Under Canadian law, it is a criminal offense for anyone to commit fraud against an Ontario car insurance company. All drivers in the province are affected by this type of illegal act, since they end up paying higher insurance premiums.
There are a number of ways in which Ontario car insurance fraud may be committed:
- Making a false insurance claim
- Lying about the circumstances of an accident
- Adding previous damage to a vehicle when making a claim
- Failing to provide information about previous accidents, traffic tickets received or claims, as well as any policy cancellations or non-renewals
- Making claims for treatments that were never received
A person who is caught trying commit insurance fraud will have his or her claim denied, and the insurance company may cancel the policy at that point. If the person is able to find an insurance company willing to extend coverage, the rates charged for coverage will be higher. Some people who have been caught attempting to defraud an Ontario car insurance company are unable to get coverage after the fact.
Along with these consequences, there are legal ramifications for people who commit car insurance fraud. On conviction, a person may be sentenced to up to 10 years in prison if the fraud involved $5,000 or more and up to two years behind bars if the offense involved a smaller amount.