New Scam Costing All Michigan Drivers $108 A Year

By: Hannah Saunders Email
By: Hannah Saunders Email

"He said, well you have whiplash. We can see about that," A Michigan woman involved in a car accident over the summer made promises from a stranger on the phone, "...we can get a minimum $1000 for you and your mother."

She's one of many who are being promised money, and being pushed into visiting new doctors who charge insurance companies thousands for MSRIs and other procedures Douglas Kane of Farm Bureau Insurance says they don't always need.

"They're often times being diagnosed with conditions that do not exist or they're being treated for conditions that are not legitimate."

All the scammers have to do to find you is go online. We've found several websites where you can search for any accident in Michigan by date and get the information on the drivers involved.

"There is, I would say, a network of organizations that all participate...it can be the medical provider, it can be the attorney, it can be the auto repair facility," continued Kane.

It's hurting the insurance companies, but mostly their customers.

"Those losses all drive up the premiums for everyone else who's paying insurance in Michigan," said Lori Conarton, who works for the Insurance Institute of Michigan. She says this new scam takes advantage of Michigan's no-fault policy.

"There is no cap. I f you're injured in an auto accident, your insurance will provide medical treatment for your injuries for your lifetime."

It's already cost drivers a total of $865 million, and is expected to go even higher.

Legislation is pending in the state senate which would create an Auto Insurance Fraud and Theft Authority, following what 41 other states have already done to keep these crimes from happening.


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