According to “The 5 biggest lies told to car insurance companies,” freelance writer Barbara Marquard says that your little white lies actually mean a lot more than you think. Many consumers lie to their car insurer to get cheap car insurance. What insurers call “premium leakage”, or lost revenue based on inaccurate information from consumers, adds up to nearly 10% of total premium dollars. The top misrepresentation to car insurance companies is under-estimating the amount of miles that you drive. While some people may just not know, many change jobs and increase commutes without telling their insurers. Not listing all of the drivers in the household is another common falsification. Whether it’s a newly licensed teenager or a high-risk adult driver, many drivers are left off of the insurance policies.
Lying about where your car is parked, whether in a garage or not, is the third largest misrepresentation. The fourth is claiming discounts that don’t apply to you or your family any longer. AAA Auto Insurance may offer discounts for members of their roadside assistance program or honor roll students, but if your situation changes, you have to let your insurer know. Distorting how the vehicle is used is the last common misrepresentation. Some consumers don’t let insurers know that they are using their vehicle for business purposes. Insurance companies can find out your missing information through accidents a family member is in, a quality control company they hire, and even your odometer reading at a testing center. With the risk of your policy being canceled, it is in your best interest to be truthful to your car insurance company.
Similar Posts:
- Factors Affecting Your Auto Insurance Rate
- Where Does the Time Go: Finding Car Keys, Apparently
- Mother of Teen Driver Asks, Now How Much Car Insurance Coverage Do I Need
- State Farm Insurance Quote Lower With iPhone App
- Wisconsin Has A New Health Insurance Program
