| You can get sideways
with your insurance company because you haven't
been upfront about how you are using your vehicle.
For example, do you drive your car to work? If
so, you will pay more for auto insurance than
if you take mass transit. In fact, the further
you have to drive to work, the more you will pay.
Tip.
If you drive to work and tell your insurance
company you don't, you have basically committed
fraud. Resist this common temptation, even if
it will save you a few dollars.
Example.
Say you have an accident on the way to work.
Say also, that you have told your insurance
company you don't drive to work. Your insurer
could technically argue that it is not obligated
to provide coverage. It is unlikely, however,
that this will happen.
Why? Because the insurer
would have a difficult time proving that you
drove every day. Perhaps this was a one-time
thing, or a fairly rare event. In any case,
by lying about driving to work, you've given
your insurance company a good reason to cancel
your policy.
Honesty is the best
policy when it comes to insurance. Insurance
fraud is a huge problem in this country. Claims
are frequently padded with nonexistent damages.
Accidents are staged. Injuries are faked.
Note.
It is estimated that fraud accounts for as much
as 25 to 30 cents of every auto insurance premium
dollar. Think about that. If even half the auto
insurance fraud in this country were wiped out
in the next year, you would pay 12% to 15% less
for your next policy.
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