As summer approaches, many Canadians are preparing for road trips, purchasing new vehicles, and renewing their auto insurance policies. For newcomers in particular, this season marks an exciting time of mobility and independence—but it also brings an important responsibility: understanding insurance practices and avoiding costly mistakes.
In a recent discussion on Radio 105.9 FM, Niro Kandasamy, AVP of Fraud and Special Investigations, TD Insurance, shed light on a growing concern—insurance fraud awareness and prevention—and why it matters more than ever.
The Hidden Reality of Insurance Fraud
While many people associate insurance fraud with extreme cases like staged accidents or false claims, the reality is far more nuanced. According to recent insights, a significant number of Canadians fail to recognize that even small omissions—such as leaving out a regular driver or underreporting mileage—can be considered fraud.
In fact, less than 60% of Canadians can accurately identify common real-world scenarios as fraudulent. This lack of awareness can lead to unintentional mistakes with undesirable consequences.
Why Accuracy Matters
Insurance operates on a foundation of trust. Providers rely on customers to share accurate and complete information to assess risk and determine appropriate coverage.
Even seemingly minor inaccuracies can:
- Impact how claims are evaluated
- Result in denied coverage
- Lead to policy cancellation in severe cases
For newcomers navigating a new system, understanding these implications is critical to staying protected.
Common Mistakes to Avoid
During peak driving seasons like summer, oversights are more likely to happen. Some common examples include:
- Not updating mileage after driving more frequently
- Leaving a partner off an auto policy when they regularly drive the vehicle
- Registering a vehicle under a parent’s name to reduce premiums
These actions may seem harmless—but they can create significant risks down the line.
Smart & Legitimate Ways to Save
The good news? There are plenty of legitimate ways to reduce your premiums, including:
- Maintaining a clean driving record
- Bundling home and auto insurance
- Using winter tires (may qualify for discounts in some provinces)
- Driving hybrid or electric vehicles for potential discounts
These strategies not only help save money but also ensure compliance and peace of mind.
Watch Out for Fraudulent Brokers
Another rising concern is the increase in fake insurance brokers, particularly on social media and messaging platforms.
Red flags to watch for:
- Requests for payment via e-transfer or cash
- Communication only through WhatsApp or social media
- Lack of proper licensing or verification
Consumers are advised to always deal directly with licensed professionals and verified institutions.
Stay Informed, Stay Protected
For anyone buying or renewing insurance—especially newcomers—the key takeaway is simple:
- Review your policy annually
- Keep your information accurate and updated
- Ask questions when unsure
- Always consult a licensed advisor through the insurer’s official channels
Take a few extra minutes today and prevent major issues tomorrow. Learn more about insurance fraud protection HERE.
Niro Kandasamy, AVP, Fraud and Special Investigations, TD Insurance
