Transportation Law Hub

Auto insurance fraud doesn't pay. It costs the rest of us in the form of higher insurance premiums.

That’s why state officials are stepping up efforts to prosecute this insidious crime which is more common than you would think. Nationally, fraudulent auto liability claims cost the industry billions of dollars each year.

The Michigan Department of Insurance and Financial Services (DIFS) announced yesterday that an Oakland County woman has been arraigned on charges of automobile insurance fraud. The suspect was charged with one count of false pretenses and one count of insurance-fraudulent acts.

The charge alleges that in 2020, the suspect was paid over $12,000 for case management services to an automobile accident survivor, but never provided the services. The DIFS Fraud Investigation Unit, which was created as part of the reformed Michigan No-Fault Act in 2019, was assisted by the Bloomfield Township Police Department and the Oakland County Prosecutor’s Office in the investigation.

DIFS Director Anita Fox commented on the case, saying, “When insurance fraud is committed, everyone pays. Not only does the defrauded party suffer a loss, but fraud can drive up insurance premiums for all Michiganders.”

While this case may seem small, it is a small step in a larger fight to protect both individual policyholders and the Michigan insurance industry to ensure that everyone pays a fair price for insurance coverage.