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;Auto insurance fraud is a serious problem costing Canadians $2 billion annually and post-accident services scams are on the rise. At OTC, we've seen customers fall victim to these scams. With March being Fraud Prevention Month it's a great time to think about how you can remain vigilant and protect yourself against fraud.
Being in an auto accident is an overwhelming experience and these customer stories are just two examples of how widespread auto insurance fraud is becoming.
One story involves a customer (Ms. Y) who was involved in an accident. Her vehicle was towed to a body shop even though she had asked for it to be towed to her dealership. For weeks, her insurance company tried to gain access to her vehicle for repairs, but the body shop wouldn't release the vehicle or provide an invoice for the services.
To make matters worse, Ms. Y discovered that without her consent, an employee of the body shop visited a Service Ontario office and transferred the ownership of the vehicle to the shop. To help get her vehicle back, the vehicle was deemed a total loss and Ms. Y was paid for the value of her car. Almost a year after the accident, the vehicle still remained in possession of the shop.
Another customer, Mrs. W's car caught fire and burned. She called to report the claim and was advised to have the car dropped at a body shop. A tow truck arrived on the scene, but the driver refused to take the car where Mrs. W requested. Instead, they took the car to another shop.
At the shop chosen by the tow truck driver, Mrs. W was not able to get her car back. The towing company would not provide her with an invoice or the information she needed to get her car back. On top of that, the photos of her car taken at the shop were questionable, and it was suspected that some of the damage was done to the vehicle after it arrived. Two months after the fire, the insurance company ultimately needed to assert the owner's rights in court to get her car back to her.
What to look out for:
We spoke with our team to get some tips to share with customers. Here are their top tips for drivers following an accident:
- After the accident, call emergency services, if required.
- Call your insurance provider right away once everyone's safe. They can help you through the claims process smoothly.
- Record details of the accident. Note the vehicles involved and the people or companies you interact with.
- Don't sign any blank work order forms or agreements from tow, repair or rental vendors. Take time to read the fine print and ask questions about anything you don't understand.
- Insist on your tow truck driver taking your car to the repair shop recommended by your insurance company or broker, not one pushed by another company.
- If you notice any suspicious behaviour or improper business practices, report it immediately to your insurer.
To learn more about products that could protect you from insurance fraud...
With thanks to Aviva for their editorial contribution.
