Contributed by: TD Insurance, an Engineers Canada affinity partner
Insurance fraud is on the rise with over 40 per cent of Canadians having been the victim of fraud. Protecting yourself and avoiding fraud is easier than you might think. A little knowledge and preparation go a long way. Save time, money, and stress with these tips from our affinity partner TD Insurance.
Body shop fraud
Body shop fraud is increasingly common and includes tactics such as overcharging, unnecessary or incomplete repairs, using lower-quality parts, and hidden fees. Some red flags to look out for include pressure to decide quickly, unusually low estimates, and unclear invoices.
Protect yourself by researching shops, reading reviews, and asking for recommendations. If you suspect fraud, gather evidence and report it to your insurer or a fraud bureau.
False brokers
False brokers are unlicensed individuals who promise cheaper insurance but provide incorrect or no coverage. They often falsify information, charge hidden fees, or disappear after payment, leaving customers at risk. The consequences can be serious, including denied claims, policy cancellations, and even legal or financial risks if you’re uninsured.
TD Insurance is a direct insurer and does not use brokers, so anyone claiming to sell TD Insurance through a broker is a scam. Staying cautious, verifying providers, and reporting suspicious activity can help protect you. Reach out to us if you suspect fraudulent activity.
ReVINing
Auto theft continues to be an important issue in Canada, with many stolen vehicles either dismantled or resold domestically through reVINing, a process where a vehicle’s VIN is altered or replaced to make it appear legitimate. CARFAX estimates there are more than 140,000 vehicles in operation with compromised VINs in Canada.
ReVINing can involve fake VINs, cloning from legitimate vehicles, or even creating “ghost” vehicles. For buyers, the risk is high: if discovered, the car can be seized with no reimbursement and insurance claims may be denied.
To protect yourself, it’s essential to verify the VIN, confirm documentation, avoid suspicious deals, and use trusted sources like dealerships and vehicle history reports. TD Insurance is here to support you with helpful tips to help protect you from car theft and reVINing fraud when you are buying your next vehicle.
Staged accidents
Staged accidents are deliberate crashes used to make an innocent driver appear at fault so fraudsters can file false claims. Common tactics include sudden stops, waving you through then hitting you, or forcing a side impact.
Protect yourself by driving defensively and staying alert. If something feels off, document everything, take photos, gather details, and report it to your insurer and authorities.
Staying informed is one of your best defenses against insurance fraud. By recognizing the warning signs and knowing where to turn for trusted information, you can better protect yourself and your finances. For more details and ongoing updates, be sure to review the sources referenced throughout this article, including insights from affinity partner, TD Insurance and resources like the Canadian Anti-Fraud Centre.
As a trusted partner, the Engineers Canada-sponsored program with affinity partner TD Insurance is dedicated to helping engineers and geoscientists get access to preferred insurance rates. These preferred rates are available on car, home, condo and tenant coverage.
