Can you lie when applying for car insurance?

Asked by: Dock Kling  |  Last update: February 25, 2023
Score: 4.1/5 (11 votes)

Absolutely. Lying on your car insurance application is fraud and may subject you to criminal penalties in the most extreme cases.

What happens if you lie on a car insurance application?

For starters, if you are caught out, perhaps because your car is involved in an accident and the false information you gave comes to light, it will cost you dearly. Your insurance company may refuse to pay out or even seek to recover damages from you. You will also be blacklisted by other insurance providers.

Can you lie on a car insurance policy?

Intentionally lying to your insurance company is a form of fraud, and could result in fines, community service, or even jail time. If you lie to your insurance provider, you could be denied coverage, quoted higher rates, or face penalties like fines, community service, or even prison.

Can I lie to get cheaper car insurance?

Lying on your application is considered to be fraud, no matter how mild it may seem. The consequences can be as small as being dropped by your insurance company, or as big as owing thousands of dollars for damages after an accident because you're denied coverage.

What can prevent you from getting car insurance?

What are the reasons why you can't get car insurance?
  • You haven't driven in years or don't have an insurance record. ...
  • You're a new driver. ...
  • You live in a high-crime area where theft and vandalism occur often.
  • You have a high-performance car that runs a higher risk of being stolen.
  • You have a poor credit score.

What Happens When You Lie on an Insurance Application?

15 related questions found

What are three reasons you can be denied car insurance?

There are certain reasons why your car insurance company might deny coverage, including:
  • You exceed the policy limits.
  • You break the law while driving.
  • Not being honest on your car insurance application.
  • Making fraudulent claims.
  • Too many claims.
  • Your car is too expensive to insure.

Do insurance companies run your credit for a quote?

It is true that insurance companies check your credit score when giving you a quote. However, what they're doing is called a 'soft pull' — a type of inquiry that won't affect your credit score. You'll be able to see these inquiries on your personal credit reports, but that's it.

What happens if you lie about how much you paid for a car?

When charged as a misdemeanor, you would face up to one year in county jail and/or up to a $1,000 fine. If you are charged with a felony offense, you face up to three years in state prison or a fine of up to $10,000, or both.

Do car insurance companies check where you live?

The insurance company wants to know where you live, what car you'll be driving and all about your driving history. It might be tempting to tell the occasional fib to cut the size of your car insurance bill. But when it comes to buying a motor policy, being economical with the truth could end up costing you dearly.

Can insurance companies find out about previous claims?

Most car, home and travel-insurance providers submit information to CUE, which typically stores details of insurance claims for six years. Insurance providers use CUE to calculate the cost of your premium, based on your claims history, so always be accurate and honest about any past claims when you buy car insurance.

Do car insurance companies check your license?

The simple answer is yes. You cannot avoid having your driving record checked if you want auto insurance. The company will ask for your driver's license number and get your records based on you as an individual, not based on the vehicle's. Your driving record follows you, no matter how often you change your cars.

Can insurers check if you have had a policy Cancelled?

Cancel your insurance

Future insurers will ask if you've ever had a policy cancelled or voided before and, depending on the reason for it, they could refuse to offer you cover as well.

Do people lie on insurance applications?

According to a study from, an estimated 35 million Americans have lied on an insurance application. Almost one in three (29 percent) of the people who have lied on an insurance application have done so for car insurance.

Can I lie and say I don't have insurance?

Lying to your insurance company can get you into big trouble. Even if the lie seems small, it's insurance fraud. You are knowingly deceiving your insurance company to benefit, which can result in jail time, fines, and license suspension.

Can I insure my car at someone else's address?

While it may be tempting to use someone else's address for car insurance to get better rates, you should not do this. If your car insurance address is different to your home address, that's fraud. Letting someone use your address for car insurance also falls into the fraud category.

Is it illegal to not change address on car insurance?

Motorists should also keep insurers updated if they decide to move to a new address in the future. “Failing to notify your insurer of changes to circumstances, including address, could actually result in you being refused when claiming on your insurance.

Does Wrong address invalidate car insurance?

If the wrong address was purposely provided on the policy application in an attempt to reduce the premium, this could be considered material misrepresentation. When it happens, it is grounds for policy cancellation or denial of coverage in the event of a loss.

What happens if you lie to a car dealership?

Fraud Claims Against a Car Dealership

If your dealership outright lies to you, you may be able to sue for common law fraud. Although state law varies, you generally need to establish the following: The dealer made a false representation of a past or present material fact.

Can you lie about your income on a car loan?

Knowingly providing false information on a loan application is considered lying and is a crime. For instance, putting an incorrect salary or falsifying documents would qualify as lying — and can impact you in serious ways.

Do I need a bill of sale in California?

In the state of California, it is required that you have a completed bill of sale before you register the vehicle. So you'll need to bring a copy of your car's bill of sale to the DMV when you go. You will also need to have your bill of sale in order to have the title of the car transferred.

What is a good credit score for car insurance?

What, then, is a good credit score to get a car insurance policy with competitive prices? A score in the “good” range — between 670 and 739, according to the FICO scoring model — is generally considered to be the baseline for competitive pricing.

What is a good credit score for insurance?

Insurance scores range between a low of 200 and a high of 997. Insurance scores of 770 or higher are favorable, and scores of 500 or below are poor. Although rare, there are a few people who have perfect insurance scores. Scores are not permanent and can be affected by different factors.

Does car insurance do a hard credit check?

No, there is no “hard credit pull” when you get a car insurance quote, so shopping around won't impact your credit score. A hard credit pull generally happens when you apply for credit, such as a mortgage or credit card.

Do insurance companies always check cameras?

Absolutely! It is the insurance adjuster's job to find evidence to deny or minimize claims. The adjuster will explore every avenue available in order to do that with your claim.

Which is a common reason why insurance claims are rejected?

The claim has missing or incorrect information.

Whether by accident or intentionally, medical billing and coding errors are common reasons that claims are rejected or denied. Information may be incorrect, incomplete or missing.