Moves urged to target Michigan car insurance fraud

Associated Press

Lansing – — A task force established by Secretary of State Ruth Johnson is recommending proposals to crack down on auto insurance fraud.

One proposal outlined Wednesday is for the Legislature to create an authority to attack and prosecute fraudulent auto insurance activity. Another calls for the secretary of state’s office to share insurers’ electronic verification information with police for use in traffic stops and accident responses.

Proof of no-fault insurance is required to register the 7 million passenger vehicles in Michigan each year.

Johnson says some drivers knowingly buy bad insurance but others purchase fraudulent policies and believe they’re covered until they are in an accident and file a claim.

The task force also is asking for higher penalties against unlicensed sellers of auto insurance.