We know. When it comes to insurance for your car, home, or business, it’s very tempting to ‘tweak the truth’ so that you pay lower premiums or get a better settlement. Here’s why that’s NOT a good idea and NOT in your best interest.
If it’s discovered that you provided false information or withheld important details, your insurer has the right to cancel your policy immediately. This could leave you without coverage when you need it most.
If you provide inaccurate information on your policy or claim report, like intentionally leaving out details of a claim, allowing a driver under 25 to drive without informing your insurer, or trying to exaggerate a claim, your claim can be rejected. This means you’ll have to cover the costs out of pocket.
That’s correct! Providing inaccurate information to your insurer is considered fraud and a criminal offense. And just like that you can find yourself being investigated by the Financial Intelligence Unit. If found guilty, it can mean hefty fines, legal action, and even jail time if the case is serious.
If your policy was canceled or a claim denied due to dishonesty, you may be labeled a high-risk customer. This means getting coverage in the future will be more difficult and more expensive. Some insurers will even refuse you altogether.
Having insurance is about financial protection in the event something unexpected happens. It’s also about peace of mind. Think about it. If something should happen, you’ll feel comfortable knowing you’re properly covered. And bonus! Your insurer will be there to hold your hand and walk you through any claim process.
