Ontario Auto Insurance Coverage and Fraud

Insurance fraud is a serious matter effecting Ontario auto insurance providers and their customers. Not only is it a crime under the Canadian Criminal Code, but getting caught attempting to defraud an insurance company can also result in the following consequences:

  • The claim you have made will be denied.
  • Your insurance policy will likely be canceled.
  • You will have to pay more for coverage in the future.
  • You may have difficulty finding an insurance company willing to provide coverage to you going forward.

Examples of Ontario Auto Insurance Fraud

A person may be charged with fraud in the following circumstances:

  • Filing a false claim for damage to a vehicle
  • Lying about how a loss occurred
  • Listing previous damage to a vehicle on an insurance claim form and attributing it to the accident
  • Failing to disclose previous accidents, claims or policy calculations
  • Accepting compensation for medical treatments or other services which were never received

Criminal Penalties for Auto Insurance Fraud

A person who has been charged with auto insurance fraud in Ontario is subject to the following penalties on conviction:

  • Imprisonment for up to two years (if the value of the fraud was less than $5,000)
  • Up to 10 years in the penitentiary if the fraud was valued at $5,000 or more

Being honest and up front with your Ontario auto insurance provider is the best policy for all drivers. Insurance fraud affects everyone buying policies and leads to higher coverage costs.

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