Auto insurance in Michigan—and across the nation—has always been a hot topic, but recent events and new data are pushing it right back into the spotlight. On September 12, 2025, CURE Auto Insurance, a New Jersey-based insurer, agreed to pay a Troy, Michigan man $75,000 for a claim on his wrecked 2020 Jeep Grand Cherokee. This payout came only after the company initially denied the claim, canceled his policy, auctioned off the SUV, and kept the proceeds, according to reporting by The Detroit News.
But that's just the tip of the iceberg. The same day, Anita Fox, director of the Michigan Department of Insurance and Financial Services, issued a strongly worded bulletin warning insurers against what she called "improper" and "abusive practices." While Fox's bulletin didn't name specific companies, the timing and details echoed the very practices CURE Auto Insurance is accused of in the Troy man's case and in other lawsuits. Fox's message was clear: "Insurers must not engage in practices that harm or disadvantage consumers when handling claims."
Fox's bulletin outlined a laundry list of unacceptable behaviors, including denying valid claims, canceling policies without adequate justification, and profiting from the sale of claimants' vehicles after denial. These practices, she noted, violate not just the letter but the spirit of Michigan's insurance regulations, which are designed to protect policyholders from unfair treatment. "We are committed to holding insurers accountable when they fail to treat Michigan consumers fairly," Fox stated.
The CURE case has become a flashpoint for broader concerns. The company is currently being sued for similar alleged improper practices in other claims, and the spotlight from state regulators is only growing brighter. For many Michigan drivers, especially those who rely on their vehicles for daily life, these revelations are deeply unsettling. After all, when you pay your premiums faithfully, you expect your insurer to have your back in a crisis—not to pull the rug out from under you.
But the story doesn't end with individual disputes. Michigan's insurance market is facing another, perhaps even more dramatic, shift—one that's affecting drivers far beyond the state's borders. According to a recent report from Insurify, as highlighted by GOBankingRates on September 14, 2025, premiums for electric vehicle (EV) drivers have soared by 16 percent in the last year alone. On average, EV owners are now paying $4,058 annually for coverage—about 49 percent more than their gas-powered counterparts, who pay roughly $2,732 per year.
Why the dramatic difference? Insurify points to the higher costs associated with repairing and replacing EVs. These vehicles, while often touted as the future of transportation, come with expensive parts and specialized labor requirements. That means when accidents happen, insurers are on the hook for bigger payouts—and those costs are being passed along to consumers in the form of higher premiums.
Not every EV is created equal when it comes to insurance costs, though. Insurify's data reveals that several popular models stand out for their particularly steep premiums. The Tesla Model X, for example, is the priciest to insure, with an annual cost of $4,765. Its gas-powered counterpart, the Audi Q3, costs $2,889 to insure—a difference of nearly 65 percent. The Model X's luxury status and advanced features, like its iconic falcon-wing doors, certainly play a role in driving up those numbers.
Even the more affordable Tesla Model 3, which starts at $44,130 according to Kelley Blue Book, carries a hefty insurance bill: $4,546 per year. That's 21 percent more than its gas-powered alternative, the Mercedes-Benz A-Class, which costs $3,592 to insure. And while the Model Y is less expensive to insure than the Model X or S, its insurance cost of $4,189 is still about 44 percent higher than the Audi Q5's $2,915. Interestingly, the Model Y also has a claims frequency of 29.47 percent, compared to just 5.22 percent for the Model S, according to data cited by Insurify from auto insights company Mitchell. That's a staggering difference and a key factor in the higher premiums.
It's not just Tesla drivers feeling the pinch. The Cadillac Lyriq, another luxury EV, costs $3,752 per year to insure compared to $2,671 for its gas-powered sibling, the Cadillac XT5—a 29 percent jump. The Hyundai Ioniq 5, which has won Kelley Blue Book's Best Buy Award in the EV class for two years running, isn't immune either. Its insurance cost is $3,503, about 34 percent more than the Hyundai Kona, its gas-powered alternative, at $2,621.
The reasons for these disparities are complex. As Insurify explained, "Premiums reflect the risk and expense of paying out claims." With EVs, the risk profile is different: batteries are costly to replace, repairs require specialized technicians, and even minor accidents can lead to expensive fixes. For insurers, that means higher potential losses—and for drivers, it means higher bills.
For many consumers, these rising costs are forcing tough choices. Some may reconsider the financial wisdom of going electric, despite the environmental benefits and potential long-term savings on fuel and maintenance. Others might be tempted to cut back on coverage or shop aggressively for better rates, hoping to find an insurer willing to take a chance on their EV at a more reasonable price.
Meanwhile, Michigan regulators are under pressure to ensure that all drivers—whether they're behind the wheel of a gas-guzzler or a cutting-edge EV—are treated fairly. Fox's bulletin, while not naming specific companies, sends a strong message to the industry: "We will not tolerate practices that disadvantage Michigan consumers." For insurers, it's a warning shot across the bow. For consumers, it's a glimmer of hope that someone is watching out for their interests.
As the auto insurance landscape continues to evolve, one thing is certain: the stakes are higher than ever. With EV adoption on the rise and regulatory scrutiny intensifying, insurers and policyholders alike are navigating uncharted territory. The coming months will reveal whether companies like CURE—and the industry as a whole—can adapt to these new realities while keeping trust with the drivers who depend on them.
For now, Michigan drivers—and EV owners nationwide—are left to weigh their options carefully, hoping that the next time they need their insurance, their insurer will be there for them, not just in the fine print, but in practice.