How Much Notice Does an Insurance Company Have to Give Before Cancelling Your Auto Policy in Michigan?
Auto insurance can be confusing enough without worrying about whether your coverage has quietly lapsed. Many Michigan drivers believe an insurance company must give 30 days’ written notice before cancelling a policy — but that’s not always true. Under Michigan law, the amount of notice depends on the reason for the cancellation.
Cancellation for Nonpayment of Premium: 10-Day Notice
If your auto insurance policy is being cancelled for failure to pay premiums, the insurer is required to provide at least 10 days’ written notice before the cancellation takes effect.
This rule is set out in MCL 500.3020(1)(b), which states:
“A policy which by its terms is cancellable at the option of the insurer shall not be cancelled unless a written notice of cancellation is mailed or delivered by the insurer to the insured… at least 10 days prior to the effective date of cancellation, if the cancellation is for nonpayment of premium.”
That means if you miss a payment and your insurer sends a proper 10-day notice, the policy can legally terminate after that period — even if you never personally open or read the letter.
Michigan courts have upheld this rule in multiple cases, including McCune v. Grimaldi, 165 Mich App 661 (1988), and Nowell v. Titan Ins Co, 466 Mich 478 (2002).
Cancellation for Other Reasons: 30-Day Notice
If the insurer is cancelling your policy for any reason other than nonpayment, it must give a 30-day written notice under the same statute.Examples include:
- Misrepresentation on your application
- Changes in risk or underwriting eligibility
- License suspension or revocation
- Too many recent claims
These longer notice periods are designed to give you time to obtain new coverage or challenge the cancellation before it takes effect.
How the Notice Must Be Sent
Michigan law allows insurers to mail or deliver the written notice to your last known address. The notice is considered effective upon mailing, not when you actually receive it.
That means if the insurance company can prove it mailed the notice properly, the cancellation will generally be valid even if you never saw the letter.
Why This Matters
Driving without insurance in Michigan is a serious problem. If your policy lapses:
- You cannot receive No-Fault benefits if injured in your own uninsured vehicle (MCL 500.3113(b)), and
- You cannot sue for pain and suffering damages under MCL 500.3135(2)(c).
That’s why it’s so important to confirm your payments are current and keep written proof of coverage — especially if you pay monthly.
What to Do if You Receive a Cancellation Notice
- Act quickly. Ten days passes fast — contact your insurer immediately to ask if reinstatement is possible.
- Confirm the reason. If the notice doesn’t clearly state “nonpayment,” request clarification in writing.
- Save all correspondence. Keep copies of letters, emails, or billing statements in case of a dispute.
- Avoid any lapse. Secure new coverage before the effective cancellation date.
When to Call an Attorney
If you believe your policy was wrongfully cancelled, or you were involved in a crash and your insurer is denying coverage, speak with a lawyer familiar with Michigan No-Fault and insurance law. Even small procedural errors in a cancellation notice can affect whether coverage remains valid.
At JKH Law, we represent individuals throughout West Michigan in insurance coverage and bad faith disputes, helping clients hold insurers accountable when they fail to follow the law.
Key Statutory References
- MCL 500.3020(1)(b) — Notice requirements for policy cancellation
- MCL 500.3113(b) — Loss of No-Fault benefits if uninsured
- MCL 500.3135(2)(c) — Bar to tort recovery if driving uninsured
Contact JKH Law
If your auto insurance was cancelled or denied, we can review your situation and determine whether your insurer complied with Michigan law.
Contact JKH Law for a free consultation today.
