It may seem like not a big deal to some people, but filling up car insurance applications is essential, says experts. Although we already know this fact, there are still some people making mistakes and fudging the application. And by implying some questions or incorrectly answering the application, it could cause rejection of claims and issues. So here are some of the most usual errors and lies car insurance applicants make and why you should need to avoid it:
- Minor-age driver lies
Some parents don’t inform (intentionally) the insurers about having teenage drivers at home because they want to avoid paying additional coverages in their auto insurance. However, according to experts, they should be honest about having minor-aged drivers and add them to the insurance policy. The reason behind this is to protect them and provide appropriate coverage. - Underestimating mileage record
A lot of drivers didn’t know how much they drive. And when asked by insurers, they just guessed, giving insurers a mileage estimation on the low side. However, according to studies, those who misinform insurers about their mileage records have higher claim costs. Also, because of the drivers’ incorrect information, companies lost over $15 billion last 2010. - Not reporting risky regular drivers
Some drivers tend to get confused on what to answer when asked if there are any other drivers who drive his car. And it is understandable why this question is quite tricky, as other companies try to add extra charges for occasional drivers. Even so, failing to report other drivers can cause the withdrawal of the policy. - Not mentioning driving accidents
Some drivers disregard revealing their records and history. Yet experts say that even if the car owner isn’t involved in an accident, accidents caused by others who drove his car are still important to be reported to insurers. - Business trips aren’t being mentioned
If you lie about using your car for business and eventually got into an accident, the policy might get canceled. So it’s best to inform the insurer if you use your vehicle for business trips.
Conclusion
Disregarding the proper answer in your insurance application might not sound as big a deal as it is. However, it’s better to be reminded that honesty is the best policy because simple errors and fudge in your application might cause you trouble. And not just that, companies might also suffer from loss if applicants won’t take applications seriously.
At Mauser & Tobin Co., Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (516) 747-0171. Get your free quote today by CLICKING HERE.
