Buying car insurance is expensive, even if you are a mature driver and have never had an accident or even a ticket. Even with good driver discounts, memberships in automobile clubs, and other membership savings, insurance can take its toll on your budget. And for those who have blemishes on their driving record, credit report or have to insure high-risk drivers such as teens, the cost can be astronomical. However, lying your car insurance provider in order to get better rates is a big mistake. Find out why you should not lie to your carrier. Also, get free quote car insurance from our website.
- Insurance companies usually discover the lies.If you take your car in for an inspection or repairs, and you your odometer reading doesn’t match the mileage you gave your insurance company, they will know you lied. That difference could be enough to trigger a further inspection of your insurance policy, and if it found that you lied about the mileage, the insurance company can cancel your policy. Things are easier when discovering traffic violations that you “missed” to inform the insurance company about. The company can access public data or ask the authorities to provide a report.
- You can get your policy voided. This is a direct consequence of the previous point. Insurance companies do not tolerate lies and apply the harshest punishments to liars. Besides denying claims, they can also drop coverage. Furthermore, in case of frontings or other forms of fraud, they can sue the policyholder.
- Extremely expensive coverage costs. Lying to your insurance company backfires with a vengeance. Instead of getting cheap insurance, your insurance rates go up immediately, and they’ll stay high for years. Even if your carrier drops you, you will have to look for coverage somewhere else. And each insurance company will be informed by the previous carrier about your wrongdoings.
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by C Gurgu