CURE Insurance Denies Claim After Detroit Woman’s Car Stolen & Totaled

A Detroit woman is facing a frustrating battle with her insurance provider, CURE Insurance, after her car was stolen and subsequently totaled. Despite initial indications that her claim would be covered, CURE reversed course and canceled her policy, citing alleged misrepresentation on her original application.

The Case Unfolds

The woman’s 2019 Dodge was stolen from her driveway on July 12th, captured on her Ring camera. Five days later, the vehicle was recovered, but deemed a total loss. She promptly filed a claim with CURE Insurance and, according to her account, maintained consistent communication with an adjuster. CURE initially valued the vehicle at $22,724 and even provided instructions for transferring the title and keys on July 31st.

Did You Know? CURE Insurance initially instructed the woman to sign over the title of her totaled vehicle on July 31st, just weeks before denying her claim.

However, on August 6th, CURE sent a letter alleging misrepresentation in her initial November 2024 policy application. The company claimed she had not disclosed all drivers in the household and, as a result, was canceling her policy.

Disputed Claims

The woman maintains she accurately listed herself as the sole driver, as that was the case. She explained that her college-aged and young adult children, along with a recently divorced husband, occasionally receive mail at her address but do not reside there. Her attorney corroborated this, stating she had disclosed that others used her address for mail purposes when filing paperwork after the theft.

Despite this, CURE upheld its decision to rescind the policy. The woman expressed significant frustration, particularly given the already high insurance rates in Detroit and the fact that the theft was not her fault.

State Involvement and Potential Outcomes

The woman contacted the Michigan Department of Insurance and Financial Services (DIFS) for assistance, but was informed that CURE was within its rights to cancel the policy if misrepresentation occurred. DIFS stated that state law allows insurers to set rates based on household members and that determining who qualifies as a “resident relative” is fact-specific and tied to policy terms.

Expert Insight: Insurance policies rely heavily on accurate disclosure. Insurers assess risk based on the number of potential drivers associated with a vehicle and address. A perceived misrepresentation, even if unintentional, can provide grounds for policy cancellation, highlighting the importance of thoroughness when completing applications.

Local 4, a news outlet, contacted CURE Insurance with the woman’s information, and the company stated they are looking into the situation. A possible next step could involve further investigation by CURE to reassess the information provided by the woman and her attorney. It is also likely that the woman could pursue legal action to challenge CURE’s decision.

Frequently Asked Questions

What prompted CURE Insurance to reconsider the claim?

CURE Insurance stated they learned of a misrepresentation in the woman’s initial policy application regarding the listing of all drivers in the household.

What was the value CURE Insurance initially placed on the totaled vehicle?

CURE Insurance initially valued the 2019 Dodge at $22,724, according to paperwork obtained by Local 4.

What did the Michigan Department of Insurance and Financial Services say about the situation?

The Michigan Department of Insurance and Financial Services stated that insurers have the right to rescind a policy if misrepresentation occurred, and that disputes are often resolved through the legal process.

Given the complexities of insurance claims and the potential for disputes over policy terms, how can consumers best protect themselves when applying for and maintaining auto insurance?