in Michigan is notoriously expensive. The average annual premium is $2,878, 90% higher than the national average.
The reasons for this are straightforward: there are a large number of uninsured drivers, a large amount of insurance fraud, and a higher than average number of claims. Michigan’s insurers hike their rates to ensure they remain profitable despite these risks.
It is little surprise that scam artists look to exploit customers’ needs for
, shows how drivers are willing to overlook major red flags to save on car insurance.
Anthony Johnson, a 30-year-old Michigan man, was caught selling fake car insurance policies on Facebook. He had claimed the policies were backed by 21st Century Insurance Company and was offering rates as low as $150 for six-month coverage, and a 12-month policy for $200.
In reality, Johnson has never been licensed to sell insurance in Michigan, and 21st Century’s name was being used without their knowledge. The policies were completely phony.
Johnson has pleaded guilty to one count of using a computer to commit a crime, a seven-year felony, and one count of insurance fraudulent acts, a four-year felony. He will be sentenced on August 20.
"Alex Healey is an insurance writer specializing in car insurance and personal finance. Alex’s mission is to create informative, just-in-time content for car owners and buyers. Alex has written articles for Jerry on topics ranging from hybrid vehicle rankings to used car costs. Before joining Jerry, Alex worked as a digital content specialist and editor for brands including InsuranceHotline.com, Rates.ca, and Booking.com. When not writing for Jerry, Alex continues to build his freelance digital content portfolio in the insurance and automotive industries. "