Home > Help Centre > Blog Insurance fraud and scams are a widespread problem across Ontario. All drivers must be conscious of the types that can be staged. Otherwise, you could become a victim. Fraudulent activity is one of the leading causes of higher rates. Fraud not only impacts the victims and insurers, but also impacts all drivers by increasing costs. It's estimated to cost the insurance industry about $1.3 billion a year in Ontario. Insurance fraud is the intentional or unintentional act of deceiving an insurance company for financial gain. Committing this crime includes : The are many consequences for being involved in insurance fraud : Insurance fraud is a crime. You could face criminal charges and jail time if convicted. The charges include :
According to the Criminal Code of Canada :
380 (1) Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretense within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service,
Insurance scams are one of the main reasons drivers pay some of the highest premiums for Ontario auto insurance. Here are some of the most common automobile-related scams : The Bad Samaritan In this scam, a second scammer, who was not involved in the accident, will approach you after an accident and attempt to make "helpful" suggestions. They may suggest using a specific tow truck, body shop, or legal services, which are false. They may pose as authority figures such as a doctor, firefighter, off-duty police officer, or someone else you would trust. Fake Accident Fake injury scams are common after minor fender benders. The other driver often alleges they have back pain or other difficult-to-diagnose injuries. They seek medical attention and file a claim. The scammer may use a doctor or clinic that is working with them. False Victim Believe it or not, some scammers will state they were in the vehicle and sustained injuries when they were not even involved in the accident. They will file a personal injury claim with your insurance company and seek compensation. Tow Truck A tow truck driver arrives at the scene of an accident and recommends towing your vehicle to a specific repair shop. The repair shop pays the tow truck driver a fee for bringing your vehicle to their shop. The repair shop will then overcharge for repairs and make up required repairs, costing you and your insurer more money. Fake Damage Scammers will say their vehicle was damaged worse than it is. They do this to pocket the payout. Some scammers even use pre-damaged vehicles to cause the accident. How you handle yourself at the scene of a potential accident scam is essential. Your actions will not only protect you from being deemed the cause of an at-fault accident, but it will also help to catch scammers in the act potentially. Here are some tips for handling a suspected car accident scam situation : Here are some common staged scams : Your first step to avoiding being a victim of a car accident scam is awareness of the above-staged car accident scam indicators. Here is what to look out for : Auto-related fraud prevention starts with you. It's not only about avoiding scams but also about being honest and truthful when filing claims. Here are some tips to avoid committing an offence : It is a specific intent crime. A person involved knowingly committed the action to do a fraudulent activity such as a fake accident or lying to their insurer. You can be charged as a felony depending on the type and amount you fraudulently tried to claim. The punishment for this crime will range from fines, community service, and even jail time. Always pay attention to what is happening on the road and around you. Trust your gut – if something seems off, you might be experiencing a scam. Keep If you suspect fraud, you can make an anonymous call 24/7 to 1-877-IBC-TIPS (422-8477) or use the IBC website.Insurance Fraud In Ontario Is Costing Drivers
Feb 24, 2021
What You Need To Know About Insurance Fraud And Scams
What Is Insurance Fraud?
What Is The Punishment For Insurance Fraud?
Penalties For Committing Insurance Fraud
Most Common Insurance Scams
Tips For Handling Insurance Scams
Be Aware Of Staged Auto Scams
How To Avoid Insurance Scams
How To Prevent Committing Insurance Fraud
Insurance Fraud FAQs
Protect Yourself From Automobile Insurance Fraud And Scams
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