Statistics show that it is quite common for people to lie to insurance providers when applying for insurance. A recent survey of 3,000 consumers by CoverHound revealed that 51 percent of car insurance applicants did not give truthful information to insurance providers.
Some consumers may have made an honest mistake and others lie in order to get cheaper car insurance rates. Lying to your car insurance company comes with serious consequences. Insurance companies have the right to cancel your car insurance policy at any time for material misrepresentation when they become aware that customers are not honest.
A report by Quality Planning Corporation in San Francisco found these to be the most common misrepresentation customers tell insurance companies:
- Under-report the amount of miles driven
- Not reporting every driver in the household
- Giving inaccurate garage location
- Claiming discounts that they are not eligible for
- Not disclosing how the car is used