What Car Insurance Customers Lie About — Or Forget

Fudging information on a car insurance application to get a lower rate might not seem a big deal to you, but it is to car insurance companies. Lies and honest mistakes by customers and insurance agents cost car insurers an estimated $29 billion in 2016, according to a new report by Verisk Insurance Solutions, a data analytics company. That amount equals 14% of the total premiums that motorists pay for personal auto coverage, the report estimates. Inaccurate information leads to underpricing, or ’premium leakage’ in insurance lingo.