Saving money is a constant battle and when it comes to car insurance it can be tempting to do anything to keep your rates down. But be careful. While it’s tempting to be evasive or to leave some details out when you are applying for car insurance, it can lead to big trouble down the road.
Even if you do so by mistake, you could end up paying more for your car insurance. And if your insurance company discovers you have misrepresented your situation intentionally, you could be facing a charge of insurance fraud; a very serious situation.
Here are some things to pay special attention to when applying, so you don’t get into trouble later.
- Your address or zip code
While it can be very tempting to try and save money by listing your home address as somewhere that is considered less risky than where you actually live, this is a very risky chance to take. Besides, although the location of your vehicle is one factor that goes into your insurance rate, it is not the only one. And, this type of falsehood is fairly easy to prove. - Drivers in your household
Many people don’t know that you are required to list all drivers in your household on your policy. A spouse, roommate or driving-age child should be listed, even if they don’t drive a household vehicle. Not reporting a driver, who then gets into an accident, will negate the insurance company’s responsibility for covering your damages. - Your qualifications for discounts
Some discounts require verification, but some are on the honor system. If you are not honest, you could be facing higher premiums, once your misrepresentation is discovered. For instance, if you have a college student and take a discount because they are away at school and not driving the car, but they drive it when at home and have an accident, you could not only lose your discount but you may have to also pay retroactively. - Your driving history
One thing to never, ever misrepresent on an auto insurance application is your driving history. Insurance companies can easily discover past accidents or violations and if you have not been honest, may hit you with some high premiums or determine that you are not eligible for coverage at all.
In the long run, not being completely honest when applying for auto insurance can only cause you more trouble, and probably more money. A better way to save money is to shop around. Use the InsuranceWins form to get realistic quotes from insurance companies and find out what types of rate reductions you might qualify for that won’t get you in trouble in the end.
