Every motorist knows the danger of lying to their car insurance companies; lying can easily cause you your coverage. However, some people don't know that omitting an important fact is tantamount to lying. In fact, there are some common omissions that some don't even see as lies; here are a few examples of those lies of omissions:
Number of Household Members
Many of those who commit this lie of omission start out well by revealing the number of people in their household while seeking a quote or purchasing coverage. However, they don't volunteer the information when the number of people in the household changes. This may happen, for example, if they get married, bring their parents to live with them or invite their nephews to live with them. The danger comes when one of those omitted persons incurs an accident; the insurance company cannot be expected to settle a claim for a car driven by a person it has never heard of.
Residential Address or Place of Work
This is an easy lie to make because the insurance company will not keep checking on you now and again to confirm where you live. Again, most people who commit the lie initially tell the truth (during the application), but then fail (intentionally or unwittingly) to update their details when they move or change places of work. Apart from contravening your insurance policy's terms and conditions, lying about your address may also cause you higher insurance premiums if your new address is viewed favorably by insurers.
How You Use the Car
A car's use determines how likely it is to be stolen, vandalized or damaged; your use of the car is also a factor in your risk of an accident. All these are used to calculate your premiums. This is why the car insurance company wants to know whether you use your car for business or personal activities. It will also need to know whether this personal use is restricted to weekend leisure trips or you also use the car for your commute. Therefore, you are committing a material lie when you insure a personal car, but then start using it for your home-based business a few months later.
Therefore, don't think that you are not lying to your insurer just because you haven't submitted wrong information or data. Guard your auto insurance coverage by being utterly honest with the information that may affect your coverage. Who knows, your candidness may even help lower your premiums. For more information, contact companies like Lanham Insurance Agency.