What is Car Insurance Misrepresentation?

What is Car Insurance Misrepresentation?

Falsely reporting important information could hurt your auto insurance.

Car insurance misrepresentation, also known as material misrepresentation, is a type of insurance fraud. When you apply for car insurance, your insurance company will ask for a variety of personal details. If you fail to answer these questions honestly or accurately, then you have committed material misrepresentation. In essence, it is when you lie on your car insurance application.

If you file an auto insurance claim, all of the information on your policy needs to be correct. If it is not and you have lied on your application, there could be serious consequences. If you are found to be guilty of misrepresentation, the insurer may deny your car insurance claim, cancel your coverage, charge you a fine, and alert the police. Some drivers are accused of misrepresentation after they accidentally omit information about themselves. Other drivers are accused of misrepresentation for knowingly lying about various facts on their application – like using a stolen identity or lying about a previous accident. 

In most cases, misrepresentation is an accident. Someone may accidentally enter the incorrect birthdate or forget the year of their vehicle. Generally, these are minor errors that can be fixed without penalty.

In other cases, misrepresentation is a deliberate attempt to mislead an insurance company. For example, a driver with a DUI might apply for a new insurance policy and omit the DUI lower rates. Some may lie about being married – married drivers typically pay lower rates for car insurance. The number of traffic accidents received, criminal records, the vehicle’s storage location, and vehicle safety features are other common lies told on insurance applications. These are all types of material misrepresentation.

Work with an insurance agency that keeps your best interest in mind. Quality auto insurance is never that far away. Contact Gee Schussler Insurance Agency, serving Orland Park and surrounding cities in Illinois.