Published On: Tue, Nov 30th, 2021

Six Reasons You Should Not Lie to Your Car Insurance Provider

Some people believe it is okay to conceal information from their insurance provider or give false information. In many cases, the motivation to do this is merely to save on cash. Additionally, consumers may also believe that by virtue of having financed their premiums over the years without ever filing any claims, the insurance providers are indebted to them. This could not be further from the truth!

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As a result of such behaviour, most any Charlotte car accident lawyer will strongly warn against lying to your car insurance provider. Not only is it considered insurance fraud, but it can cost you your freedom in the long run. The following are some of the reasons why you should never lie to your insurance provider:

Never Lie to Your Insurance Provider

1. You Risk Your Insurance Policy Getting Voided

Once your insurance policy is voided, your new insurer will almost certainly have to charge you more just to give you a new policy. You will also be placed in a high-risk category if your insurance policy is voided due to non-disclosure, and it will consequently make it more difficult for you to obtain new insurance.

2. You Risk Claim Denial

Consider the following scenario: You inform your insurance provider that you don’t travel to work by car daily, but you do actually have a long commute to and from work. If you get involved in a car crash when driving to and from work, your insurance company may reject your claim. The company will void your claim based on not providing accurate information about your everyday commute.

3. You Risk Inflation of Your Insurance Premium

Insurance providers award policies and collect premiums depending on the data you provide, which should ideally be accurate and truthful. Based on probability, If you travel often or have gotten involved in an accident before, your chances of having another accident in the future are increased.

The company will raise your premiums if they learn of previous issues you failed to disclose. This is because the insurance provider will now be in a position to make a more realistic assessment of your probable risk based on your past problems.

4. You Risk Getting Denied Car Insurance

The moment your insurance provider discovers that you’ve been dishonest with them, whether as a result of a filed claim or through other means, the consequences will be more severe than if you’d been honest with the company right away about your past mishaps or prior traffic tickets. This could put you at risk of being denied car insurance in the future.

5. You Risk Facing Fines and Penalties

According to the insurance regulations in your state, you may be required to make a payment to your insurance provider or face a fine if ever you are caught in a lie. Additionally, suppose a claim is compensated on your behalf under dishonest circumstances. In that case, you may be liable to reimburse the amount of the payment.

Furthermore, the insurance company may file a lawsuit against you to get back the money it lost in damages. 

6. You Risk Criminal Charges

False insurance claims can result in a permanent felony conviction, hefty fines, and jail time if they are discovered. When it comes to your insurance company, lying could appear to be a great idea to you, but doing so is considered insurance fraud.

Be Honest

When it comes to filling out insurance applications, think twice before lying. Consider the ramifications of needing to file a claim and having it denied by the insurance company. You would be responsible for the cost of the repairs. 

Therefore, always strive to be truthful and double-check all of the information you provide to insurance companies. Doing so will ensure that you remain on the right side of the law.

Author: Annabelle E

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