Honesty is Essential When Buying Insurance
Lying on Your Insurance Application Is Not a Good Idea
Purchasing insurance makes some people feel a little anxious. There are a lot of questions that might make you feel uncomfortable or threatened, but the forms are designed this way so that insurance companies get to know you better before deciding whether or not they can take you on as their client.
When an insurance company accepts your insurance application, they are saying that they will take the risk that comes with providing insurance for your assets. So, it’s only natural they want to know more about you, and not only do they need to know more, they need to know the truth. Lying on your application to get better rates is not a good practice.
Providing inaccurate information on an insurance application could sometimes be due to a mistake or because something was misinterpreted, and that’s fine. It happens to the best of us. However, purposely lying to gain benefits is not ok and could end up costing you a lot more than you anticipated.
Lying on your application or omitting information could lead to you being denied a claim, instead of being paid, as you would’ve expected. Another potential scenario is one where your rates could significantly increase, or even worse the insurance company could ask you to retroactively pay the premium you should have paid from the start. They could also choose to cancel your policy. Plus, having that on your record doesn’t exactly make you look good.
Do You Want to Save Money on Insurance Premiums?
There’s a right way of doing this that doesn’t require you to lie. There are things you can do to lower your home insurance premiums and keep them in check, and the same goes for auto insurance. Honesty is essential in every relationship, including the one you have with your insurance company.