Few admit their own actions could count as a violation
Canadians overwhelmingly see insurance fraud as a serious issue, but a new survey from TD Insurance survey suggested that concern does not always translate into awareness of what it looks like in practice.
On average, the survey found that only 58% of respondents correctly identified common real-world scenarios as insurance fraud, even as 90% said fraud increases premiums and 79% described it as a serious concern.
The results also showed a sharp gap between how people judge others and how they assess their own behaviour. While 96% of those surveyed said other people commit “small frauds,” only 7% said they themselves may have done something that could be considered insurance fraud, even unintentionally.
Among the situations that often went unrecognized were failing to update mileage after driving more often, not disclosing tenants or short-term rental guests on a home policy, registering a vehicle under a parent’s name to lower premiums, leaving a partner off an auto policy even though they regularly drive the vehicle, and inflating repair estimates.
TD Insurance said these kinds of omissions are often unintentional, but they can still create problems during the claims process and leave policyholders with less protection than expected.
"Many Canadians don't realize that small omissions or outdated information—details that are easy to overlook—can create challenges down the road. Many issues can be easily corrected when they're caught early, which is why reviewing and updating your policy matters. Left unaddressed, some details may delay a claim or affect coverage when customers need support the most,” said Niro Kandasamy, AVP for fraud and special investigations at TD Insurance.
The insurer said fraud prevention is not limited to investigations after suspicious activity is detected. It also involves helping customers understand what needs to be disclosed and addressing potential risks before they affect coverage or claims. That message aligns with broader anti-fraud efforts in Canada this month, which have focused on helping consumers spot warning signs earlier and report suspicious activity.
TD Insurance encouraged Canadians to review their policy details at least once a year, update their information when life circumstances change, and ask questions early if they are unsure what should be disclosed.
