When drivers commit insurance fraud, costs for all of us are driven up, according to AAA. A recent poll in Michigan states that one in six Michigan residents are aware of at least one person who has perpetrated some form of insurance misrepresentation.
Types of insurance fraud are crimes such as purposely destroying or damaging a vehicle in order to collect money, filing false stolen vehicle claims, or sending in fake bills for medical services that weren’t rendered. AAA says that these criminal actions cost the average family in Michigan $100-$200 annually as premiums are raised.
Although a felony in Michigan, phony claims are increasing in frequency. If convicted for insurance fraud one can accrue up to $50,000 in fines, possibility of four years in jail and mandatory restitution.
To raise awareness, Michigan has declared October 13-19, 2013 to be “Michigan Insurance Fraud Awareness Week.” AAA Michigan is very supportive of the state’s efforts to create awareness of this rampant problem. 94% of AAA Michigan members believe that tougher penalties and tighter controls are the way to go in preventing fraud and down the line, lower insurance rates.
AAA Michigan alone pays out millions in genuine claims every year. Likewise, this company is incredibly attentive regarding the possibility of false claims and works hard to prevent payment. AAA is quite cooperative with law enforcement to help criminals to answer for their deceit.
Please don’t allow this discussion of fraud to sway you from reporting legitimate claims, whether you are involved in or even a witness to, an accident. The insurance companies, police departments and other emergency services are there to help you in your time of need. Also, be sure to keep detailed records of accidents you are involved in. Jot down names of others involved including witnesses, addresses, phone numbers, location, and what happened. Don’t allow anyone to try to get you involved in any insurance scams or other dishonest acts. If you think you may have been scammed, please contact the police and make a report.
Be aware and only give out your personal information to the other driver, ambulance personnel, and police. There are people out there who will take any opportunity to steal ones identity.
Attentive citizens may call 1800-242-HEAT (Help Eliminate Auto Theft) and/or 1800-44-ARSON to make reports regarding possible stolen vehicles and arson. Both groups pay rewards in situations where arrests are made.
