Ontario: 2nd Annual Aviva Fraud Report on Car Insurance Premiums

Aviva Canada released their 2nd annual Aviva Fraud Report, querying Ontarians and their awareness around car insurance fraud, and found that the people support increases in severe fraud penalties, even more so than last year.

Included in the latest survey was the news that 88% of Ontarians believe auto body repair shops inflate the cost of vehicle repairs, up from 77% last year. Ontarians beliefs are in line with a sting operation Aviva did this past spring in Ontario. As Ontarians become even more wary of fraudulent auto insurance claims, their desire for the government to increase resources and penalties for fraud activity has also increased, up to 86% from 78% last year.

‘’Dishonest claimants and service providers continue to cheat consumers,’’ Colm Holmes, Aviva Canada President & CEO, said. ‘’We are seeing a troubling and egregious form of fraud that includes the fraudulent sale and issuing of auto policies.’’

Also found from the Fraud Report were the following:

  • 86% of Ontarians think more needs to be done to combat fraud
  • 82% feel car insurance premium increases are due to fraudulent activities
  • 74% support new provincial insurance fraud offenses
  • 60% support an online intelligent fraud database
    • 72% of these Ontarians use it to gather info on auto body shops
    • 58% would use it to look up a healthcare practitioner post car collision
  • 53% feel government, police, insurance companies and other fraud organizations need to take responsibility for warning and informing consumers about fraud schemes

‘’We need to do better for honest drivers,’’ Holmes continued. ‘’That’s why Aviva is fighting fraud. Honest drivers pay higher premiums because of criminal fraud. They know it. We know it. And the time has come to fight back.’’

Also Read: 2017 Aviva Fraud Report

It is estimated that 10-15% of Ontarians total annual auto insurance premium amount is used to offset fraud. This means the average, honest car driver is paying $100-$300 or more a year because of fraudulent activities in the province.

‘’Only British Columbia, where car insurance is a private, government entity, pays higher auto insurance premiums than Ontario in Canada,’’ Matt Alston, COO of Surex Direct, said. ‘’As a brokerage trying to find the best deals for our clients, we do hope insurance carriers, as well as police and government officials in Ontario, increase their efforts to combat fraud and help stabilize auto insurance rates.’’

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