How Insurance Fraud Impacts You as a Consumer
- Car insurrance fraud is essentially the tax you never voted for. The losses get quietly spread across every policy in your region. You’re effectively paying a surcharge for crimes you had nothing to do with.
- The Insurance Bureau of Canada estimated fraud adds about $236 a year to the average Ontario policy, and that figure is from 2018, before staged collisions jumped 400%. The real number today is almost certainly higher.
- Instaling anti-theft devices and getting a dash-cam are some of the steps drivers can take to combat the increasing threat of car insurance fraud.
Read more: Will Stricter Fraud Reporting Lower Your Auto Insurance in Ontario?
I Wasn’t Involved in Insurance Fraud. Why Did My Premiums Go Up?
Fraudsters tend to work within a specific geographic area. When that region sees a rise in insurance claims, fraudulent or otherwise, insurers identify the associated increased risk. The risk of being involved in an insurance claim goes up for everyone in that area, and premiums rise as a result.
How Insurance Fraud Hotspots Drive Up Premiums for Honest Ontario Drivers
You may be aware of auto insurance fraud as a driver in Ontario, but do you assume it doesn’t affect you unless you’re involved in it? Unfortunately, the reality is very different. When fraudsters set up in a region and their schemes become a pattern, insurance rates go up for everyone in the area — even those who have never submitted an insurance claim.
| City/Region | Avg. Clean-Record Premium | vs. Ontario Average | Fraud/Claims Risk |
|---|---|---|---|
| Brampton | $3,471 | +62.8% | High |
| Mississauga | $2,494 | +17.0% | High |
| Toronto | $2,348 | +10.1% | High |
| Ottawa | $1,680 | -21.2% | Low |
If you look at the car theft breakdown difference between cities like Ottawa and Toronto, the car insurance premium differences above start to make sense.
Toronto’s highest-risk postal code (M9W – Rexdale/Humberwood), recorded 2,708 vehicle thefts since 2022, including 509 thefts in 2025 alone. By comparison, Ottawa’s highest-risk postal code, (K2J – Barrhaven South), recorded 569 thefts since 2022 and 65 thefts in 2025. That’s roughly a 376% difference in number of thefts between the 2 cities.
The Five Types of Auto Insurance Fraud Driving Up Your Bill
Here’s a look at the different types of fraud, why they cause rate increases, and what you can do as an honest driver to help reduce auto insurance fraud in Ontario.
How Honest Drivers Can Help Lower Fraud Costs
- Use a dashcam. A dashcam provides video evidence of staged collisions that can help catch fraudsters in the act. This is the best way to protect yourself and can also be critical to helping authorities bring fraud rings to a halt.
- Be vigilant when buying a used car. Check the VIN against all documents provided to you, and check that the car’s registered owner is the same person or business you’re dealing with. Look for signs of tampering or removal around the dashboard where the VIN is located and inside the engine bay. If you find something suspicious, don’t just walk away: report it. You may help with apprehending a serial offender.
- Check repair work. If you need repairs related to an insurance claim, follow up with your insurer and check that the work submitted is the same as what was reported to you. Finding discrepancies may help shine a light on dishonest auto repair shops.
- Submit a report. The Financial Services Regulatory Authority of Ontario (FSRA) has a legislative mandate to deter fraudulent practices relating to insurance and other financial sectors. Its recommended steps for mitigating fraud included reporting it to both your insurance company and law enforcement. This can help bring fraudsters to justice and make insurance premiums more manageable for everyone.
Read more: How Dashcams Can Speed Up Insurance Claims