Possible Ban On "Jump Start" Insurance

The Detroit News reports, Michigan is attempting to end seven-day auto insurance policies popular with cash-strapped drivers in Detroit and other urban areas, arguing the “jump start” policies undermine state law requiring continuous no-fault coverage. The policies effectively allow motorists to skirt the law by obtaining insurance needed to renew their vehicle registration and license plate tabs each year without committing to keep coverage beyond seven days.The Michigan Department of Insurance and Financial Services last month informed Integon National Insurance Company of North Carolina, which underwrites here, that it was withdrawing approval for seven-day policies the state had approved in 2011.


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