As everyone involved in the fight against auto insurance fraud in Michigan knows, Michigan first party or PIP fraud is one of the most prevalent and costly. Beyond the false casualty claims we find a number of other types of auto insurance fraud schemes that are also rampant and very harmful.
Auto Premium Evasion: No one wants to pay more for auto insurance than they have to, but premium evasion is the deliberate falsification of one’s address for the purpose of getting a lower rate. This is a common practice and results in significant loses for insurance carriers. If you are caught evading your premium, your policy will likely be canceled and your money lost.
Towing Scams: These are when tow trucks cruse for broken down vehicles ad render help. Unfortunately they also often over charge and many times will submit claims against your insurance carrier for other services that they did not render.
Windshield Replacement Scams: This is when a windshield repairman shows up in a parking lot and offers to fix you windshield for next to nothing. You will get a new windshield, but most of the time the installation and windshield are poor and in the end they really just want to file multiple claims against your auto insurance carrier.
Insurance Agent Fraud: This is when the agent you buy the policy from keeps your money and pretends that you have coverage. The results can be catastrophic when this happens and someone has a loss but no coverage. This happens far more often than people realize.
Counterfeit Airbags: Like it sounds, this is when a repair shop installs a counterfeit airbag during a repair job. Airbags fetch big money on the open market and the counterfeits may fail to protect you in an accident. Again, this happens way more often than people think.
Staged Accidents: Swoop and Squat, Drive Down, Flag Down and the Enhanced Damage are just a few of these. They are professional accidents and they cost insurance carriers and their insured’s a boat load of money each year. Always document any accident and report suspicious circumstances to your insurance company immediately.