Car Insurance

Why you need to avoid lying on a car insurance application

Have you ever bent the truth in order to save money? Although most people would not own up to blatantly lying when applying for a car insurance policy, withholding certain truths can have major consequences should the truth come out later on.

The consequences of lying on an insurance application to car insurance companies near me are serious

There is no way to soften this, but lying, withholding information or deliberate misrepresentation when completing an insurance form is insurance fraud. This is a serious matter and could lead to a criminal conviction and even imprisonment if you are found guilty in a court of law. At a bare minimum, you will find it incredibly difficult to get insurance for your car, and if you do, it will be much more expensive.

Your policy may be cancelled

If an insurance company feels as though you have not been entirely truthful on your application, they have every right to cancel the policy. This will then cause you a problem when you try to get insurance from another company, as you will be expected to disclose information on voided, cancelled or refused policies that have arisen in the past.

Your policy may be voided

A more serious scenario is if an insurance company has proof that you purposely withheld or changed vital information in order to get a cheaper policy. If this happens then the insurance company may void your policy from the start date, so it would appear as though the policy never existed. In addition to which, voiding a policy will automatically cancel any claims in progress, and that means any costs involved will have to be covered by you.

Policy refusal

The insurance company can also refuse to renew or even issue a car insurance policy due to non-disclosure or untruthfulness on an application. Things that people often lie about on an application include previous claims and previous convictions.

The bottom line

Lying on a car insurance policy application form is not worth the risk, as being found out later on can have dire consequences, leaving you uninsured, out of pocket and with a criminal record.

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