Withholding information from your car insurance company isn’t exactly lying… or is it?
The truth is, giving your car insurance company incorrect information, or failing to inform them of certain information could have a lot of consequences. In fact, it’s insurance fraud.
What happens if you lie to your insurance company?
Here are some of those consequences you will want to do everything you can to avoid.
Claim Denial
Your claim could be denied if it’s found out you were using your vehicle when you should not have been. For example, if you tell your insurance company you don’t use your vehicle to commute every day when you really do. If you are to get in an accident while on your commute then this could result in a claim denial.
Insurance Policy Cancellation
A policy cancellation could take place if you commit this type of fraud. This would make it much more difficult to get a policy elsewhere and could result in higher policy costs.
Criminal Penalties
One of the worst consequences of failing to be honest with your car insurance company is criminal penalties such as jail or fines. This is because dishonesty with your insurance company is a form of insurance fraud.
Fines
Failing to tell your insurance company vital information could also result in your having to pay hefty fines to them. For example, if you were to make a claim and it was paid out under fraudulent circumstances. You would be financially responsible for it.
Insurance Policy Denial in the Future
It’s always better to tell your insurance company the details they need to know ahead of time. If you don’t then it could become a lot more serious and even keep you from getting an insurance policy in the future.
An Increase in Insurance Premiums
Your rate is determined based on the information you provide, and if you are to be a higher risk driver then it’s likely your rate will be higher. However, not sharing this information in the beginning will cause your premiums to go up even more than they otherwise would have.
Avoid these consequences by being honest with your car insurance company! It can mean a lot in the long run and keep you from running into future complications.
