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The serious consequences of auto insurance fraud

Using a relative’s rural address to save on your auto insurance seems harmless enough. Sure, you may save a few hundred dollars a year, but this simple act is actually considered insurance fraud and there are serious consequences if you get caught.

Misrepresenting your address on your auto insurance application to pay a lower premium is known as rate evasion. And, this practice is hurting all insurance customers.

Insurance provider Aviva Canada estimates that auto insurance fraud costs more than $2 billion every year. As a result, the costs are passed onto customers through higher premiums.

Beware of anyone who suggests they know how to get you a lower rate – they may help you unknowingly commit rate evasion fraud. Some of these unlicensed insurance scam artists actually charge people for their “services,” which amount to little more than conspiracy to commit fraud.

Always use a licensed and registered insurance broker to help you set up your policy accurately and legally. You also can contact your insurer directly.

Even if you have honest intentions, you could become a victim of this kind of insurance fraud if you’re not careful.

More info at avivacanada.com/fightfraud.               

                                                                                                                               – News Canada  

Posted: Aug 2, 2018

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