First and foremost, it’s fraud and illegal. Providing false information when applying for insurance is a big issue and one of the most commonly reported forms of fraud. But there are also little lies after a car accident that can just as easily be discovered. There is no honesty policy with an insurance company, so it’s up to you to provide the facts truthfully.
A claim getting denied is the least of your concerns after being caught lying on a car insurance claim. Insurance fraud includes penalties severe as fines and jail time. Insurance companies have been lied to several times before, so they are aware of the scammers' playbook. Word of fraudulent activity spreads from company to company, meaning someone who committed fraud may have a tough time finding insurance elsewhere. This post focuses on ways you can lie to your insurance provider and why they are most likely to fail.
Traffic Violation or Accident Fraud
Insurance companies will find out about a ticket or accident. Tickets aren’t exclusive to just one state; they carry over wherever the driver goes. If you didn’t inform your insurance company of an accident while the other driver tells their own, your insurer would find out through them.
In other words, you claim to be the primary driver of a vehicle when, in reality, the main driver is someone who would usually pay much more for the same service. Many parents would fall into this category—for example, parents who claim to be the primary driver of their college-attending kid’s car.
Lying about how much you drive in a day can lead to your insurer being suspicious when you file a claim for an accident several miles from home. They can look at your odometer to see what you’ve been hiding, and you may be on the line for damage you cause in an accident while driving these unreported miles.
People often lie about their zip codes in order to get lower premiums since some areas do have lower rates than others. This is another type of common insurance fraud.
Use of Vehicle Fraud
If you use your car for work purposes like deliveries or on-site services, you need to let your insurance provider know. This would be another example of committing fraud for lower premiums. If you mark it as a business expense on your taxes, the IRS may become involved.
Lying in order to qualify for discounts from an insurance company is also fraud. Not only will you be penalized, but the insurance company will now think they are insuring a liar, which they can’t trust. In the end, it’s best to do what you’re mother told you to do as a kid -be honest.
Congratulations, you’ve come to the right place for auto insurance. Insurance Navy providers drivers with coverage regardless of their risk. Get a cheap car insurance quote online from Insurance Navy. Assistance is also just one phone call away at 888-949-6289. Don’t forget you can always stop in to speak with one of our expert agents about what kind of car insurance you can get.