Drivers Warned As New Insurance Scam Surfaces
Posted February 8, 2011 1:41 pm.
This article is more than 5 years old.
Drivers across Ontario are being encouraged to be extra vigilant when choosing an insurance provider after an insurance scam emerged targeting those with poor driving records.
Recently, newspaper ads were placed in Toronto, London and Ottawa advertising insurance under the company name Security Insurance Inc.
The scam instructs victims to call a number and send cash via Western Union to get their coverage. But then there’s no policy sent and the phone number is soon out of service.
“In this instance here the people were motivated by bad driving records. They were receiving quotes in the 5-7 thousand dollar range and then this agency quotes them a much cheaper rate. If it seems too good to be true, it probably is,” Tim Goff, manager of complaints and investigations at Registered Insurance Brokers of Ontario (RIBO) told CityNews.ca.
Investigators are trying to track down the people behind this scheme.
“Of course we don’t know where the firm is, that’s the problem. The address and phone number are not legitimate. Our number one priority in this is to notify consumers,” said Goff.
Goff advises anyone shopping for insurance to always check if the broker is registered in Ontario.
No victims have been reported so far in this con. Anyone who responded to the ad thought twice before sending cash. If you have been affected by this scam, call RIBO at 416-365-1900 or 1-800-265-3097.
