The Most Ridiculous Insurance Scams of 2014

January 31, 2015


Most drivers would agree that car insurance is way overpriced, especially when we take into consideration the fact that most drivers are hardly ever involved in accidents, but still have to foot a hefty insurance bill. On the other hand, there are plenty of drivers who use every opportunity to cheat insurance companies and find bizarre ways to get out of paying claims.

Insurance agencies estimate that between 10 and 15 percent of all insurance claims include some sort of fraud or false information.

For instance, one such case involved a driver with an expired driver’s licence who was involved in a rear-end collision.

The driver had no optional insurance to cover the damages, so she asked the other driver to say the accident happened the next day.

When the driver refused, she went and bought optional insurance before filing a claim. Eventually, her scheme was exposed and she was fined $7,400.

In another case, a driver who was not allowed to drive at the time claimed his car was stolen before it was involved in a collision. Unfortunately for him, his DNA was found on the airbag in the car, proving he was indeed behind the wheel during that particular accident. He was fined $1,000 for a false claim and ordered to pay another $18,000 to cover the damages to the other cars.

Lastly, one of the most bizarre of all instances of insurance fraud includes a driver who was pulled over by police for using a cell phone while driving, and it turned out he had a 90-day ban on his licence issued just a few days before. Subsequently, he received a one-year ban and was forbidden to drive.

Unfortunately, he didn’t stop there, but instead got an interim driver’s licence in his friend’s name and transferred his car to his friend’s name as well. He was caught soon afterwards using face recognition software, and was charged under the Criminal Code and ordered to pay a $2875 fine.

Insurance investigators have probably seen it all when it comes to insurance fraud, so those drivers who are inclined towards cheating better think twice before trying to pull a fast one on insurance companies.