Don’t Get Scammed: How to Protect Yourself from a Ghost Broker

At HUB SmartCoverage, your safety and financial protection are our top priorities. Unfortunately, “ghost brokers” are fraudsters selling fake or invalid auto insurance who continue to target unsuspecting Canadians seeking insurance, often with a focus on those new to Canada or unfamiliar with how insurance works. They are scammers who pose as legitimate brokers, offering (often) unrealistically low rates and convincing documents, but leave their victims uninsured and exposed to serious financial and legal risks.

What Ghost Brokers Do

• Sell fake insurance – They create phoney policies that look official but offer no real coverage.
• Impersonate legitimate brokers – Using stolen identities, fake names, or fraudulent websites, they pretend to be licensed professionals.
• Manipulate policy details – Altering genuine policies or falsifying information to obtain cheaper premiums that invalidate coverage.
• Target vulnerable individuals – Often newcomers to Canada, people with limited English skills, or those unfamiliar with local insurance requirements.
• Operate online or over the phone – Advertising through social media, online marketplaces, or cold calls, which makes it difficult to verify their legitimacy.
• Request e-transfer or electronic payments – These payments are often made to an individual, are untraceable and cannot be reversed.

Why Ghost Brokers are Dangerous

• No coverage when it matters – You may believe you’re insured, only to discover you have no protection after an accident or claim.
• Financial loss – Victims lose the money they paid and may face significant out-of-pocket costs in the event of an insurance claim.
• Legal trouble – Driving without valid insurance can lead to fines, licence suspension, and other penalties.

How to Protect Yourself

1. Verify the broker’s licence – In Ontario, confirm with the Registered Insurance Brokers of Ontario (RIBO).
2. Be cautious of unusually low quotes – If it’s much cheaper than other quotes, it’s likely a scam.
3. Avoid untraceable payments – Never pay in cash or via e-transfer; use secure, traceable payment methods. Check credentials carefully:
   • Call the brokerage directly to verify their employment.
   • Make sure the company is licensed. You can check a website’s domain and registrar to confirm it’s Canadian and appears legitimate.
   • Licensed brokers use professional email addresses linked to their official company website, usually ending in .ca.
   • Review their LinkedIn profile for authenticity: look for a newly created account, stock photos, questionable education, lack of, or suspicious details.
   • Search their name and contact details online.

4. Report suspicious activity: Contact RIBO or your local police if you suspect fraud.

HUB SmartCoverage reminder: A “too good to be true” premium is never worth the risk of driving uninsured. Always confirm who you’re dealing with before purchasing coverage.