Does Lying To Your Auto Insurance Company Get You A Better Rate?

Your auto insurance premium is based on a variety of factors, such as what type of car you drive and where you park at night, and your personal factors may cause you to pay more or less for your coverage than your neighbor pays. The application process for auto insurance can be complicated, and not verifying important information or even deliberately lying can have serious consequences.

Most Common Lies To An Auto Insurance Agent

During the application process, an auto insurance provider will ask a lot of questions to determine just how risky you are to insure. Some of these questions are easy enough to answer, such as whether you park in a parking lot or a private garage at night or what your highest level of education is. Others require a little more footwork, such as your vehicle’s exact trim level and mileage or when you last received a speeding ticket.

In these instances, it’s tempting to make your best guess rather than verify the specific details. However, this can result in inaccurate quotes. It’s best to ensure that every piece of information you provide to your auto insurance company is accurate. They will verify the information you provide, and if there are discrepancies, you might be charged a higher rate, or your policy may be canceled altogether.

Deliberately Lying to Your Auto Insurance Company

While small discrepancies like those mentioned above are generally caught quickly and are unlikely to have legal consequences, other types of lies are more serious. For example, to save money, some Las Vegas drivers may tell their auto insurance provider that their vehicle is stored at an address in an area with a lower crime rate, or they may lie about their marital status to get a discount on their coverage.

These lies may seem harmless enough, but they are actually considered insurance fraud. Insurance fraud costs auto insurance providers millions of dollars. Because this problem is so prevalent, most auto insurance companies have special departments whose sole purpose is to identify and investigate possible fraud.​

Consequences of Lying to Your Auto Insurance Company

If you’re caught lying to your auto insurance company, they may deny coverage for your claim, cancel your policy, or raise your premium! In addition to that, there may be legal consequences, as insurance fraud is a crime. Those found guilty may face large fines, community service, probation or even jail time.

Purchasing Auto Insurance with Nevada Insurance Enrollment

Lying to your auto insurance company isn’t worth the financial risks you may face. Double-checking your information before you sign a new policy is essential. The best way to get quality coverage while ensuring that you’ve provided correct information is by purchasing auto insurance with the help of a licensed auto insurance agent. Our auto insurance agents specialize in helping Nevada drivers apply for and obtain the best coverage for their needs.​