It is important to use a licensed broker/agent when purchasing insurance. Even if a friend refers you to someone who says they sell insurance, make sure they are legitimate. An unlicensed seller can take cash from a victim to set up an auto insurance policy, but not secure coverage, keep the money, and leave the victim out thousands of dollars and driving without coverage. Sometimes a temporary card is issued  but permanent ones are usually never received nor is the actual policy document. 

This is one example of an increasing number of scams involving the sale of insurance. Criminals are also preying on the public through classified websites like Craigslist and Kijiji, or exploiting referrals through auto repair shops and car dealerships.