Lying When Buying Insurance Could Cost You More
Consequences of Lying When Buying Insurance
Getting a new insurance policy can make some people feel under pressure. Sometimes, the many questions asked by insurance companies can make you feel nervous, uncomfortable or like you’re being backed into a corner. There are a lot of things that an insurance company needs to know before accepting the risk of insuring you or your assets.
Your answers have a direct impact on your insurance rates, and sometimes, may lead to getting some nice discounts. It all depends on what you have to say. Of course, people tend to hope they give the right answers to get the best prices, but does this justify lying?
There are many reasons why someone might lie to their insurance company. For one, it could indeed be a mistake or misinterpretation. In other cases, people deliberately lie hoping to find some benefit in that action. What they might not consider is that the consequences of being caught in a lie could end up costing them more.
When you omit information or alter the truth, you put yourself at risk of being denied a potential claim, not being paid as expected —or at all, or having your rates significantly increase once your insurance company finds out you lied. For example, if your insurance company concludes you’ve lied, they could decide to charge you the cost of the premium retroactively that they would’ve charged, had they been given the right information from the beginning. They could also decide to cancel your policy, and having this on your record will not make you look good to other insurance companies.
Save Money on Insurance Premiums the Right Way
If you’re looking keep your insurance premiums under control, there are things you can do that do not involve lying to your insurance company, whether you’re trying to save money on your homeowner’s insurance or auto insurance premiums. One thing that will help you get the best prices is talking with an independent insurance agent, like AAI Central. Because we represent many of the top insurance companies out there, we can help you explore more options that suit your needs, helping you get the best prices. Contact us for more information.