Why lying on your insurance policy is not a good idea

WHY WILL NO ONE INSURE ME?

If your car insurance has been refused, cancelled, or voided, this could happen for a wide range of reasons. However, if you are having trouble finding cover for your vehicle, try not to worry as there are plenty of options out there. What is non-disclosure? One...

Defensive Driving Techniques to Avoid Accidents and Insurance Claims

If you want to reduce your risk of traffic accidents and the insurance claims that accompany them — which could cause your premium to go up — you need to drive defensively. Here are some driving tips to help you avoid crashes and stay safe on the road. Always Assume...

Avoid deadly distractions behind the wheel

Not texting is a start, but there's more to safe driving. Here’s the bad news: Distracted driving causes thousands of accidents every year, many of them fatal. The good news? If you're driving, it's 100% preventable. You've seen them around your city or town. You may...

10 Tips to Protect Your Car’s Suspension System

Your vehicle's suspension system ensures a smooth and safe ride, protecting critical components from wear and tear. Understanding and maintaining the components of the system is essential, not just for comfort but also for the stability of the car on rough roads....

The what, why and how of a Vehicle Identification Number

If you’ve ever bought motor insurance, you’re likely to have come across the terms Vehicle Identification Number or VIN and chassis number. You must wonder why insurance companies insist on having this information. That’s because VIN is like a genetic identifier for...

What Is ORVM In Car And How Does It Work?

When you adjust the side mirrors before driving, you deal with the Outside Rear View Mirrors (ORVMs). These mirrors are essential for safe driving, helping you see what’s happening beside and behind your car. This post will discuss what ORVMs are, how they function,...

How to Track a Vehicle with GPS: A Simple Step-by-Step Guide

GPS-based vehicle tracking is today, one of the most helpful tools since it can be employed by any individual or company who wishes to keep track of their cars, trucks or any other vehicle. Thanks to today’s cheap GPS tracking devices, a vehicle owner can easily place...

How To Rebuild Your No Claims Bonus After An Accident

If you’ve had an accident, it can feel like all the good work you’ve put into building your No Claims Bonus (NCB) has gone down the drain. But here’s some good news, you can rebuild it. Your NCB in car insurance works like a reward for safe driving, and that lovely...

Safety Tips For Driving In Floods

Often when we get stuck while driving through floods we panic and force through the water. Instead you need to stay calm and follow these instructions. Situation One: Water Level Is Above Tyre Level  When water level is above the tyre level it's no use forcing...

Car Defogger and How to Use Them?

Have you ever experienced your car windows and windshield suddenly fogging up? It can be scary since poor visibility may cause a dangerous road accident. Driving in the cold or rainy seasons can often lead to foggy windows. This is a common problem, and can quickly...

The concept of car insurance relies on good faith. As the owner of the vehicle you put your faith in the insurance company to provide you with financial assistance when you have an emergency involving your vehicle. Likewise, the insurer puts faith in you by assuming that all the information you provide them with during the underwriting process is correct and based on truth. If either one lies about any information, car insurance will not work. Therefore, it is important to always be honest with your insurance company.

To get a better understanding of this let’s take a look at what can happen if you lie to your insurance company. 

Cancellation of Car Insurance Policy

in the event of false information being provided when insuring an item or renewing your policy, the insurer has the right to cancel your policy when the truth is discovered. This happens because the incorrect details provided by you makes the policy invalid. As a result, your vehicle will be without insurance until you find alternate cover. Putting your vehicle and yourself at a risk.

Rejection of a claim

Insurance companies sends an assessor to inspect the vehicle when a claim arises. The assessor will carefully examine every part of the vehicle to better understand the extent of damage. If you had lied about something a claimed for an uncovered risk, the assessor will find out the truth. The insurer can then reject your claim and you will have to repair the damages on your own.

Payment of penalties

if the insurer finds out that you lied at the time of underwriting a new policy or renewing a policy, the insurer can levy a fine or penalty on you. You may be required to pay a fine to continue with your insurance and prevent the insurer from lodging a legal complaint.

Legal consequences

An insurance policy is a legal contract between the insurer and you. Any breach in the contract can land you in legal trouble. A complaint of fraud can be filed against you by the insurer. If proved you could pay a hefty compensation or land yourself in prison for telling a major lie.

Increase in your premiums

The insurance company generates the premium based on the information you provide. Lying to the insurance company to get a lower premium means that you are insured incorrectly. When the insurer finds out the truth they may increase your premiums, that is if they still wish to keep you on as their client.

Denial of car insurance in the future

When an insurer finds out that you provided false information when taking out or renewing the policy, they can cancel your policy on the accounts of fraud and manipulation. A cancelled policy due to fraud can make it difficult for you to obtain insurance in the future. Lying can land you in major trouble. Instead of lying to get a cheaper premium, it is better to compare quotes before committing to an insurer. Doing so will enable you to get the best cover without putting a hole in your pocket.