When purchasing car insurance, it’s absolutely vital that you are 100% honest when filling out your application. You must present the insurer with all necessary information and never lie about any details, no matter how big or small.
If you withhold information or fill out an application dishonestly, you may face extremely serious consequences. Firstly, the car insurer may cancel your policy, leaving you without insurance – and driving uninsured is illegal. Should you need to make a claim, the insurer may refuse to pay out, and they may also prosecute you for fraud.
Here, we explore some of the most common ways drivers make dishonest applications.
Using another driver as a “front”
Fronting is a fraudulent way to reduce the cost of car insurance. It involves applicants lying about who is going to drive the car the most often – with a more experienced driver being listed as the “main driver” and another less experienced driver being listed as a “named driver”. However, in reality, the less experienced driver may actually be driving the car the most often. This is fraudulent and can have serious repercussions, such as the insurer refusing to pay out in the event of an accident or prosecution. It’s important to always be honest about who is going to drive the car the most often and list them as the “main driver”.
Withholding essential and important information
When filling out an application for car insurance, withholding information to make your insurance cheaper is fraudulent. You must include any accidents that you’ve had in the past, as this can affect your premium and policy. You must do this whether you were found to be at fault or not. You must also include any claims for insurance you’ve made previously, as well as any points or convictions you have on your driving license.
Lying about car usage
Often, insurance prices vary in line with what you use the car for. For instance, if a car is used for social/pleasure purposes only, then insurance may be cheaper than if it’s used to get to and from work, or for business use. It’s important to be completely honest about what you use your car for, whether it’s just at weekends, to commute to your office, or to head to and from business meetings. If not, your policy may be invalidated, and your insurer may refuse to pay out should you make a claim.
Telling the truth when purchasing car insurance or making any claims for compensation after an accident is of the utmost importance. Always be honest when filling out insurance applications for sr22 insurance florida and if you’re in any doubt, ask the insurer for advice.
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