Almost all of us have heard it since we were kids: “Lying is wrong.”
But in reality, we all fib to some degree, even if it’s just a lie of omission. We tell our co-worker that we like her hideous dress. We tell an inquisitive stranger that we’re fine even when we’re angry. We neglect to mention to the guy at the next table that he has mustard on his face.
So it’s pretty clear that there are certain times when lying is okay (or at least not terrible). However, dishonesty is not a wise approach to take when dealing with your auto insurance company – even though quite a few people think so.
1 in 3 Drivers Lies to Auto Insurers
According to a survey of 2,000 drivers conducted last October by CarInsurance.com, fully 34% of them admitted to lying to their auto insurers, either by providing false information or omitting certain information. About 42% of men admitted to this practice compare to just 27% of women. And drivers under age 30 were about three times more likely than their over-50 counterparts to give inaccurate information to car insurance firms.
The Most Common Falsehoods in Auto Insurance
So what exactly are these fibs about? According to the study, the top four acts of misinformation were:
- submitting incorrect annual mileage (36.3%)
- falsely stating where vehicle is parked (32.4%)
- omitting or falsely identifying the people who have access to the vehicle (25.1%)
- omitting tickets or accidents on driving history (20.5%)
Between one in five and one in seven drivers also listed other responses such as omitting or lying about gaps in insurance coverage, lying about employing anti-theft devices, submitting a false education level or marital status, or fabricating dates of completion of defensive/refresher driving education courses. Respondents were allowed to choose more than one topic about which they lied.
Why Lie? Money
If you’re a savvy consumer, you probably know the main reason why some people choose to be untruthful about themselves when communicating with their auto insurance carriers: money. More specifically, people think that lying about certain data will enable them to receive a lower insurance premium. More than 63% of those surveyed cited this very reason for lying. It’s interesting to note that 28% said they lied because there was no correct answer to choose from, and that 8.7% justified their actions by claiming to have felt cheated by their insurer in the past.
Caught Lying? You’re in Trouble
However, like in many other situations, lying to your auto insurance company can have serious consequences. After all, you have to pledge in writing that your information is correct, and your auto coverage agreement is as binding as any other contract. So submitting false or inaccurate information can result in the terms of your auto insurance policy being changed or nullified.
Getting back to the study, about two out of every five people who admitted to fibbing said that they were indeed caught in the lie by their carrier. Only two percent of these individuals said that nothing happened as a result. The rest of them?
- Their insurance claim was denied (33.5%)
- Their premiums rose (31.5%)
- Their policy was cancelled altogether (25%)
- They were sued for fraud by their insurance company (7.6%)
According to the laws in almost every state, an insurer can take any one (or more) of these actions if they discover that their policyholders are lying to them. The moral of the story? People who lie to insurance companies very often get caught; and when they do, they almost always experience some financial hardship and/or hassle as a result.
AIS: The Honest Way to Save Money
Besides, there’s a much easier (and legal) way to reduce the amount of money you’re paying for auto insurance: Auto Insurance Specialists. AIS has been saving drivers money on their premiums for decades, and the savings usually add up to hundreds of dollars per year. So contact AIS today either by phone at (888) 772-4247 or by visiting their website. Not only will you keep some extra money in your pocket, your integrity will remain intact as well.
The information in this article was obtained from various sources. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.