Did you know insurance fraud can increase your premiums by $100-200 dollars even if you had nothing to do with it? Unfortunate, but it is the truth. The reason for this is because once an insurance company gets defrauded, the company’s bottom line or “profit” is the first and most important thing that is affected. Every dollar paid out due to fraud is a loss to the company and its shareholders.

Also, one of the primary objectives of a company is to make money and not take losses. With that in mind the first thing a company might do is to try and minimize those cost; if that fails the next viable option would be to try and offset or pass along those costs or losses. In the case of insurance companies, those costs are passed along to us the policy holders in the form of insurance premium increases.

Neinstein and Associates, a law firm in Toronto Canada that specializes in personal injury cases recently published a very detailed article exploring the topic of auto insurance fraud and how it affects drivers their premiums. Within the article, a spokesperson for the Ontario Financial Services Commission was quoted saying:

“Drivers can avoid auto insurance fraud by not using referrals recommended to them while they’re at the scene of an accident, whether it’s legal services, a health clinic or a garage to fix their car”

Protect yourself, be prepared with ClaimCast to help minimize your risk of being involved in an insurance fraud case. Use ClaimCast Connect to discover “preferred” services professionals that have been certified by your insurance company. A referral is no longer necessary, everybody gets the best price.

If you choose not to go through your insurance company, not to worry; ClaimCast holds every business, service provider and contractor within our network to the same standard of integrity. Also, until April 11th 2014 you can win a free iPhone 5s preloaded with the ClaimCast app to help protect yourself, visit www.claimcast.ca to enter.

Full article: Neinstein “Beware of auto insurance fraud”

Beware of auto insurance fraud