When you are looking for Newfoundland auto insurance coverage, it’s important to make sure that you are dealing with a reputable company. Taking the time to do your homework and investigate insurance providers means that you lower the risk of being taken in by someone who is a fraud artist.
One scam that consumers should be on the lookout for involves a company that has a name that is very similar to a legitimate car insurance provider that is licensed to do business in the province. The scam artist will run newspaper ads inviting consumers to contact the “company” by phone. Once the consumer makes contact, he or she will be offered a very low rate for coverage.
If you are offered a rate for your auto insurance that seems too good to be true, it probably is. Another red flag is if you are told that this price is only available for a limited time and you must act immediately if you want to get the price you have been quoted. Other signs that something fishy is going on is if you are asked to pay a signing fee or to send your payment to a post office box or by wire transfer.
A legitimate Newfoundland auto insurance company will be able to tell you where its office is located and provide you with a street address. Check out the company before you send any money and avoid being the victim of a scam.