Often the most traumatic part of a car accident is the impact. But one Michigan woman left feeling like she was “tossed aside” after she was allegedly blindsided by her insurance company.
Carl McCaskill of Oakland County told ClickOnDetroit that on May 2 of last year, another car “came by at about 40-50 mph” causing a traffic accident. [miles per hour]He was trying to get around the traffic and was nibbling at us.
McCaskill had two passengers at the time; Her 12-year-old daughter and her daughter’s friend. Thank God, all three escaped unhurt.
McCaskill said he filed a claim with insurance company GEICO and “the process proceeded as it normally does.” But the claim required a police report recording McCaskill’s two teenage passengers.
Even though he received notice that his car was worth more than $25,000, he said the insurance company he had happily worked with since 2014 remained silent about his claim. It even got to the point where he couldn’t log into his insurance app to check the status of the claim, he added.
Finally, weeks later, he received an answer he never expected.
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Instead of a standard update on McCaskill’s claim, her letter from GEICO stated that its policy was “under review for retroactive cancellation” until its most recent renewal, citing “non-disclosure of all resident relatives” in McCaskill’s home.
In other words, they canceled the insurance of his 12-year-old daughter, who was not legally allowed to drive, because she did not include him in the personal injury protection (PIP) declaration of coverage.
To make matters worse, because her daughter’s friend involved in the collision had gone to the doctor for a post-accident checkup, GEICO filed documents with McCaskill to file a complaint against both her and the doctor, claiming that they were not obligated to provide medical coverage because the aforementioned McCaskill had not enrolled her daughter in insurance. But the doctor in question did not even request payment from GEICO, the story adds (1).
Meanwhile, the case raises questions about who car owners must list on their car insurance forms and whether insurance companies can cancel coverage if you don’t include a minor who isn’t even legally allowed to drive.
Direct Auto, a division of Allstate, notes that “Generally speaking, insurers will ask you to list all household members when applying for an auto insurance policy,” but that “young children (usually under the age of 14) should be exempt” (2). Other insurance companies, including Michaels Group, recommend the same, adding: “Unlicensed children generally do not need to be listed as drivers” (3).
But state laws can complicate things. “Some states require that all household members, including those who do not drive, be listed on your car insurance policy,” says CarInsurance.com. “It ensures that any situation in which someone else can drive your car, even temporarily, is covered” (4).
Meanwhile, Michigan law has its own quirk. They state that “the classifications and regional base rates used by an insurer in this state with respect to automobile insurance” must be applied based on specific requirements, including “the number of dependents of earners insured under the policy” (5).
The law, then, seems to leave room for discretion for the insurance company as to whether to cover a collision, since there is no age limit for dependents on the policy. This also creates a potentially expensive situation for many drivers who assume that only dependents of driving age should be included in their policies.
In a different report from ClickOnDetroit, insurance provider AAA confirmed that auto insurance policies “must list everyone, even babies, due to state law” (6).
However, insurance companies clearly have leeway to provide coverage.
Another story about a crash in Michigan involved a local couple, their two young children, and their GEICO insurance. The couple told local Fox 5 station that on Christmas Eve 2025, their car was hit by a driver while the entire family was inside. And although they fortunately didn’t suffer any serious injuries, they say GEICO told them that not enrolling their one-year-old and three-month-old children on their insurance policy “could impact” their insurance policy. Still, the couple says GEICO ultimately agreed to cover the damage to the car (estimated at up to $15,000), so they did not suffer the same fate as McCaskill (7).
McCaskill’s attorney, Chris Camper, told ClickOnDetroit that the situation made him feel “like he did something wrong and was faced with a $25,000 or $26,000 lease.”
GEICO said it complies with all state insurance regulations regarding claims and coverage and cannot comment on pending litigation. Specific attorneys representing GEICO did not respond to requests for comment (1).
According to the Insurance Information Institute (III), the average collision settlement payout in 2024 was $5,489, while the average personal injury settlement was $28,278 (8).
Of course, the cost of a car collision can add up quickly depending on the severity of the damage and whether there are any injuries. And because different states have varying laws (including disclosing dependents on your insurance forms), it’s best to talk to your insurance agent about your household members to make sure you won’t be denied coverage due to incomplete disclosure.
However, if you find yourself in a dispute with your insurance provider, there are important steps you can take to help resolve the situation.
III recommends reviewing your policy because “Most companies offer arbitration or evaluation services to help resolve differences and disputes. Your insurance policy will explain these options.” They add that sending documents containing all relevant information along with a letter to the insurance company can help you complete your case (9).
Law firm DM Injury Law says supporting evidence should include everything from police reports and witness statements to repair estimates.
They add that comprehensive documentation can significantly increase your chances of winning an appeal (10).
If all else fails, III and others note that it may be necessary to contact your state’s insurance regulator, an arbitrator, or even an attorney to get what you believe you are owed.
And although it adds the cost of extra legal fees, Babcock Tucker Labor Lawyers recommends: “Most likely, once you retain an attorney and he or she contacts your insurance company, the dispute will be resolved out of court” (11).
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ClickOnDetroit (1); Direct Auto (2); Source name (3); Carinsurance.com (4); Michigan legislature (5); Click on Detroit (6); Fox 5 (7); Insurance Information Institute (8); Insurance Information Institute (9); DM Injury Law (10); Babcock Tucker Labor Advocates (11)
This article provides information only and should not be construed as advice. It is provided without any warranty.
