Car insurance companies lost about 15.9 billion dollars in 2008 from what it calls “Premium Leakage” – meaning loss of revenue due to the inability on insures to keep track of changes in customers’ situations that affect prices. Although sometimes the insurer is not the only one to blame. People tend to cut corners when dealing with insurance companies, by withholding information, or just by simply forgetting. These are the top 5 lies told to insurance companies.
5. Under-estimating the number of miles driven in a year.
4. Claiming discounts that no longer apply.
3. “Forgetting” to report all the drivers in the household.
2. Misstating how the car is used.
1. Lying about the garage.
In truth, lying will get you nowhere when dealing with any type of insurance. Whether it be car or home, state the facts. You want to be covered for any type of situation that may occur. It’s better to come clean first, then get caught in a lie by your insurance company, and paying for the consequences later.