Misleading Information to Your Car Insurance Company Could Cost You
BY SOLO INSURANCE®
Did you know, providing misleading information on car insurance applications could cost you? It’s fibbing. For instance, it could be failing to double check your insurance application or worse, fibbing. This could, in fact, hurt your ability to pursue compensation in a claim. In other words, they might not have to cover you. Generally, the type of inaccuracy or error and the surrounding circumstances together affect how much the inaccuracy impacts your compensation. It would be bad and disappointing to end up uninsured with the cancellation of the policy. Perhaps, you could pay the difference for any discrepancy in rates or compensation that arises but it’s not guaranteed. The discrepancy would be the difference between the application information and the accurate data. With a notation of insurance fraud, it could also make it difficult to find alternative insurance coverage down the road.
Consequences of Misleading an Insurer
While it may be tempting to provide misleading info on your car insurance application (for instance, supplying the wrong address, not listing all drivers, or fudging on mileage), consequences happen. Some of the consequences include:
- Denied Claims: Your pending or future claims can be denied. This leaves you personally responsible for all repair and medical costs.
- Policy Cancellation: Your car insurance company can “void” your policy due to material misrepresentation (that is, cancel it as if it never existed). This leaves you without coverage and interrupts discounts.
- Legal Penalties: Fraud is a crime. It can lead to fines and even jail time depending on the severity and the state’s laws.
- Future Difficulties: You could be noted for fraud in industry databases. This makes it very tough, and sometimes more expensive, to find coverage with other providers in the future.
What you don’t disclose can cost you.
When discussing misleading information on car insurance applications, we’re not talking about typos or misspellings. If you mis-typed your name or other identifying information, these are easy to correct. However, failing to list pertinent information for underwriting is the problem. Not disclosing the actual expected uses for your vehicle (ride-sharing or deliveries, for instance), or all the drivers, or where you actually stay/live are big deals. You could legitimately end up without coverage and get stuck paying out of pocket. You’ve heard it said that, “honesty is the best policy.” This is very true for car insurance. Be straight forward and let your agent find the best rate for your true situation rather than providing mis-information to maybe save a few dollars upfront. What you don’t disclose or misrepresent can catch up with you quickly.
At Solo Insurance® we shop the rates for you upfront and at renewals, always making sure you are with our best rate for your insurance needs. Contact us at 800-207-7656
🚗 ----- 🚗 ----- 🚗 ----- 🚗 ----- 🚗 ----- 🚗 ----- 🚗 Solo Insurance® where great rates and personalized service meet. – Veteran/Family owned since 1994 – We shop the rates for you upfront and at renewals to ensure you get our best rate every time. Solo Insurance® ~ 800-207-7656 ~ Soloinsurance.net ~ Get a car insurance Quote here ~ Like us on Facebook Over 30 years in business helping people navigate car insurance with top insurance carriers, because at Solo, you’re a person, not a policy.
Comment (0)