Recently, the Insurance Bureau of Canada alerted insurers to an increase in fraudulent claims from staged collisions – car accidents that are deliberately set up to cash in on payouts from insurance claims. To make the collisions appear more authentic, fraudsters are also involving innocent drivers. The most common tactics that authorities have identified are:
In these types of collision, the organizers pay their pre-arranged crash victims, tow truck drivers, witnesses and questionable medical clinics to falsify records in order to profit from insurance payouts. Because higher payouts lead to higher premiums for all policyholders, everyone is affected by auto insurance fraud. Foil fraud from behind the wheel How do you avoid becoming involved in a fraudulent accident? Stay alert. Be aware of cars following too closely, suddenly cutting you off, or cars occupied by three or more adults that wave you in. If you’re worried about the actions of drivers around you, find a safe parking spot and pull over or wait to enter traffic when you feel it is safer. Protect yourself at the scene of an accident If you are involved in a collision, there are a few things you can do to protect yourself from fraud:
Help stop insurance crime Too often, insurance crime is tolerated because it is seen as “victimless” – but it affects everyone with insurance in the form of higher premiums. If you suspect an incident of fraud, submit a confidential report by calling 1-877-IBC-TIPS or visiting the Insurance Bureau of Canada online. Be sure to also visit their list of the latest fraud alerts.