Majority of Ontarians Believe Auto Insurance Fraud is Prevalent in the Province

New poll indicates drivers are worried they could become a fraud victim

TORONTO, March 1, 2023 /CNW/ - In a recent poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) nearly 75% of respondents with auto insurance believe that auto insurance fraud is prevalent in Ontario, and more than 40% of them are worried they could become a victim of auto insurance fraud.

FSRA's poll also found that nearly 6 in 10 (56%) of all respondents don't know enough to protect themselves from auto insurance fraud. It showed that drivers believe some of the most difficult schemes to identify are:

• Fake pink slips (51%)
• Insurance agent scams (51%)
• Staged auto collisions (43%)
• Inflated repair costs (40%)

The vast majority of those polled (82%) agree that auto insurance fraud is increasing the cost of their premiums and consumers can play a role in preventing auto insurance fraud (76%).

"Auto insurance fraud is an issue that impacts all drivers. Not only does auto insurance fraud cost victims directly, but it can also raise premiums across the province," said Tim Bzowey, FSRA's Executive Vice President of Auto/Insurance Products. "Consumers can play a role in preventing auto insurance fraud, so we are encouraging Ontarians to be informed, know their rights and report suspected fraud. An informed consumer is an empowered consumer."

To help individuals and families protect themselves against auto insurance fraud FSRA has launched a new public education campaign, Don't get dinged by auto insurance scams. The campaign is designed to help Ontarians better identify some of the schemes that are being used and to educate people about how to report auto insurance fraud.

To sell auto insurance in Ontario, agents and insurance companies need to be licensed by FSRA. This helps to ensure consumers are working with a professional or business that are following the law.

Only 1 in 5 respondents with auto insurance took the time to check with FSRA to ensure they are working with a licensed insurance professional or business. You can check FSRA's license registry for licensed insurance agents or insurance companies in Ontario.

Visit Don't get dinged by auto insurance scams to learn more about fraudulent auto insurance schemes and what to look for, what to do if you have fallen victim or witnessed auto insurance fraud and your rights as a driver in Ontario.

The survey also revealed that:

• 83% say they have never been a victim of auto insurance fraud
• Only 55% of respondents with auto insurance are confident in their ability to identify auto insurance fraud if it was happening to them
• Only 20% know which organization to report auto insurance fraud
• 69% say that not enough is being done to educate consumers about auto insurance fraud
• 85% do not recall seeing any publicly available information on auto insurance fraud and how to prevent it

The poll was in field between November 11^th and November 27^th, 2022, and the sample size was 1,027 people across the province, which include 769 auto insurance owners and 258 non-auto insurance owners.

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.

FOR MEDIA INQUIRIES:

Russ Courtney
Senior Media Relations and Digital Officer
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario