Consequence of Lying to Your Car Insurance Company

Car insurance companies are very strict on theirirregularities. Besides this, insurance companies now
insurance packages and most times, they look athave penalties that are meted out on culprits of this
your details to be able to award you the necessaryact. These include:
insurance. Therefore, it is not uncommon to find car1. Cancellation of the Insurance Policy.
insurance buyers looking for ways to falsify theirAll culprits will lose their rights to any form of
details in the bid to reduce their premium price andinsurance with the company of they are caught. This
get cheaper car insurance quotes. In fact, researchmeans that all the monies paid prior to that time will
has shown that in the UK alone, over 10% of allnot be retrieved or paid back and the driver will
drivers have lied at a point in time about their detailsforfeit all attendant benefits.
or records while in the US, it is estimated at a2. All Claims will be lost and denied.
whopping 27%. Details that are mostly lied aboutAll drivers caught in the act of falsification will be
include the age and address of the driver. In somedenied all claims. During accidents, most drivers and
cases, drivers have been known to leave outcar owners resort to the insurance company to offer
speeding tickets, drunken driving records and bans onsome form of relief. Even if the claims are genuine,
driving they may have received.the insurance company will desist from making the
Sadly, many drivers seem to think this is the normrequired payment if it detects false information.
and therefore lie about all these when they are3. Blacklisting in all car insurance companies
applying for an insurance policy. And this is furtherDepending on the severity of the false information,
influenced by the thinking that the companies aremost insurance companies will willingly blacklist the
mandated to pay and reward them. Most informeddriver thus making it really hard for him to drive his
drivers know that falsifying your records is seen ascar.
fraud while the uninformed drivers think it is ok to lie4. May pay Fines
about their records. The truth is insurance companiesIf the driver is found guilty of severe falsification or
are beginning to catch up with this trend and areunder the insurance act, he would be required to pay
taking steps against the frequent occurrence of suchthe sum of one hundred thousand dollars and another
acts. One of these steps is in the installation oftwo hundred thousand dollars if there are other
software that will function as a lie detector and willoffences discovered.
compare all the different data for traces of5. Jail Terms.