With insurance fraud on the rise throughout the nation, we would like to equip you with the information you need so you can identify potential scams and make wise decisions, particularly when it comes to purchasing insurance. You might have heard about insurance vendor scams (often run by individuals known in the information as ‘ghost agents’) and the way these are getting more and more prevalent. These scams may lead to no end of trouble due to their victims, from wasted cash and denied claims to authorities charges and vehicle suspensions. <–more!–> Learn how you can avoid insurance vendor scams and make sure you’re buying a valid policy.
WHAT IS AN INSURANCE SELLER SCAM?
An insurance policy seller scam generally involves an unauthorized individual acting as an insurance broker or agent and selling fake insurance policies. It’s a scam since the purchaser is unaware that the insurance policy they are paying is fake and does not really offer any policy. The men and women who run these scams are usually known as ‘ghost brokers.’
WHAT HAPPENS IF YOU BUY A FAKE INSURANCE PLAN?
Apart from wasting your hard-earned cash and accidentally supporting criminal activity, these are only a few of the problems you could face if you unknowingly become a victim of an insurance vendor scam:
- You could be charged by police for driving without insurance if you’ve got a fake pink slide or imitation car insurance policy, which could result in your vehicle being impounded, a permit suspension, and a hefty fine
- You’ll have a lapse in coverage for the duration of time when you thought you had insurance, which could lead to higher premiums once you end up getting a true policy.
HOW TO KNOW A POTENTIAL INSURANCE SELLER SCAM
These are a couple of telltale signs of possible insurance seller scams:
- You’re offered a superior that seems too good to be true (this can be a little tricky since rates vary slightly by an insurer, but if you’re wondering why a rate Looks especially low, it is worth doing a little research regarding the company)
- The title of the insurance company on your coverage or pink slip is different from the name on the insurer’s official site
- The broker charges a fee to supply you with an estimate
- The agent will only accept payment in cash
- The agent asks that payment be sent via an electronic or wire transfer, or into an unidentified post-office box
HOW TO FIND A LEGITIMATE INSURANCE SELLER
It is important that you purchase insurance from a legitimate source, whether that’s a licensed broker, a broker from a specific business, or an insurance carrier that sells directly to clients. If you’re looking for business insurance available in London, check this out.
- Request for recommendations from trusted friends or family
- Contact your provincial insurance brokers’ association and inquire about agents in your region
- Utilize the Insurance Brokers Association of Canada (IBAC)’s to find us listed as a part of the IBAC
- Visit the website of a specific insurance company and use their online broker directory to locate a legitimate agent who sells their policies
- Once you’ve obtained a quotation, do some research on the company you’re considering going with — be certain the name listed in the quotation matches the name on their site and check their broker or agent directory to be sure that you’re dealing with a licensed seller
SHOPPING FOR INSURANCE RIGHT NOW?
We are a licensed agent that may store around for you and find the best policy for your situation — yes, that generally means getting you quotes from numerous insurance companies so that you may take your choice. Looking for home business insurance in London, ON? Find out more here.