Non-disclosure is failing to communicate something relevant accurately or correctly to your auto insurance provider. Many people withhold information or lie to get low premiums. Some consequences of non-disclosure are the cancellation of your policy, denial of your claim, and an increase in your premiums. Here are the common forms of car insurance non-disclosure.
This form of non-disclosure occurs frequently when a high-risk teenage driver is listed as the principal driver of a car whose insurance policy is in the name of a low-risk driver. Many individuals do this to qualify for lower rates for their children.
Fronting is insurance fraud and can result in penalties. For example, some insurance providers will charge higher backdated premiums. In the worst-case scenario, your policy will be invalidated.
Your insurance provider expects you to disclose information regarding your medical conditions. Lying about a severe medical condition could nullify your policy. You should always confirm with your insurance agent which medical conditions you need to inform them about.
Many car insurance companies are mainly concerned about your eyesight. If you have poor vision and are involved in an accident, you may lose your claim if you haven't disclosed this information.
Number of Miles You Drive
The more you are on the road, the higher your likelihood of being involved in an accident. Many motorists indicate a shorter daily commute. Lying about your driving habits makes it harder to explain an accident far from your home. You need to give the correct number of miles you drive to avoid a denial of your claim after an accident.
Accidents or Tickets
Insurers are mainly concerned about the accidents or tickets their clients have accumulated throughout their driving history. It's easy for insurers to confirm information regarding your driving record. Therefore, if you were involved in a fender bender or speeding ticket, don't lie about it. If your insurer realizes you have withheld this information, they could cancel your policy.
How a Vehicle Is Used
Another thing you should inform your insurer is how you will be using your car. For example, if you state that your vehicle is for social or domestic reasons, but you use it to commute to work, you risk your cover. For example, if you are usually on the road during rush hour, you have a high chance of being involved in an accident. In this case, your premium should reflect that.
One of the greatest mistakes you can make when applying for car insurance is non-disclosure. If you are after low premiums and discounts, there are many resources that can help you compare the rates and offerings of different insurance providers. Make sure you choose an insurance provider that meets your needs instead of lying to achieve your goals.
For more information on car insurance, contact an insurance agent near you.