More Than Half of Those Who Lie on Their Car Insurance Get Away With it: Report

2
More Than Half of Those Who Lie on Their Car Insurance Get Away With it: Report

Should you lie on your car insurance? Obviously not, but new research has revealed that less than half of those who do are never found out.

In a new report by CarInsurance.com, just half of those who admitted to lying on their car insurance application said their insurance company caught them.

SEE ALSO: 10 Big Lies People Make on Car Insurance Applications

Those may sound like enticing odd for daredevils but the punishment for being caught is hardly a slap on the wrist. Of those who were busted, 33.5 percent said that when they had to make a claim it was denied, while 31.5 percent said that, once found out, their premiums went up. And those are the ones who got off easy.

A total of 25.4 percent said their policy was canceled (making it extremely difficult to obtain new insurance elsewhere) while 7.6 percent were sued for fraud. Just 2 percent of those caught red-handed got away with no penalty.

SEE ALSO: Get a Free Car Insurance Quote

The number of people lying on their car insurance is hardly tiny. According to the CarInsurance.com survey 34 percent of respondents admitted to either omitting information or supplying false information. Of those, men were more likely to lie than women by a significant margin with 42 percent of men admitting to lying, compared to just 27 percent of women. Age also played a factor with drivers under 30 being three-times more likely to lie than those over 50.

  • Cheer Chen

    This is awful.. don’t they know that if they ever have an accident they will be denied their claim due to misrepresentation?
    If cheap insurance rates are what you are seeking, you don’t need to lie to find them. Just shop around. 4AutoInsuranceQuote and Insurance Panda are two of the sites I use. (I switch polices every six months to keep rates low)… I usually pay less than $25 for insurance. You just have to shop around… you don’t need to lie.

  • Mike

    What could you lie about?