Ontario’s insurance regulator is warning drivers that a now-defunct website sold fraudulent proof-of-insurance cards without providing any auto insurance coverage, CityNews reports.

The Financial Services Regulatory Authority of Ontario (FSRA) says definityinsurancecompany.com offered the cards, commonly called pink slips, for a flat fee using the Definity Insurance brand name. The website was not licensed to conduct insurance business in Ontario.

FSRA says the site was not connected to Definity Insurance Company, formerly Economical Insurance, which is a legitimate insurer licensed by the regulator.

“Driving with a fake pink slip could have significant consequences,” said Jordan Solway, FSRA’s executive vice-president of property and casualty insurance, according to CityNews. “If you’re involved in a crash without auto insurance coverage, you could be held personally liable for any damage or injury, which might cost you hundreds of thousands of dollars.”

Although the website has been taken down, FSRA is urging anyone who bought a pink slip through it to contact police and report the fraud. Buyers should also call the insurer or brokerage listed on their card to confirm whether they have valid coverage.

Before buying auto insurance, consumers should check FSRA’s website to verify that an agent or insurer is licensed, or the Registered Insurance Brokers of Ontario’s website to check a broker’s licence.

Solway said a major concern is that buyers may mistakenly believe they have legitimate coverage. Speaking directly with an agent, insurer or broker can help consumers verify their insurance.

Sources