RIBO warns of alleged auto insurance scam

The Registered Insurance Brokers of Ontario (RIBO) is warning of an alleged automobile insurance scam.A newspaper ad advertising auto insurance with a 1-800 contact number has been placed in several Ontario city newspapers, a RIBO release says. Typically, the perpetrators of the scheme place the newspaper ads for about a week and then move onto another city and newspaper using a different “1-800” number and a new business name. So far, names have included Arthur and Son, Interprovincial, Smith and Son and Addison, said RIBO.When the victim phones the 1-800 number, they are directed to send the insurance premium by Western Union. The victim does not receive any policy and if they call the “1-800” number, it is out of service. No valid insurance coverage has been placed, RIBO continued.RIBO has received a number of calls recently from people who have been caught in the automobile insurance scam. “People should exercise caution when purchasing their insurance and make certain they are dealing with a legitimate insurance broker or agent,” RIBO said. Anybody who might have been caught in the scam is asked to contact RIBO.