Everyone loves a good deal, but when
it comes to buying auto insurance, the lowest price may end up costing you
more than you bargained for. An increasingly common scam involves the
sale of cheap auto insurance to unsuspecting consumers. Joanne Fortin is with the Financial Services Commission of Ontario fraud artists draw in potential customers by advertising rock-bottom auto insurance prices tricking consumers into paying for fake
insurance coverage. It’s not until they are involved in a
car accident, or stopped by the police and charged with
driving without valid insurance, that some consumers discover they don’t
have a real auto insurance. If you don’t have valid auto insurance,
and are injured in an accident, you may not be entitled to receive
certain accident benefits. More importantly, if you are found to be
at fault for an accident causing injury or death to another person, you may be
held personally responsible for his or her medical costs and other losses. When shopping for auto insurance Fortin
says being aware of potential red flags can help to keep you from falling for a
scam. Don’t pay a referral fee. Licensed agents and brokers don’t charge you fees. Don’t pay your insurance premium
through a transfer or money wiring service. This is not a practice in the insurance
industry. Check to make sure that you are dealing with a licensed insurance representative. A list of
licensed insurance companies and agents is available on the Financial
Services Commission of Ontario’s website w w w dot F S C O dot G O V dot O N dot C A .To help consumers avoid auto
insurance scams, the Financial Services Commission of
Ontario’s website offers consumers helpful tips on how to
avoid auto insurance scams. People have to realize how much they
could lose if they are in an accident and do not have valid automobile
insurance. Remember: driving without valid auto
insurance, even unwittingly, is illegal. It is your
responsibility to ensure that you have valid auto insurance, purchased from a licensed agent, broker, or insurance company. If you
suspect fraudulent activity in the purchase of auto insurance, contact the police. For additional
information on insurance visit the website F S C O dot G O V dot O N dot C A.