Michigan Being Bled Dry By Car Insurance Fraud

The state of Michigan is trying to find a way to effectively deal with the crime of car insurance fraud. According to the latest estimates, the state losses more than three billion dollars each year because of fraudulent car insurance claims. This problem has evolved over time and now more needs to be done so that the state does not continue to lose money.
A majority of these claims come because of criminals who stage car accidents. Then, they will decide to fake an injury that is not visible such as whiplash or back pain so that they can pretend to seek out medical treatments to get better. The practice is common place in all 50 states but Michigan’s problem is getting worse because it has a no fault system that drivers can use to try to commit insurance fraud easily.
When a criminal fakes an injury they will submit medical claims to the insurance company for medical treatments that never occurred. Car insurance companies often find it to be a huge undertaking to try to track down which claims are suspicious because of the circumstances that surround these staged accidents. Typically, these accidents are minor fender benders so it can be hard to pinpoint if a driver intentionally wanted to get hit from behind by another vehicle.
It takes a vast amount of financial resources to try to prosecute offenders which is why so many people are able to fly below the radar for such a long time. Many organized crime participants are creating huge insurance fraud crime rings in the state that involve everyday drivers, medical professionals, and even car insurance agency employees so that they can make as much money as possible by filing insurance claims.
From 2009 to 2010, the number of fraudulent car insurance claims increased by more than 130 percent and from 2010 to 2011 they increased by more than 60 percent so the problem has been going on for quite some time. It seems as though in the last four years that the economy has played a massive role in the number of suspicious claims and according to the latest unemployment figures for the state, this will probably not change for a long time.
There needs to be a single entity that has the authority to investigate car insurance fraud so that the individuals who commit the crime are prosecuted to the fullest extent of the law. Currently, the state ranks third on the list of states with the most fraudulent car insurance claims.
There are decent car insurance laws in place in the state but the problem is that the crime is one that needs to be taken more seriously so that it can be prevented.