What does it mean to be ineligible for coverage?

Michigan law guarantees that auto insurance will be available to all eligible Michigan citizens. The law says you are eligible if you have a car registered in Michigan or have a valid (not suspended or revoked) Michigan driver's license. However, there are a few reasons why a company can refuse to insure you. If an agent or company says you are not eligible for coverage, they must give you the specific reason you are not eligible for an auto policy with that company.

If you are not eligible for coverage directly in the voluntary market, you are still eligible for coverage through the Michigan Auto Insurance Placement Facility (MAIPF), although the rates may be higher than if you insured directly with an insurance company. The MAIPF is created by state law, but it is not a part of state government. You can find out more by reviewing the publication: The Michigan Auto Insurance Placement Facility. Any agent must submit an application to the MAIPF if you request him or her to do so.