MEEMIC loses appeal of frivolous coverage dispute with Auto Owners

MEEMIC was forced to pay its insureds' losses when a commercial storage facility burned and destroyed $125,000.00 of personal property owned by the insureds.  The fire resulted from an attempt  by two other men to flush the fuel lines in a stored 1966 Corvette on which the owners had obtained comprehensive coverage, only. Auto Owners had excluded any coverage for non-owned vehicles in its policy with the owner, and he obtained comprehensive coverage on that vehicle, only, with State Farm.

 MEEMIC argued that Auto Owners' policy should be re-written to provide liability coverage for all vehicles owned or registered to its insured.  The Court noted that the Legislature had written the statute in clear language that provides an option of storing a vehicle with comprehensive coverage only.  Since the vehicle was not being operated on the road, it was not required to carry full No Fault coverage, and the owner's insurer was not required to provide that coverage.