It’s no secret that everyone would like to pay less for their auto insurance. Ontarians pay an average of $1,428 for auto insurance – among the highest rates in the country.
The increase is attributed to a number of factors including the average cost of car repairs. With cars becoming more like a computer, the cost of repairs has increased significantly. For example, one back-up sensor on a car bumper costs approximately $500 and many vehicles have four, so insurance companies are no longer paying to repair just the bumper anymore. Treatment for injuries as a result of car accidents are an insurance company’s greatest expense, with healthcare costs always on the rise. Add to that insurance fraud, and the cost of what Canadians pay for insurance premiums increases.
Auto insurance fraud costs Canadians over $2 billion every year. And, honest drivers are suffering the consequences. In the past, OTIP has shared some helpful tips on how to identify and protect yourself from auto fraud scams. Our commitment to keeping you up to speed on what is happening in the industry and how we can work together continues.
A recent poll revealed that Ontarians support action to fight fraud!
- 50% believe 1 out 4 claims are fraudulent
- 88% believe that auto repair shops inflate the cost of vehicle repairs
- 73% feel that cracking down on fraud will reduce auto insurance premiums
- 74% support a new set of provincial insurance fraud offences
- 70% feel that insurance companies need to invest more resources
- 60% support an online fraud intelligence database that consumers can access before getting a car repair or medical treatment
- 53% feel that insurance companies, fraud investigators, government and police all need to take responsibility for warning consumers about insurance fraud schemes.
By working together to inform ourselves, to protect ourselves, and to apply the right kind of pressure, in the right kinds of places we can drive meaningful change.
If you have any questions about your car insurance, please give us a call at 1-888-892-4935.
Source: Aviva Fraud Report