Winter collisions provide a breeding ground for fraud, brokers warn

Snow squalls and winter storms have been a common occurrence over the past month. Now that New Year’s 2026 is in the record books, expect winter claims to start rolling in, suggests rate aggregator Rates.ca.

And when there are collision claims, there can be fraud. In Ontario, auto insurance fraud continues to rise and contribute to higher costs for drivers, says Rates.ca. The province’s regulators have made efforts to prioritize auto fraud in recent months.

“Fraud today looks different than most people expect,” says Daniel Ivans, a broker who provides commentary for Rates.ca.

“It doesn’t always involve staged crashes or dramatic damage. It can start with something as simple as an unsolicited tow truck, a repair shop you didn’t choose, or someone encouraging you to file a claim quickly without checking the details. These smaller moments are where drivers are most vulnerable.” 

He lists several signs drivers should look for to avoid ending up on the wrong side of a fraudulent claim: 

• Spot red flags: Fraud can start small. Something as simple as a tow truck operator trying to steer a driver to a specific repair shop (sometimes aggressively) can be the starting point for a fraudulent auto claim. “Be cautious if anyone pressures you to sign paperwork on the spot, directs you to a specific shop, or discourages you from contacting your insurer,” Ivans warns.  
• Remain calm following a collision: Stress and confusion in the aftermath of a crash are a scammer’s best friend. “Fraudsters often exploit that stress,” he adds. “Take photos, gather contact details, and contact your insurer or broker before agreeing to anything.” 
• Ask the right questions: Legitimate professionals are not afraid to talk to drivers about processes and what things will cost. “Reputable repair shops and tow operators will explain costs clearly and give you options,” says Ivans. “If something feels rushed or unclear, that’s a reason to pause.”  
• If it looks suspicious, report it: Small inconsistencies in a processes or a service provider’s story can be clues to larger patterns. “If something doesn’t seem right, document it and report it to your insurer. Small details often help insurers flag repeat offenders,” he adds. 

Also, brokers can help clients learn about fraud prevention tools and programs. 

“Ontario’s fraud reporting requirements mean insurers are under more pressure to identify suspicious patterns, and some even offer incentives for customers who take precautions. It’s worth asking your provider what programs they have in place,” Ivans adds. “Staying informed is one of the best ways to protect yourself.  

“Most people think fraud only happens in large, organized schemes, and sometimes that’s true. But it often starts small. Awareness and caution go a long way in protecting your finances and helping keep costs fair for everyone.”  

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.