Auto insurance fraud impacts all drivers by raising everyone's insurance premiums. To combat this issue, we need to be vigilant and proactive. This includes educating ourselves about the red flags, reporting suspicious activity to the appropriate authorities, and supporting efforts to raise awareness in our community. Let's explore ways we can work together to create a safer environment and stand against fraud.
 

1. Know who you’re dealing with

Before you purchase insurance, it’s important to ensure your insurance agent, broker, or company is licensed to do business in the province. Only licensed professionals can sell insurance in Ontario. Therefore, if you’re shopping for insurance, consider checking:
 

• The Financial Services Regulatory Authority of Ontario’s (FSRA) registry to confirm your insurance agent is licensed.
• The Registered Insurance Brokers of Ontario’s (RIBO) Broker Search to verify your insurance broker is licensed.

At OTIP, our licensed insurance brokers are proud members of RIBO, so you can trust that you will receive sound advice and be treated fairly and honestly.
 

2. Spot the fraudster

Fraud can take many forms, so it’s good to be cautious. Here are some examples to watch out for:

Staged Collisions:

• Staged collisions aren’t accidents. They’re intentionally caused by a person or group of people seeking to defraud unsuspecting victims.
• Be wary of any referrals you receive at the accident scene. If someone pressures you or offers money to use a specific auto body repair shop, lawyer, or healthcare provider, report this to your insurance claim adjuster.
• Remember to:
  • Take photos and videos of the accident scene.
  • Record as much information as possible.
  • File a collision report with the police.

Fake Pink Slips:

• A pink slip, also known as proof of auto insurance, is required by law. It typically includes the name of your insurance company, policy number, policy effective date, policy expiry date, etc.
• Fraudsters pretend to be licensed insurance agents or brokers to sell forged insurance policies and pink slips in exchange for payment. While these fake pink slips may look real, they contain false insurance information, leaving unsuspecting victims without actual insurance coverage.
• Remember to:
  • Choose an insurance agent or broker licensed with the FSRA or RIBO.
  • Never purchase insurance with cash or via money transfer.
  • Always call the insurance company listed on the policy to ensure it's valid.
     

3. Take the time to report the crime

If you’re the victim of auto insurance fraud, follow these steps:

• Keep a record of any evidence that can help prove the fraud.
  • Take detailed notes, including the date and time of the incident.
  • Save all correspondence and relevant documentation, such as estimates, invoices, medical reports, or forms.
• Call your insurance company to report the fraud and determine your next steps.
• Notify the police about the incident.

Other steps you can take:

• Submit a complaint to the FSRA.
• Submit a tip to the Canadian Crime Stoppers Association.
• Seek legal help through the Law Society of Ontario.
• Report to the Canadian Anti-Fraud Centre.

Unfortunately, anyone can fall victim to auto insurance fraud. Knowing you have the necessary coverage and support is crucial in case you encounter fraud. If you're a current OTIP policyholder, contact us at 1-833-615-9329 to review your existing auto insurance policy. If you’re not insured with OTIP and are shopping for auto insurance, call us at 1-833-494-0085 to get a quote and receive a $20 gift card of your choice!