Examples Of Misrepresentations That Jeopardize Your Auto Insurance Experience

The insurance industry works best if all players are honest and open with their information. For example, your insurance company expects you to be honest with your insurance information, from coverage application to claim filing. Leaving out critical information or fibbing counts as misrepresentation and might damage your relationship with your insurance company.

Below are examples of such misrepresentations.

Listing the Wrong Primary Driver

Auto insurance companies evaluate drivers when quoting insurance rates. However, the companies also know that cars have multiple drivers. For example, in a family of two parents and kids, everyone may drive a parent's car. As such, an insurance company will base its rates on the primary driver who drives the car the most.

Therefore, your insurance company might suspect you of fraud if you list the wrong primary driver. For example, if you drive your spouse's car more than they do, the insurance company might think you are the primary driver and not your spouse.

Leaving Out Some Drivers

Even though the primary driver's risk profile largely determines the rates, the insurance company also needs information on the other drivers in the household. Thus, all drivers in your household should appear on your insurance application. The insurance company won't be happy if you leave out a driver.

Not Informing Your Insurer After Moving

Your car insurance company wants to know your residential address because it determines the roads you frequent and your car's risk of theft, among other factors. For example, safe areas attract lower rates than dangerous areas.

The insurance company expects you to update your address after moving. Otherwise, the company might think you intentionally omitted the information because your new residence is more dangerous than the old one.

Not Informing Your Insurer About Car Modification

Your auto insurance company also needs an accurate car profile to determine risk exposure and rates. The car's make, model, value, and age affect the rates. Thus, it makes sense for the insurance company to require your notification if you modify the car and affect its profile.

For example, you should inform the company if you raise the car's ground clearance. Such modification raises the car's center of gravity and accident risk. If you don't inform the company about the modification, it might think you want to pay low rates for a risky car.

Be clear with the information you give your insurance company, just as you expect them to be forthright with their communications. For more information, contact an auto insurance agency near you.