UPDATED: Nov 28, 2011
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A recent poll of young drivers revealed that nearly 70% of those questioned have lied on an insurance application in order to reduce their premiums. This may come as a bit of a shock to the drivers that they could be causing their policies to be invalidated.
Insurance companies are commonly checking all the i’s and t’s after a
large claim in order to ensure that the policy owner was holding up their end of the bargain. It would be a rude awakening to find out saving a few bucks on a premium payment actually caused you to be liable for a large accident you were involved with.
What is commonplace among these young drivers is what is called ‘fronting’, where they intentionally put their parents as the primary driver in order to reduce the premium. It is also common for them to say their car is stored primarily in the garage when it is in fact parked on the street where it is more likely to be vandalized or stolen.
The final lie that many of these young drivers tell insurance companies would probably be classified as information being withheld. When adding additions to their car such as engine upgrades, exhaust, or other structural changes, almost 4 out of 10 neglect to inform their insurance company.
It is important when purchasing auto insurance or making changes to your vehicle that you keep your insurance company in the loop and not withhold information. What could seem as an innocent slip or small detail, could actually be grounds for the company to rescind your contract altogether. Rescinding is when they nullify your insurance coverage from the beginning of the term; therefore any accident you are or were involved with could fall on your shoulders and pocketbook.