Your not alone. In a recent survey in the U.K., more than 25% of British drivers admit to lying on their application for car insurance, possibly invalidating their coverage. How? If you get into a claim and it is found out by your claims adjuster new information that was goes contradictory to what you stated on your application, your claim can be denied and your coverage voided.

Now the extent of deception does vary and insurance companies are regulated as to the reasons they can give for voiding or terminating coverage or denying a claim. According to the survey, most drivers tend to lie about the “little things” such as;

More serious lies which could likely result in being canceled for misrepresentation or fraud include lying about their address, the number of accidents they have been involved in and the number and severity of convictions on their record. These are very big lies and if caught will get you into serious trouble with your insurance company and are really not lies you want to tell anyway. Why?

From personal experience of working as an underwriter whose job it was to approve applications, it becomes pretty easy to catch such lies, especially when they are these big lies that insurance companies know how to detect. For instance, insurance companies have access to your motor vehicle reports and your accident reports which pretty much tell everything about your driving history from where you live to your age to how much was paid out on that last accident you had. So really there isn’t any advantage to be had from lying on your application for insurance. I know you may think you can save a few bucks, but I guarantee if you lie about the big things you will be caught and possibly hit with insurance fraud.

Moral of the story: Don’t lie to your insurance company.

Related Articles:

Insuring Your Modified Vehicle

Allstate and State Farm Deny, Delay, and Defend

Pay As You Drive Car Insurance?

Understanding Gap Auto Insurance

Consumer Reports Says Honda Makes the Best Cars in the US