed without having reasonably investigated those issues before issuing the policy”
• “Retaining the proceeds from the sale of a vehicle transferred by the claimant after the insurer has cancelled or purported to ‘rescind’ the underlying automobile insurance policy based on alleged misrepresentations”

Consumer complaints against CURE filed with DIFS have drastically increased in the 3 years that CURE has been doing business in Michigan.

CURE’s handling of ‘total loss’ vehicle damage claims

A former CURE insured testified at the Michigan Senate hearing about her experience with CURE Auto Insurance after her vehicle was declared a “total loss” by CURE after a crash:

• CURE told her the vehicle was a total loss and had her “sign over the paperwork for my title, give my key fob and turn everything in”
• CURE said she failed to disclose that her step-daughter who was the driver of the vehicle at the time of the crash lived with her and she failed to disclose her on her policy
• CURE told her that her claim was under investigation
• CURE got a statement from her step-daughter, tried to reach her husband, visited one of her other properties, and questioned her aunt
• CURE said she failed to disclose her husband on her policy and investigated another vehicle that she owned
• CURE took issue with her mother-in-law’s use of her other vehicle
• CURE denied her claim, refunded her premiums and dropped her from her policy
• CURE never returned her vehicle to her and stopped responded altogether
• She has had to continue to pay on her vehicle, plus a replacement vehicle

There was also testimony about the experience that another CURE insured had after his vehicle was declared by CURE to be a “total loss” after a crash:

• CURE insured’s vehicle was totaled in a crash
• CURE put the claim under investigation
• CURE instructed the insured how to turn over possession of the vehicle to CURE
• CURE’s insured signed over the title to CURE, gave over the keys, and the other paperwork that CURE requested
• CURE had the insured submit to a recorded statement
• CURE decided to not pay the claim and rescind the policy because of alleged misrepresentations when the insured applied for insurance
• CURE sold the vehicle at auction for $27,000 and kept the money (but did not tell the insured)

Both of these situations were profiled in the lead article in the series on CURE Auto Insurance that was published by The Detroit News.

How will DIFS help drivers who have issues with their insurance company?

Sen. Rosemary Bayer (D-West Bloomfield) told the DIFS representatives who testified at the hearing about her constituent whose vehicle was stolen and he was accused by CURE of stealing the vehicle – only to have it later recovered, but CURE never paid on his claim so he is stuck paying for the original vehicle and for a replacement vehicle he had to buy because CURE didn’t pay on his claim and the resulting financial strain means that his home could be foreclosed on.

Specifically, Sen. Bayer asked the DIFS representatives for their thoughts on “how can we make [her constituent] whole from the punishment he received over the course of that year at the hands of an insurance company?”

One of the DIFS representatives answered:

• There’s a “mechanism we have through our complaint process to hold the insurer’s feet to the fire to make sure that they’re following the applicable terms of the policy and the Insurance Code.”
• The “other part of that is of course legal recourse that that consumer would have to go after the insurance company through the court system.”
• There “could be fines assessed, there could be punitive measures imposed on the insurance company if there is a pattern of behavior that they’re displaying.”

Although Sen. Bayer did not identify her constituent by name, it is believed that the constituent and the scenario of which she speaks is the situation in the second article in the series on CURE Auto Insurance that was published by The Detroit News.

Can insurance companies require their customers to turn over phone records?

Sen. Jeff Irwin (D- Ann Arbor) asked the DIFS representatives about insurance companies that are “requiring their customers to turn over their cell phones for investigations related to a claim.”

The DIFS representative said: “On the cell phone issue, I would love to learn more about that. I’m not aware of a specific case, but if there is a consumer that has one and wants to send it our way we could take a look at it. But yes that seems unusual to me.”

Sen. Rosemary Bayer (D-West Bloomfield) jumped in at this point: “I have one of those. Literally, that was why the claim [of her constituent] was denied. In the end, they said ‘we think you stole the truck, turn over your phone to us.’ The person said ‘no’ that’s a privacy issue. They then used that to deny the claim. A truck that was actually proven to be stolen later by the police.”

Was Your Michigan Car Accident Medical Claim Denied by CURE Auto Insurance?

If CURE has not been treating you fairly and is improperly denying your medical claim in Michigan, you can file a complaint and share your experience in any of the following ways:

• To file a customer complaint against CURE with the Michigan Department of Insurance and Financial Services (DIFS), click here.
• To file a complaint against CURE with the Better Business Bureau, click here.
• To leave a review on the Better Business Bureau’s customer reviews page for CURE, click here.
• Share your experience on Reddit in any of the following subreddits: Cure insurance claims/customer service experience, Any experience with Cure Auto Insurance?, Auto Insurance – Metro Detroit, and Any experiences with Cure Auto?, Wrong VIN On Insurance, Customer Service, Rates Doubled, Nightmare, Incorrect VIN on Insurance, and Cancelled Policy.  

Injured in a car accident in Michigan? Call the attorneys at Michigan Auto Law for a free consultation!

If you were injured in a car accident in Michigan and wondering how your CURE car insurance coverage impacts your claim, call now (800) 968-1001 for a free consultation with an experienced car accident lawyer. There is no cost or obligation. You can also visit our contact page or use the chat feature on our website.

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