Posted : 05/01/2011
Lying to avoid a price increase
"Rate evasion" involves providing inaccurate information to the insurance company. Factors that affect car insurance renewal may include:
• Inaccurate information about where your car is located (e.g. in an urban area versus a rural area, or parked on the street versus parked in a garage).
• Unlisted drivers (e.g. leaving teenage drivers off the policy).
• Misrepresenting the number of miles driven annually.
Morales says car insurance companies take rate evasion extremely seriously, since they base premiums on accurate information.
"We look at rate evasion as an indication of the integrity of the customer, so it makes us question whether there will be other issues with that customer in the future," says Morales.
Compare real rates and save real money
Copyright © 1998-2013 by Quinstreet, Inc. All Rights Reserved. Insurance licenses