By June 18, 2007 0 Comments Read More →

Withholding information when getting with a new auto insurance company.

Reader question:

I’m changing my insurance company and I’ve had a couple of claims with the old one. Do I have to tell the new company about the past?

Sukey

I know you don’t want to, but honesty is still the best policy, even when it comes to insurance policies.

Yeah, admitting to your past history might get you higher premiums or even a total rejection, but it’s a lot better than the storm you’re in for if you don’t tell your new insurance company that you’ve had to file a few claims in the past. Let’s face it: you might get lower prices for a couple of months, but nine times out of ten your company will find it, you’ll be caught, and then not only will you probably get your policy canceled and have to be looking for a new company again, but other companies will be a lot less likely to trust you, honest or no. Even if you didn’t mean to cover something up, but just for got, it could cost you, so be careful.

You have to tell your company:

  • all accidents, whether you caused them or somebody else
  • all claims made with previous companies
  • all infractions on your record

Twenty percent of policy holders omit information when applying for insurance. A lot of the time, it isn’t intentional, and it can even be the insurance company’s fault for not asking the right questions. But it’s always a bad idea. You might lose your coverage, and you’ll also be making rates go up for everyone.

If you already have made an omission that you now remember, tell your agent. They can change things accordingly, and you won’t get caught out as having lied. Honest mistakes are understandable, when they’re corrected.

Cheers,

Fashun Guadarrama.

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