Insurance Fraud: The Growing Cost and Tips for Fighting Back
Insurance fraud is an enormous problem in Canada. KPMG estimates of a cost of $1.6 billion in Ontario alone in 2012. icandrive.ca offers tips for drivers to stop insurance fraud and keep cheap car insurance rates available to everyone.
Types of Insurance Fraud
There are many different types of insurance fraud. These range from large-scale crime rings to individual drivers who inflate or falsify claims. While crime rings involved in auto theft operations may have the biggest impact financially, every case of insurance fraud means auto insurance companies raise rates, which affects the ability of Canadians to get cheap car insurance.
Falsely reporting a car stolen, claiming previous damage to accident damage and staging a claim are all insurance fraud. Providing false information when requesting car insurance quotes can also constitute insurance fraud. Additionally, inflating the cost to repair a vehicle to increase the payout is fraud. icandrive.ca recommends all drivers to learn to recognize insurance fraud and be prepared to report it.
Recognizing and Avoiding Fraud Situations
Fraud is not always easy to recognize. It's always a good idea to be on the lookout for anything suspicious in an auto theft situation or when involved in an accident. Follow all insurance company policies when it comes to reporting an accident. Be truthful when filing a claim. If another driver involved in an accident and shows signs of suspicious behaviour report it to the insurance company right away.
Have repairs done at a reputable repair shop; most insurance companies can provide a list of shops they have worked with in the past. Report any attempt to inflate the cost of the repairs. Be sure to check over the invoices carefully.When buying a used car, use caution to avoid purchasing a stolen vehicle. Run a vehicle history report on any used car you are considering. Lookout for any signs of tampering with the VIN number on the vehicle. Buy used vehicles from reputable dealers when possible and use extra caution with private party purchases.
Reporting Insurance Fraud
icandrive.ca asks anyone who has information relating to an insurance crime to report it through the Crime Stoppers tip line or directly to the IBC through their website or toll-free tip line. Reporting insurance fraud is a vital part of reducing the impact of this crime.This means reducing the rates of Canadian motor vehicle insurance as well as reducing the use of resources involved in fighting fraud. Join in the fight against insurance fraud and help stop the rising insurance rates. Reporting all suspected insurance crimes immediately helps icandrive.ca continue to provide affordable car insurance quotes.
Learn more about Auto Insurance
Insurance can be tricky but we try to make it simple. Our car insurance guide can help explain things in simple terms to help our visitors make better decisions. In addition, our free online car insurance quotes service helps Canadian drivers find low cost car insurance without compromising the levels of coverage. We hope you give us a try.