Why It Is Important to Be Honest with Your Insurer

Most car owners are of the opinion that insurance providers always look for ways to avoid paying out car insurance claims. However, this is far from the truth. In fact, insurance companies are willing to pay every claimant as long as valid claims are raised. The insurer would never want to upset a customer who has had a long-term relationship with them. Hence, just like all financial products, it is very important that you are honest and upfront with your car insurance provider.

 

One of the most common causes of dispute between car insurance customers and insurers is non-disclosure or partial disclosure of information from the side of the policyholder. The issue crops up at the time of a claim. This could even lead to the rejection of the claim.

When an individual buys a car insurance policy the insurer assesses his/her risk based on the information provided. The insurance coverage is offered at a premium that corresponds to this risk. So if the customer had not made a full disclosure at the time of policy purchase, his/her risk assessment would not have been accurate. If the insurance company identifies this in the event of a claim, the claim can be rejected.

If the insurance company asks for information about your driving history, you should be very honest in this matter.

If you have a vehicle that will be used for commercial purposes, it is important that you inform the insurer of the same and buy an appropriate motor insurance policy. This way, the claims process in the future will be quicker and will conclude easily.

You should bear in mind that honesty is, in fact, the best policy in the realm of car insurance as well. Fraudulent claims are viewed very seriously in the industry. Being dishonest with the insurance provider may affect your future premiums and even pose issues when you apply for insurance from another provider!

Dishonesty while reporting a loss to a car insurance company is one of the main reasons for claim rejection. If you want to save money on car insurance, do not lie to the insurer; instead research the companies that offer best rates for extensive coverage. The aim of insurance is to help you financially at the time of an unprecedented event that resulted in losses. Being honest with your insurance company will ensure that your claim will be paid out without any hassles.