What Happens When You Lie on Your Auto Insurance Application
As a motorist, you may know that some areas are tied to higher insurance rates for auto insurance in Antioch, CA. This could be because of the higher risk of theft, vandalism, and an increase in reported claims. Perhaps you’ve been tempted to lie about where you live on your auto insurance application to enjoy lower premiums. Perhaps you never changed your car insurance after moving to a new state. If you’ve lied about where you live, there are a few things you should know.
Your claim could be denied
Lying to your insurance company – whether it’s for auto insurance, home, health or otherwise – can easily cause your claim to be denied and for the company to drop you from coverage. Since your location plays a critical role in your car insurance premiums, the insurer could have missed out on hundreds of dollars’ worth of premium payments. As a result, they may refuse to pay your claim and they could consider it fraud.
Your location factors into your insurance premiums
Insurance companies will use your location, driving history, demographic data, and other factors to calculate accurate insurance premiums. Different ZIP codes will have vastly different insurance premiums. For example, an unsafe neighborhood that reports high claims for vandalism and theft will undoubtedly have higher premiums than a safe neighborhood with few reported claims. When you lie about your location, it means your insurance company isn’t charging accurate premiums for your car insurance.
What happens if I live in multiple places?
Some situations are more complicated than others. Your insurance company wants to know the address of where your car is parked most nights of the week. If you live in a city but visit your parents on weekends, you cannot use your parents’ address to get cheaper insurance rates. If you do get into an accident and file a claim, then the company will investigate to ensure your location is accurate.
Finding the right auto insurance for your needs doesn’t have to be difficult. Talk to the team at Jack Stone Insurance Agency to get started on your reliable coverage.