Insurance experts warn to watch out for “ghost brokers,” people who position themselves as an insurance agents or brokers without having the licence.Insurance experts warn to watch out for “ghost brokers,” people who position themselves as an insurance agents or brokers without having the licence.

Fraudulent schemes are pushing up premiums in Ontario and are additionally difficult for drivers to identify, based on a ballot by the Monetary Providers Regulatory Authority.

By Srivindhya KolluruParticular to The Star

Mon., March 27, 20232 min. learn

A brand new survey has discovered {that a} overwhelming majority of Ontario drivers imagine auto insurance coverage fraud is widespread — and are nervous about turning into the following sufferer.

Ghost insurance coverage brokers. Staged collisions. Inflated restore prices. These are simply a few of the schemes happening which can be pushing up premiums and are additionally difficult for drivers to identify, based on a ballot by the Monetary Providers Regulatory Authority (FSRA).

Daniel Ivans, an insurance coverage skilled with RATESDOTCA, says ghost brokers — individuals who place themselves as an insurance coverage agent or dealer with no licence — are one of many extra frequent frauds.

“As a driver, this sort of particular fraud wouldn’t impression or have an effect essentially in your direct premium, but it surely may have an effect on protection,” explains Ivans. “Drivers can shield themselves from being defrauded by anyone by logging on and researching the corporate that that individual represents.”

You may also examine that your insurance coverage skilled or firm is licensed with FSRA.

Matt Arms, Ratehub.ca’s VP of Insurance coverage, says you also needs to be cautious of brokers that ask you to pay for protection with money or an e-transfer.

Subsequent, be looking out for staged accidents. These incidents can take a number of varieties, specialists say, however an instance is a driver in entrance of you deliberately stopping brief and fast to get you to hit him.

Arms says staged accidents are sometimes brought on by drivers who need to file an insurance coverage declare for repairs or to fully write off their automobile for money.

“One other situation that we’ve heard about is you’re pulling out of a parking zone or onto a highway, and anyone waves you in, however the driver hits you proper as you’re getting into,” says Arms. “After which it appears such as you’ve entered a busy highway with out trying each methods.”

If you happen to suspect you’ve been concerned in a staged accident, it’s necessary to take images of the injury to your automobile and instantly inform your insurance coverage firm of what’s occurred.

Ivans and Arms clarify that whereas defending your self from a staged accident is difficult, putting in a touch cam may help show that you just had been a sufferer.

“If there’s no proof to indicate that you just had been following the foundations of the highway and the opposite driver put you on this susceptible state, it’s going to be a kind of ‘he mentioned, she mentioned’ eventualities,” explains Arms. “With out proof, that at-fault accident will enhance the value you pay for insurance coverage.”

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