Protecting Yourself from Insurance Errors

It’s always a good idea to practice brutal honesty when it comes to dealing with insurance companies. While it can be tempting to lie in an effort to lower your monthly payments, it’s just not worth it. This is something that not enough people fully understand, and they usually end up paying a huge price. It is important that you know how to protect yourself from insurance errors, as they do tend to happen sometimes.

Car Insurance

If your insurer finds out that you lied about anything, your cover will be invalidated completely.

It is almost never a good idea to pay instalments for a yearly policy if you can help it. Insurance providers will charge interest, which can quickly add up. You might end up paying nearly 25% more than you needed to.

Those who are on a tight budget and can’t pay the premium all at once should take some time to find a credit card that offers 0% interest for the first year or so. This way you can make instalment payments on your insurance cover without having to pay any interest at all. There are many of these cards available, so you shouldn’t have problems finding the right one to apply for.

You should always try to steer clear of auto-renewals, as you could very likely end up spending more than you have to. There is probably a better deal available on the market, and it’s important to review your options. It is never a good idea to just assume that you are getting the best deal possible.

One of the worst things you can do when getting car insurance is to “front”, which means lying about the primary driver on your policy to get a better premium. This is actually against the law and could land you in jail as well as a £5,000 fine. If you are considered a “high risk” individual by insurance companies, you should make a point of doing some extra research to get a good deal.

It is a requirement to declare any penalty points you have on your driving record when getting car insurance. This is another thing that people forget to do or just lie about. If you don’t want to end up paying a huge fine, it’s important that you are honest about this as well.

Home Insurance

You will find that home insurance is a bit more involved than car insurance for a number of reasons. If you want to get this type of policy, you must declare any major modifications to your home. There are many different things that can affect what you pay for this type of insurance, including the state of your roof and the overall position of your home on the property.

It is important to double check to make sure that all of the answers you are giving to your home insurance provider are truthful. If they want to know which types of locks you have on your doors, you need to find out. Making even the simplest mistake in this process can land you in serious trouble.

Travel Insurance

While most people don’t bother with travel insurance when they go on holiday, it is a very good idea for many reasons. If you have decided to get this type of policy, you will need to make a point of telling the insurer about any pre-existing health conditions you have. This includes things like heart problems, asthma and high blood pressure. It can get complicated for those who have cancer or had it in the past, but you must be truthful.

The destination you travel to will definitely have an impact on how much you pay for travel insurance. It is a good idea to check the government’s official foreign travel advice online so you can stay away from potentially dangerous areas.

Pet Insurance

If you have decided to get an insurance policy for your furry friend, it is important that you take the time to read through the fine print before signing anything. Make sure that you fully understand all of the terms and conditions so that you are not caught off guard by anything later on. It is also important to remember that certain dogs can be more expensive than others to insure, depending on which health problems their breed is prone to.

Final Thoughts

Whether you make an honest mistake on your insurance form or try to lie to get a lower rate, you will regret it. Not all insurance mistakes come with hefty fines and jail time, but some of them do. It is always better to err on the side of caution in these situations.

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