Rising costs in auto insurance

sant93sant93
in FSCO.Covgs

The wiki article says the the major driver is accben and BI, but notes that "accben is the better answer here". Why are costs rising faster in accben than BI out of curiosity?

Another (perhaps obvious) question - why do we seperate accben into sub coverages like income replacement, medical, rehab... but we dont do the same for bodily injury?

Comments

  • grahamgraham

    From the Canadian Underwriter:

    • Auto accident benefits fraud is “a huge business,” IBC senior analyst Kate Ryan said during a presentation at Insurance Analytics Canada Summit in 2017. Ryan noted staged collisions continue to be used to defraud insurers.
    • A lot of the time people will pay money to get a seat in a car being used in a staged collision, Ryan said at the time. “They will pay the recruiter $200 or whatever to be physically placed in the car because now they can open up an accident benefits claim and basically drain the insurance company out.”

    I think it might be easier to commit fraud with accident benefits because you're only dealing with one insurer, your own, whereas with liability, the money ultimately comes from the other person's insurer.

    I'm not really sure why accident benefits is split into so many categories versus liability, but that isn't something you would have to know for the exam.

  • sant93sant93

    one other question... in ontario if I get into an at-fault accident and I have injuries... then I will claim from my own insurer under accident benefits
    .. and if I cause injuries to a third party.. then if they sue me for the cost of their injuries... it will go under bodily injury?

    like are do bodily injury claims exist only if the third party sues the at-fault driver?

  • Staff-T1Staff-T1

    Well even if you don't sue, your insurer will try to get recoveries from the at-fault driver so it will still exist then

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