Recent changes effect policy holders who store a vehicle during the winter months...please read this annoucement provided by the Michigan Association of Independent Insurance Agents:

In 2011, legislation was passed that required Insurance Carriers to provide the Michigan Secretary of State (SOS) the Vehicle Identification Number (VIN) and other information every two weeks of vehicles covered with Michigan no-fault insurance. If a VIN drops off the "covered" list provided by carriers, it is red-flagged by the SOS. If someone attempts to renew plates with a VIN that is red-flagged, proof of insurance or a Certificate (COI) is required to purchase plates. 


The SOS offices have begun to follow up these cases by calling agencies (or carriers in some cases) on the COI to verify no-fault coverage. According to the SOS, the Electronic Insurance Verification (EIV) effort has resulted in a significant number of fraudulent COI being used/discovered. As a result, the SOS is now addressing processes to address specific cases involving the use of fraudulent and outdated COI, including cancelling the registration and plates within 30 days if proper documentation is not received.


It should be noted that a stored vehicle that only has comprehensive coverage is not covered by Michigan no-fault insurance and therefore the SOS cannot legally issue plates for that vehicle. However, there are alternatives to address this lack of coverage for your clients with the "cleanest" being to let the plates expire and pay the $10 late fee; if it is a historical vehicle, a lifetime plate can be purchased. 


Finally, the SOS will eventually begin sharing this information with LEIN (Law Enforcement Information Network). This will enable road patrol to verify insurance coverage electronically. While the inconvenience to your client with a stored vehicle is regrettable, it is encouraging that the issue of uninsured drivers is being addressed.

Should you have questions, please don't hesitate to call the our office.

Posted 2:32 PM

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