According to a survey, more than half of all auto insurance applicants are giving false information in order to save a few bucks or lowering their premiums. Car insurance is expensive, this reason alone is the triggers why the applicants give false information. The false information usually about traffic tickets, accidents, the vehicle treatment or the drivers. If the applicants who give false information file a claim, insurance company will find out. Some insurance companies have their own investigators to verify the accuracy of the applications as well as investigate claims. Through the investigations, insurance companies are allowed to give civil fraud penalties and the have the rights to revoke or cancel the insurance policy.

To decide customer's insurance rate, insurance company uses basic information, driving record, credit history, the average number of miles and their vehicle's year, model and manufactured date. They also often ask about your vehicle treatment and where you park your vehicle, is it in the garage or not. The purpose of giving false information - to make an image that the applicant look like a better driver than the other applicant. This strategy is used to lower insurance premiums. All drivers have a chance of getting involved in accidents every year. Not only that, their vehicle might stolen or vandalized. Simply relied on luck is a gamble. You might wish that you don't have to involved in accident and don't have to file a claim. What if you have to file a claim while you give false information beforehand? What if the insurers found out that you lied?

For your information, auto insurers will not give leniency if they know you give false information no matter what excuse you give. You can say that you forgot to tell important information or made a mistake but insurers also have similar history with other applicants who lied before. Auto insurance company may label it as fraud. The consequences is policy cancellation, unable to get new coverage, fines, legal action (to pay back premiums) or even jail depending on how crucial your lies are. These are the typical lies which applicants often tell to auto insurance company: