What happens if you lie on your insurance application?
Have you ever lied on an insurance application to ensure the cost goes down? Each year thousands of people lie on their insurance applications in an attempt to reduce the cost, but what they don’t know is you can earn a criminal record for insurance fraud along with your policy becoming void by doing so.
Lying may ensure that your premiums are cheaper in the short-term, but if you were to have an accident or to make a claim of any kind that contradicts what you have told your insurer, you could face a fine and possibly a criminal record.
If your insurer finds out you have ‘bent the truth’ on your application they can ensure the policy becomes void and take you to court for committing insurance fraud.
It appears that Britons are not averse to lying when it comes to acquiring insurance, with the majority of the most common lies directly involving their car insurance.
The consequences of lying on a car insurance application
Lying when applying for car insurance, be it on the phone or online, can have serious repercussions.
Insurance companies have ways of checking to see if you are telling the truth and in turn, will investigate any insurance policies they have suspicions of.
Lying on an official car insurance form is fraud and anyone who bends the truth for a cheaper quote runs the risk of having their policy cancelled and any claim dismissed.
Not only could you face a hefty fine and possibly a criminal record, but lying to an insurer will also ensure your future policies will become more expensive as there will be a black mark against your name for having had a previous policy voided in the past.
Some insurers will not offer a policy to those who have had insurance cancelled, voided or refused in the past, whether it be for car, travel or home insurance and the price of your premiums could go up exponentially, as a result.
There are better ways you can save money on your insurance, the legal way.
The most common car insurance lies UK residents tell potential insurers:
Where your vehicle is kept overnight
Any previous insurance claims/accidents
Annual estimated mileage
The purpose of insuring your car – is it for work or social?
Vehicle modifications
Their occupation and/or use when insuring a commercial vehicle
The vehicle’s value
Modifications made to their vehicle
Looking to lie on your insurance policy? We’ve heard every trick there is in the book, but these are the eight most common lies we and other car insurance companies have been told.
What happens if I lie on a house insurance application?
Just like lying on your car insurance, not telling the truth about the contents in your home, the type of material your home is made of or any other lie, is fraud and could result in a criminal record.
Lying on your household insurance application does not just stop at criminal conviction if caught, but if you are making a claim through a fraudulent insurance policy, your claim will be rejected and you will find it hard to be insured in the future.
You may also face similar consequences if you lie on your health insurance or life insurance applications so it is best to remain fully transparent when filling those out.
Get affordable insurance without having to lie on your application
Adrian Flux is a specialist car insurance and household insurance broker who can tailor your insurance to your needs, taking into consideration all your bespoke needs, to help you avoid hours of searching for a good deal.
The best deals are usually available over the phone, so call 0800 369 8590 for a quick and easy quote or book a callback at a time that suits you.
