Mich. Anti-Theft Efforts Lead to Millions in Insurance Savings

A new government report says that drivers in the Michigan are saving more than $50 per insured vehicle and that the insurance industry has saved $59 million over the past 15 years thanks to the help of a state-sponsored unit that combats theft and fraud.

Michigan auto theft rate graph

Click graph to enlarge

The Automobile Theft Prevention Authority (ATPA) was first established in 1986 in response to the fact that Michigan had become the auto-theft capital of the nation. By 2009, the rate of auto thefts had been reduced by 59 percent, according to the latest report.

Michigan car insurance consumers fund ATPA through a $1 assessment on vehicles, which then trickles down to fund grants for police agencies and other organizations that aim to reduce the rate of fraud and theft.

Since 1996, the authority has provided funds to law enforcement teams involved in more than 8,200 cases of fraud, amounting to nearly $60 million in denied claims and recoveries.

“Without the ATPA teams,” the report says, “these fraudulent claims would have been paid.”

Because prevention of fraud leads to fewer total dollars being spent by insurers on claims and because cutting the rate of theft means fewer comprehensive claims being filed and paid, ATPA says it has helped to reduce the cost of coverage for the average Michigander, to the tune of $52 per insured vehicle.

According to vehicle data collected by ATPA, Dodge trucks were most likely to be stolen in 2010. Of the top ten models stolen that year, six were Dodge trucks, three were Dodge Intrepids and one was a Ford truck.

The Michigan county with the highest rate of theft in 2009 was Wayne, with 17,567 total for that year.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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