Why it’s best to be honest on your car insurance application

So many factors influence the price of your car insurance premium. It might be tempting to bend the truth a little to enjoy lower monthly payments, but when it comes to car insurance honesty really is the best policy. When you have been completely honest with your insurance company you can trust that your insurance claims will be paid.

When you apply for car insurance, your premiums depend on the risk. If you’re caught out being dishonest, if you claim, your insurer might not pay out, or worse, your insurance might be ‘voided’. If this happens, it will be really difficult (and expensive) to find another company to insure you.

You’re probably thinking a little white lie won’t do any harm, but below are a few lies that you will be busted on, pretty quickly.

Be clear about your profession, and honest about what your average workday involves. If your job title doesn’t match what you actually do, your insurance claim could be dismissed. If you use your car to carry out your work

  • for example, if you are a handyman and you use your truck to get to your various jobs, or if you are a sales rep
  • be sure to state that clearly in your application. If you haven’t been clear about your car usage, and you have an accident during work hours, your insurance company could refuse to pay the claim.

Don’t be tempted to say you park your car in a locked garage overnight or during the day when you’re at work. If your car is broken into, you will need to file a police report with details on where the car was parked.

Insurance companies assess how often you drive your car to understand your risk profile, and to structure your premium accordingly. The premise is simple – the less you drive your car, the less risk you encounter, and your insurance premiums might be lower.

Age matters when calculating your insurance premiums. The longer you’ve been driving, the lower your risk profile. Parents often take out car insurance for their adult children, to benefit from lower premiums, but this is essentially fraud.

The fewer accidents you have had, the lower your insurance premium. Insurers will check your driving record with previous companies who have insured you, so it’s best to be honest with your past driving experience.

Car insurance fraud is ranked as one of the top 10 crimes in South Africa. If you are caught out in a lie, it could lead to losing your insurance policy and even possible legal action against you.  If you are unsure about what to include in your application, it is best to discuss it with an experienced agent. MotorHappy agents are on hand to help you source a range of quotes from South Africa’s leading insurers, and to help with any questions you may have. Click here to get a car insurance quote through MotorHappy.

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