Auto insurance fraud affects all drivers in Ontario by raising insurance premiums. We all have a role to play in combatting auto insurance fraud.
Learn how to identify, report and prevent auto insurance fraud with three tips.
You can also view this checklist for quick tips on how to prevent and report fraud.
1: Know who you are dealing with.
Before purchasing insurance, make sure your broker, agent or insurance company is licensed to do business in the province. Only a licensed broker, agent or insurance company can sell insurance in Ontario.
If you are a victim of or suspect auto insurance fraud, here are three steps to take:
maintain a record of evidence to help you prove it
Take detailed notes of all dates and times of the incident. Save all correspondence and documentation such as estimates and invoices, medical reports and claim forms.
call your insurance company to report it and ask what steps you should take
While there are many types of fraud, here are some examples of fraud schemes to look out for.
A staged collision is no accident. A person or people intentionally cause an accident against an unsuspecting victim. For example, a fraudster may cut in front of you and break quickly in hopes that you’ll rear-end them. The fraudster may also work in collusion with body repair shops, healthcare providers, lawyers or other vendors.
Be suspicious of referrals at the accident site. If you were pressured or offered money to go to a particular body repair shop, lawyer or healthcare provider, report it to your insurance claim adjuster.
Remember to:
Take photos of the accident scene
Record as much information as you can
File an accident report with the police
Your pink slip is more formally known as your insurance card or proof of insurance. Your insurance provider may offer this in paper or digital format. Your pink slip is required by law and includes insurance information for vehicles, including policy numbers and policy expiry dates.
In exchange for payments, fraudsters pretending to be licensed insurance agents or brokers will sell counterfeit insurance policy documents and pink slips. Fraudulent insurance cards may look real but have false policy numbers and/or expiry dates. As a result of this fraud scheme, victims are left without insurance coverage.
Remember to:
Choose an insurance agent or company that is licensed with FSRA
Never purchase auto insurance with cash or money transfers
Call the company listed on the policy to ensure it’s valid
This occurs when an insurance agent or broker participates in fraud. It can include, but is not limited to, pocketing premiums, inflating your premiums for more commission or fraudsters pretending to be licensed insurance agents or brokers.
Remember to:
Choose an insurance agent or company that is licensed with FSRA
Don’t be afraid to ask questions to ensure the product is the right fit for you
Look out for requests for cash-only transactions, strange email addresses or inconsistent documents
