How Fraudsters Work
A common scam involves fraud artists using a slightly altered name of a legitimate insurance company.
Online ads may include an email address as well as a phone number. When you contact the advertised insurance representative, a much lower premium may be quoted. While low prices can be tempting, ask questions and do your homework before signing or providing payment.
Legitimate insurance companies, brokers, agents and direct writers will NEVER request:
- A signing fee
- That a payment be sent through an electronic or wire transfer, or to an unidentified post-office box.
If in doubt, contact the insurance company in question before making any form of payment. If the company doesn’t exist, you’ll find out before you pay.
Learn about the latest scam alerts from IBC’s insurance fraud alerts.
Insurance is Regulated
Across Canada, all insurance companies are licensed by federal and/or provincial regulators. Brokers, agents and direct writers are licensed by provincial regulators. These regulators keep lists – some of which are online – of the insurance companies, agents and brokers licensed to do business in specific provinces and territories. For some information requests, you may need to contact the regulator by phone or in person.