Make sure they’re legal: Always check to be sure you are dealing with
a licensed insurer and sales representative.
Remember the old saying “if it’s too good to be true, it probably
is?” This applies to insurance as well. Recently, there have been a
number of documented cases of people posing as insurance brokers or
agents or offering “discount” insurance, often from an insurance company
that doesn’t exist. If you’re not careful when you’re shopping for a
deal on insurance, you could end up the victim of a costly and serious
fraud.
A common scam involves fraud artists using a slightly altered
name of a legitimate insurance company. Ads appear in local papers with
a phone number to call. When you call, you may be surprised when you’re
offered a much lower premium than what you’ve been quoted elsewhere.
It’s tempting, but don’t be a victim.
Remember:
A legitimate insurance company, broker or agent will
never
ask*:
- for a signing fee; and/or
- that a payment be sent through a wire transfer or to an unidentified post office box.
If in doubt, always attempt to contact the insurance company in
question before making any form of payment. If the company doesn’t
exist, you’ll find out before you give them any money.
Insurance companies are licensed by federal
and/or provincial regulators. Brokers and agents must also be licensed
by provincial regulators. These regulators
keep lists of the insurance companies, agents and brokers that are licensed
to do business in their respective provinces. Some allow you to
browse their lists on the Internet. Others you will have to contact by
phone or in person.