In recent news, Inass Mohmed, a resident of Hamilton, Ontario got into a car accident and soon after discovered that the insurance she had purchased was fake. After Mohmed got into the collision, she took what she thought was the responsible next step and called her insurer to report the claim. This is when she found out that her insurance slip was fake. Mohmed lost thousands of dollars from the rejected claim and lost the right to drive her vehicle. She was also fined $5,000 by the police for driving without insurance. “It’s a shock,” Mohmed told CTV’s W5. Mohamed had unknowingly become victim to an insurance seller scam by purchasing from a ‘ghost broker’.
A ghost broker is an unauthorized person acting as an insurance broker to sell fake insurance policies to unsuspecting consumers. Ghost brokers are known to advertise through social media postings, community newspapers, and on the website Kijiji. These scammers will sometimes alter the name of a legitimate insurance company, so pay attention to the details and research the company you are thinking of going with.
If you suspect that your current policy could be fake, double check that the information on your pink slip is correct and that it matches the name of the insurance company you are using. Remember that a legitimate insurance company, broker or agent will never request that your payment be sent through an electronic transfer or request your payment in cash upfront. You can also verify your policy by calling the toll free number from the insurer’s website and have them look up your policy in the system.
Brokers, agents, and direct writers are licensed by provincial regulators. For Alberta, you can look up an agent or agency on the Alberta Insurance Council website, and all other provinces have a similar lookup available through their respective insurance councils. You can also use the Insurance Brokers Association of Canada (IBAC)’s online broker directory to find brokers who are members of the IBAC.
Recognize and avoid potential scams and make sure your insurance policy is legitimate. While the prices of insurance premiums vary, if the price seems like it’s too good to be true, it probably is. Learn about the latest scam alerts and fraud alerts from the Insurance Bureau of Canada (IBC).
To discuss your current coverage or to find out how Fuse Insurance can help you, talk to one of our expert brokers.
Fuse Insurance Ltd. is the evolution of the commercial insurance brokerage, and the first of its kind in Western Canada. Backed by policies from a selection of A-rated insurers, Fuse Insurance can provide coverage for businesses large and small from almost any industry. For further information or to get an online quote now, click here or call us at 1-866-387-FUSE (3873) for more details.