Car insurance tips

Con artists, unfortunately, spend their days thinking up schemes to defraud us of our money.

One increasingly common scam involves the sale of “cheap” auto insu nce to unsuspecting people. This scheme may appear genuine, but it’s intended to trick consumers into paying for auto insurance coverage that is invalid, or doesn’t exist.

To guard against potential auto insurance scams, take a look at the handy information on this topic, posted online by the Financial Services Commission of Ontario (FSCO) — the regulator of the insurance industry in Ontario. To download the brochure: Don’t Get Scammed Buying Auto Insurance, visit FSCO’s website at www.fsco.gov. on.ca. Here’s a summary of the brochure:

* Scam Scenario: An advertisement promises auto insurance coverage at rates much lower than usual or offers free auto insurance coverage for a specified number of months. When you call the phone number, you are provided with a quote. When you accept the quote, you are asked to send a full payment through a transfer or money wiring service. In some cases, the individual you contacted is willing to meet with you to accept a cash payment.

* The Reality: Your auto insurance coverage is non-existent because it was never arranged. The individual you contacted is not a licensed insurance agent or broker and he or she pocketed your payment.

Here are some tips on how you can protect yourself from auto insurance scams:

* Do not pay the insurance premium through a transfer or money wiring service. This is not a practice in the insurance industry.

* If an insurance agent or broker completes the insurance application form on your behalf, check it for accuracy. By signing the application, you are agreeing to the statements made to the insurance company.

* Be suspicious if you are asked to pay a referral fee.

* If you suspect fraudulent activity, contact the police.

You can check if an individual or insurance company is licensed, and legally allowed to sell auto insurance. To check if an insurance agent is licensed, visit www.fsco.gov. on.ca, choose Insurance, and select Licensed Insurance Agents in Ontario. Or, visit www.ribo.com and choose Broker/Brokerage Licensing Status.

Source : Midland Free Press, Canada