Michigan Family's Insurance Claim Denied Due to Unlisted Children

On Christmas Eve, Kara Vogel and Carson Howatt, residents of Chelsea, Michigan, experienced a car crash involving their two young children, a 1.5-year-old daughter and a 3-month-old son. The collision occurred when another driver failed to yield while entering a roundabout, resulting in damage to their vehicle estimated between $5,000 and $15,000. Fortunately, no injuries were reported.

The Independent

Following the accident, Howatt contacted Geico to file a claim. However, he was informed that the claim would not be covered because their children were not listed on their insurance policy. Geico's policy requires all household residents, regardless of age, to be disclosed on the auto insurance policy. Howatt admitted to signing a form that stated only he and Vogel were the household members, a decision he later regretted, as he was under the impression that only drivers needed to be listed.

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Despite the initial denial, Geico later communicated that they would cover the damages after all. The couple's experience has prompted them to share their story as a cautionary tale, urging other families to review their insurance policies carefully. They highlighted that many people may not realize the necessity of listing young children on their auto insurance.

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Geico confirmed that their policy aligns with Michigan's Personal Injury Protection requirements, which were reformed in 2019 to mandate that all household members must be included on the policy. The insurer also noted that this requirement is consistent across all auto insurance companies operating in Michigan.

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The couple's situation has raised questions about the clarity of insurance policies regarding household members. Howatt mentioned that other insurance providers, such as Progressive, have different policies that do not require children under a certain age to be listed. This discrepancy has led to discussions among consumers about the adequacy of their current coverage and the potential financial risks involved.

The Independent

Geico stated, “Due to Michigan Personal Injury Protection requirements, all household residents must be listed on the auto policy, regardless of age.” This statement underscores the importance of understanding insurance obligations to avoid similar situations.

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• “We weren’t thinking like, ‘This is going to completely ruin our financial situation.’ It didn’t seem big. The airbags didn’t go off,” — Kara Vogel, Parent

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• “I didn’t think anything of it, so, I was like, ‘Yes, of course, they are my kids, and they live with me.” — Carson Howatt, Parent

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• “Progressive says if you are under 15, or 14 and 9 months when you can get a permit, you don’t have to be included,” — Carson Howatt, Parent

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This incident serves as a reminder for families to ensure that all members are accurately represented in their insurance policies to avoid unexpected financial burdens following accidents.

The Independent