It’s important to be an educated consumer when it comes to insurance. Not only will this help to ensure that you get the best policy for you, but it also helps to make sure you don’t fall victim to fraud schemes.
Unlike claims fraud, which can involve staged or fake accidents, insurance seller fraud can take place when purchasing an insurance policy. When insurance seller fraud happens, it can leave you without proper coverage and in a vulnerable spot.
Here are a few tips to help avoid insurance seller fraud:
- DO: Check that your broker or agent is licensed. In Canada, legitimate insurance policies are sold through registered brokers, licensed insurance agents and direct-to-consumer insurance companies (like Sonnet). As a direct-to-consumer insurer, Sonnet uses licensed in-house agents only. We don’t sell insurance through brokers or third parties.
- DO: Ensure the policy is connected to your real phone number, email and address – this way you will know if the policy is cancelled or changed.
- DON'T: Pay in cash, ever. Also, don’t pay anyone a setup fee for your insurance. A legitimate broker or insurer will never ask you for cash to pay for your insurance or for a setup fee. At Sonnet, there is no activation fee for setting up a policy.
- DON'T: Give incorrect information or overlook it on an insurance slip. You should closely review all information provided to you by your insurance company to make sure it’s right. If something is incorrect, you should advise your insurer of any required corrections.
- DON'T: Ignore mail from insurance companies – someone may have used your identity to set up a fake policy.
- DON’T: Share your login information with anyone. Your Sonnet account contains personal information. It’s also through your account that you can make changes to your policy, or even cancel it. Giving someone else access may result in you not having the coverage you need when you need it.