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Why You Shouldn’t Lie to Your Auto Insurance Company

A rubber stamp that stamps the word liar to illustrate why you shouldn't lie to your insurance company.

You’re looking to get a car insurance quote because your current auto insurance premium is too high. You know why your current premium is so high, so you consider telling a bit of a fib about your past accident history or where you park your car at night. What’s the harm, right? Sorry, there is more harm to it than you might think. Insurance companies need to know the truth, in order to provide you the coverage that will protects you and your car.

For example, think about someone that had told their auto insurance company that he parks his car inside a house garage, but really parks it outside on the street. If his car gets burglarized and/or stolen, the insurance company will find out that he had lied on the application. The auto insurance company now has the right to deny his claim, penalize the insured with a higher premium and/or possibly even cancel his auto insurance policy. Having your car out in the open street at night is far more susceptible to burglary than a car inside a locked house garage. The auto insurance company will be sure to cover your needs, but only based on the honest answers you give them.

You may be getting a lower premium from lying on the application, but what it comes down to is whether your claim will be covered or not by the insurance company that you are paying the premium to. An auto insurance company always investigates the claim and is likely to link any falsified information and make it near impossible to have your claim accepted. You don’t want to be paying for your auto insurance policy, even at a lower rate, just to be denied the claim when the time comes. You’ll have wasted money paying monthly and then you’ll probably end up having to pay for any damages to your car when your claim is denied because of the false information on the application.

It is in your best interest to be completely honest with an insurance company. There are ways that you can lower your auto insurance rates, without giving false information. False information on your auto insurance application sets you up for fraud in the future.

Here is a list of the top 13 lies that people admittedly tell an auto insurance company, according to (some survey takers checked more than one of the following):

• Annual mileage: 36.3 percent of those who admitted lying on their application
• Parking location: 32.4 percent
• Drivers with access to the car: 25.1 percent
• Accident or ticket history: 20.5 percent
• Gaps in insurance coverage: 19.2 percent
• School grades: 18.9 percent
• Antitheft devices: 17.4 percent
• Type of use, like business or school: 17.3 percent
• Education level: 16.9 percent
• Marital status: 16.9 percent
• Time licensed: 15.8 percent
• Major modifications to the car: 15.7 percent
• Refresher course or defensive-driving school: 14.4 percent

Next time you apply for a car insurance quote, be sure to answer every question truthfully. You want the insurance company on your side when you drive. If there is some information that needs to be fixed, it is recommended that you make that change on your current policy as soon as possible. Don’t open up your policy to the possibility of cancellation or penalized with a higher premium.

Freeway Insurance offers multiple car insurance plans for all drivers. Call now to speak with a live agent and to get a free car insurance quote. (800) 777-5620.

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