How Lying on an Auto Insurance Application Can be a Bad Idea

Sometimes drivers can be tempted to get a little economical with the truth when it comes to auto insurance. When it comes down to it, this could be an error which could end up costing consumers a hell of a lot more further down the line.

It is estimated that just over 50% of auto insurance applications contain information which is not factual. This can vary from job descriptions to addresses, but regardless of the embellishment, saving money on your auto insurance quotes by lying can leave you high and dry if you are caught out. It may seem like worth a shot at the time, but knowing the ramifications of providing false information may deter many from trying to.

Dishonest Information

Consciously providing dishonest information can be a terrible idea. Besides the fact that it is essentially considered fraud, it could also leave you without cover and unable to obtain auto insurance in the future, so be cautious.

If a driver is prosecuted for fraud, they can face criminal charges. Having a criminal record – especially one which contains a charge for fraud – could spend the end of your career and more. The severity of punishment for insurance fraud varies from state to state, but it is considered as a serious infraction universally.

The resources which insurance companies are blessed with these days mean that they also have more ways to check the information you provide. With access to a number of databases and records, you may find yourself with some questions to answer as time goes on.

Mistakes on Your Application

Mistakes can be made, as, after all, we are only human. Using ignorance as a defence is unlikely to get you far, however. With insurance policies widely taken out online these days, most companies do tend to allow for a couple of typos here and there. For example, if you were born on 5/12/1976, and you erroneously entered your date of birth as 5/12/1956, this can be put down to a hit of the wrong key.

Errors can also be picked up in the early stages of the application process by insurance companies. If there are inconsistencies in your application, the company may call to ask you to confirm particular details. This can give honest applicants a chance to rectify their mistakes.

If an error slips through the cracks – and a driver needs to make a claim – this could be disastrous. Incorrect information could deem your policy null and void, making for a horror-type scenario. In order to get around this, always review your application and policy documents to ensure all of the information provided is accurate.

Time May Not be On Your Side

There is a time limit on spotting errors or mistakes on an application, regardless of who makes them. If you have provided inaccurate information or the insurance company has underwritten a policy on erroneous details, there may not be enough time to rectify things.

This is a collaborative post. 

Fancy checking out another post? Just click here!

Pin It