(PRWEB) August 09, 2011
According to the government of Ontario, the new Auto Insurance Anti-Fraud Task Force will be investigating the cost of auto insurance fraud, its geographic distribution, the best prevention practices in other jurisdictions and a host of other factors that will aid in the development of recommendations aimed at minimizing the level of auto insurance fraud in Ontario via preventative methods and detection programs. If fraudulent claims go down, eventually insurance rates should also start to decrease accordingly. Because a lower insurance rate is something that all consumers have an interest in pursuing, InsuranceHotline.com focuses on this objective.
Currently, the Ontario government estimates that this form of fraud is a billion dollar business in the province. Auto insurance fraud is typically categorized as either opportunistic or premeditated fraud. Some of the most common types of auto insurance fraud include:
Anyone caught carrying out insurance fraud will face consequences which can vary based on the type and the severity of the fraudulence. Some examples of the penalties of getting caught or of attempting to commit auto insurance fraud include:
“While it’s unlikely that forgetting to mention a minor traffic violation when signing up with a new insurance provider will result in the cancellation of your policy, it is important for consumers to be mindful of types of fraud and the potential consequences because insurance fraud is a serious matter,” says Tammy Ezer of InsuranceHotline.com. “We all pay for insurance fraud in the form of higher premiums so it’s in everyone’s best interest to be aware and to be honest when providing information for insurance quoting or claiming.”
Everyone can play an important role in fighting auto insurance fraud. Some of the best ways to combat this type of fraud include:
Insurance rates are impacted by fraudulent claims and each company’s experience in this area will differ. It is important for consumers to check for potential savings annually whenever their policy is up for renewal. The company that had the best rate for a consumer's car and driving profile last year may not be the one that can offer the best rate today or even next year. Consumers should shop around to see if they could be saving money on their car insurance.
InsuranceHotline.com is a free online insurance rate comparison service that directs consumers to its large network of more than 30 insurance companies and licensed insurance professionals and provides quotes based on the lowest rates available through its network. In business since 1994, InsuranceHotline.com does not sell insurance, is not a licensed broker, and is not owned in whole or in part by an insurance company, agent or brokerage; ensuring consumers get a truly unbiased quote.