What is insurance fraud and how does it impact me?

Organized crime and fraud related claims have been on the rise across the country for some time. This not only drives up costs, but also creates new problems for the drivers who are targeted. It’s especially a problem in Ontario, which has Canada’s richest auto insurance benefits and the highest costs for drivers.

Recently, there has been an increase in fraudulent claims from staged collisions, which are accidents deliberately set up to cash in on payouts from insurance claims. To make the collision appear more authentic, fraudsters are increasingly involving innocent drivers.

What type of auto fraud is happening in my area?

Target and bullet: staged collisions in which an unsuspecting car is hit intentionally.

Swoop and squat: a driver slams on their brakes to get an innocent driver to rear-end the vehicle. In some cases, two vehicles are involved in the fraud, causing an innocent third party to rear-end the second vehicle.

Drive down or Wave-in: a driver exiting a parking lot is “waved in” by a driver on the roadway. The roadway driver accelerates into the merging car once they enter the roadway, intentionally hitting the innocent driver and causing a collision where the innocent driver appears to be at fault

In these types of collisions, the organizers pay their pre-arranged crash victims, tow truck drivers, witnesses and questionable medical clinics to falsify records to profit from insurance payouts.

How can I help fight fraud?

Please remember that insurance fraud is a crime and it costs all of us in the form of higher auto insurance premiums. Learn how you can play a vital role in combating auto insurance fraud.