How to prevent auto insurance fraud

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There are honest drivers on the roads. In reality, a 2021 survey by ValuePenguin indicates that 78% of consumers say they have never lied to their auto insurer.

However, 8% “misinformed” their insurers about their household drivers and 8% lied about their home address. And a 2017 Ipsos survey found that 3% of Ontarians lied when they applied for auto insurance.

“In Ontario, in particular, there is a lot of postal code fraud,” said Chantel Bandura, personal lines account manager at Leibel Insurance Group in Edmonton. “If you live in the [Greater Toronto Area] against Hamilton, your rates would be double. People just say they live somewhere else and then they get cheaper rates.

Customers can also lie about their claims experience, the number of additional drivers and their tickets.

“Tickets are important, especially now, because in Alberta we have the distracted driving ticket, which is now considered a major ticket,” Bandura said. “It’s a decline with a lot of companies – or, if they write it down, it’s a very high premium.”

In fact, Bandura had a policy in which the customer did not disclose a ticket, despite Bandura asking them to do so on several occasions. Unfortunately for him, the ticket was discovered and his annual premium increased by $ 1,100.

“The insurance company is the one that extracts the driver’s summary once the application is signed. So customers will often think they got the quote, which means they ‘ran away’ with the undisclosed ticket.” , she said. But “the insurance company ultimately makes the final decision on premiums once it has reviewed everything that has been submitted to it.”

Some clients will call multiple brokerages. “The next call they make, they don’t tell us about an accident or a suspension they had,” she said. “They learn what to say and what not to say.”

But Bandura has a process for uncovering clients’ “nondisclosure behavior”. First of all, it collects all of the customer’s information. “I can get a really good idea of ​​someone telling me things that are probably not factual. It also depends on how quickly they tell me this information, or what kind of elaborate story they give me around the question I’m asking.

Then, it will cross-reference this information with the customer’s AutoPlus report, which provides full driver information: policies, claims, tickets, cancellations and additional drivers.

Another Bandura customer wanted a quote for his two vehicles. “I asked if he had any other drivers at the house and he said his wife had her own insurance.” However, when Bandura checked the AutoPlus report, there was a third driver, his son.

And, if a driver’s AutoPlus report shows a canceled state, be sure to investigate. “Call it [insurance] the business to find out if the customer owes money. Or have the client get a claim experience letter from that company so that we can get a full picture of what happened to that policy.

However, if brokers just provide a quote to clients, “there really isn’t a centralized database for brokers to share information because it’s just a quote,” Bandura said. “That’s why it’s important that brokers are well trained, but they also need to listen as much as they talk. Sometimes customers tell you more by what they don’t say, ”she said.

With 15 years in the insurance industry, Bandura knows what to ask and what to listen to. As for new brokers? “They get caught on stuff,” she said. “But that only happens once.”

Featured Image by iStock.com/SolStock


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