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Michigan Drivers Mostly In Favor Of New Car Insurance Law

Michigan has a no fault insurance law which has opened itself up to many fraudulent car insurance claims. Politicians have been trying for years to pass legislation that will help to resolve the issue. In June, the state passed something called HB 5701. This piece of legislation is one in which there would be something called the Michigan Insurance Fraud Awareness Coalition. This coalition would be tasked with taxing car insurance companies and some entities.

The 21 million dollars that would be raised in tax money would help to fund car insurance fraud investigations.

It is important to find, charge, and prosecute criminals who commit car insurance fraud because it can deter crime. More than 75 percent of drivers in the state are in favor of this law because they want to see these criminals brought to justice. The amount of money that Michigan drivers have to pay for their car insurance coverage is quite high.

Some drivers do oppose this new piece of legislation. The Coalition Protecting Auto No-Fault has stated that it is opposed to the law because it would threaten the state’s no fault system that has been in place for decades.

A recent poll was done using 600 drivers and more than 90 percent of them stated that they feel that car insurance fraud does cause insurance premiums to go up.
Approximately sixty percent of people said that they would pay a few dollars extra in car insurance premiums each year to pay for insurance fraud investigations. This shows just how important drivers in the state view these investigations. One important statistic was that one in six drivers knows someone who has committed auto insurance fraud. This means that people need to speak up because the only way to prevent car insurance fraud is to speak up and notify the proper authorities.
Many people are silent when it comes to reporting fraud because they themselves feel that they do not want to make waves and possibly place themselves and their family members in danger. Many crime rings have ties to organized crime so people can be threatened in order to stay quiet about what they know.

There are anonymous ways to give information about people who are committing car insurance fraud. People can anonymously call the Insurance Commission and just give out information and not provide their name, address, or telephone number. If Michigan residents do not speak up then the criminals who commit car insurance fraud will win and they will lose. Car insurance premiums can only drop if people are socially responsible and try to help these investigations. In a time where many drivers go without insurance because of premium increases, it is vital to act swiftly.