Why Shouldn’t You Lie to Your Car Insurance Company?

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No one can really hide from the truth. If you think the easiest way out of a high premium is keeping your insurance company from knowing the truth, then you really MUST start thinking.

It is understandable that a lot of people want to bite on the possibility of lower premiums or really cheap auto insurance for their cars. In fact, Insurance companies would like to be able to provide the best auto insurance rates and provide fair trade at all times so it’s very obvious that they do check on their clients to see if they are telling the truth or not. For a business to succeed, every tiny detail must be taken care of. Which is why a large majority, if not all Insurance Companies have underwriters to whom they assign to the accuracy of information the clients actually give. These people devote their time in finding out if a client is truly qualified to receive a specific service from their company. Investigators, hired by the insurance company, will research on your account and financial status if ever they have doubts on the credibility of your claim.

What might happen if I lie to the Company?

One of the charges you deal with is misrepresentation or fraudulent misrepresentation. This is also known as one of the most common problems insurance companies have to face and is referred to as “misrep” in terms of insurance jargons. This is a type of insurance fraud that gets you nowhere – most especially when the insurance company finds out you are lying. Not only it is foolish, but it’s also time-consuming and complicated. When you’re caught, not only will you be stuck in the rut when you need the help in a car accident, but your claim will also be denied.

Trust is an important issue between the client and the company. If you can’t manage to be precise and truthful with the information you give them, the insurance company will cancel all your policies, they would not want to deal with you in the near future, and aside from that, you just might be sued or charged with insurance fraud.

The truth of the matter is that insurance companies are there to aid you in the event of an accident or serious car problem. They help prevent financial discomforts in case you have to pay for anything.