Why You Shouldn't Lie on Your Car Insurance Application
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- Reasons not to lie on your car insurance application
- The consequences of not telling the truth on your insurance application
It may be tempting for you to omit a few facts on your car insurance application. Maybe you believe a fib will get you a reduced rate, or you think the insurance will never find out. Whatever the situation, it’s definitely not a good idea to lie on your car insurance application. Besides being dishonest and against the law, it could cause major issues for you down the road. This article discusses the reasons lying is a bad idea, as well as the consequences if you do.
Reasons not to lie on your car insurance application
Since your car insurance company wants to know lots of information about you when you complete an application, you may find a number of places where you could lie with impunity. From the number of miles you drive daily to where you park your car to the people who will be driving your vehicle, the opportunities (and the temptations) are many.
The truth is, however, that it simply isn’t worth it to lie on your car insurance application. While you could get lower premiums by telling white lies about this or that, when it comes time to make a claim, you could be in serious trouble.
First of all, the car insurance company has the right to deny you coverage if something were to happen to your car and they discovered you in a lie. For example, if you tell your insurer that you never drive to work, but they find that this is not true, you could be on the hook financially should an accident happen.
The consequences of not telling the truth on your insurance application
It might seem smart to keep your rate lower each month by lying about some aspect of your car or your behavior, but if you get denied coverage, you will have paid that lower rate for nothing, since your insurance will not pay for any of your damages.
It is also likely that, depending on what you lied about, the insurance will raise your rates in turn. This means that you will not only be completely responsible for damages say, if your car was hit while parked on a street when you told the insurance it was in a garage, but you could also be forced to pay more on your premiums.
Furthermore, your insurance could cancel your policy if the lie was significant, which would leave you in a lurch, and you could also be in legal trouble as a result. Since it is a requirement in most states that you have insurance, driving after having your policy is cancelled would be a serious violation of the law.
Additionally, if your insurance gets cancelled, you would have a lapse in coverage. Such lapses are weighed heavily when an insurance company is determining your rates. So, you would be kicked off your current policy and then forced to pay higher when you find a new one.
None of these are good places to be, and you are risking your reputation and your financial health by lying, which are really not worth losing in exchange for saving a few dollars a month.
In the end, the insurance company will find out about your lie. They have access to all of your driving records and ticketing history, and perform thorough investigations when it comes time to address a claim.
If something happens to your car, they do not simply hand you the cash; rather, they look into all the details and circumstances, and discovering you in a lie means they have ample grounds to deny your claim and avoid the expense of covering you.
Car insurance is a major financial obligation and one of the necessities associated with car ownership. But this does not mean you should have to overpay. If you think your rates are too steep but you don’t have the time to look into it, comparison shop to find a plan at a the best available rate that meets your exact needs.