AAA Warns of Insurance Fraud

By Matthew Askari | October 15, 2013
Auto insurance fraud costs insurance companies millions, but those costs are also passed on to the consumer. In Michigan, fraud has become so commonplace that AAA in Michigan reports one in six people there know someone who has committed insurance fraud. The result, is an extra $100 to $200 on average that residents pay there on account of the fraud. To help bring awareness to the situation, Michigan Governor Rick Snyder has proclaimed "Michigan Insurance Fraud Awareness Week" October 13-19. A recent survey conduct by AAA in the state revealed that 94 percent of residents were in favor of tighter controls and stiffer penalties if it meant a reduction in their monthly premiums. AAA Michigan has asked residents to keep an eye out for suspicious activity, which can range from a simple exaggeration of medical care or vehicle body work, to more sophisticated rings involving multiple vehicles. The association also asks that people involved in accidents not provide any personal information to people other than those who were involved in the accident, or law enforcement officials. Concerned residents can also call 1-800-242-HEAT (Help Eliminate Auto Theft), where their tips can be rewarded with $1,000 for information that leads to the arrest and trial of a car thief, or $10,000 for the arrest or trial of ring members or chop shop operators. Source: AAA Michigan
 
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