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Protecting Drivers Against Insurance Fraud

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Protecting Drivers Against Insurance Fraud

McGuinty Government Cracking Down on Fraud and Stabilizing Insurance Rates

Ministry of Finance

Ontario is continuing to crack down on auto insurance fraud to ensure insurance rates remain affordable while providing Ontario's nine million drivers with optimal protection.

New regulatory amendments being introduced will help prevent auto insurance fraud and protect consumers by:  

  • Requiring insurers to provide claimants all reasons for denying a claim.
  • Giving claimants the right to receive a bi-monthly, detailed statement of benefits paid out on their behalf.
  • Increasing the role of claimants in fraud prevention (e.g. require them to confirm attendance at health clinic).
  • Making providers subject to sanctions for overcharging insurers for goods and services and banning them from asking consumers to sign blank claim forms. 

These proposed changes address some of the reforms proposed by the Auto Insurance Anti-Fraud Task Force and build on actions the government has already taken to combat fraud and protect consumers, including the reversal of rising premiums as a result of fraud and abuse of the system.

Combating auto insurance fraud is part of the McGuinty government's plan to reduce insurance premiums, make roads safer and ensure people who are hurt in car accidents receive the treatment they need. 

Quick Facts

  • In 2012, rates decreased 0.26 per cent, the first average decrease over four quarters since 2006.
  • From 2004 to 2012, auto insurance rates increased 11.4 per cent in Ontario, while the Consumer Price Index rose 18.4 per cent.
  • Auto insurance fraud generally falls into three categories: opportunistic fraud is the padding of originally legitimate claims; premeditated fraud involves an individual consistently invoicing an insurer for goods and services that are either not provided or unnecessary; and organized fraud involves many individuals creating an organized scheme designed to generate cash flow through a pattern of fraudulent activity.

Additional Resources


“The importance of our auto insurance reforms and the impact they will have on Ontario drivers cannot be underestimated. The government will continue to take the necessary steps to crack down on fraud which will help lower premiums, increase road safety and ensure people hurt in car accidents get the treatment they need.”

Dwight Duncan

Minister of Finance

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