What Happens if You Provide False Information on Your Car Insurance?
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Consequences of Lying to Your Car Insurance Company

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What Happens if You Provide False Information on Your Car Insurance in San Diego, CA

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Knowingly presenting false information to an insurance provider could lead to severe consequences, including jail time. If you’re unsure about a specific incident or can’t give accurate information, it would be a good idea to let your provider know to determine the best options. Regardless, it’s best to be honest to avoid the following consequences, outlined by the professionals at Altra Insurance, providers of auto insurance San Diego drivers trust for reliable, high-quality service.

Denied Claim

The claim you file could be denied, leading to significant financial burdens, especially if you’re responsible for the accident and injuries of the other driver and/or passengers. An auto insurance company will verify the details of the accident and often require you to submit a police report and other details, allowing them to determine what’s covered and what isn’t. Regardless of whether you feel the provider should cover the cost, submitting a false claim is never a good idea. You want the request to be paid, not denied and potentially ending your policy eligibility.

Criminal Penalties

Submitting inaccurate information to an insurance provider could lead to legal consequences in the future, which include fines. The penalty amount generally varies depending on your location, the severity of the accident, and specific regulations. If your insurance provider has submitted compensation for an accident, you’ll be responsible for that repayment, and the pricing varies from incident to incident.

Increased Premiums

After falsifying your claim or eligibility information on an application, the provider could not only deny your claim or insurance, but it could also lead to a bad reputation followed by costly coverage. To take a chance on you, other insurance providers may require you to pay a down payment or increase your premium. These increased prices and extra funding are due to the risk posed by your inconsistent behavior and claims. The insurance company wants to make sure it can cover any cost associated with false information you may submit now or in the future.

Jail Time

Spending time in jail is possible when you provide false information to your car insurance company. Even after you’ve served time or been on probation, the criminal charge could become permanent. As a result, you could be denied insurance coverage in the future. A criminal record could also prevent you from getting various job opportunities, especially those careers that involve handling money or accessing people’s accounts. To avoid jail time or a criminal record, be honest when making reports and claims to an insurance provider and completing your initial application.

Canceled Policy

It’s illegal to operate a vehicle without auto insurance in California, so you’ll need to find coverage quickly once a policy is canceled. However, it could be challenging to find an insurance provider in the future with a canceled policy. Non-disclosure cancellations can stay on a person’s record for years. Auto insurance companies check the records of their applicants, searching for issues like cancelations or a history of non-disclosure. Therefore, you must be honest when submitting paperwork to your current provider.

Insurance exists to protect you and your property, but those who abuse the system make it more difficult for those who have valid claims. It’s important to make sure you have high-quality auto insurance to protect yourself in the future. If you need affordable, reliable car insurance, look no further than the trustworthy pros at Altra Insurance Services. We can take care of a variety of your insurance needs, including motorcycle, homeowners, and business insurance. Give us a call today at (800) 719-9972 to find out more about our high-quality insurance products and impeccable service.

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