Many motorists feel car insurance costs are higher than they want to pay. Rates are indeed on the rise. But some folks have taken to telling “white lies” to mislead insurance companies and get lower car insurance rates.
A nationwide survey conducted by a leading online financial firm showed that almost 85% of survey participants had given misleading information to keep the cost of their car insurance as low as possible. This figure is far higher than the estimates previously thought.
Drivers have come up with all sorts of creative story-telling. According to the survey quoted above, the following ranked as the basis for the top five “white” lies that drivers used to lower insurance costs:
1. Failure to accurately report on accident history and previous insurance claims.
2. Falsification of details regarding where the car is parked overnight.
3. The use or purpose of the motor vehicle – family, social, business, traveling, etc.
4. Falsification of the estimated annual mile driven.
5. Failure to properly identify who the primary driver of the vehicle is.
Why mislead on the above?
The main motivation for these little white lies is monetary. The insured knows very well that tinkering with the truth can save money on premium costs.
However, this is a risky move. Carriers are on the lookout for these and if they catch you, your insurance policy can be nullified. That can be especially problematic if you make a claim and the carrier determines you didn’t tell the truth on your insurance application. They will not honor your claim and you’ll be unprotected.
And remember, you’ll be on the hook for more than the damages to your car. You could be responsible for medical expenses of everyone involved in an accident found to be your fault.
A “little white lie” to save a few bucks simply isn’t worth the risk.
And that is not all. That little white lie could very well get you into trouble with the law. It is a criminal offense to falsify the details required by an insurance underwriter as you are seeking for a car insurance policy. Insurance fraud is a thing best avoided.
And remember, this applies to who is driving the car the most as well. Many parents think they should list themselves as the primary driver on a car that their teen mostly drives. This again is the kind of “white lie” that can result in all the previously mentioned problems.
What are the Long Term Effects of Non-disclosure?
As discussed above, failure to give all the necessary details on an insurance application can result in a claim not being honored as well as potentially being taken to court for fraud. YIKES!
And if you’re “found out”, such non-disclosures can have a negative impact on your ability to get a great rate on future policies.
The good news is that our team of specialists strive to help you find the best rates on auto insurance by obtaining multiple quotes from different carriers. We make insurance companies compete for your business and that helps you pick the best mix of budget sensitive features to fit your exact needs.
If you need to review your auto insurance, please reach out to us. We’re here to help!