This entry was posted on Thursday, September 17th, 2009 at 10:11 am and is filed under Ontario. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 17, 2009
Scam activity happens in all kind of business and auto insurance industry is no exception. The Insurance Institute of Canada study shows that 10 to 15% of insurance claims in Canada are fraudulent and the latest insurance scam in Ontario involves the sale of fraudulent auto insurance policies to unsuspecting drivers.
These con-men lure innocent consumers through fake advertising, offering the sale of unremarkable cheap auto insurance through newspapers, commercials and over the Internet. It is very common for fraud artists to ask for an up-front fee and cash payment which is a warning sign that you may NOT be dealing with a licensed auto insurance agent.
If an offer seems too good to be true, follow these few simple tips to avoid purchasing into auto insurance scams:
1. Research the name of the representative to ensure that they are legally allowed to sell auto insurance. Visit the Financial Services Commission of Ontario website (www.fsco.gov.on.ca) and click Insurance Agents Licensed in Ontario.
2. Verify with the Financial Services Commission of Ontario website (www.fsco.gov.on.ca) that the insurance company you are dealing with is licensed.
3. Avoid paying up-front cash fees. Licensed agents and brokers do not charge fees.
4. When applying for auto insurance, you must complete an application form called the Ontario Application for Automobile Insurance (OAF1). Check for accuracy if your licensed broker or agent completes the form on your behalf.
5. Always read thoroughly any documents you sign.
6. Do not pay for your auto insurance through a wire transfer. This is not a safe way in the insurance industry.
7. Always shop around for the lowest car insurance rates.
read comments (0)