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Policy Holders Having Coverage Canceled For Misrepresentation

One issue that many people are facing right now is having their auto insurance policy canceled by their insurance company. One woman had her insurance policy canceled for misrepresentation three months after the policy took effect. The entire amount of money that she paid for her insurance premiums was refunded to her.

The woman was shocked to learn that her policy had been canceled. However, this is happening more and more. When a person fills out all of their relevant information, they need to make sure that it is 100% accurate. If an insurance company reviews the information and finds out that some of it is not true then the policy will be immediately canceled on the spot.

Many people try to fudge their information in order to get a lower quote for their insurance coverage. This is a very bad thing to do because it has a lot of consequences. When a person lies to their insurance company and has their policy canceled, it will be much harder to get another insurance company to provide cheap insurance coverage. The fact that the policy was voided sends up huge red flags to other insurers who are reviewing your information.

Risk is a big part of a person’s premiums so the more risk you have on your forehead, the more money you will be paying for your auto insurance premiums. When people see a voided policy, they think why would another insurer take that drastic step? This will make most insurance companies either run for the hills screaming or will make your auto insurance premiums sky high.

Many people are finding to find short cuts to save money on their auto insurance coverage. However, lying about yourself or your driving record is a very bad thing to do. We live in a time where you can check anyone’s information because so much information is readily available on the Internet.

Auto insurance companies do offer discounts for having a good driving record, being accident free, driving a small amount of miles each year, getting good grades, and taking defensive driving classes. It is not very cost effective to openly lie to an insurance company because it is not worth the risk to save a few dollars each month.

You can call auto insurance agents and they can help you work with your particular situation and find the lowest premium rates possible. Many drivers who have been in accidents or have a lot of traffic tickets lie because in their minds they will not be able to get low premiums. They do not want to break the law so they take the risk and misrepresent their information during the quote and application processes.

Most states have said that it is mandatory to have insurance coverage on your vehicle. Always make sure that you answer each question as honestly as possible during the quote process. Ask an insurance agent for help with choosing your policy options so that you can afford the coverage that you need.