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Why You Should Never Lie to Your Car Insurance Company?

Published On Oct 08, 2021 11:00 AM By InsuranceDekho

Buying car insurance is one of the smartest decisions that you should take for your safety and your car’s safety. The concept of four-wheeler insurance works on the leap of faith. You should always be honest with your insurance company. Read this article to know why you should never lie to your insurance company.

Car insurance gives a guarantee of being covered against any loss or damages caused to your car in the event of an accident. Apart from comprehensive and third-party liability insurance, car insurance companies provide a range of add-on covers. As a car owner, you trust your car insurance company and you expect them to provide financial support in case of an emergency. Similarly, the insurance company puts its faith in you. They assume that you provide them with every information at the time of purchasing a policy that is correct and based on truth. If either you or the company lies about any information, car insurance will not work.

It is important for you not to lie or hide any information about your car from your insurance company. Most people lie about the condition of their car while buying insurance. They lie about the car age to lower the depreciation on their car’s value. Some people lie about their claim history. Claim history is important to build a No Claim Bonus and to attract a lower premium on the policy. People hide claims made in the past and declare a claim-free car insurance record. They do so to earn a benefit. But you should never make such mistakes, as your claim can be rejected by the company if you lie to them about any information.

Why You Should Never Lie to Your Car Insurance Company?

Why You Should Never Lie to Your Car Insurance Company?

Being untruthful to your insurance company can lead to unfavourable outcomes and legal consequences. Read on to know what could happen if you lie to your insurance company.

  • Cancellation of Premium

If you provide any wrong information to the company, the company can cancel your policy when they discover the truth. Your car will not be insured and using an insured car can put you at risk.

You may also like to read: Benefits of Renewing Your HDFC ERGO Car Insurance Policy

  • Payment of Penalties

If your insurance company finds out about the lies you told, they may levy a fine or penalty on you. 

  • Rejection of claim

Insurance companies inspect a car when a claim is raised. If you lie to the company about something, the company will know the truth while inspecting your car. Your company can reject your claim and you have to bear the cost of repairing your car.

  • Legal consequences

Any false claim or false documents can put you in legal trouble. The company can file a claim on you for fraud and if proved, you will end up paying a hefty compensation or might end up in jail.

  • Denial of Car Insurance in Future

If the car insurer finds out about any false information, they can cancel your policy. They may blacklist you from getting any kind of insurance from any company in the future. A cancelled policy will make it difficult for you to get any car insurance policy in the future.

Take Away

Being untruthful to your insurance company can cause you major trouble. Instead of lying, provide every document that is required or asked by the company. It will help you get the desired coverage from the car insurance company.

Also Read: 

How To Lower Premium of Your Car Insurance?

Top Factors That Determine The Premium of Your Car Insurance Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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