With insurance fraud rising throughout the nation, we want to arm you with the information you need so that you may recognize potential scams and make smart decisions, especially when it comes to buying insurance. You may have heard about insurance vendor scams (often run by people known in the news as ‘ghost agents’) and how these are becoming more and more prevalent. <–more!–> These scams can lead to no end of trouble due to their victims, from wasted cash and refused claims to authorities charges and vehicle suspensions. Discover how you can avoid insurance vendor scams and be sure you’re purchasing a legitimate policy.
WHAT IS AN INSURANCE SELLER SCAM?
An insurance seller scam generally involves an unauthorized individual acting as an insurance broker or agent and selling fake insurance coverages. It is a scam since the buyer is unaware that the insurance coverage they’re paying for is fake and doesn’t really provide any coverage. The men and women who run these scams are usually known as ‘ghost brokers.’
WHAT HAPPENS IF YOU PURCHASE A FAKE INSURANCE POLICY?
Besides wasting your hard-earned money and accidentally supporting criminal activity, these are just a few of the issues you could face if you unknowingly turn into a victim of an insurance seller scam:
- You won’t have the coverage you need in the event of an emergency (and you may have a rude awakening when you try to make a claim and the insurance company doesn’t have any record of your policy!)
- You might be charged by police for driving with no insurance if you’ve got a fake pink slide or fake auto insurance policy, which might result in your vehicle being impounded, a license suspension, and a hefty fine
- you’ll have a lapse in coverage for the duration of time once you believed you’d insurance, which could result in higher premiums once you end up getting a real policy.
HOW TO AVOID 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 one can be a little tricky since rates vary slightly by an insurance company, but if you are wondering why a rate seems especially reduced, it is worth doing a little research regarding the company)
- The name of the insurance company in your coverage or pink slip is different from the title on the insurance company’s official site
- The broker charges a fee to supply you with an estimate
- The broker Is Only Going to accept payment in cash
- The broker requests that payment be routed through an electronic or wire transfer, or to an unidentified post-office box
HOW TO FIND A LEGITIMATE INSURANCE SELLER
It is important that you buy insurance from a valid source, whether that is a licensed agent, an agent from a particular 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 agents’ association and inquire about agents in your area
- Utilize the Insurance Brokers Association of Canada (IBAC)’s to find us listed as a part of this IBAC
- Visit the website of a particular insurance company and utilize their online agent directory to locate a legitimate agent who sells their coverages
- as soon as you’ve received a quotation, do some research on the organization you’re considering going with — make sure that the name listed in the quote matches the name on their website and check their agent or broker directory to be certain that you’re managing a licensed seller
SHOPPING FOR INSURANCE TODAY?
We’re a licensed agent that can store about for you and get the best policy for your situation — and yes, that generally means getting you quotes from numerous insurance companies so you can take your pick.