Having the right auto insurance is essential for Edmonton drivers from all walks of life. Insurance not only protects your financial interests in the event of an accident but also provides much-needed peace of mind when you or your family members are out on the road. But while insurance is meant to help you recover when you’re the victim of an accident, some people see an insurance claim as a golden opportunity to line their own pockets. A new study conducted by Aviva, a Canadian insurance agency based in Markham, Ontario, suggests that insurance fraud is more common than most people think.
An Undercover Investigation
The study was conducted over the course of one year and involved undercover investigative work involving 10 different cars and 10 different autobody repair shops in Ontario. Aviva’s fraud management team used a team of autobody experts and engineers to willfully damage the cars, assess their repair needs, and then perform laboratory testing to determine what actual repairs were done by the various autobody repair shops.
Finding Auto Insurance Fraud
The findings of this study were astonishing. Nine out of the ten cars examined showed signs of potential auto body repair fraud. Aviva found that 57% of the repair costs billed by the chosen auto body repair shops were fraudulent. In some cases, the repairmen hired to repair the damaged cars were knowingly and deliberately causing more damage so that they could charge more.
The True Cost
Based on the results of their study, Aviva estimates that this type of auto repair fraud costs more than $500 million each year. This loss is reflected in higher premiums across the board and makes the true price of insurance fraud cost between $150 and $200 in additional premiums for every auto insurance customer every year. Insurance fraud is a burden that, due to the lack of government intervention, the average, honest, hard-working Canadian is being unjustly forced to bear.
The Importance of Finding the Right Coverage
Because of the prevalence of fraud, a good policy is more important than ever. A comprehensive auto insurance policy from a reputable insurance broker in Edmonton is the best way to make sure that you’re protected in every situation.
If you’re looking for an auto insurance policy for your vehicle, visit MBS Insurance today. One of the friendly and professional insurance brokers at our Edmonton office can help you find the right insurance products for your needs. Contact us today to learn more about the insurance products we offer or to request a free quote.