Don’t be tempted to lie on your insurance application

Insurance is something that many of us take out to protect various aspects of our lives, from our pockets when taking our vehicles on the road and our belongings in our properties to our health and our loved ones in the event of unforeseen problems.

There are many different types of insurance cover available, such as home insurance, life insurance, critical illness insurance, income insurance, payment protection insurance, pet insurance, vehicle insurance, and much more, and many of us have multiple policies so that we can enjoy peace of mind and protection when we need it.

However, insurance does not necessarily come cheap and with most of us having felt the financial pinch over the past year being able to afford to have insurance in place has become more difficult. Another problem is that many types of insurance have been rising in cost, and with many other costs rising and household budgets facing additional pressure many just cannot cope with these rising costs.

Of course, comparing different insurance policies from a range of providers and opting for more basic cover is one way of reducing the cost of your insurance premiums in many cases…but it seems that some consumers are using a different ploy in order to try and get cheaper insurance cover.

According to recent reports an increasing number of people that are applying for insurance cover are now lying on their applications in order to try and drive down the price of their cover, but whilst this may seem tempting to those that don’t want to skimp on cover but do want to save on the cost of cover it is important to bear in mind that insurance companies can quickly find out about these lies, and this means that in the event of a claim your cover would be invalid and you could be left with nothing.

For example, it has recently been revealed that health and life insurance companies are coming down harder on those that drink above the recommended limits. And in order to check that the applicant is not lying about their alcohol intake they may check medical notes with the applicant’s doctor.

One industry official said that those that lie on their insurance applications are also responsible for premiums being higher across the board, which means that they are helping to drive up premiums for everyone.

He added: “Honesty is the only policy. Cheating to get cheaper insurance puts your cover in jeopardy, with potentially disastrous consequences. Being truthful and shopping around will mean that your insurance delivers when you need it, and that you get the best possible deal.”

So, those that are applying for insurance and thinking of telling a few lies in order to get the cost of their cover down should not only consider what the implications are for other consumers that are trying to get cheaper cover, but also that they could be wasting their money altogether if they suddenly find that their cover has been invalidated because of their lies.

Tags: household budgets, insurance fraud, basic cover, number, way, Cheating, pressure