While there have been a lot of measures done to address the problem, numerous cases of car insurance fraud have been documented this year. According to the latest research, more than 1 billion is being lost due to this fraudulent activity. Often, an honest motorist will have to shoulder the burden. This can increase their premiums by as much as $50. To avoid this problem, we encourage you to do business with the best used car dealership in Calgary.
Calgary Used Car Dealership: Common Signs of Car Insurance Fraud
Insurance fraud pertains to an act of cheating the insurance practice. Those who are giving false information on the quotation and making wrong claims can be considered as fraudsters. Car insurance fraud is perhaps one of the most common insurance frauds that you will encounter if you are in the process of buying new or used cars. Pay attention to these signs that will help you avoid these illegal doers.
1. Application Fraud
Failure to disclose any important information during the application process can be considered car insurance fraud. For instance, if you do not report any modifications of your car, it will be difficult for you to file a claim. In some cases, your payout can be restricted if the company finds out that you are hiding some important information. Even simple facts such as the place where you are parking your car can invalidate your insurance policy. Whether your non-disclosure is intentional or simply an honest mistake, your insurer can still hold you liable.
2. Fraud Agent
When you are looking for Calgary used cars for sale, most of the agents that you will encounter will be honest. However, once you encounter a fraud agent, you will be shocked at how much it will cost you. They can steal the premium of their client and will not appropriately set-up your coverage. You will only realize that you are not enrolled in insurance after an accident. Therefore, payment for the damages will have to come out of your own pocket. Premium theft can be avoided if you choose a reliable agent. Investigate their background and ask them questions before hiring them.
3. Bad Car Insurance
There are different ways you can acquire car insurance when you are dealing with the best used car dealership in Calgary. However, you should check first if the agency is fully licensed. The jurisdiction in the area where they are operating can be different. Knowing about the requirements of the insurance company in your local area will help you separate the authentic company from a fraud business entity. Another way to spot a fraudster is to compare their quote from the average car insurance quote.
4. Staged Accident
This is probably one of the most common types of car insurance fraud according to your Calgary used car dealership. There are different types of stage accidents such as sideswipe, panic stop, enhanced damage, wave down, drive down, swoop and squat. To avoid this, you will have to gather the necessary evidence immediately after the accident. Ask for the police report and take photos of the accident. If there are people in the area who witnessed the accident, record their contact information.
Avoiding car insurance fraud when looking for used cars is easy. The first step is to be aware that it exists. Choose your insurance agent well. Make sure that there are no erroneous statements on the contract. Ask lots of questions and do not add your signature to the contract if you are not confident with them. During an accident, call your insurance company immediately and inform them about the situation.