The benefit of choosing a reliable and reputable car insurance company is that you are assured you will get the financial help you need in case of an emergency with your car. Similarly, insurance companies believe you will provide the correct information to give you a suitable policy. If both parties lie, you will not get coverage for damage to your car. Therefore, it is advisable to always be honest with your insurance provider. There are various reasons people lie to their insurance companies.
In most cases, car owners lie intentionally to reap a particular benefit from the insurance provider. Others don’t give the correct information due to ignorance. Here are reasons people lie to their auto insurance providers and why you should never lie.
To Get Lower Premiums
Car insurance companies provide different policies based on the customer’s situation. That means circumstances like car model, claim history, and location lead to higher premiums. If you own a luxury car or have a poor claim history, your premiums will be higher. In that case, some people lie to get lower premiums.
For a Higher Claim Amount
A company like Del Toro Insurance provides car insurance coverage in Palmetto Bay to ensure you get covered once you file a claim. However, some people lie to such companies for a higher claim amount than they deserve. They fail to disclose previous damages that may have raised the probability of a current accident. The main aim is usually to get the company to approve the claim to cover repairs for previous and damages.
To Get Insurance Despite Ineligibility
You must be eligible to get car insurance. For example, you do not qualify if your car has passed a certain age. You are also not eligible for zero depreciation coverage if the vehicle is older than five years. Therefore, people lie about the age of their cars to get insurance.
For a Higher IDV
Lastly, a person may lie to a car insurance company for a higher IDV (Insured Declared Value). IDV is the highest amount you get in case your car is totaled. It is estimated by removing the vehicle’s depreciation value from the current market value. So, people lie about their car’s age to have a lower depreciation value, hence a higher IDV.
Reasons You Must Never Lie to Your Car Insurance Company
A car insurance policy ties you and the company. Therefore, lying comes with various consequences, including:
Policy Cancellation
If your provider realizes you have lied to them, they can cancel your policy. That means the coverage will be invalid unless you buy another one. Remember, driving an uninsured car attracts penalties and other legal consequences.
Penalties
The insurer can also levy a penalty or a fine if they discover you lied when renewing or buying your car insurance. You will pay a fine, and the insurer will not complain about you.
Claim Rejection
Insurance companies evaluate your claim thoroughly before approving it. That means they go through every detail you provided and examine your car. Therefore, if you lie about something or raise a claim because of a risk not covered, the insurer will know about it. Consequently, your claim will be rejected, meaning you will bear the cost of repairing the damages.
Increased Premiums
Car insurance companies charge premiums based on the information their customers provide. So, you may lie to get a lower premium. However, it will be a waste, and your premiums will be increased should the insurer discover that you lied.
Legal Consequences
Car insurance is a legal contract signed by you and your insurance provider. Therefore, a breach of terms could result in legal issues. The insurance company can file an appeal a complaint for cheating or fraud if you lie.
In Summary
Lying to your insurance provider for lower premiums, higher IDV, or claim amount could land you in trouble. Therefore, provide the correct information and inform the insurer of minor damages. This way, you will get the best coverage your car needs without attracting trouble.
