Rising Insurance Premiums Partly Caused By Fraud

When it comes to insurance there are lots of ways to cheat the system and the ones who end up paying for this crime will always be you, the honest and fair average consumer who just wants to do the right thing in order to protect themselves and their family from a loss.

We all know that proper insurance will cost a premium and it’s not an investment in the traditional sense, since there won’t be a return on your money. In fact, you really hope it never comes down to having something happen that requires a claim, since that means there was an incident or accident which created the loss but for which there could be inconvenience and distress, or worse, pain, suffering or loss of life.

Of course, when there is a serious incident or accident that involves a lot of damage and bodily injury or death, you’ll be quite relieved to know that by paying for good coverage, you’ll have good protection and the comfort of knowing that things will be taken care of on your behalf.

Still, the point of this conversation relates to fraud and its’ negative affect on insurance premiums. It’s appropriate to have this discussion during March, which is Fraud Prevention Month, and to know that individually and as a whole, the police, the Federal and Provincial Governments, and the insurance industry are working diligently to prevent fraud and prosecute those who are breaking the law.

Image courtesy of CFIB

Of course, like any other crime, the public needs to be as involved in the prevention of this reprehensible activity and assist the experts by engaging in the process, learning how scammers and fraudsters work the system and being ready and willing to report wrong doing when they see it happen. Watch for several upcoming posts that detail how insurance fraudsters work the system and cheat everyone else out of their hard earned money.