How does anti-fraud have an effect on car insurance charges? – Journey

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There is a difference between being truly forgetful and deliberately misrepresenting the address

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Caitlin McCormack, LowestRates, approx Car insurance Photo by Getty

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It's safe to say that Canada's housing market is on fire big numbers of people who have moved or are planning to move in the last year. There are many address updates associated with a move. Even if you can easily remember to update your address at the post office or at your bank, don't forget your insurance company.

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Insurance fraud may not be a priority when moving is on your agenda, but it's a real problem people should know about. Whether intentionally or unintentionally, failure to update your address with your insurance provider or file damage to your old address before moving can have serious consequences. Here's what you should know about address fraud and how it can affect your business Car insurance tariff .

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How does anti-fraud affect car insurance rates? Back to the video

Incorrect address information is increasing

As reported by Canadian underwriter Earlier this year, "Aviva Canada data shows a 9.1% increase in Ontario and a nearly 7% increase in national misrepresentation claims when counting the pre-COVID (April 2019 to March 2020) times with the The previous year (April 2020 to March 2021). . "

It is common knowledge that where you live there is a significant impact on your insurance plan, with customers in one zip code potentially paying hundreds of dollars more per year in premiums than someone in a nearby neighborhood.

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It may be tempting to deliberately misrepresent your address in order to benefit from discounted insurance rates, but this is a clear case of fraud and could cause a lot of headache with your insurance company now and in the future.

According to the Financial Services Regulatory Authority (FSRA), those who give their address incorrectly (whether on purpose or not) could void their insurance coverage (which would appear like you never had insurance, which will negatively impact your history ), their policy canceled will increase their premium in the future or they will even be denied future insurance altogether. Attempting to make a claim at your old address may be denied or considered fraudulent. If your insurance company decides to bring you to court for fraud, you could face criminal charges and jail time if convicted.

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When to update your address

While you want to update your information as soon as possible, you have some time to make changes, especially if you move to a different province. For example, if you move from Alberta to British Columbia, you have 30 days to register, license and insure your vehicle at your new address.

If a policyholder omits or provides incorrect information in their insurance contract, this is considered policy fraud. One of the most common types of policy fraud is the misrepresentation of address information.

Bryant Vernon, Aviva Canada's chief claims officer, said insurance fraud costs us all. In an interview with Canadian Underwriter, Vernon said, "An estimated $ 2 billion in annual insurance fraud costs in Canada will ultimately be passed on to honest, mostly damage-free drivers in the form of higher premiums."

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A lot happens when you move and it's easy to forget to tell your insurance provider about your new details. Mistakes can happen. So be honest with your broker or insurance provider if you really forgot to update your information in a timely manner. However, it is extremely important that you update your information as soon as possible so as not to be accused of fraud. You don't want to remain uninsured due to negligent oversight or be accused of insurance fraud.

LowestRates approx is a free and independent price comparison website that enables Canadians to compare prices from over 75 vendors on a variety of financial products such as auto and home insurance, mortgages, and credit cards.

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