For many in Michigan, the line between saving money and committing insurance fraud can be blurry. One major form of Michigan auto insurance fraud that is frequently committed by the average person rather than a hardened criminal is called premium evasion. Premium evasion is the act of obtaining insurance and intentionally concealing or misrepresenting information to the agent when obtaining auto insurance coverage. Some of the most common forms include using another persons address as the address where the vehicle is supposed to be kept. (i.e someone in a high crime neighborhood like Flint or Detroit use an address in a safer community as their own) The reasoning is simple, claims are less likely to be incurred in some communities than others, so switch (lie about) your location and you save money. Another example is getting the policy in one person’s name when the vehicle is actually being used by someone else who would be charged more for their coverage based on things like driving record, commute, credit, etc. The reality is that the insurance company has not charged you an appropriate rate based on your risk profile because you mislead them with false information.
Michigan insurance carriers regularly use Michigan private investigators like Sherlock Investigations to uncover premium evasion through interviewing, background checks and neighborhood canvassing. The cold hard facts can lead to the auto insurance carrier rescinding the policy or even in denying a claim.