A new report highlights growing concerns over staged collisions and other forms of auto-insurance fraud in Canada, as investigators say organized schemes are driving up claims and straining public resources. Insurers and police say these cases are becoming more frequent, more deliberate, and more costly.

Insurance investigators and police are raising concerns about a sharp increase in staged collisions across Canada, warning that organized fraud schemes are contributing to higher claim costs and placing additional pressure on emergency services.

The issue was highlighted through several investigations into suspicious crashes, including one case in the Toronto area where a driver claimed he had swerved to avoid another vehicle before crashing into a guardrail. But video evidence reviewed by investigators showed no such vehicle was present. Instead, the footage appeared to show the driver switching places with another individual after the crash, a detail investigators say pointed to a planned fraud attempt.

Insurance investigators say that kind of behaviour is a strong indicator of a staged collision, where an accident is deliberately caused or falsely described in order to collect an insurance payout. In some cases, the alleged driver may not have even been behind the wheel at the time of the crash, undermining any injury claim connected to the incident.

According to Aviva’s investigations unit, the number of suspected fake crashes in Canada rose dramatically in 2025, climbing to more than 1,000 cases. Investigators say the trend may be linked to broader shifts in organized crime, with criminals turning to other fraud-based activity as vehicle theft prevention efforts become more effective.

Police in Ontario say they have also seen a resurgence in suspicious crash claims. Some schemes allegedly involve buying inexpensive or already-damaged vehicles, altering odometer readings, and then using those vehicles in collisions designed to trigger inflated insurance payouts. In one case, a payout reportedly reached $40,000.

Investigators say these cases are not victimless. Beyond the financial losses to insurers, staged collisions can tie up firefighters, paramedics, and police officers who respond believing the crash is genuine. Authorities say that wastes valuable frontline resources and creates unnecessary risk for everyone involved.

Insurance companies say regulatory limits can make it difficult to remove suspected fraudsters from coverage quickly, even when investigations uncover serious concerns. Ontario’s regulator says insurers must follow approved legal rules when refusing, cancelling, or declining to renew auto insurance, and allegations alone are not enough to justify blacklisting a customer.

Officials say the rise in staged collisions shows how insurance fraud continues to evolve in Canada. They warn that these schemes are often coordinated, calculated, and costly, with consequences that reach far beyond a single false claim.

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Originally published on Canadian Fraud News.