The Financial Services Commission of Ontario is warning consumers about auto insurance scams involving fraudulent insurance cards.
FSCO says that these scams typically involve either an individual pretending to be a licensed agent or broker offering auto insurance coverage at a much lower rate and charging a fee for this service; or an individual provides a quote and seeks payment for coverage through a transfer or money wiring service. “In both scenarios, consumers may receive fraudulent insurance cards. In reality, their auto insurance coverage is non-existent,” FSCO says.
Fraudulent insurance cards appear valid, but have false policy numbers and/or expiry dates, it says. And, it notes that if consumers purchase insurance from agents or insurers that are not licensed in the province, they are not protected under the Insurance Act and the regulations that govern licensed insurance companies and agents.
The regulator stresses that consumers should be aware that licensed insurance agents and brokers do not charge a fee for arranging personal automobile insurance, and it reminds consumers to check whether their insurance agent, company or broker is licenced before purchasing auto insurance.
Separately, FSCO warned that Batch Bros Brokers is not licensed to do insurance business in Ontario. “This company appears to be involved in a fraudulent insurance card scam,” it says.