Why you should never lie in Insurance

Lying never ends well, especially in the insurance world. It might seem tempting if you want to get your claim quickly or get the best insurance premiums out there, but the consequences of lying can be serious. You won’t just lose your insurance premiums, you can face legal disciplinary action. Here is why you should never lie or make false claims. 

Your Policy Can Be Terminated

Trying to get an insurance policy or renewing a policy? The last thing you should do is lie. If the details you enter are wrong, your insurance company will find out and your policy can be immediately rejected. You will lose your protection until you get another policy, leaving you vulnerable to expensive damages if you meet in an accident, or find your property damaged. You’ll then have to pay out of pocket. 

It is also illegal to drive without insurance in Canada so you can face disciplinary action if you get caught.

Your Claim Can Be Rejected

Insurance companies do not appreciate being lied to. Most insurance companies will inspect your car when you make a claim. A surveyor or claim examiner will then inspect your car against the claims you made. These professionals are well versed in insurance matters. It’s highly unlikely that you’ll get away with a lie. 

If you make a fraudulent claim and get caught, your insurance company will reject your claim immediately. You will lose out on a lot of cash that you could’ve used to pay for damages or injuries that you incurred. 

You Can Receive A Penalty Or Your Premium Can Increase

Lying when buying insurance or taking out a claim can leave you in breach of contract. You can get in legal trouble for this and receive serious fines and penalties. Your insurance company can also raise your premiums if they find out you lied about a claim. You’ll have to pay a higher insurance claim when it’s time to renew your policy, that’s assuming it has not been cancelled by your insurer.

You Can Get Backlisted From Other Insurers

Don’t assume you can easily move on to another insurer. An insurer can sometimes not only cancel your policy for fraud, but they also have you blacklisted from getting any other kind of insurance. A cancellation or blacklisting of your name can make it difficult for you to get any kind of insurance in the future. It’s a safer bet to always tell the truth.

You Can Face Criminal Charges

Insurance is a legal contract. You are entering into a legally binding agreement with your insurer. A breach of any legal contract has serious consequences. You can receive a large fine and in serious cases, even jail time. You’ll ruin your clean criminal record which can affect you when you are trying to get a job in the future. 

Most local government jobs require that candidates do background checks before employment. The government can identify theft victims and criminals so there’s a good chance you won’t be able to get a job in local government such as a law enforcement job. 

Need insurance? No need to lie to receive the best insurance terms. Zippo Insurance can make sure you receive the best insurance policy at the best rates. We do the work so you don’t have to. We have a friendly and knowledgeable customer service team that will help you every step of the way and ensure you get the insurance you deserve. Don’t take any chances, speak to our experts the next time you are looking for insurance for anything you need.

Contact our team to find out more about our insurance solutions available to you!