Avoiding Canadian Auto Insurance Fraud

Auto insurance fraud is a growing problem throughout Canada and road users are advised to remain vigilant if they are ever involved in a road traffic accident. A recent RBC survey saw 87% of Ontario drivers agreeing that auto insurance rates were being adversely affected by motorists and traders who indulge in fraudulent behavior. Whenever a fraudster makes a false claim, those costs are eventually passed on to honest motorists in the shape of expensive auto insurance quotes. However, drivers can protect themselves from fraudulent activity by adhering to the following five tips:

  • Make your auto insurance company the first point of call. As long as you are sufficiently covered, let them organize towing, a preferred body shop, courtesy vehicles and detail management. You can even allow them to contact family and friends if required
  • Only use preferred body shops that have an agreement to operate on behalf of your usual auto insurance company.  This helps to avoid unscrupulous traders who try to make a fast profit by using inferior working practices
  • Beware of towing companies that act as ‘chasers’. These companies have a habit of turning up to accidents and taking vehicles to unapproved repairers in exchange for high referral fees
  • Keep any details logged regarding your injuries and make sure they are passed over to your auto insurance company in full. Be sure to include information about medical expenses and the names of those who may have treated you
  • Read all claims documentation carefully and never fill out any forms that are provided by third party auto insurance companies, tow truck drivers or personal injury lawyers