It’s tempting. And, surely, you won’t get caught, right? You are, after all, just one tiny customer among thousands.
The insurance company is far too busy to notice if you tell a little white lie. Plus, a big organization like that can afford it, can’t they? Auto insurance lies are common among parents. So, if you’re trying to justify lying to your auto insurance provider, forget about it! You could be convicted of fraud, face a hefty fine and even a stint behind bars. In this situation, good luck in getting your claim paid out. In fact, you ma
y find that no one will insure you in the future, either. You will have become an insurance “untouchable.”
So, what kind of little white lies or lies by omission can get you into trouble? You’ll be surprised.
1. Being dishonest about traffic infractions.
Oops! When you were filling out your insurance application, did you forget to mention that speeding ticket you got in Ohio or the fender bender you got into after the Katy Perry concert? These errors by omission can come back and bite you in your forgetful posterior. That is why it is important that you disclose all of your driving infractions–even if you are tempted to dismiss them as “no big deal.”
You are guilty of “fronting” if you claim to be the main driver on a car when, in fact, the main driver is someone else–someone whose insurance rates would be much higher. Parents who attempt to save their college-bound children money by naming themselves as the main driver on their child’s car are committing insurance fraud.
If your child has an accident on the way to school, you may find yourself up-to-your-eyeballs in trouble. Not only may the claim be denied, but you could find yourself owing back premiums, or worse–charged with fraud and legally prosecuted.
3. Fib about the number of miles you drive.
Did you lie about the length of your daily commute? If so, you’d better pray really hard that you never have a mishap on your way to work. You may find yourself having to pay for the damages yourself. While your rates are cheaper if you don’t drive very much, the savings are not worth the risk.
4. Giving a false address.
If you live in the middle of a major urban center, your insurance premiums are likely higher than those of your suburban counterparts. Detroit, for example, has extremely high rates of car theft, making inner city insurance rates soar.
While you may be tempted to “borrow” a suburban relative’s address for insurance purposes, don’t do it. It’s fraud and it’s a crime. If your car is damaged or, ironically, stolen from your downtown residence, you will find yourself uninsured, owing back premiums, denied future coverage, or worse–charged and prosecuted.
Not convinced? Here are some other reasons why you don’t want to lie about your address to get lower auto insurance rates.
5. Lying about how you use your car.
Do you use your car to deliver pizzas? You’d better inform your auto insurance provider. Lying about the way you use your car may decrease your premiums, but it is fraud–and punishable by law. Furthermore, if you’ve been claiming your car as a business expense, but have told your insurance provider that it is not used for business purposes, you may have some explaining to do to the I.R.S.
6. Claiming discounts you’re not entitled to.
Some insurance companies give discounts to customers who have certain memberships like professional organizations, unions, AAA, and more. You can run into problems, however, if you continue to benefit from these discounts even though you’ve cancelled one of the above memberships.
When it comes to “little white lies” and auto insurance, the risk far outweighs the benefits. If you’ve been fibbing to your insurance company and have an accident, you can not only kiss those savings goodbye–but you can say hello to a whopping heap of woes. In at least one are of the country, auto insurance prices rise during the winter months. So you may be able to save some money getting coverage during the “off-season.”
Have you ever told a little white lie to your automobile insurer? Is so, were you aware of the possible repercussions?
Kimberley Laws is a freelance writer, illustrator, and avid blogger. She is far too neurotic to ever lie to her insurance provider. You can follow her OCD ramblings at The Embiggens Project and Searching for Barry Weiss.