Intentionally lying to your insurance company is a form of fraud and could result in fines, community service, or even imprisonment. If you lie to your insurance provider, you may be denied coverage, receive higher rates, or face penalties such as fines, community service, or even jail time. Not being honest with an auto insurance company may seem harmless, and paying lower premiums can make the lie worthwhile. But there are better ways to keep your premiums low, such as combining your auto and homeowners insurance policies with one company or increasing your deductibles.
In fact, by far the most common reason to lie on an auto insurance application is to receive lower premiums. Even small lies, such as where you will park the vehicle, can lower your monthly premium costs. Your insurance company uses your zip code to figure out how much you should pay for your car insurance. Unfortunately, lying about a car accident to insurance is also one of the easiest lies for an auto insurance company to detect.
Yes, insuring your vehicle can sometimes cost you more than you'd like to spend, but if you're looking for prices, it's possible to save money on car insurance. You don't want to be left without valid car insurance if you're in a car accident where a claim is being filed. If your children pay sky-high car insurance rates because of their age or driving history, you may have considered insuring the car in your name, especially if you are helping to pay premiums. Your insurer may invalidate your car insurance on the basis that you have not disclosed relevant or important information.
The consequence of lying to your car insurance company can be jail, one of the many reasons why you should never lie on your auto insurance application. If you want to add a family member or friend to your insurance to be allowed to drive your car, you must let your insurance company know in advance. Ca is a free, independent rate comparison website that allows Canadians to compare rates from more than 75 providers for various financial products, such as mortgages, credit cards, and home and auto insurance. And that's not all: you run a significant risk of being fined by the auto insurance company if you lie on your application.
If auto insurance was canceled in the past due to non-disclosure, you may have to report it in future auto insurance applications. To avoid being one of the cautionary tales that begin with “I lied to my auto insurance company, there are a few ways to lower your car insurance premiums instead of lying on your application. When filling out an insurance application, 42% of men and 27% of women lie about cheaper car insurance.