CURE Insurance denies coverage for Detroit woman’s stolen car, cancels policy for ‘misrepresentation’

DETROIT – A Detroit woman says her car was stolen out of the driveway last summer while she was sleeping. It was later found to be a total loss, but she says her insurance is canceling her policy for what they call misrepresentation.

Ring camera video shared with Local 4 captured the moment the woman says thieves drove off with her 2019 Dodge on the morning of July 12.

“Open up the drapes and look outside, then discover the vehicle was missing,” she said.

It was recovered five days later and destroyed. She filed a claim with her insurance provider, CURE, a few days after.

“I was in touch with the adjuster the entire time,” she said. “The last step was to turn over the title and the key and that was the last process. When I was getting ready to ship it to her, she told me just to pause for a few minutes because they were reconsidering.”

Before the reconsideration, she says CURE told her it’d be covered. According to paperwork obtained by Local 4, the car was totaled and CURE valued the car at $22,724.

CURE sent over instructions on July 31, asking her to sign the title over.

A week later on Aug. 6, the woman received a letter from CURE saying they had learned of misrepresentation from the woman and she had failed to include all drivers listed in the household when she got her policy in Nov. 2024.

They were canceling her policy.

The woman says she listed herself as the only driver, because that’s the case. She has college-aged and young adult kids, along with a recently divorced husband. She says they do not live there, but sometimes still receive mail at the house.

The woman’s attorney sent a letter, saying she “also disclosed that other people use her address for mail purposes but do not live in the house when she was filling out paperwork after her car was stolen.”

CURE responded with another letter saying, “the decision to rescind your client’s policy has been upheld.”

“It makes me feel terrible,” she said. “It makes me feel sad. It makes me feel frustrated. We already have extremely high rates in the city of Detroit, but when you’re paying for full coverage, and something happens not at my own fault and then they renege on me, frustrated.”

She reached out to the state for help, they told her CURE had the right to rescind the policy if misrepresentation occurred.

“I am not the only one this is happening with. It is frustrating,” she said.

With the woman’s consent, Local 4 provided her name and the policy information to CURE on Sunday evening. They say they are looking into the situation.

Local 4 reached out to the Michigan Department of Insurance and Financial Services and received the following statement:

“We cannot comment on specific consumer complaints.

“State law allows insurers to set rates based on the number of family members in the household, and which individuals would be considered “resident relatives” who must be disclosed on the policy depends on the specific facts of the case as well as the terms of the auto insurance policy.

“The department’s consumer complaint process is designed to give consumers an option for potential resolution of their complaints with the department’s licensees without the expense and uncertainty of litigation. When there is a disagreement about the facts at issue, such as in cases involving alleged material misrepresentation, those questions are often resolved through the legal process.

“Michiganders should review their insurance documents carefully when they apply for coverage and upon renewal of their coverage to ensure their information is accurate and up-to-date and ask their insurance company or agent if they have any questions. The consequences to consumers for not disclosing required information can vary, depending on the specific facts of the case.

“DIFS is committed to protecting Michiganders by ensuring that insurers are acting in accordance with state and federal laws and regulations. If consumers have questions or concerns about their insurance policies or wish to file a complaint against an agent or company, contact DIFS at 833-ASK-DIFS, Monday through Friday, 8 a.m. to 5 p.m., or visit Michigan.gov/DIFScomplaints.”

Michigan Department of Insurance and Financial Services