Why You Should Not Lie to Your Insurance Agent

What would happen if you were to withhold some information during your car insurance application? You can decide not to inform the agent about how you use the vehicle. You can also lie about past accidents and traffic tickets.

Are there consequences to any of these lies? Yes, when your car insurance agent uncovers your lies, any of the following can happen.

Higher Premiums 

Typically, car owners lie to their car insurance agents to save money, but it could end up being an expensive mistake. If you conceal past at-fault accidents, traffic violations, and tickets to lower your premiums, it won't work. Your insurance agent can access this information when they need it. Therefore, lying about accidents and violations will only result in higher premiums. 

Denied Claims 

Your car insurance agent is acting in good faith that the information you provide is truthful. If they discover that you were dishonest, they could decide to deny your claim after an accident. For example, if you state that you use your family car for work commutes but get into an accident when using your vehicle for ride-share services or deliveries, your claim can be denied. 

You withheld information about your driving habits, and the insurer can choose to deny your claims because of your dishonesty. 

You'll Get a Black Mark on Your Record 

Once your car insurance agent discovers that you were lying, they can add a black mark to your record. The agent can cancel your policy and add a black mark. This means that you'll need to look for another insurance agent since you can't drive without insurance. 

However, the black mark adds a blemish to your record, making it harder to get another insurance provider. Most insurance providers will deny you coverage as you're marked as "high risk." If you find a car insurance agent willing to provide coverage, you'll have to pay the higher rates associated with high-risk drivers. 

Why You Need to Verify and Provide Correct Information 

Some cases are genuine, but it's hard to convince car insurance agents that you made an honest mistake. You can try to explain your innocence, but it's up to them to decide whether to pardon or penalize you. 

To avoid such problems, always verify the information you provide when filling insurance forms. If it means that you'll take an extra hour or day to get car insurance, then do it. The information you provide to your car insurance agent should be correct, and if it's not, you'll likely get penalized.

If you tell the truth, you can avoid these issues. To sign up for auto insurance, contact a car insurance agent today.