Insurance Fraud Surges in Canada, Hitting Auto Repair Shops Hard

A new report from Aviva Canada reveals a 76% rise in fraud investigations in 2024, with auto-related cases accounting for 67% of all claims. Fraudulent schemes, from staged crashes to AI-generated invoices, are becoming more advanced, leaving collision repairers caught in the crossfire. These scams inflate insurance costs, cause payment delays, and disrupt legitimate repair work.

Aviva Canada has identified five major fraud trends affecting the industry: staged accidents, vehicle theft and re-VINing, AI-powered invoice fraud, ghost brokers selling fake policies, and policy misrepresentation. These tactics not only cost insurers billions but also create headaches for repair shops, which often face unpaid bills and claim disputes.

Jamie Lee, head of financial crime and fraud at Aviva Canada, emphasizes the critical role repairers play in spotting red flags early. To protect themselves, bodyshops should verify customer details, document all repairs thoroughly, and report suspicious claims. By staying vigilant, repairers can help combat fraud and protect their businesses from financial losses.