Car insurance is a monthly bill that most people would love to save money on in any way possible. Many factors determine your premium costs, such as the make and model of the car, location, previous driving record, and even your demographics. While it might seem tempting to stretch the truth a bit, any mistruths on a car insurance application can lead to consequences in the future. Most insurers have procedures in place that allow them to cancel policies, reject claims, and even take civil action if blatant lies are used during an application. Read on to discover why stretching the truth might not be in your best interest.
Common Auto Insurance Lies – and Why You Shouldn’t Tell Them
Car insurance agencies aim to make money, meaning that they hope your car stays as safe as possible. When you fill out an application, there is a large number of questions that aim to determine precisely what risk your vehicle might be in for accidents. Because you might be tempted to lessen your bill, changing some of the facts seems like a simple choice.
But have you considered what will happen if you…
Lie About Your Mileage
Applications will typically inquire about your estimated yearly mileage. More time on the road means more time for possible accidents. You should have nothing to worry about if you give an honest best guess. However, if a car you claim is only used for short daily trips is later found out to be a work vehicle traveling hundreds of miles a day, the odometer and your application estimate will not line up. Suppose you get in an accident, and the insurance company finds a huge discrepancy between your reported mileage and the actual mileage. In that case, you might risk having your policy canceled and claims denied.
Lie About Where You Park Your Car
Most insurance also helps if your car is stolen, vandalized, or broken into. Obviously, the location where you park your vehicle will significantly affect the premium you have to pay. Claiming to park your car in a safe garage when it is actually parked on the street will give the insurance company the false belief that your vehicle is protected. The insurance company investigators, usually by using police reports or on-the-ground investigations, can find out where a grand theft auto or break-in occurred. If the location and your stated application location do not match, you might find yourself receiving no help from your insurance provider.
Lie About Your Driving Record
Lying about your driving record will probably not work out well for you. DMVs and insurance companies routinely have to interact regarding bad drivers. DMVs reach out to insurance to inform them of any new restrictions your license may receive if the bad driving record continues. Because driving records are usually in the public domain to some extent, this information can also be reasonably found out by insurance investigators. And when people lie about their driving record to insurance companies, they often reach out to other companies to inform them of their mistruths. This is not something you should ever consider, even if you anticipate massive savings.
Despite the significant costs you might be faced with, lying on an application for auto insurance will only bring issues down the line at times when you genuinely need the insurance to help. Even if you have a bad driving record or are considered part of a demographic at high risk for accidents, there are companies who will work with you to get you a cheap rate.
Anderson & Associates Insurance Group provides professional guidance regarding your insurance options. If you live in Palmetto, Bradenton, or Sarasota, call today for an appointment.
