Insurance Seller Scams – Be Aware

It’s important that buyers pay close attention to the details of your insurance contract. Scammers sometimes slightly alter the name of a legitimate company.

The saying “If it’s too good to be true, it probably is” applies to insurance. In recent years, there have been a number of documented cases of criminals posing as insurance brokers or agents. Some of these criminals offer discount policies from a fake insurance company. If you’re not careful when you shop for insurance, you could become the victim of fraud.

Always check that the insurance broker, agent or direct writer you are working with is properly licensed.

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 or 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.

Source: The Insurance Bureau of Canada