RIBO warns of Ontario auto insurance scam

The Registered Insurance Brokers of Ontario (RIBO) has received a number of calls regarding consumers caught in an insurance scam.

Newspaper ads have been placed in several Ontario city newspapers – most recently in London, Ottawa and Toronto newspapers – advertising auto insurance from a company operating as ‘Security Insurance Inc.’

The ad suggests consumers with poor driving records or those with “auto insurance problems” contact a Web site or 1-800 number for a quote, a RIBO release says. 

The victim is then directed to send money via Western Union for the coverage. Subsequently, the victim does not receive any policy; when they follow-up and call the phone number, it is out of service and they are left with no valid insurance in place, the release continues.

The perpetrators of the scheme seem to place the newspaper ads for about a week and then move onto another city and newspaper.

“People should exercise caution when purchasing their insurance and make certain they are dealing with a legitimate insurance broker or agent,” RIBO said.

RIBO requests that any consumers caught by the scam report the incident to RIBO at 416-365-1900.