Why You Should Not Lie Your Insurer

The increased cost of car insurance may determine many people to omit some things when negotiating with the insurance company. Some of us may feel tempted to tell small lies, thinking that they will do us no harm. Unfortunately, no matter how small the lie is, giving false information to an insurer is considered a fraud. And it will be heavily penalized by the insurance company. Find out why you should not lie your insurer. If you searching for better rates,  why not visit our website and compare insurance quotes?

@ better-carOne of the most common lies told to insurer is related to the main driver. Assigning the wrong person as main driver is considered a fraud, called fronting.   It is usually done by teenagers. With premiums looking scary for under-25s, the temptation to get a policy in your mum or dad’s name with you as an additional driver is strong – even if you’ll be the one driving it most of the time. Insurance fraud is a criminal offence, so you or parent could also be facing a criminal record, which has serious consequences. Ironically, one of those is much higher insurance – insurers tend to charge you more if you’ve had cover cancelled or refused in the past.

If the details on your policy are incorrect and the company find out, your policy could be invalid. That means you’re driving without valid insurance which is also illegal. This may happen when the company find out about hidden traffic violation and accidents or lying about your job or marital status.

Lying about annual mileage is also a big “No”. If the company finds out that you lied in order to get a low mileage discount, that discount will be cancelled, premiums will increase in order to cover the value of the discount and company may even refuse you renewal after the debt has been paid.

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