When your grandparents purchased insurance, they drove the vehicle to an agent’s office. They filled out an application and the agent took a glance at it to see what type of shape it was in. Lying was rare because folks knew their agents personally. Today, many simply go surfing and get an auto insurance quotes and put in misinformation about themselves in hopes of getting a lower quote or even a better rate for insurance.
They buy insurance and never see an agent in real life. So that the enticement is there to leave out crucial info or not to divulge tickets or accidents in the expectation that the rates will be better. But there are some major results for application for insurance lies. The first effect is that your request can be confounded by the insurer.
They will not just take your word for it when talking of your driving record or your credit report. When they get this info and it does not match your claim they can simply refuse to insure you. Whether or not the policy is accepted the rates could be higher than they would be because now you are thought of as a greater risk to the insurer.
Whether or not the insurance lies aren’t caught at the time the policy is kicked off, if the company learns that anything on the application is fake the policy might be ended right away and you may be left without any insurance. The difficulty may come when you’re in an accident or any type of claim. At the time of the claim, the insurance corporation will research the claim.
They could also have a quick look at your claim, particularly for a first claim. They just have to find one lie on the application and your claim will be denied and they can cancel your policy. If you’ve had an accident or your auto was thieved you might end being out thousands of greenbacks simply thanks to a lie or omission.
The most harsh effect could come if the insurance firm pays out claims under your policy.
Then in the future they discover that you didn’t tell the truth when you asked for the cover. Not merely will the policy be canceled but you may be sued to recover the advantages that paid to you. They may even press legal charges if they feel the buck amounts or the lies told were important. Insurance that you purchase based primarily on an auto insurance quote with a fake application truly does not give you any protection remotely. Almost anyone that wants insurance can get it. The rate could be higher if you’ve got a problem driving record or blemished credit, but at the very least you will have coverage that definitely protects you.