When applying for insurance, it might seem tempting to “bend the truth” to save some money or secure better coverage. But be warned: lying on an insurance application can lead to serious consequences—financial, legal, and even criminal. Here’s what you need to know before you make a costly mistake.
What Counts as a Lie on an Insurance Application?
Insurance companies rely on the information you provide to calculate risk and determine premiums. Falsifying or omitting any information can be considered insurance fraud.
Common examples include:
Misrepresenting your age or address
Failing to disclose existing health conditions
Understating the value of your home or car
Claiming false business income or operations
Omitting drivers from auto policies
Saying a vehicle is “garaged” elsewhere to get a better rate
Short-Term Gain, Long-Term Pain
It might feel like you’re “getting away with it” at first. Your application is approved, your premium is lower, and you feel secure.
But here’s what can happen when the truth comes out:
1. Policy Cancellation
If the insurer discovers the lie before a claim is filed, your policy can be voided entirely. This leaves you without any coverage, and often, without a refund.
2. Claim Denials
If a claim is made and the insurer investigates (which they always do for large claims), your dishonesty can lead to total denial—even if the claim is unrelated.
3. Premium Increases
Your record will be flagged, and future insurers will charge higher rates—or refuse to insure you at all.
4. Legal Consequences
In serious cases, especially where fraud is intentional and involves a large payout, criminal charges can apply.
Honesty Pays Off—Literally
Providing truthful and accurate information allows your agent to:
Match you with the right policy
Apply legitimate discounts (like safe driver or multi-policy)
Help you avoid future issues or disqualifications
Ensure your claims are paid quickly and fully
What Should You Do If You Made a Mistake?
If you realize you’ve given incorrect information:
Act fast. Contact your insurance agent immediately.
Correct the record. Many issues can be fixed if done early.
Review your policy annually. Life changes—your insurance should too.
Trust Goes Both Ways
Insurance is a safety net for when life takes an unexpected turn. But that safety net only works when both sides—you and the insurance company—are honest.
At Best Choice Insurance, we believe in building transparent relationships with our clients. Our job is to help you find affordable, honest, and effective coverage—no shortcuts, no tricks, just peace of mind. Need help reviewing your policy or applying for the right coverage?
Call us or visit bestchoiceinsurance.net — our team is here to guide you step-by-step.