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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, and potentially pay more for coverage by being flagged as a high-risk driver. The charges include:
According to the Criminal Code of Canada:
380 (1) Everyone 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,
Unknowingly committing auto insurance fraud is surprisingly common in Canada. For example, registering a vehicle at a family member's address for a lower rate, or falsely listing a primary driver, are both fraudulent activities. This is just the tip of the iceberg; more serious types of insurance fraud are also prevalent. Here are some examples of fraud to keep an eye out for:
Use Thinkinsure to shop around, and compare multiple quotes at the same 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.
It is a specific intent crime. A person involved knowingly committed the action due to 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.
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Digital Content Writer
Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism.
| Categories | Industry NewsAuto |
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| Tags | Reports and GuidesAuto Coverage |
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