Imagine meeting someone who says they're an insurance representative and, after quickly assessing your needs, offers you cheap car insurance. Before jumping at the opportunity, check that the person is registered with the AMF.

Fraudsters pocket the premiumAn insurance premium, or premium, is an amount that a person or company must pay on a regular basis to keep their insurance in effect. For example, if Mary has to pay $200 per year to keep her life insurance in effect, then the premium is $200.
The insurance premium should not be confused with the face amount, or insured amount, which is the amount that the insurance company has to pay out. In the same example, if Mary has life insurance that pays $100,000 to Peter upon her death, then the face amount is $100,000.  and issue fake insurance policies so their victims think they're covered.

What if it takes a few months (it dawns on you that you haven’t received confirmation from the insurer!) or, worse yet, an accident for you to realize you’ve been scammed? It could cost you dearly, because civil liability insurance (insurance covering damage caused to others with a vehicle) is mandatory in Québec. Your driver's licence could be suspended. You could also be fined and made to pay out of pocket for any damage caused by your vehicle.

The same type of fraud has been seen with other types of insurance, as well, including life insurance.

Here's how you can protect yourself:

1. Before purchasing insurance, check that the representative is registered with the AMF and authorized to sell the insurance products offered.
2. After purchasing your insurance policy, contact the insurer to make sure it’s in force.
3. Pay your insurance premium to a firm registered with the AMF. Don't pay in cash and don't make any cheques out to the representative.

Now you’ve taken the worry out of car ownership, enjoy the drive!