Making mistakes on your auto insurance could hurt you.
When you apply for car insurance, the insurer will ask you a variety of questions about yourself, lifestyle, and vehicle. This information is expected to be provided truthfully and as accurately as possible. “Car insurance misrepresentation” is something that can occur during the application process. It is when someone falsely reports important information, intentionally or unintentionally. Consumers usually do this to get a cheaper rate, but it can lead to uncovered accidents and being dropped from insurance.
Some people may lie on their application on purpose, while others unintentionally leave information out, especially if it was something minor. In either case, it is considered car insurance misrepresentation. As a result, it can mean there are serious consequences, including:
- Loss of insurance coverage
- A fine
- Prison time
- Higher insurance rates
In many cases, an insurance company will discover that someone has lied on their insurance application but will not reject the claim. Instead, the insurer will rectify the information, and then charge you higher rates on car insurance.
It’s the car insurance company’s job to verify the information you provide. After you request a quote and approve the rate, the car insurance company may begin the underwriting process. Typically, any wrong information on the application will be brought up at this time. In the rare case that you don’t get caught, the insurance company may provide a car insurance policy to you. Note that this may be rejected when you need to make a claim and the false information comes to light.
Car insurance misrepresentation can be a very serious offense. It can lead to charges of insurance fraud and end up costing you big bucks. You deserve an auto insurance policy that works together to bring you the best possible coverage from an insurer with your best interest in mind. For more information about how we can help you secure the right policy, contact Lou Aggetta Insurance Services in Pleasant Hill, California today.