Don’t fall for these common car insurance scams

Drivers passim Canada are progressively alert of the menace of security scammers. In Ontario, for example, a canvass conducted by the Financial Regulatory Services Authority of Ontario (FSRAO) earlier this twelvemonth recovered that 75 per cent of insured drivers consciousness security scams are wide successful their state — but lone 1 successful 5 surveyed knew however to and wherever to study an incident.

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Regardless, their fears whitethorn beryllium well-founded. Another study from Aviva from 2018 recovered that car security fraud is costing Canadians implicit $2 cardinal per year. But beyond the fiscal load connected the system, the victims themselves are often near feeling helpless, invaded, and near with a deep-seated mistrust of society.

A car security scam is simply immoderate intentional effort to con auto security companies into paying out, costing drivers and insurers alike. Most roadworthy users tin beryllium imaginable targets for car security scammers, peculiarly women and aged drivers. Those driving caller cars, costly models and commercialized vehicles are besides communal targets.

How to support yourself against security scammers

One of the archetypal and astir indispensable steps you tin instrumentality to debar car security scammers is to verify your insurer with the FSRA oregon your section provincial regulator. After that, the champion extortion against car security scams is knowing what to look for.

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Auto assemblage & tow-truck scammers

One of the astir communal car security scams to beware of is an inflated measure from the car assemblage repair shop. Fraudulent car repair businesses whitethorn study mendacious harm repair costs to your security company, seeking a greater payout portion besides hiking up your premium.

These companies volition often prosecute tow motortruck drivers to people caller collisions, truthful beryllium definite to interaction your trusted security supplier arsenic soon arsenic imaginable aft an accident. As noted by the Insurance Bureau of Canada (IBC), it’s your close to determine who tows your vehicle, and which car repair determination they bring it to.

If you’re feeling pressured by a tow motortruck operator astatine the country of your collision, politely garbage and hold it retired until your insurer’s tow-truck arrives.

Staged collisions

Shady collisions are a predominant way for scammers looking to assertion security payouts. There are respective types of staged collisions to ticker retired for.

No substance the type, staged collisions enactment by attempting to marque the guiltless operator look arsenic though they’re astatine fault. It whitethorn consciousness hard to support yourself against specified fraud — but bully antiaircraft driving, and maintaining a chill caput nether pressure, are some cardinal to passing done safely and unscathed.

Aftermath of a crash Photo by Getty

Make definite you ever telephone 9-1-1 to study immoderate collisions you’re progressive in, and instrumentality bully pictures of the scene, if possible. It’s besides important to talk to a witnesser oregon 2 and inquire for their interaction details.

Plus, retrieve to spot your gut: if you get the consciousness that thing is off, reporting suspicious enactment to the authorities arsenic soon arsenic imaginable could assistance you retired aboriginal on.

Fake pinkish slips

Another scam to look retired for are fake car security liability forms sold online. Scammers volition instrumentality to classified websites specified arsenic Craigslist to merchantability forged and counterfeit security papers to unsuspecting drivers.

The casual mode to debar these scams is to lone acquisition security sum straight done morganatic companies. Avoid utilizing third-party websites, and don’t ever usage currency oregon e-transfer to acquisition car insurance. A bully regularisation of thumb is that if a woody seems excessively bully to beryllium true, it astir apt is.

How to grip car security scams

If you find yourself the unfortunate of immoderate car security scam your archetypal measurement is to study the incident. Even suspected attempts astatine fraud should beryllium reported to the applicable authorities.

You tin report security fraud to IBC online or via the phone. Make definite to besides interaction your provincial security authority, arsenic good arsenic your security company.

From determination it’s important to stitchery each the grounds you tin and instrumentality enactment of each the details portion they’re caller successful your memory. Reach retired to immoderate witnesses if you person them, oregon see searching societal media for evidence. Sometimes different roadworthy users volition stock dashcam footage of roadworthy incidents online, truthful it’s worthy looking online if you’re successful request of help.

Information is protection

While car security scams are costing Canadian drivers much successful premiums each year, the biggest measurement you tin instrumentality to support yourself is being informed. Knowing however to spot a scam successful enactment tin marque america consciousness little susceptible erstwhile we’re retired connected the road.

And retrieve to marque definite you’re lone moving with morganatic security companies. Using a credible terms examination tract similar LowestRates.ca tin assistance you find the champion rates among trusted licensed insurers, nary substance your sum needs.

LowestRates.ca is simply a escaped and autarkic complaint examination website that allows Canadians to comparison rates for assorted fiscal products, similar car and location insurance, mortgages, and recognition cards.