Lying on Your Car Insurance Application: What Could Happen

According to a 3,000-consumer survey made by Coverhound.com, more than half of the people that applied for auto insurance tell untruths to save more on premiums. Read further to know what happens if you try it for yourself.

Playing the Odds
If those who lied try to fail a claim, the insurance company will eventually find out. Investigators usually do what they can to guarantee verification on whether they received accurate applications. They protect their policies and are determined to cancel it once deceived. Civil fraud penalties are also possible. According to a report made by Coverhound.com, Millennials have a higher chance of fabricating documents compared to their elders.

Yes, it’s tempting to provide false information such as making oneself look like they are excellent drivers. Not to mention that it can push lower insurance premiums. However, you’ll have to always worry about one risk: getting caught.

Typical Lies Motorists Tell
Usually, deceptive policyholders that got found out try to oppose and defend themselves by saying they made mistakes or forgot to include vital information in their history. Auto insurers experience this all the time, making the deceitful motorists’ possibility of receiving compassionate treatment slim to nonexistent.

Here are a few frequent lapses and fabrications that may lead to lost policy, the inability to receive new coverage, a legal order to pay premiums back, and even jail time.

Common Omissions by Drivers

• Accidents or Tickets
  Among the deceits, tickets or accidents are the easiest things for insurance agents to search, regardless of where you live. Unfortunately, the mistakes and risks you gathered on the West Coast are embossed on their databases when you moved to New York. Although the speeding ticket you received may seem like a thing from the past, insurance companies usually still refuse to sympathize.
  
  
• The Main Driver’s Identity
  Most of the time, this situation involves a parent that claims to use the insured vehicle the most when, in reality, it’s his son in college. Those of the younger generation have high premiums because they pose more significant risks and get involved in more accidents.
  
  Although deceiving your auto insurance agent may seem harmless, mainly because the lower premiums make the white lie look worth the risk. But if the person tries to file a claim, he or she will most likely get caught, receiving harsh consequences in return. So, as tempting as it may seem, honesty is still the best policy.

At Black And Associates Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote.