The Importance of Accurate Applications For Auto Insurance

Auto insurance is something that every person who owns or leases an automobile must deal with. Not only is auto insurance required by law, but it also protects us in the event of an accident. In order to fully enjoy the benefits of that protection, however, it is critical that you are accurate and honest when initially completing your application. Whether it's your first time shopping around for a policy or whether you're looking to switch insurance providers, the information below will help you avoid some common pitfalls.

It is extremely important to be accurate when completing the applications required by the insurance company. There are various sections within the application, each requiring different types of information.

Vehicle Information

First, the auto insurance company will want to know all about your car. Make and model are a given, but you may also be asked body type, number of cylinders or engine type. If you do not know the true answers to these questions, make sure to look in your car's owner manual or to ask a trusted mechanic.

Next, the insurance company will want the auto's Vehicle Identification Number (VIN). This number will help them research to see if the car has ever been reported in an accident.

If the information you supply to your insurance company on the application is incorrect or inaccurate, you may end up insuring a vehicle that doesn't even belong to you (in the case of writing the wrong VIN on the application) or forfeiting your coverage altogether.

Driver Information

In this section, the insurance company will want to know the name, birth date and driver's license number of each person to be named on the policy. You may also be asked to note any persons who live in your household but will not be covered. It is very important to be honest and to include anyone who may drive your vehicle, no matter how seldom.

The application may contain some questions as to the driving history of each driver you want included on the policy. Generally insurance companies are most interested in any accidents you've had or insurance claims you've made within the last six years. It is important to be truthful and accurate with your account of each driver's record.

Insurance companies will either require you to provide or request directly from the DMV an official driving record. If you are perceived as trying to be dishonest in the application process, you may be denied coverage.

The Importance of Accuracy

Several things can happen if you are not thorough and accurate in the application process. Omission of pertinent information can result in denial of coverage. Also, since auto insurance applications include a statement confirming the completeness and accuracy of the information, you could be found guilty of breach of contract or fraud. If omissions are discovered, your insurance can be deemed invalid or be cancelled. Cancellation of your policy due to misrepresentation can also result in higher premiums down the road.