What Car Insurance Customers Lie About — Or Forget

Friday, April 7th, 2017 Auto

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.


External References & Further Reading
https://insurancenewsnet.com/oarticle/car-insurance-customers-lie-forget
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