While you should always be telling the truth, some people bend it for specific advantages. This can be relatively common when an individual is applying for car insurance. Some people tell white lies to reduce the quote they must pay for car insurance, such as the details about one’s job. While they may have succeeded in the meantime, serious consequences always loom and are ready to strike the moment the lie is uncovered.
If you’ve ever wondered what kind of risk you put yourself into when you lie during a car insurance car application, we’ve listed down a four.
1. Your Policy Might Get Cancelled
If the car insurer catches that you’ve lied or felt like you did not tell the whole truth, they can cancel your policy. While this might seem like you can go to someone else for new car insurance, it will become a lot harder to land one. That’s because you will have to disclose why your previous policy was refused or cancelled. Any claims that are ongoing to the moment the policy gets cancelled will also be concluded right away.
2. You’ll be Liable for Insurance Fraud
Keeping relevant information to yourself, lying, and misinterpreting information are all labelled as insurance fraud, a criminal act. If you were caught and found guilty of insurance fraud, a few things could follow. You might be fined, or, in extremely severe cases, you might even land in jail for a maximum of five years.
3. Your Application Might be Refused
Other than getting your current insurance policy cancelled, your application can also be refused if you lie on your request. That includes non-disclosure, misrepresentation, and so on. When you go and apply for car insurance with another insurer, you will still have to disclose why your previous application with the insurer earlier was refused. As a result, you’ll have a much harder time looking for an insurer that will be looking to work with you.
4. Your Ongoing Insurance will be Voided
Once again, if the insurer finds out you lied or that you withheld information on purpose to win a cheaper quote, they can void your policy right away. Voiding your policy is as if you didn’t have the policy in the beginning. This means that any claims you might have currently will be refused and rejected, leaving you with a massive financial problem in your hand.
In conclusion, it is always smart for you to tell the truth during the application. You would save a world full of headaches by avoiding all the potential risks you could have put yourself into if you were to lie to drop the insurance quote.
With that said, when you go out to make a car application, always tell the truth. Tell the whole story. Even if you didn’t claim previous insurance, state it in the new form.
Tell your insurer of any points that you’ve collected along with any convictions to receive the right premium. While tweaking your job title might be forgivable, we highly recommend that you make it clear what you do. Otherwise, one might be led to believe that you’ve lied, causing you a world of trouble.
If you are looking for car excess insurance in the UK, get in touch with us today to see how we can help.