The Worst Mistake You Can Make When Applying For Car Insurance

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Lisa Steuer McArdle
Updated on Apr 27, 2022 · 2 min read
When it comes to purchasing
car insurance
, honesty really is the best policy.
Even so, some people are tempted to lie on their car insurance application—especially about their driving record, because they think it will save them money.
But the reality is, while it might be hard to admit the number of claims you’ve filed in the past or the number of tickets you’ve acquired, it’s absolutely essential to be truthful on your
car insurance application
—because there could be serious consequences if you aren’t.

Increased car insurance costs

To put it simply, there are greater risks than benefits associated with lying on a car insurance application.
Insurance underwriters, who approve the policy, will most likely find out if you haven’t been totally truthful if you need to file a claim.
The Smart Investor
points out that if you’re caught lying, it could greatly increase the cost of your insurance.
Even if you’ve moved to another state, your new insurance company can easily look up your accident and traffic ticket history.
But it’s not just claims and traffic tickets that you have to disclose truthfully—marital status, your job, the number of miles driven, the primary driver, credit score, and address are among the other things you need to be honest about on a car insurance application to avoid getting caught in a lie and then being issued a higher rate later on.

Other ramifications for lying on your car insurance application

There are other possible consequences you could face if your insurance company finds out you haven’t been totally honest with them:
  • If you put in a claim, it could be denied. For instance, if you drive your car to work every day, but tell your insurance company that you don’t, they won’t help you if you get into an accident on your commute
  • The insurance company has a right to deny your car insurance in the future
  • Your insurance policy could be canceled and you may have to pay more to get a new policy at a different company
  • Since lying on a car insurance application could be considered fraud, you could face criminal penalties like fines, a permanent criminal record, or even jail

Be honest and get the best rate

If you’re concerned about finding affordable car insurance due to previous claims you’ve filed, don’t lie about it on your car insurance application—let
help you instead.
Comparing multiple companies—not being dishonest—is the best way to get great coverage at an affordable price. Jerry’s free app compares quotes from up to 45 different insurance companies for you in under a minute, without any long forms to fill out.
Jerry will send you quotes that compare to your current coverage—and as a licensed broker, it takes care of your insurance needs from start to finish. The app also monitors your car insurance rate every six months on an ongoing basis.

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