Don’t lie on your car insurance application

Some people lie on car insurance applications to get a cheaper rate, but that can get you in a lot of trouble.

According to PEMCO Insurance, here are some of the most common car insurance lies:

  • Underestimating mileage
  • Inaccurate garage location, which means you park your car in a safer neighborhood than you really do
  • Who is or isn’t driving the car
  • Claiming discounts that don’t apply
  • Don’t mention the car is used for business
  • Omit tickets and accidents

Insurance rates are based on the risk you represent. For example, according to, high-risk drivers can be people with a DUI or DWI conviction, involved in serious accidents or a new driver.

Companies will check your driving record, claims databases and use other resources to make sure you are the risk that you say you are.

" If you're paying less money than your actual risk that means other people are being overcharged," said Kristine Zewe, the Underwriting Quality Manager at PEMCO Insurance. "A lot of people just think that it's the insurance company's money, but it's really not. Those premiums come from all of our policy holders, so these are your friends and neighbors that are being impacted by this."

There's a lot more information insurance companies can find out about us online.

If you get caught in a lie, there are consequences. In a survey by, people said a claim was denied.

"Other people had their policies cancelled," said Zewe. "For a small few about 8 percent, they suffered more serious consequences including lawsuits from their insurance company as well as criminal charges because misrepresentation on your application is in fact insurance fraud."

If you don't know what to put on your car insurance application, just ask your insurance agent. They can give you advice on how to get the information you need.