With insurance fraud on the rise across the nation, we would like to equip you with the information you want so you can recognize possible scams and make wise choices, particularly when it comes to buying insurance. You might have heard about insurance vendor scams (often run by people referred to in the information as ‘ghost brokers’) and the way these are becoming more and more common. These scams can lead to no end of difficulty due to their victims, from wasted cash and refused claims to police charges and vehicle suspensions. Learn how you can avoid insurance vendor scams and be sure that you’re purchasing a valid policy.
An insurance policy seller scam generally involves an unauthorized individual acting as an insurance broker or agent and selling fake insurance policies. It is a scam since the buyer is unaware that the insurance policy they are paying is fake and does not really provide any coverage. The men and women who run these scams are usually referred to as ‘ghost agents.’
WHAT HAPPENS IF YOU PURCHASE A FAKE INSURANCE POLICY?
Apart from wasting your hard-earned money and accidentally supporting criminal activity, these are just a few of the issues you could face if you unknowingly become a victim of an insurance seller scam:
- You could be charged by police for driving without insurance when you’ve got a fake pink slide or imitation auto insurance policy coverage, which might lead to your vehicle being impounded, a license suspension, along a hefty fine
- You’ll have a lapse in coverage to the duration of time when you believed you’d insurance, which could result in higher premiums once you end up getting a real policy.
HOW TO SPOT A POTENTIAL INSURANCE SELLER SCAM
These are a couple of telltale signs of possible insurance vendor scams:
- You’re offered a premium that seems too good to be true (this one may be a little tricky since rates vary slightly by an insurance company, but if you’re wondering why a speed seems especially low, it’s worth doing a little research regarding the company)
- The title of the Insurance Provider on your policy or pink slip Differs from the title on the insurer’s official website
- The agent charges a fee to supply you with a quote
- The broker is only going to accept payment in money
- The agent asks that payment be sent through a digital or wire transfer, or to an unidentified post-office box
HOW TO FIND A LEGITIMATE INSURANCE SELLER
It is important that you purchase insurance from a valid source, whether that is a licensed broker, an agent from a specific company, or an insurance company that sells directly to customers. Keep these tips in mind when you’re searching for insurance:
- Ask for recommendations from trusted friends or family
- Contact your provincial insurance brokers’ association and inquire about agents in your area
- Utilize the Insurance Brokers Association of Canada (IBAC)’s to find us listed as a member of this IBAC
- Visit the web site of a particular insurance company and use their online broker directory to locate a legitimate agent who sells their coverages
- Once you’ve obtained a quote, do some research on the company that you’re thinking of going with — be certain the name recorded in the quote matches the title on their website and check their broker or agent directory to be certain you’re managing an authorized seller
SHOPPING FOR INSURANCE RIGHT NOW?
We are a licensed broker that can shop around for you and get the very best policy for your situation — yes, that usually means getting you estimates from multiple insurance companies so you can take your pick. Visit McConville Omni for more information.