Those Little White Lies

Little white lies can lower your insurance rates; if you lie to lower your insurance rates you are not alone. These little white lies are called “premium leakage” to your insurance company. The reasons people lie are to save money, no correct answer on the insurance form, or they felt cheated by the company in the past. 10 percent of potential premiums from insurance companies are lost by drivers providing bad information. All the misinformation you provide adds up.

During a study, men were more likely to lie than women, 42 percent vs. 27 percent. Also, drivers under the age of 30 were more likely to lie about information provided than drivers over 50 years old. The top five things that drivers lied about during the study were annual mileage, where the car is parked, names of drivers with access to the vehicle, history of tickets or accidents, and gaps in insurance coverage. People lie about where their car is parked at night because it lowers their rates. Some places have a higher crime rate than others. What happens if you get caught giving bad information? If you get caught in your little white lies your claim could be denied, your premium could go up, and your policy denied or sued for fraud. Insurance companies pull DMV reports and check all the information you submit to them, so you will get caught giving false information.

If you are looking for auto insurance or have questions about your premiums in the Naples, Ft. Myers, FL area give Gulf Coast Educators a call.