Auto Repair Fraud

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An auto collision, even a minor one, can become a significant issue when organized auto repair fraud is involved. Auto repair fraud is the opportunistic and unethical action of exaggerating or falsifying vehicle damages with the goal of receiving payment for unnecessary services. Typically, these actions arise from organized fraud networks, with funds received from claims going to organized crime and other illegal activities.

This type of fraud occurs when an auto repair facility submits a misleading claim for:

  • Inflated repair, towing and/or storage fees for services that were unnecessary, never provided or charged at exaggerated rates;
  • Repairs for damage that is unrelated to the insured incident; and/or
  • Further damage caused to the vehicle to increase repair costs.

These types of fraud may be done in collusion with a network of individuals or organizations. For example the auto repair facility may conspire with the tow truck company to provide inflated fees for services in exchange for kickback payments. This may be done with or without the knowledge and participation of the vehicle owner.

Auto repair fraud may also be connected to ‘Crash for Cash’ scams also known as staged collisions or accident benefits fraud, when a healthcare provider claims services on behalf of an injured individual, but that individual may not receive the care claimed.

Auto repair fraud is not a victimless crime; it results in higher premiums for drivers and impacts public safety in Canadian communities by funding organized fraud networks.  

To report information about insurance crime by phone (available 24/7), please call 1-877-422-TIPS (English) or 1-866-422-4331 (service en français). If you would like to remain anonymous, please call our partners at Crime Stoppers Canada (available 24/7) at 1-800-222-TIPS or complete their online form.