Home > Help Centre > Blog Perhaps you're thinking about leaving out some information about your home or auto insurance quote? Don’t. It can get you in more trouble than you think. Honesty is always the best policy. People have their reasons for lying to their insurance provider. It is usually for some type of financial gain. They want to save money on insurance, get more money in a claim settlement or try to get a car insurance quote even though they are not eligible. Lying can range from exaggerating claims to supplying false information on your application. Did you know lying to your insurer can have significant repercussions? It could even result in insurance fraud charges. Here we’ll discuss what can happen if you lie to your insurer. People lie to insurers for a variety of reasons. Generally, there are three main reasons why people lie to insurers : If you have been caught lying to your insurer, the consequences can range from minor to major. Here are five consequences for lying to your insurer. People lie to their insurers. It’s a fairly common, but risky practice. Here are the top things people lie to insurers about : Where you live can have an impact on how much you pay, especially in the city. To get more affordable Toronto car insurance, some people try to use a different postal code. If you are caught, it will cost you much more than the money you are saving and it could void your policy. If you drive for Uber or Lyft you need to notify your insurer. But many drivers don’t tell their insurers to avoid an increase. Ridesharing and Uber insurance ensures you are properly covered when accepting rides. Some insurers prefer you not to drive for these ridesharing services. If you rent out a portion of your home to a tenant, you must notify your insurer. You need to tell them even, if you only rent out a room. Homeowners sometimes avoid informing insurers for fear of needing landlord insurance. However, the increase is minimal. Plus, you have peace of mind in knowing you have the right coverage in place. Tenant insurance will also be required for your renter. Inform your insurer of all commercial activity in your home. This includes Airbnb rentals. Even though Airbnb does offer host protection coverage, it is minimal. You’ll need additional coverage through your insurer, called homesharing insurance. Failure to inform your insurer could result in denying a claim or even cancelling coverage. Considering the risks of renting out your home, the extra coverage is well worth it. There are two main types of misrepresentation on your home insurance. Hard misrepresentation is the deliberate planning, invention or execution of an accident to receive a payment. This can include intentionally damaging your home, personal property, staging a break-in or arson.
Soft misrepresentation is exaggerating the loss from a legitimate claim. Material changes to your home should be reflected in your policy. For example, you need to notify your insurer if you install a swimming pool, fireplace or if you start an at-home daycare. Here are common examples of insurance misrepresentations : Inform your insurer if there are changes to your home. Tell the truth about the use and updates to your home. This will ensure you are adequately covered if you need to make a claim. Since costs for coverage are on the rise, there is a temptation for people to lie to save money. Lying can include providing false information, falsifying documents and submitting false claims. Here are examples of car insurance misrepresentations. Yes, lying to your insurer is a form of fraud. If you lie to an insurer your claim can be denied and your policy can be cancelled. You can also face additional legal issues, charges, and fines. Insurers have the right to sue you if you lie on your insurance policy. For example, if you file a home insurance claim for fire damage from a fireplace, but you failed to include a fireplace in your policy, insurers have a right to deny your claim.
Or, if you are dishonest about the number of kilometres you drive to work and are in an accident on the way, your claim can be rejected. If you have been caught lying to your insurer the consequences include increased premiums, denied claims, your policy being cancelled, being denied future coverage, and even criminal charges. You should not lie to an insurance company about a car accident, even if you plan to pay for the damage out of pocket. Changing vehicles or purchasing a new car does not remove your accident or claims from your record. Insurers can use your driving record to see past claims; they will be able to see your driving and accident history. If you tell your insurer you only drive 20 km to work, but you actually drive close to 80 km and get into an accident, the insurer can deny your claim. You should never lie about having winter tires. If you are in an accident, your claim can be denied. Driving with winter tires can save you 3%-5% on your policy and increase road safety, so why lie about it? Lying to your insurer might seem worth it at the time to save a few bucks, but in reality, it is a form of fraud, and it will cost you. Think twice about lying when filling out insurance applications. Imagine what can happen if you need to file a claim and it is denied. You would be on the hook for the repair costs. Always be honest and verify all of the information you are providing to insurers.Lying On Insurance : Consequences If You Lie To Your Insurer
Sep 7, 2020
Why You Should Never Lie To Your Insurance Company
Why Do People Lie To Insurers?
What Are The Consequences Of Lying To Your Insurance Company?
What Are The Top Reasons People Lie To Insurers?
Lying about your address on car insurance
Lying to insurance about being an Uber or Lyft driver
Lying about not having tenants in your home
Lying about renting your property for home sharing
What Are Common Home Insurance Lies And Misrepresentation?
What Are Common Car Insurance Lies And Misrepresentations?
FAQs About Lying On Your Insurance
Lying On Your Insurance Just Isn't Worth It
<<Dash Cams And Insurance : Should You Get One?
Car Safety Features : Which Ones Top The List?>>