One insurance company may no longer be allowed to offer seven-day insurance policies to customers in Michigan.
The Michigan Department of Insurance and Financial Services is withdrawing its approval of Integon National Insurance Company’s Jump Start Program. The department says the seven-day policies undermine no-fault coverage.
But seven-day insurance allows motorists who can’t afford high rates to renew their license plate tags, says Brian Banks, spokesperson for the Detroit Fair Insurance Group, an initiative advocating for lower insurance rates in Michigan.
“People have to revert to the seven-day policy because of the astronomical insurance rates in Detroit and other surrounding urban areas,” he says. “If that’s going to be taken away, we need to look at true auto reform that deals with eliminating redlining.”
Banks says motorists tend to use the seven-day policy as a last resort.
The Michigan Department of Insurance and Financial Services says the decision is under administrative review and declined to comment further.