Auto Insurance Tips
Be aware of false advertising scams
(NC)-An increasingly common scam involves the sale of "cheap" auto insurance to unsuspecting consumers, tricking them into coverage that's invalid, or doesn't exist. Here's an example of a common scam scenario:
Crooks advertise the sale of cheap auto insurance in newspapers or flyers. The advertisements may even resemble those of a legitimate insurance company or individual licensed to sell auto insurance. Typically, these advertisements claim they can find you auto insurance coverage at rates lower than what you have been paying or quoted in the past. Some advertisements do not identify the name of the insurance company, insurance agent or broker. Where a name is provided, it is often being used fraudulently, or it is phoney. Con artists commonly advertise the sale of cheap auto insurance along with other businesses.
Here are a few easy ways to protect yourself:
• Be suspicious if you are asked to pay a referral fee. Licensed insurance agents and brokers do not charge you fees.
• Do not pay the insurance premium through a transfer or money wiring service. This is not a practice in the insurance industry.
• If an insurance agent or broker completes the insurance application form on your behalf, check it for accuracy. By signing the application, you are agreeing to the statements made to the insurance company.
• If you suspect fraudulent activity, contact the police.
Visit the Financial Services Commission of Ontario's (FSCO) website to find out if an individual or insurance company is licensed to sell auto insurance in Ontario. To check if an insurance agent is licensed, visit the FSCO website at www.fsco.gov.on.ca, choose Insurance, and select Licensed Insurance Agents in Ontario. To check if an insurance company is licensed, visit the FSCO website, choose Insurance, and select Licensed Insurance Companies in Ontario. To check if an insurance broker is licensed, visit the Registered Insurance Brokers of Ontario (RIBO) website at www.ribo.com and choose Broker/Brokerage Licensing Status.
For more tips on how to protect yourself from auto insurance scams, download the brochure: Don't Get Scammed Buying Auto Insurance on FSCO's website at www.fsco.gov.on.ca.
Credit: www.newscanada.com