Many Ontario Drivers Don’t Recognize Insurance Fraud’s Effects on Premiums

a freshsurvey of Ontario, Canada drivers raises concerns concerning their skillto acknowledge, and therefore reject and report, auto insurance fraud.

The survey conducted by Ipsos for the monetaryfacilitiesCommission of Ontario (FSCO) asked a chain of inquiries to gauge drivers’ knowledge and attitudes toward auto insurance fraud.

When put to the test, 27 %of drivers were uncapable of identify acts of fraud. Baby boomers, aged 5fiveand over, were maximumknowledgeable, at the same time asmillennials, aged 18-34, were least more likely to spot acts of fraud.

FSCO estimated uto insurance fraud represents from nineto one8 %of claims costs, which represents between $116 (US$87) and $236 (US$177) per average premium paid in Ontario, in line with statistics compiled by KPMG in 2010.

Other survey findings include:

Eleven %of respondents admitted they were acutely aware of a member of the family who has made an exaggerated or false claim
the most well liked form of admitted fraud was convincing an auto body repair storeso as to add in unrelated fixes and put the whole cost through insurance (fivepercent)
Only 3five%knew the way to report auto insurance fraud
Thirty-five %didn’t know that defrauding an insurance company is an offense under the federal Criminal Code
Twenty-five %didn’t know uto insurance fraud affects auto insurance premiums.

at the same time asalmostone in 10 respondents said that they had submitted an exaggerated or false claim, almosttwo in 10 admitted they know a chum who has done the similar.

Men and millennials were significantly much more more likely to confess they committed auto insurance fraud than other groups. Five %of guys admitted to saying false injury from an auto accident in comparison to only one %of girls. Similarly, nine %of millennials admitted to this in comparison to at least one %of baby boomers.

The survey was conducted as a part of FSCO’s Fraud Prevention Month campaign, which aims to extfinishawareness of potential fraudsters and victims in regards to the way to acknowledge, reject and report auto insurance fraud.

“Auto insurance fraud is against the law and factors into the price of premiums. We encourage Ontarians to reject the numerous kinds of vehicle insurance fraud and know the wayto report suspicious behavior to their local police and their insurance company,” said Tom Golfetto, executive director, Auto Insurance Division, FSCO.

FSCO recommends that drivers:

Read their insurance plans carefully – perceivetheir coverage, rights and responsibilities
Never sign blank insurance claims forms
Fill out their auto insurance application or claim bureaucracyaccurately and make sure they have gotn’t made any mistakes
stayrecords: get the names, addresses, phone numbers, registration number plate and driver’s license numbers, and that insurance datafrom all those interested in an accident. If it issafe, take picturesof the accident scene
don’t sign any documents or comply with any terms on the location of an accident
Report all accidents and losses for your insurance company
Call local police in the event that they think auto insurance fraud
Review benefit payment datafrom their insurance company to make sure that treatments, medical providers and dates are accurately listed.