Ontario's Financial Services Regulatory Authority warned drivers about a fraudulent website selling fake Definity insurance cards without actual coverage, posing serious legal and financial risks to unaware consumers.
- A fraudulent site (definityinsurancecompany.com) sold fake Definity insurance cards for a flat fee with no actual coverage; the site has been taken down
- Drivers without valid insurance in Ontario face fines of $5,000 to $25,000 and possible license suspension up to one year
- Legitimate Definity Insurance cards must come from licensed brokers; the company does not sell coverage directly online
- Fake cards may have false policy numbers or expiry dates but can resemble genuine documents
- Verify insurance broker and company licenses through FSRA or the Registered Insurance Brokers of Ontario
Officials at the Financial Services Regulatory Authority of Ontario, the province’s insurance regulator, have warned drivers about a fraudulent website offering fake auto insurance cards under the Definity name.
The Nov. 10 public warning concerns definityinsurancecompany.com, where proof-of-insurance cards were offered for a flat fee without insurance coverage. The website has since been taken down.
The fraudulent site had no connection to Waterloo-based Definity Insurance Company, a licensed insurer whose policies are distributed through insurance brokers.
“One of our biggest concerns is that consumers may mistakenly think they have legitimate auto insurance coverage,” said Jordan Solway, FSRA’s executive vice-president of property and casualty insurance, in the Nov. 10 warning.
A separate fraud alert is also posted on economical.com, the legitimate insurer’s website.
“Definity does not sell pink slips directly online or through third-party retail websites,” according to that undated alert.
Customers who suspect they purchased a fraudulent card are directed to contact a licensed broker to arrange valid coverage or call the insurer’s customer service team at 1-800-607-2424.
The impersonation comes during the transition from the Economical Insurance brand to Definity Insurance. Genuine customers may have policy documents bearing either name. Existing telephone numbers and claims service lines remain available during the change.
A pink slip provides evidence of an insurance policy. Counterfeit cards can resemble genuine documents while carrying false policy numbers or expiry dates.
Electronic cards are also valid when issued by an authorized insurer. Ontario approved electronic proof of auto insurance on Sept. 5, 2019. Approved electronic cards must be protected against editing or alteration and include a lock-screen viewing capability to protect other information on the driver’s phone.
Whether paper or electronic, the card must correspond to valid coverage.
Drivers involved in a collision without insurance could be held personally responsible for damage or injuries, according to FSRA’s warning.
Ontario vehicle owners or lessees convicted of driving, or allowing their vehicle to be driven, on a public road without insurance face fines of $5,000 to $25,000 for a first conviction. A licence suspension of up to one year is also possible under the Compulsory Automobile Insurance Act.
The warning follows a separate April 23 public notice from the Registered Insurance Brokers of Ontario about alleged broker impersonation on Instagram.
In that case, officials described complaints about an individual collecting payments and supplying electronic pink slips without real policies. Screenshots of a genuine broker’s licence were allegedly used to gain customers’ trust.
Insurance company and agent licences can be checked through FSRA. Broker and brokerage licences can be checked through the Registered Insurance Brokers of Ontario.
