Top 5 Lies Insurance Agents Tell

Buying insurance should be straightforward — a simple way to protect yourself and your family. But behind many sales pitches, there’s a darker side: misinformation. Insurance agents sometimes stretch the truth—or outright lie—to close a deal.

Knowing these common lies can save you from costly mistakes, surprise denials, or buying policies that don’t fit your needs. Here are the top 5 lies insurance agents tell and how to spot them.

1. “This Policy Covers Everything You Need”

One of the most common sales tactics is promising comprehensive coverage that “protects you from all risks.” In reality, no policy covers everything.

Agents might gloss over exclusions or important limits, leaving you vulnerable to uncovered claims.

🔍 Watch for: Vague promises without details. Always ask for the full policy document and read the fine print.

2. “You Need This Extra Coverage or You’re at Risk”

Upselling is big business. Agents often push unnecessary add-ons or riders with scary scenarios to justify higher premiums.

Sometimes these extras aren’t needed or can be bought cheaper elsewhere.

💡 Tip: Evaluate your real needs. Ask if the add-on is mandatory or optional. Shop around before agreeing.

3. “Your Premium Won’t Go Up”

Many agents claim your rate will stay the same for years. Unfortunately, premiums often increase, sometimes dramatically.

Insurance companies adjust rates due to claims, market changes, or regulations—outside the agent’s control.

📈 What to do: Understand your policy terms and review rates annually. Don’t hesitate to compare with other insurers.

4. “Claims Are Always Paid Quickly and Easily”

While insurance promises protection, claims can be delayed, disputed, or denied. Agents may downplay the challenges of getting a claim approved.

The reality: You might face paperwork battles, inspections, or appeals.

⚠️ Be prepared: Keep detailed records and know your rights to dispute claim decisions.

5. “This Policy Is the Best Value on the Market”

Every agent wants to sell their company’s policies as the best deal. But many policies have hidden fees, high deductibles, or poor coverage terms.

What’s “best” for one person may not be for you.

🛠️ Advice: Compare multiple quotes, read reviews, and ask independent advisors before deciding.

How to Protect Yourself from Insurance Lies

Do your own research. Don’t rely solely on what the agent tells you.
Read the full policy. Know the coverage, limits, exclusions, and costs.
Get multiple quotes. Comparing options helps avoid being oversold.
Ask questions. A good agent welcomes scrutiny, a bad one dodges.
Check reviews and complaints. Learn from others’ experiences.

Final Thoughts

Insurance agents are salespeople—and some prioritize commission over your needs. Being aware of these common lies helps you buy smarter, avoid surprises, and get the protection you truly need.

When it comes to insurance, trust but verify is the best policy.