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image of a car driving You've heard about the importance of being honest with your auto insurance carrier. Simply, you need to provide accurate information any time you speak to them. If not, you could be committing insurance fraud. It's important to know what this type of fraud is.

Fraud happens when a person knowingly lies or is otherwise dishonest to a car insurer. In some ways, you might benefit from not sharing information. However, you have to realize that dishonesty is wrong, and it could harm you legally. It tends to have significant penalties.

What Are Examples of Auto Insurance Fraud?

Fraud can apply to any situation in which you do not provide accurate information to the insurer. This may occur, for example, during or after an accident. You decide not to report the accident to your insurer. You fail to provide accurate information about the incident. You did not report the accident to the police. These are just a few examples.

Car insurance fraud can occur outside of an accident or claim situation. If you fail to tell the agency who is driving your vehicle, that can be fraudulent. You may not tell your agent that you received a DUI. You may also be misleading the agent about the amount that you drive.

What Are the Risks of Insurance Fraud?

Lying to your agent is an illegal activity. Laws differ from state to state. However, it is possible that you will face an investigation. If you had the intent to defraud the insurance agency, this could lead to legal action against you. You may face prosecution for this type of fraud if:

  • You intended to defraud the agency. Someone can prove you planned to or knowingly defrauded the agency.
  • You completed the act in some way.

You do not necessarily have to suffer loss. The insurer does not even have to suffer damage. If the agency did not lose money, you can still face prosecution for your actions.

How Can You Avoid It?

You can avoid auto insurance fraud by simply being upfront with your agent. Provide accurate information about your vehicle and all drivers.

Remember, forgetting to tell your agent something isn't the same as fraud. Fraud occurs when you knowingly withhold information from your agent. Be clear about how you use the vehicle. Spend some time discussing your needs with the insurance agent thoroughly. And, if you suffer an accident, talk to your agent about it.

Your agent may advise you not to file a claim. However, this level of honesty is necessary. It can help you avoid fraud claims later.

We've got you covered. Call Raymond Longoria Insurance at 888-296-0345 for more information on auto insurance.

Also check out our 10 Ways to Save on Auto Insurance

Posted 10:10 AM

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Raymond Longoria Insurance
2025 N Conway Ave
Mission, TX 78572
Phone: (956) 581-1034
Toll-Free: (888) 296-0345