What happens if you lie on your auto insurance policy?
Did you know that slightly more than half of all applicants for auto insurance don’t tell the truth? They may make white lies or full-on fibs to save a few pennies in premiums every month. Entering false information may seem harmless, especially when you don’t plan on making any insurance claims soon. Even so, accidents happen. If you’ve lied on your car insurance policy, then you could face serious consequences.
Your claim could be denied
Lying to your insurance company – whether it’s for auto insurance, home, health or otherwise – can easily cause your claim to be denied and for the company to drop you from coverage. Since your location plays a critical role in your car insurance premiums, the insurer could have missed out on hundreds of dollars’ worth of premium payments. As a result, they may refuse to pay your claim and they could consider it fraud.
Your location factors into your insurance premiums
Insurance companies will use your location, driving history, demographic data, and other factors to calculate accurate insurance premiums. Different ZIP codes will have vastly different insurance premiums. For example, an unsafe neighborhood that reports high claims for vandalism and theft will undoubtedly have higher premiums than a safe neighborhood with few reported claims. When you lie about your location, it means your insurance company isn’t charging accurate premiums for your car insurance.
What if I live in multiple places?
Some situations are more complicated than others. Your insurance company wants to know the address of where your car is parked most nights of the week. If you live in a city but visit your parents on weekends, you cannot use your parents’ address to get cheaper insurance rates. If you do get into an accident and file a claim, then the company will investigate to ensure your location is accurate.
Telling the truth is imperative to maintaining reliable car insurance. Finding reliable car insurance doesn’t have to be difficult. Work with a team that will protect you and your vehicle – Contact the team at Gee-Schussler Insurance Agency. We serve Orland Park and surrounding cities in Illinois.
