January 24, 2010

The Consequences Of Withholding Information From Your Auto Insurance Company

When you begin the search for an auto insurer, you will find yourself asking for auto insurance quotes from a number of companies and hoping one comes at an affordable rate. However, you can be sure the auto insurance agents will be asking you questions as well regarding your driving record and whether you’ve even been in a car accident. You know that answering yes’ will mean a higher auto insurance quote if the company is willing to offer you auto insurance coverage at all.

You need to always tell the full truth on the insurance application. It is legally required that you report all auto accidents you have been involved in, claims you made against previous auto insurer, and/or any driving infractions. Failing to do so could make your auto insurance more costly than if you had been honest up front. Even an accidental omission could end up costing you a lot of money. According to Auto Insurance Tips.com, about one out of every five drivers leaves out some information-whether accidentally or purposefully- when applying for new auto insurance coverage.

Once you fill out an application for auto insurance coverage, the company is going to review the information and verify it. If it is found that you left out some of your driving record, the insurance company may turn you down. If you left out information and still received insurance, your best course of action is to tell the agent you remembered additional information. The auto insurance company is less likely to drop your coverage if you bring an omission to its attention. Your auto insurance rates may still increase, but at least you will still have coverage.

If you already have an auto insurance policy and are involved in an accident, you need to report the incident to your auto insurance agent even if it is a minor accident that you plan on covering repair costs for yourself. You never know when the other driver involved in the accident might make a claim down the road. If your auto insurance company doesn’t know about the accident, then the company may drop your coverage, raise your rates, change your coverage or reduce your auto insurance coverage once the omission is discovered. If you can notify your auto insurance agent immediately following an accident, do so because your auto insurance policy may have restrictions on who can tow your vehicle as well as where it can be repaired. Though you don’t legally need to notify your insurance agent immediately after an accident, you shouldn’t wait for longer than a week before letting your insurance agent know. The longer you wait, the more suspicious you will appear.