Fighting Fraud – Dan Seibert for State Rep
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AUTO INSURANCE: Fighting Fraud

As we try to have an honest discussion (is that even possible in Lansing?) about the nation’s highest auto insurance rates it’s nearly impossible to filter the propaganda from both sides.

Michigan is 1 of 10 states without an insurance fraud bureau and it’s sorely needed. An survey found that 1 in 4 people knew someone who had submitted a fraudulent claim. There are lawyers and medical practitioners who seek out accident victims solely to submit bogus claims. The average injury claim in Michigan is $75,600 vs $13,630 in New Jersey (next highest no fault state). This drives up costs for honest customers.

Attempts to crack down on fraud have been incomplete and designed to benefit insurers. Fraud can go both ways. Since 2002 auto insurance cut-offs and denials have risen 236%. Have you ever had you an insurance claim denied? It can be very time consuming and expensive to fight, so much so that many just give up the benefits they paid for. This too costs you more as these cases go to court.

Depending on who is making the campaign donations you’ll hear politicians on different sides of this, but the bottom line is that Michigan needs an insurance fraud agency to protect both the insurers and the insured. As long as politicians put the priorities of their special interest donors first Michigan drivers are going to be stuck in neutral.

NEXT UP: Auto Insurance Medical Fees

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