How to Spot False Insurance Brokers

With insurance crime on the rise, we all need to be aware of false brokers. False Brokers manipulate innocent consumers by charging a fee in exchange for securing an automobile insurance policy with a cheaper premium, but not with the right coverage.

This means you could be left without proper insurance when you need to make a claim or may discover you don’t have any coverage at all.

If the scam resulted in the cancellation of your legitimate policy, this cancellation could impact your insurance record, potentially leading to higher premiums in the future.

Here to keep you protected

TD Insurance is a direct insurer and doesn't sell or offer property and casualty insurance through brokers.

If you’re buying residential, automobile or business insurance, or have a claim, you’ll always be dealing directly with a TD Insurance representative.

If someone tells you they can get you a policy with TD Insurance through a broker, it’s a scam. To help you recognize false broker scams and protect yourself, here are some steps you can take.

Understanding how false brokers operate

False Broker

A false broker is an unlicensed individual that doesn’t represent a legitimate insurance provider. They frequently prey on people looking for affordable residential, automobile or business insurance and newcomers to Canada who are learning to navigate the Canadian insurance system. They may also victimize people looking for bargain rates outside of normal channels.

These false brokers may do the following:

Falsify information in an attempt to secure a lower premium and charge a fee to the client for their fraudulent actions
Impersonate the insured when calling or binding the policy online
Disappear after receiving payment from the customer
Operate primarily online or through word of mouth
Charge fees but don't secure the correct coverage

Do your due diligence and watch for false brokers that:

Act aggressively or pressure you to send payments
Tell you not to speak to the insurer
Have low quality websites or questionable testimonials
Use an email address that doesn’t look official
Only communicate through social media, apps or other informal channels making it hard to verify their legitimacy
Have no physical office and want to meet in public places

The impact of driving without proper insurance

In some cases, even if the policy the false broker provides appears legitimate, they may have obtained it through falsified information. For example, the false broker may take the information you provide and increase the number of years you’ve been driving to obtain a lower premium.

As a result, the driver who believes they are properly covered could be underinsured, have their claim denied or entire policy cancelled. They could also be charged by law enforcement with driving without insurance, affecting their ability to obtain insurance in the future.

Steps that can help protect you:

If anything feels off or prices are much cheaper, trust your gut instincts
Only provide personal information to legitimate insurers that have verifiable professional credentials
If you suspect a fraudulent activity please report it here: ReportInsuranceFraud@tdinsurance.com
Purchase your policy through a reputable broker or direct writer that will provide support, such as TD Insurance

An insurance provider you can trust

Insurance fraud raises premium costs for everyone. By working together, we can help to reduce false broker scams to ensure that you and your family have the residential, automobile or business coverage you need, when you need it most.

“TD Insurance does not use brokers, so any phone calls or social media posts from individuals who claim to be a TD Insurance broker are a scam. Sharing personal or financial information can put you and your family at significant risk. Stay informed, stay vigilant, and protect what matters most.”