If you have been convicted
of auto insurance fraud in the last 10 years, or were involved in any fraud or misrepresentation, this will affect your likelihood of obtaining insurance.
Industry estimates peg the
value of auto insurance fraud in Ontario at between 10 % and 15 % of the value of 2010 premiums, or as much as $ 1.3 billion.
The Bill has been sponsored by Boyd and it aims at bringing in reforms to the PIP or Personal Injury Protection cover or Florida No Fault insurance which has led to a
series of auto insurance frauds.
About 90
percent of auto insurance fraud is the result of claims padding (which means to add damages, injuries and fictitious passengers to insurance claims).
If you suspect an individual or
business of auto insurance fraud, you can file a complaint with the National Association of Insurance Commissioners (NAIC), which will submit your report to your state agency through an online fraud reporting system.
This is an effort by the auto insurance companies and the government to curb the growing
menace of auto insurance fraud in the state that is costing the insurance providers billions of dollars in the form of claim reimbursements each year.
NICB, an organization which takes charge in investigating
incidents of auto insurance fraud and theft, has been working hard to decrease, if not totally eliminate, the incidents of car stealing across the country.
With newer changes to auto insurance laws being brought into most states and the increase in the
number of auto insurance frauds, the cost of availing the right coverage is spiraling northward.
In the
case of auto insurance fraud, staging an accident, an injury or exaggerating the financial consequences are all examples of the crime of insurance fraud.
Other factors that affect premium price that can vary from one area or state to another are: cost and frequency of litigation; medical care and car repair costs;
prevalence of auto insurance fraud; and weather trends.
With an increase in the number
of auto insurance frauds and also the number of accidents, the cost of insuring your car has also gone up.