Why You Should be Upfront in Your Car Insurance Application

July 15, 2021

Your car insurance premium is influenced by several factors and it can be tempting to embellish the truth to benefit from lower premiums, but with car insurance, you need to be honest.

car insurance

When you apply for insurance, the monthly premium will be based on your risk. If you are not honest on your application then your insurance claim could be rejected or your insurance could be voided, which means getting insurance in the future could become harder and more expensive.

There are few lies that you will be caught out on quickly and these are them.

What You Do For a Living 

You should be clear about your job and what you do. If your job title doesn’t match what you do on daily basis then your insurance claim could be rejected. 

If you use your car for work like travelling to and from clients or job sites then you need to state this. If you aren’t clear about your car usage and are involved in an accident during work hours then the insurance company might reject your claim.

Where Your Car is Parked

You shouldn’t lie about where you park your car during working hours or at night, because if your car is broken into, you will need to file a police report which will ask for details about where your car was parked.

How Much You Drive

To understand your risk profile, an insurance company will determine how often you drive to calculate your premium. Simply put, the less you drive, the less risk you are, which could give you lower premiums.  

How Old Are You? 

When calculating your insurance premium, age does matter. The longer and more experienced you are at driving then the lower your risk profile is. Often, parents will take out car insurance for their adult children to get a lower premium, but essentially this is fraud.  

What’s Your Record?

Your insurance premium will be lower when you have had fewer accidents. You should be honest about your past driving experiences as insurance companies will check with previous companies to look at your driving record.

If you are caught lying on your insurance application then you could lose your insurance and legal action might be taken against you. Rather be upfront and honest and this way, you know you will be covered if anything were to happen.

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