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Saskatchewan man gets jail time for being a victim of insurance fraud

Purchased fake rental car insurance.

A Saskatchewan man says he spent more than a day in a dirty jail cell in Mexico when the insurance he’d bought on a rental car turned out to be fake.

Neil Brown says he and his son accidentally clipped a motorcyclist, and while the rider wasn’t badly hurt, police put him in a cell. His family says they contacted the Canadian consulate, and made some under-the-table payoffs. The entire ordeal cost about $4,000.

Unfortunate situations like this are an example as to why it’s important for Canadian consumers to do their homework before purchasing insurance so they don’t become victims of insurance fraud, according to Kevin Donovan, president of Donovan Insurance Brokers Ltd.

The challenge is that Canadians traveling to Mexico must purchase insurance in Mexico – Canadian and US insurers and brokers are not licensed to sell insurance in that region, Donovan told Canadian Insurance Top Broker January 23.

“On Google you can check what insurers are backing a company,” advises Donovan. “It is wise to purchase a single limit policy with basic liability. The costs start at $4 a day.”

Editor’s Note: Insurance in Mexico can be purchased online at www.mexicaninsuranceonlinecom 

 This story was originally published on January 23 and updated on January 31

With files from The Canadian Press

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