Fraud impacts insurance premiums paid by you, the consumer

A recent survey from the Insurance Brokers Association of Ontario (IBAO) found that 69 per cent of respondents believe there is fraud in the Ontario auto system.  One of the main reasons auto insurance premiums are so high in Ontario, and specifically in the Greater Toronto Area, is due to fraud. It’s time to shed light on the impact of fraud on the premiums paid by you, the consumer.

Fraud costs us all

Insurance fraud costs consumers more than $1 billion per year.  When people take advantage of the system by engaging in fraud, insurers end up paying out fraudulent claims and taking a loss on premiums. The cost of fraud is in turn passed onto consumers as higher premiums. While only a small number of people commit insurance fraud, we all end up paying for it.  Not only does it result in higher insurance premiums overall, it also ties up valuable public resources such as police officers, firefighters, and healthcare workers.

Recognize fraud

Whether you are just learning to drive or an experienced driver, you can be the target of auto insurance fraud.

Be aware that auto insurance fraud can appear in different ways. Some common examples include overbilling by healthcare professionals/service providers, additional damage created by auto body shops and billing for parts not used, staged accidents, fictitious towing and storage or fake or forged proof of auto insurance cards (pink slips).

The reality is that individuals involved in insurance fraud often prey on vulnerable victims. We encourage consumers to be vigilant if asked to sign insurance-related forms. Do not sign any blank forms as you may become unintentionally involved in fraud. Always use a licensed and registered insurance broker or agent to obtain insurance to ensure that you have legitimate coverage in the case of a loss.

Aviva takes a zero tolerance approach to fraud to protect our honest customers. Those found to have committed insurance fraud will have their policy cancelled and may face criminal charges. The consequences if you are convicted of insurance fraud are severe, it can negatively impact a person’s immigration, residence, or employment status.

What you can do to STOP fraud

Aviva Canada’s industry-leading anti-fraud management team is dedicated to fighting insurance fraud and protecting our honest customers. We are pleased with the results: since 2013, we’ve investigated over 3,000 fraud cases resulting in 77 criminal charges.

We need your help to expose fraudsters and to protect affordable insurance premiums. Report suspected insurance fraud. Aviva Canada’s Fraud Information Centre is available 24/7 by calling 1-855-332-5255 or emailing anti-fraud_management@avivacanada.com.