Michigan lawmakers are taking aim at a little-known practice by some auto insurance companies: denying claims or canceling policies because families haven’t listed every member of their household, even those too young to drive, on their applications. The issue, brought to light by a series of investigations by Local 4, has prompted State Senator Mallory McMorrow to introduce Senate Bill 782, seeking to prohibit this practice and clarify who insurers can require to be listed on a policy.
The proposed legislation comes after numerous Michigan families found their coverage jeopardized simply because they hadn’t included non-driving family members – infants, toddlers, even adult children living at home who don’t operate a vehicle – on their insurance paperwork. This practice, although seemingly obscure, has resulted in canceled policies and, in some cases, difficulty securing affordable auto insurance, leaving families vulnerable.
Senator McMorrow, representing Oakland County and Northwest Detroit, explained that the bill stemmed directly from the reporting done by Local 4. “Kyla, this bill came out of your reporting, which led to constituents reaching out to our office, saying they did not know that this gap in the law existed,” she said, referencing the perform of Kyla Russell, a reporter with Local 4. McMorrow, who is also running for U.S. Senate, added that insurance companies have been exploiting vague language in existing regulations for years to deny coverage.
Bill Aims to Clarify Coverage Requirements
Senate Bill 782, introduced on February 11, 2026, specifically states that “An insurer shall not deny coverage for a motor vehicle accident solely because a person was not listed on an insurance application as a relative domiciled in the same household as the person named in the policy.” The bill, currently referred to the Committee on Finance, Insurance and Consumer Protection, seeks to ensure that only individuals who actually drive are required to be listed on an auto insurance policy. Details of the bill are available on the Michigan Legislature website.
The impetus for the legislation was a surge of complaints following Local 4’s initial reporting. The investigation began with a tip about a Washtenaw County family whose GEICO policy was canceled after they failed to list their three-month-old and toddler on the policy attestation form. After the story aired, hundreds of families contacted Local 4 with similar experiences, prompting further investigation and legislative action.
Families Share Stories of Unexpected Cancellations
Katie Doherty, a Michigan resident, shared her frustrating experience with Local 4. She was unexpectedly canceled by GEICO and subsequently faced skyrocketing premiums from other insurance companies due to the cancellation on her record. “Do better,” Doherty stated. “This was completely unnecessary. It didn’t save you any money, it didn’t save you any money, it didn’t do anything except cost me extra and add a lot of grief that was unnecessary.”
Legal professionals are also weighing in on the issue. Chris Camper, Owner and Lead Counsel of Camper & Associates, PLLC, described the situation as a “David and Goliath type of thing,” noting that individuals often feel powerless against large insurance companies. Frances Murphy, a personal injury lawyer at Fran Murphy Law, highlighted the potential financial impact, particularly for collision claims where the risk isn’t increased by having non-driving family members listed. Both attorneys represent clients who have had claims denied or coverage lost due to this practice.
Camper confirmed that one of his client’s cases was settled favorably, while Murphy reported an amicable resolution to her client’s claim. These individual successes, however, don’t address the broader systemic issue that Senate Bill 782 aims to resolve.
Insurance Industry Response
Local 4 reached out to several auto insurance providers in Michigan for comment but was largely directed to the Insurance Alliance of Michigan. As of February 17, 2026, the alliance had not responded to requests for comment. The lack of immediate response from the industry underscores the potential sensitivity surrounding this issue and the potential impact of the proposed legislation on their business practices.
What the Bill Means for Michigan Drivers
If passed, Senate Bill 782 would provide much-needed clarity and protection for Michigan drivers. Families would no longer have to worry about inadvertently jeopardizing their coverage by failing to list non-driving family members on their insurance applications. This change could save families hundreds of dollars in premiums and prevent the stress and inconvenience of unexpected policy cancellations.
Senator McMorrow urged constituents to contact their elected officials and voice their support for the legislation. “If this sounds like something you require, contact your elected official,” she said. “Contact your state senator, contact your representative, and encourage them to pass this legislation.”
The bill’s next step is consideration by the Senate Committee on Finance, Insurance, and Consumer Protection. Michigan residents can track the bill’s progress and find contact information for their state representatives and senators on the Michigan Legislature website.
This is a developing story. We will continue to follow Senate Bill 782 as it moves through the legislative process and provide updates as they develop into available.
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