1. Are you lying on your car insurance application?
Lying on your car insurance application could lead to serious consequences. Your policy could get
cancelled or your reported claim could be denied, or worse, you might be denied car insurance
coverage in the future. If you’re found guilty under the Insurance Act, there’s a chance you could be
fined up to $100, 000 for the first offence. Clearly, being honest on your car insurance application can
save you precious time and money.
If you’re even so much as THINKING about fudging these details on your application, think again:
Miles driven
Some people might unintentionally make a mistake about the number of miles they put on their car,
while others might intentionally lie about the number of miles they drive in order to get a low-mileage
discount. In either case, underestimating the number of miles you drive on your car insurance
application is not a good idea. Try to be a little vigilant about the miles you put in on your car. If you’ve
recently switched jobs and your commute has gotten longer, make it a point to call your insurance agent
and let him know as soon as possible.
Not listing all the licensed drivers in the household on the policy
Parents to teenage drivers sometimes ‘forget’ to add their licensed teenaged kids to their policy.
Teenagers are inexperienced and are considered as high-risk drivers by insurance agencies. Hence, if
they wish to buy individual policies, they are charged considerably higher premium rates. Adding them
to your policy is a comparatively cheaper option. Instead of not adding them to your policy, consider
other ways of lowering costs. Insurance companies offer discounts to young drivers as well. Discounts
such as good student discount, defensive driver discount and discount for installing security devices to
your car are a few to look into.
Lying about where your car is parked
This is a common problem in big cities. People don’t have space to park their cars and are forced to lie
about it on their application forms. Parking in a garage might cost you a little more than parking on the
street, but it is ultimately the safer (away from the city’s wear and tear and bad weather) and a more
convenient option.
What your car is used for
Some people use their car for daily transportation, but there are others who use their car for business.
Such people might be offered a discount by some insurance companies. It is in your best interest to be
very clear about what you’re using the car for when filling in your car insurance application.
You might not realize it right away but providing inaccurate information to your insurance provider
deliberately to lower your premiums is NEVER a good idea. What you do to get temporary discounts
might actually cost you a big buck. Be careful, be wise.