Finance

Why Is It Important to Be Truthful on Your Car Insurance Application?

Car insurance is a must-to-have requisite for every vehicle owner to protect the owner from any possible liabilities that could result from an accident, vandalism, robbery, etc. Applying for car insurance is essential as every state or city requires you to own a valid car insurance application, without which one could be termed ‘illegal.’ 

Car insurance is mainly an agreement binding you, the owner of the vehicle, and the insurance company in a pact that the latter party will cover you in case of any unfortunate event to your car or you. For coverage plans, an insured person will have to pay a certain premium amount to file for an insurance claim in the future. Most people search online for the best insurance prices, which can vary from state to state, say the lowest car insurance in Ontario would be different from that in Hamilton or Ottawa.

It is essential to be truthful while filling out your car insurance application, as any false statement could land you in trouble. Since these statements are documented via the government and come under its notice, it is better not to recline an incorrect thought to derive a claim. Along with being unethical, issuing a false statement on a car insurance application is considered a fraudulent practice deemed to be punishable, if proven by the insurance company, during court trials. Other consequences to such practice could increase the insurance premium amount or terminate the policy on the insurer’s part. 

Below are the points that significantly prove why you should be honest with your auto insurance application – 

  • Coverage Voidance – On discovering the trust, an insurance company can void the coverage plan immediately. For instance, many people tend to lie a little while filing an insurance application. The lie could be related to the false identity of the person who drives the car, ownership omissions, etc. While that other person, unfortunately, gets injured in an accident, you pretentiously mention on your file about your health condition. Since most insurance companies realize these false attempts to seek a higher claim amount, they amend the insurance agreement with suitable clauses that void the insured’s coverage in a situation when an irrelevant or untruthful statement is brought to their notice.
  • Possessions Are To Be Renounced – If an insured person faces an emergency condition that requires him/her to claim their insurance cover, it becomes much of a task if they had lied on their insurance application. Be it the lowest car insurance Ontario, lying on the insurance application gets uncovered in a state of emergency. Having that said, as the coverage is voided, the insured (former) has to abandon the claim of the possession to try and find ways to claim for its compensation. It does require the person to acquire the claim without filing for a claim, which might be a steep price for including an untruthful statement in the insurance application. 
  • Disintegrating Trust and Facing Rejections – Lying and being untruthful on the insurance application not only makes your coverage plan invalid but hits at your trust and loyalty with the insurance company. While your coverage gets void from one insurer, it might be easy to say that you will consider switching to a new insurance company. However, a false statement with a previously associated insurance company could lead to severe consequences while applying for new insurance

If you’re hunting for your auto insurance, My Insurance Broker is here to help you. Our wide range of insurance policies and numerous ways to file a claim makes it easy for our clients to get maximum monetary assistance. You can find competitive pricing on our website and can calculate online how much you should pay for your car insurance for the desired period. To know more about insurance quotes, give us a call today! 

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