What If You Lie About Where You Live to Your Car Insurance Company?

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Lying on your auto insurance application.

 

Have you ever thought about lying on your car insurance application? You may view auto insurance is an unnecessary expense – one that you would like to reduce. Unfortunately, lying on your application is not the way to go.

 

Lying on your application

In order to determine a premium for a motorist, a car insurance company will ask a lot of questions. Questions include your address, date of birth, vehicle model year, occupation, and marital status. Some questions are a bit more complicated, such as upgrade packages on your vehicle, recent tickets or accidents, and your annual mileage. All of this information builds up a picture for the insurer about how much financial risk you pose.

 

Common lies on auto insurance applications include:

  • Where the vehicle is parked – Your ZIP code plays a big role in your rates, so lying about where your car is parked is considered insurance fraud.
  • Who will be driving the vehicle – You might be tempted to leave a spouse/roommate with a poor driving record off your insurance to keep your rates low.
  • Marital status – Being married often gives you a discount on coverage so you may be tempted to tell your insurer your boyfriend/girlfriend is actually your

 

Consequences of lying to your car insurance company

Insurance fraud costs insurance companies billions of dollars every year, so you can be sure that they come down hard on violators. Generally, there are three main lines of defense auto insurers have against dishonest customers:

 

  • Policy cancellation – Your policy will be suspended immediately and you will be left uncovered. This means you’ll need to find coverage fast.
  • Claim denial – If you try to file a claim because of an accident or incident and your insurer finds out you lied on your application, they could refuse to pay your claim.
  • Premium increases – Your insurer may increase your premium heavily to account for lost income from your incorrect application.

 

Finally, all fraud – including auto insurance fraud – has legal consequences in the U.S. If you’re caught in a fraudulent lie, you’ll not only be on the hook for any costs your insurer would have covered, you may be facing hefty fines, community service, probation, or even jail time.

 

Do you have more questions regarding your car insurance? For your car insurance needs in Phoenix, Arizona, contact the professionals at American Premier Insurance. We are ready to get you reliable coverage.